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Tuesday, 13 January 2015 14:05

FOTsis business model generation based on the C-ITS brand

The FOTsis consortium is glad to inform that the initial stage of business model generation has been completed and the preliminary business models for FOTsis services have been designed. The knowledge accumulated so far in the project and expanded with information from recently conducted project workshops has rendered possible the decomposition of decompose FOTsis services into prime factors, as described in the business model canvas designed by Alexander Osterwalder: customers segments, value proposition, key partners, key activities, key resources, customer relationship, communication channels, cost structure and revenue streams. The focus in this newsletter will be put on the idea of ‘C-ITS/FOTsis brand’ as a marketing tool supporting not only FOTsis package tested within the project, but generally C-ITS services deployment across Europe.

It is clear that the most important value delivered to the market by the FOTsis services is information: various parameters (i.e. traffic congestion, number and behaviour of road users, weather conditions, detours,  alternative routes) are delivered to different stakeholder segments, who based on data received are able to obtain particular values such as: time savings, cash savings and ride comfort, health and safety protection, environmental protection, as well as increasing appeal of other products and services (the last value refers to B2B segments: C-ITS information may enhance products such as car navigation systems, facilitate management of car fleet in T&L services, create added value for providers located in the immediate vicinity of highways, become added value for transport insurers, etc.).

However, the deployment of FOTsis services across Europe might be supported by additional value created deliberately to stimulate a wide implementation of FOTsis services on European roads: brand. Branding is used to create a point of difference between various offers/products in the marketplace. Recognised brand / certificate and related benefits for end users might play an important role in communication of the entire C-ITS package tested within FOTsis project.

Here, the ‘HD ready’ mark introduced by EICTA organisation, informing that a given device or application is adapted to display / process high definition signal (implication its better than others), seems to be a good example. By analogy, the C-ITS / FOTsis brand can be developed as a symbol marking roads where C-ITS infrastructure is deployed. The symbol “C-ITS ready” can serve as an information that given device is adapted for receiving and processing traffic data generated by road infrastructure where European ITS Framework Architecture FRAME containing the cooperative systems services is deployed (FOTsis case). This might be of importance for FOTsis customers from B2B segment, who would like to join the chain of suppliers of C-ITS services for drivers and providing them with 'C-ITS ready' products able to operate with 'intelligent highways': manufacturers of cars and “physical” navigation, IT companies (applications such as TomTom, maps and others used by drivers), as well as to suppliers of other services related to traffic, e.g. motor insurances (if driving on C-ITS roads is safer, insurance companies might prepare special offers for users, who frequently use intelligent roads).

Implementation of C-ITS systems, accompanied by marketing campaign based on previously prepared branding strategy, might bring significant commercial benefits not only for the road operators and other actors belonging to the chain of C-ITS services suppliers, but it would mostly help to raise the awareness of C-ITS services and benefits coming from using them among the general public – mainly road users.

In conclusion, one of the most important finding and key proposal for consideration is to support the FOTsis business model and 7 services deployment across Europe with the new value: C-ITS/FOTsis brand. This proposal will be discussed and verified within the further stages of the project and the conclusions made will be used as key recommendations in the final business models for FOTsis services.

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