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18-02-2016

FOTsis, the most innovating project in road transportation technologies

The FOTsis Project has been awarded by the Smart Transportation Alliance (STA), a not-for-profit global collaborative platform for transportation infrastructure...

30-04-2015

FOTsis holds its final event in Madrid

The FOTsis project organised its final meeting on 27th and 28th April in Madrid, Spain. More than 80 stakeholders attended...

Future Events

29-10-2017

24th ITS World Congress - Montreal 2017

ITS WC Montreal 2017 29 October - 2 November 2017 Palais des congrès de Montréal, Canada http://itsworldcongress2017.org

17-09-2018

25th ITS World Congress - Copenhagen 2018

ITS WC Copenhagen 2018 17 - 21 September 2018 Copenhagen http://itsworldcongress.com/

Monday, 20 April 2015 00:00

FOTsis Final Business Models now available

The FOTsis project is proud to release its final business, which lay down a realistic strategy for the deployment of C-ITS services in the years to come. With the total market for ITS expected to grow by a compound annual growth rate of 11,1% by 2019, and given that traffic volumes are projected to increase, it is essential that the deployment of C-ITS services for transport is accelerated.

The core objective of the business model development has been to investigate how C-ITS and in particular, the FOTsis services could enter the market and become commercially viable. To arrive at the business models, the project as a first step undertook desk research, carried out in-Depth Interviews (IDIs) with external members and Computer Assisted Web Interviews (CAWIs) with consortium members were conducted. The information gathered within these three techniques resulted in analysis of the C-ITS market and FOTsis value chain analysis.

Then, two workshops were subsequently organised in order to continue with the analyses, i.e. an international meeting that held within the context of the 2nd FOTsis workshop in Madrid in 2014 and a second workshop in Poland in September of the same year that was destined to obtain feedback about the potential of FOTsis services in Central and Eastern Europe. Both workshops were attended by experts directly involved in the value chain of C-ITS, i.e. road users, authorities and operators, research centres, technology providers, etc.

As a result the preliminary business models were prepared, which subsequently were updated and finalised thanks to the expert panel conducted with the Delphi technique which is a widely used and accepted method for gathering data from respondents within their domain of expertise. The technique is designed as a group communication process which aims to achieve a convergence of opinion on a specific real-world issue. The Delphi technique is well suited as a method for consensus-building by using a series of questionnaires. In case of FOTsis, the involved experts answered questionnaires in two rounds.

In total, 13 European experts representing Belgium, Germany, Portugal, Greece, Poland, Hungary, Czech Republic and Romania were involved in the expert panel. The profile of involved experts was as follows:

Figure 1: Profile of experts involved in Delphi panel

 

On the basis of studies and expert’s opinions, it was thus concluded that the whole C-ITS services will not have a commercial character for individual customers. The most important customer groups of C-ITS services are road users. When speaking about intelligent traffic management systems in the first place we think of the hundreds of millions of individual drivers traveling on European motorways. This group of customers (marked in red on the model), however is not willing to pay for extra services individually to increase their safety and comfort of travelling.

Given that C-ITS is essentially an IT-business rather than a road business, the analysis concluded that revenue streams from FOTsis services should be constructed according to the pattern of freemium models, i.e. where the payer is a different group of customers, or charges for the use of ITS are hidden in the price of other products and services (such as charge for the use of a road, subscription fee for premium information services provided by the OBU or navigation, communication insurances, etc.). In other words, the direct ‘product’ from the FOTsis services would be the data gathered and the opportunities such data could offer to commercial players involved in the road sector who could subsequently include the price of the FOTsis services in their existing packages to consumers. Information gathered in the C-ITS system would reach the end users through devices, services and products provided by business partners, which are a different group of customers (B2B).

The following figure shows the FOTsis Backbone Model:

Figure 2: FOTsis Backbone Model

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