To date, the policy conversation surrounding the ITS innovation deployment has been primarily with governments, research organisations, industry experts and consultancies – all taking the lead in framing the debate at a local and national level. Municipalities and national governments, companies as well as entrepreneurial and smart cities, regions and countries have already floated mobility solutions such as Mobility as a Service (MaaS), Transport as a Service (TaaS), Infrastructure as a Service (IaaS), and others where the intelligent systems have various applications. Still there are policymakers in Europe that remain unaware of the topic and the challenges, and this makes it difficult to design sound policy to support and respond.
This is precisely why the NEWBITS conference is taking place at the European Parliament to raise awareness among policy-makers as well as to share scientific facts and results, concepts, definitions and policy approaches.
Let me begin with a few facts from the developed markets – the intelligent transportation system market is largely dominated by North America and Europe, where the strong presence of key players offering ITS services and products is easily monitored. North America holds the largest share of the global ITS market followed by Europe. The European Commission aims to make more use of ITS solutions to improve journeys and operations on specific and combined modes of transport. The Commission supports innovative projects andensuresthat they are rolled out consistently.
However, publicly funded projects tended to prioritise the development of technological ITS innovation, the establishment of interoperable standards, increasing the efficiency of transport management, and improving ITS deployment overall, rather than the needs of citizens and demands of customers. This must change, particular if Europe wishes to become a global leader in the area. The need is for the development of innovative ITS applications and services that take into consideration expectations of users and start off with collaboration of stakeholders. A development that will reach and satiate the markets faster. However, for the European ITS industry to make such a shift the emergence of new business modelswill have to be assisted by policy-makers and embedded in new legislations.
To understand better the conditions that affect the ITS innovation deployment, NEWBITS applied an improved value network-based framework that minimizes failures inherent to this process and evolves the current business models. Through a thorough search of industry opinions and practices, the consortium identified the existing barriers and enablers for the deployment of ITS services in Europe. This gave us an elaborative overview of systematic categories of barriers and enablers, which demonstrate a constructive industry analysis of current conditions that lead to deployment failures. The top 5 ones are as follows:
|Top 5 barriers||Top 5 enablers|
|Institutional||1. Lack of a sufficient legal framework
2. Lack of political prioritization
|1. Supportive regulation and clear legal framework
2. Increasing political commitment
3. Enhanced public-private partnerships
|3. Lack of funding
4. Lack of attractive business models
5. Current infrastructure not ready to integrate innovative ITS technologies
|4. Innovative funding schemes
5. Sustainable business models
To respond to specific challenges that delay ITS deployment in Europe, the NEWBITS methodology exploited at a conceptual level – the business ecosystems, and at an operational level applied the value network approach. This shed more light on how companies cooperate and collaborate to create and exchange value in innovative ITS projects, which allowed us to develop a five-step formal process for crafting new business models described as a network with shared value and risks among all stakeholders.
Moreover, the designed business models were then validated by an extensive Cost – Benefit analysis, the conclusions of which were enhanced in a practical framework with critical success factors and performance indicators. The goal is to accelerate ITS deployment in Europe. Based on this work we were able to provide the industry with business case guidelines. These guidelines are aimed not only at those who may already hold a fixed conception of the future of mobility in smart cities, but hopefully also those in smaller towns and rural areas in need of a precise plan of how to advance ITS services in their communities.
Finally, to improve the actual cooperation between stakeholders in innovative ITS projects, we developed a NEWBITS Network Platform (NNP) to providestakeholders with various opportunities through the differing functionalities to communicate, interact and exchange knowledge and practices. It gives them incentives to expand their collaboration and design their own networks with Communities of Interest.
While the overall NEWBITS methodology is evidence-based,deriving conclusions from four cases – Spain, Italy, the Netherlands and the United Kingdom – each network executes unique characteristics that emphasize the complexities surrounding the ITS innovations, and particularly their deployment. All four cases are briefly described below:
Case Study 1: Spain
This is the VaoPoint case study an ITS carpooling system developed as part of the mobility policy of the Autonomous University of Barcelona, one of the largest state universities in Spain. The caseis based on developing a web-based system and mobile devices that allow users to connect with each other and agree on shared journeys that, via geolocation and tracking through their smartphones, can guarantee that the vehicle has really been shared. And, when the vehicle arrives at the campus, provide a parking space in a reserved area. The most relevant part of the system is the software that supports it, but other actions must also be carried out, such as the adaptation of spaces, from free parking to accessible parking by means of identification.
Case Study 2: Italy
The C-ITS platform monitorsdrivers’ behavior – the case focuses on the urban road transport mode, with the primary involvement of private users and public transport (secondary). It is restricted to the City of Verona. Communications are based on cooperative-ITS real time messages that can both run on short-range and long-range communication systems (by Telecom Italia). It is intended to improve the urban traffic performances, through improving driving behaviours and control systems.
The C-ITS applications deployed and piloted in Verona accord with the city’s priorities. These included adaptations and extensions on basic applications and platform functionality, based on I2V communication technology. The vast majority of Verona city centre was considered for the pilot.
Case Study 3: The Netherlands
Case study 3 is about a track-and-trace service for container transport from the sea port to the hinterlands by inland waterway and truck. The service visualises in a dashboard the real-time status, location and Estimated Time of Arrival of containers from the moment the sea port is approached up to the moment at which the container reaches the warehouse, and providesthe following information:
- A centralised overview of the container planning
- Continuously updated Estimated Time of Arrival
- Actual Time of Arrival
- Container status (e.g. customs information, commercial release).
Right now, the project is in a pilot phase in which the containers are followed for a single logistics chain from Rotterdam to a warehouse in Limburg; this route will be tested and different partners will experience some of the cost&benefits generated by the service.
Case Study 4: The United Kingdom
Case Study 4 consisted of a Pilot Study carried out by Coventry University with Funding from Network Rail, to collect infrastructure (electric system) data from a single train running on a single line (London-North West) in the UK. The pilot designed and tested a mechanism for collecting the data using passenger trains, transmitting it to Coventry University for secure storage and analysis, and providing infrastructure managers in the railway industry with a visual outline of the evolution of the infrastructure in order to inform decision making in the form of predictive maintenance. Technologies enabling predictive maintenance, reducing operating costs and extending a fleet’s lifetime, have the potential to deliver huge financial and non-financial rewards.
Through the analysis of all four cases in different work packages, we show the emergence of new business models described as networks, where stakeholders collaborate effectively by undertaking a particular business role and executing specific functions that add value to the network as a whole.
Ultimately, the proposed policy recommendations highlight the necessity of approaches that the European policy-makers will have to consider in order to allow the emergence of such new business models for the ITS services and applications.
Additional details about:
WP2 Presentation “Main barriers for the implementation of ITS services” in D2.2
WP3 Presentation “Market analysis and conjoint analysis of Case 1”in D3.1& D3.3
WP4 Presentation “Developing an innovative business model for Case 1” in D4.3 Report on Value Network Analysis for NEWBITS
WP5 Presentation “Validation and guidelines for Business Case 1” in D5.1
WP6 Presentation “Novel ITS online collaboration platform newbits.eu”