THE FUTURE OF MOBILITY AND ITS IMPACT ON PARKING

2nd Congresso Brasiliero de Estacionamentos

Sao Paulo, SP, Brasil

November 21-22

Dr George McLean Hazel OBE

The MMM Group/MRC McLean Hazel

Presented by David Hill MA CAPP

MMM Group Calgary

1.TOWARDS A MOBILITY APPROACH –

Modern Cities are trying to create a balanced transportation strategy

Parking is part of the transportation process

Parking can be part of achieving the goal

It’s bigger than parking, its about creating access and mobility for communities and people

Megacities challenges:

Transport is major driver of city competitiveness

(Latin America 21%)

(Africa 13%)

(Africa 13%)

(Latin America 21%)

(India / China 11%)

(Asia 9% and Latin America 8%)

(India/China 12% and Africa 10%)

(India/China 12% and Latin America 6%)

Importance for Economic Attractiveness

Unprompted Percentages (n=522 in 25 cities)

Summary

• Transport is a major driver of city competitiveness

• Better public transport is a major facilitator for

customer lifestyle, urban sustainability and

economic competitiveness

• Demand management is key across all sectors:

water, energy, transport

• Increased use of technology needed to manage

and integrate city functions

Mapping Trends to Definition

Complex trips

Consumer

Congestion

Enabling

Technology

Gov. Policy

Definition Element

Globalization

Urbanization

Land use

Ageing

Workforce participation

Smaller households

Affluence

Consumer culture

Motorization

Congestion

Env. awareness

Infrastructure spend

ICT availability

Governance

personalized

options

informed decisions

simple

mode neutral

Information and communication

personal connectivity

physical and virtual integration

coordinated transfer

“zero-wait state”

trusted services

perceived value

make a difference

transparent value proposition

payment mechanism

attractive mobility package

End-User

Focused

Seamless

Value

Trends Influencing Factor Attribute

The Future of Mobility - personal,

seamless and of value to the user

Complete Mobility Index

2.TOWARDS A MOBILITY APPROACH –

WHAT IS GOOD VALUE FOR MY NEEDS

VS

WHAT IS GOOD VALUE FOR ALL OF US

The Ambulance Analogy

User wants to have only one

ambulance – quickly – and

only when he needs it

Health provider wants to have

controlled and effective supply

of ambulances to meet overall

demand of many individuals

3.TOWARDS A MOBILITY APPROACH –

ITS NOT JUST ABOUT MANAGING OUR PARKING

OPERATIONS SUIT OUR OWN NEEDS

LEARN CUSTOMER SERVICE MODEL FROM RETAILERS

Transport Retail Model

• Transport Retail Model learns from

retailers - customer focus and valued

offers are the bedrock of the business

• Food stores and other retailers have

remade themselves as lifestyle

service providers: the local food

store is the first visit for most needs.

• Understanding customer buying

preferences and needs: Customer

Relationship Management (CRM)

Future Mobility is Based on Retailing Principles

4.TOWARDS A MOBILITY APPROACH –

HOW IS INFORMATION BEING COMMUNICATED

HOW ARE PEOPLE USING SMART TECHNOLOGY

Yesterday’s information broadcast

Today’s information broadcast – fast,

flexible, interactive and global

From Customer Relation

Management to Social Customer

Relationship Management

Based on Incentives and Value

Travel planning applications

have been launched for

smart phones such as the

iPhone.

Real time information and

route planning on:

London underground & bus

Edinburgh BusTracker

UK national rail service

MetrO (cities worldwide)

Provides information that is:

Free

Adaptive & Easily Updated

Personalized

Easily accessed on arrival

in city

Mobile Phone Travel Information

Program: AMSTERDAM

Electric bike

Relocating the bikes every day - Montreal

Paris, France

Program: San Francisco helpdesk savings

SF Park

5.TOWARDS A MOBILITY APPROACH –

WE MUST UNDERSTAND SERVICE AND

PRODUCT DESIGN

DESIGN IS A CRITICAL SUCCESS FACTOR

The Product Design Process

DEFINE

The Product Designer’s Toolbox

DISCOVER DEFINE DEVELOP DELIVER

AIMS Context Definition –

city, organisation,

community

Problem understanding,

user needs overview

Product definition,

solution design

implementation

planning

Product/Service

implementation

PROCESSES Context review and

analysis, engagement

Co-Design, future

visioning, Co-Design, prototyping

Delivery planning,

business change

management

TOOLS

Data mining, trend

analysis, media review,

User profiling, Mystery

traveller audits,

interviews

journey experience,

storyboarding,

blueprinting,

User product testing,

wireframing, moscow

analysis, partnering

Commercial

exploitation plans

OUTPUTS Key user segments, user

challenges,

opportunities roadmap

Problem statement,

opportunities matrix,

solutions catalogue,

outline design

guidelines

Technical specification,

blueprints, business

case, business change

strategy, business

model development

Product/Service

implementation

6.TOWARDS A MOBILITY APPROACH –

DESIGN FOR LIFESTLYE,

FOLLOW THE VALUE

CREATE MARKET SEGMENTS

Find the value, define the product and attract the segment

Traditional Segments

Elderly /

Retiree

Youth CBD

workers

Students

Full Time

workers

Part Time

workers

Rural

dwellers

Tourists

Licence

Holders

DESIGNING FOR A NON-TRANSPORT NEED

Open Oxford

■ Regenerating

activity in the

city centre

Walkabout

■ Reducing

levels of

obesity in the

community

En-Route

■ Enhancing

the

relevance of

hyper-local

media

Car Freedom

■ A support

tool for older

persons

giving up

their car

PROGRAM: OPEN OXFORD

•The Challenge

• Restore activity and spend within Oxford City Centre

• Propagate “Open for business” message

•The Product

• City based membership card for residents

• Incentivises travel mode to align with city movement peaks

• Retail entitlements for members

•The Technology System elements

• Smartcard data

• Bus system usage

• Car parking occupancy

• Card readers in retail outlets/ car parks.

• Help desk

• Back office fulfilment

http://www.youtube.com/watch?v=apPWvhxpHGU http://www.youtube.com/watch?v=apPWvhxpHGU

From Retail:

FIND AND

FOLLOW THE VALUE

People + Value = Behavioural Change

new products

who will get the benefit?

(some) beneficiaries pay but not

always about money

Design-in

value

Find the

value

Capture

the value

A Value Based Approach

PEOPLE IDENTIFY VALUE VERY QUICKLY

■ London’s Heathrow Airport to City

Centre

■ Cost on the “Heathrow Express” is £18

($27) for a 15 minute journey

■ On the London Underground it can

cost as little as £2.90 ($4.40) – BUT

takes around 1 hour

■ 16,000 passengers take the Heathrow

Express on a daily basis

Incentives – Loyalty One in Canada

Toronto trial

showed 57%

increase in

public transport

use!

Program: Speed Camera Lottery

Stockholm, Sweden

• Rewards positive driving

behaviour

• Funds raised through fines

allocated as rewards for

good driving

• Resulted in reduction of

average speeds from

32km/h to 25 km/h

• Use of positive

reinforcements rather than

deterrents

THE INGREDIENTS OF MOBILITY MANAGEMENT

• Global trends

• Retailing trends

• Technology trends

• Service and product design

The Journey to Mobility Management

Complete Mobility Future end-state for a city’s transport system. Enables the city to meet global trends, and maintain its position amongst competitor cities. Thus remains economically competitive in a global marketplace.

Transport Retail Model Conceptual model to deliver Complete Mobility. Built on techniques commonly used by large retailers to make transport system user focussed and to deliver value: personalized services, customer loyalty and yield optimization.

Mobility Management Design methodology to define and deliver future mobility products and services. These are built on lifestyle needs, often via user facing technology, to deliver real value. Thus creates a sustainable business model and a strong demand management tool.

Key Elements of Mobility Management

Key Elements

• places user needs at the heart of the transport

experience.

• support a one payment account for the user

• Exploits technology advances to re-imagine the travel

experience

• Provides continual feedback to the user

• Provides services according to user defined segments

Mobility (City) Manager Public funding

Infra. Asset

KPIs

Added value services

New revenues Private funding

Delivering Mobility Management

► IT architecture

► Appropriate Technology

► Data on use and preferences

► Market Segmentation

► Appropriate governance

and partnership

► Agreed outcomes

Smart

Networks

Customer

Relationship

Management

Balanced

Pricing

Taking the Mobility Management Approach (1)

• Mobility Management requires you to:

• Start thinking like your customers – they are your

greatest asset

• Get inside their heads/ experience what they

experience

• Identify value aspects of their lifestyle

• Capture key behavioural aspects of their lifestyle

• Develop products which support their needs

• Capture them as a valued customer

Taking a Mobility Management Approach (2)

• Mobility Management enables you to:

• Capture the valued lifestyle aspects of your customer’s

experience

• Aggregate the broader transport offer

• Partner with complementary service providers

• Influence your customer through nudges/incentives

• Appropriately value the mobility system elements

• Maximise the utility of your infrastructure (infrastructure

and services)

• Meet your policy objectives

HOW DOES THIS IMPACT COMPANIES PROVIDING PARKING SERVICES?

• Use mobility management ingredients and method to improve integrate and grow your business

• Move from being a parking company to a mobility management company

• Understand the future of parking and adapt your products

• Develop your chosen new business model and look for the necessary partners

Parking App Makes the Glamour List!

• Parking is ideally suited to the Mobility

Management Model approach – user

focused, seamless and valued

• Parking is key to transportation ingredient

• It can generate large revenue streams

• And significant operational savings

• Offers opportunities for parking management

companies and city authorities

Why is Parking so Important?

User Friendly Parking Information !

Parking Space is Valuable and can be traded

The Benefits

• Flexible parking rates by time and place

• Priority parking for high use (member) participants

• Options for discounting/incentives as a direct offer from retailers

• Opportunity to expand the business model to encompass all

potential customers – public transport users, visitors, etc

• Time based incentives – Christmas (Free Park and Ride,

Parking Credits)

• Integration with complementary transport offerings

• Potential to link with existing loyalty card offers

• Co-branding opportunities for groups of retailers and mobility

providers

• Opportunity to help others achieve their aims and objectives

Toulouse Smart

Parking System

It’s happening now

San Francisco Smart

Parking System

It’s happening now

San Francisco Intelligent Parking –

Street View

New data-based parking by mobile

(smart) phones

Application for iPhones launched on

17 Nov 2011

For public and private parking areas

Next application for Android in 2012

Application for Windows

Smart Parking in Tallin

Smart parking in

Tallinn since July 2000

EMT parking platform

serves all mobile

operators (Tele2,

Elisa)

Payment with mobile

phone bill and/or

prepaid card

0

20

40

60

80

100

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

8070 65

5852

46 4230

20 15 1020

30 3542

4854 58

7080 85 90

M-payment from all parking payments ( %)

Other M-parking

Smart Parking in Tallin

Browse your personal history Overview of day/ week/ month parking details: time, zone, cost, fee, duration, car number, total amount etc.

Total parking

during current

month

Total cost

Monthly

overview in

detail

Parking of a

specific car

Appointed period

Parking zone

Duration

Cost

Service fee

Parramatta Contactless Card

Parramatta Smart Parking

Perth Smart Parking

AUCKLAND, NEW ZEALAND

Smart parking yields better results

THE MOBILITY MANAGEMENT BUSINESS

MODEL

Service Design and

Management

Policy audit

Data mining and analysis

User Experience

Tools and Program

Development

Technology Systems

Acceptance Infrastructure

Personal Information

interface

Monitoring of network feed

Real time tracking

Customer Relationship

Manager

Transaction server

CRM Server

Offers and Incentives

model

Product Issuance

Communications and Marketing

Web portal and helpdesk

Apps

Interaction software

Financial Management

Fulfilment back office

Payment infrastructure

Pricing model

Mobility Management System Elements

FUNCTIONS

OF MM

TOOLKIT OF MM

SERVICES DELIVERED

•Policy monitoring & evaluationl

•User focussed design

•Tariff Management

•Personalised Travel Planning

•Helpdesk

•Member Services

•User engagement

•Offers

•Reporting

•Reconciliation

• Invoicing

The elements needed for a MM Parking Model ?

Delivery Approaches

Key Challenges

No existing organisation covers full breadth of service offering to align

with the needs of users

New operational model to be implemented:

SEGMENT MOBILTY MANAGEMENT - targeting an individual

travelling segment

INTEGRATED MOBILITY MANAGEMENT - targeting multiple city

wide segments

New organisational & funding model to be implemented:

Fully private model

Partnership model with single stakeholder/government (transit

operator, Local Government)

P3/NGO

What next?

Focus on the user: Identify key people and their lifestyle issues and

needs

Look to aggregate groups

Valued service: Look for the value

What would address the needs and capture the

value?

Translate into products

Build the business case

Align with strategic objectives

Exploit technology: Use technology to let groups

form, aggregate needs and engage

Co-design with users

Build in continuous feedback

• Understand the impact and the potential of technological,

retailing and socio-economic trends

• Critically examine your future products through the lens of

future mobility

• Explore moving from being a parking company to a mobility

management company

• Develop a new business plan including expanding the

business area, capturing new revenue streams and

operational savings

• Use co-design to design new products and the business

model for the new market

• Consider forming partnerships with public and/or private

sectors

• Action pilot schemes to develop the business

What Next?

THE FUTURE OF MOBILITY AND ITS IMPACT ON PARKING

2nd Congresso Brasiliero de Estacionamentos

Sao Paulo, SP, Brasil

November 21-22

Dr George McLean Hazel OBE

The MMM Group/MRC McLean Hazel

Presented by David Hill MA CAPP

MMM Group Calgary