Smart Mobility 000 UK

Intelligent Integrated Mobility Solutions for International Corporations

r0 N The launch

MMM Business Media International - smart mobility management - n째0 - Insert with Fleet Europ Magazine

issue

privileged partners :

www.smart-mobilitymanagement.com

Fleet Meeting Travel elcome to this brand new magazine, Smart Mobility Management. This new media platform with its paper and e-magazine versions, website, event and smart communication is the result of intense work by our teams over recent months. Conducting market studies, interviewing key players and opinion leaders and most importantly, understanding the new needs of internationally operating companies.

All this led us to develop Smart Mobility Management, a new media concept aiming to help international decision makers (Board Members, Finance, Purchasing, Fleet Managers, Travel Managers, CSR Managers…) develop a genuine pan-European Mobility Management Strategy and implement this, both at headquarters level, as well as within subsidiaries.

For several years, companies have been looking at alternatives to the usual mobility offerings, but rarely integrating all the facets of a company’s organisation – the various stakeholders, the various drivers towards change, and even the various players on the market. With this new Smart Mobility Management Magazine, we are delighted to give you a taste of what is to come in the future. In close collaboration with our first partners, we are shaping the future Corporate Integrated Mobility Management Approach.

W

Caroline THONNON cthonnon@mmm.be

“Our objective is to make integration key”

As we are very proud of the birth of this new media, I would really like to thank the internal teams, our partners and all those who have helped us fine-tune the project.

Looking forward to hearing your remarks and comments!

Next to come • October 2010: our new website on www.smart-mobilitymanagement.com • 19 November 2010, Brussels: official launch of the Smart Mobility Management with panel discussion (virtual & real life) • December 2010: launch of Smart Mobility Management, issue n°1

A new website.

This magazine comes with a brand new website www.smart-mobilitymanagement.com.

Register.

Register yourself and you will have access to the e-magazine and receive the next newsletters and magazines.

News, best practises and tools.

The website provides you with up-to-date information on corporate mobility and industry players, best practices and comprehensive articles on international policies and processes.

Corporate Integrated Mobility Expertise Center.

Join the Smart Mobility Management community and exchange ideas and best practices.

smart mobility management - n°0 I

3

50

40

20

06

strategy

best practices

industry

policy & processes

06 I Our project

16 I IKEA

35 I News

50 I Training

smart mobility management: to move or not to move

Torbjörn Erling Meet more, travel less !

from the industry suppliers

38 I Deutsche Bahn

20 I HUNTSMAN

08 I Expertise

Rail as provider of multi-faced mobility

Corrado Simontacchi Making integrated mobility reality

Experts in fleet, travel and meeting join forces in a unique project

40 I Air travel How air travel integrates with mobility

24 I ACCENTURE

09 I Privileged partners

Dries Cuypers Flexibility in and out the office

Peugeot, Athlon Mobility Solutions and Alphabet

43 I Car leasing Concentration on car mobility

28 I PFIZER

46 I Virtual meeting

Fred Turco & Ivor Johnson Between mobility and connectivity management

12 I Fleet From fleet management to travel management

14 I Travel

Less business travel, more video conferencing

49 I E-mobility Electric vehicles, from scooters to rail transport

32 I BARILLA

Compliance to travel programmes key

How to become a Mobility Manager

Giovanni Tortorici Business trips are not rewards!

Issue n°1 The first issue of Smart Mobility Management will be released on December 1st 2010.

Don’t miss it and register now to receive it!

®

EDITORIAL TEAM

PRODUCTION

Editor in chief: Caroline Thonnon Final Editor: Steven Schoefs Assistant: Romina De Gregorio Team: Stijn Phlix, Tim Harrup

Head: Sonia Counet

EDITOR SALES & MARKETING TEAM Sales Director: Marleen Neukermans Account Manager David Baudeweyns Assistant: Patricia Lavergne Marketing Manager: Kathleen Hubert

BUSINESS DEVELOPMENT Director: Caroline Thonnon Manager: Annick Nemetz Consultant: Filip Van Mullem

Managing Director: Thierry Degives Publication Director: Jean-Marie Becker © Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

MMM Business Media International 28, Gruuss-Strooss LU 9991 Weiswampach Tel.: 00 352 26 95 85 Fax: 00 352 26 31 02 82

info@mmml.lu

www.mmm-businessmedia.com

smart mobility management - n°0 I

5

strategy

smart mobility management : the project

International Integrated

Corporate Mobility Solutions Smart Mobility Management is a new media platform helping international corporations evolve to Mobility Management integrating all transport modes, mobility solutions and alternatives optimising overall mobility costs and efficiency for employees. his new media platform aims at shaping the future Corporate International Integrated Mobility Management Approach. Smart Mobility Management’s objective is to make integration KEY. Integration of different sectors and industries, integration within the company’s organisation and integration of the available mobility solutions and tools.

T

When to move or not?

Smart Mobility Management is first about when to travel for business or

“By centralising information and connecting the respective industry leaders we intend to accelerate Mobility integration and help International companies reach more efficiency.”

Filip VAN MULLEM

From Travel Management to Mobility Management AREAS

RECENT TRENDS

Air

Ongoing cost optimisation

Rail

Focus on travel needs Focus on travel restrictions and shortening travel time Pressure on suppliers and reduction on of number of suppliers

Travel Management Car Rental

Focus on CO2 emissions and ‘green travel’

6I

smart mobility management - n°0

From Meeting Management to Mobility Management AREAS

RECENT TRENDS

Business Centers

Ongoing cost optimisation Strong interest in visual communication as alternative Innovation & technology evolving rapidly

Hotels Conference Centers

s “The focus is on cost optimisation, best practices, innovation and smart technology, international management and processes and CSR.” Caroline THONNON not. If business related travel is required, How to optimise overall mobility costs for the company whilst maximizing efficiency for employees.

If business travel is not mandatory, what are the alternatives?

In our approach, we aspire to help international decision makers develop a Smart Mobility Strategy and implement a Smart Mobility Policy. Our platform will bring answers to challenges such as how to choose the optimal transport mode, how to select and manage suppliers, how to involve local teams and how to educate employees.

Furthermore, we will also focus on the utilisation of Smart Technology to communicate and the training of employees to adopt new communication skills.

With Smart Mobility Management, companies will share experiences about selecting the right tools to measure KPIs and develop efficient reporting.

From Fleet Management to Mobility Management AREAS Car Manufacturers Fleet Management Leasing

Knowledge Center Smart Mobility Management will provide international decision makers (Board Members, Purchasing, Finance, HR and Fleet, Travel and Meeting managers) up-to-date information on the market environment, trends, best practices and case studies, industry news and comprehensive articles on international policies and processes.

Smart Mobility Management’s platform will allow decision makers to exchange best practices andprovide easy access to Innovative Mobility Tools.

Expertise Center Besides the Knowledge Center, Smart Mobility Management is creating an Expertise Center where experts, privileged partners, opinion leaders and trendsetters can exchange their expertise and share knowledge and best pracI tices.

New and existing players to develop new alternatives

RECENT TRENDS Ongoing cost reduction and optimisation of processes Downsizing and rightsizing the car policy Important focus on CSR and green fleet management Pressure on suppliers

AREAS

Taxation focus on CO2 and ‘pay per use’

Visual and mobile communication

Mobility Management Parking Car Sharing Public transport Route optimisation

smart mobility management - n°0 I

7

Expertise Center Fleet Europe is the first European Fleet Magazine for top decision-makers and enables European and international fleet managers to take the decisions in order to optimise their vehicle fleets.

Fleet Europe Magazine was launched in 1997 and is distributed in 11 European countries and the US with a circulation of 15,000 copies.

Fleet Europe has grown to the leading international fleet platform where international fleet decision makers can exchange best practices and be informed.

I www.fleeteurope.com: daily news coverage on international fleet business, best practices and tools available for our readers.

I Fleet Europe Awards & Forum: an annual exclusive event to acquire the essentials of fleet market intelligence, the expertise of international fleet management and the necessary contacts network.

I IFMI: The International Fleet Managers Institute is a unique training for international fleet managers with 2 annual sessions with the collaboration of Fleet Europe, PricewaterhouseCoopers, LeasePlan, ALD Automotive, Arval and Fleet Synergy International. www.fleeteurope.com

NBTA Europe is the first buyer-led, pan-European network of business travel professionals with over two thousand members and six thousand subscribers comprising of buyers (60%) and suppliers (40%) of travel and meetings services. The network is built on partnerships with European business travel associations across fourteen countries and was launched in January 2010.

I NBTA Europe’s goal is to provide the first pan-European, buyer-led centre for knowledge and networks in the business travel and meetings sector.

The organisation seeks to provide benchmarking, research, case studies and education & training for the buyer and supplier communities.

I The network understands that businesses should look at business travel, conferences and events as part of its strategy to grow and improve a business. In light of the rise of CSR, such a perspective must also include considerations to people, planet and profit. A complete vision on the best interaction and collaboration methods will see companies managing mobility effectively for the first time on a wide scale. smart mobility management is the first publication in Europe to truly embrace this opportunity. www.nbtaeurope.org

With the collaboration of

I Smart Business Strategies

B2B magazine of the Minoc group with the main objective of guiding decision makers on technological choices within their companies.

I Mobilitas

Neutral consultancy agency focussing on the company car from a mobility viewpoint including fiscal and social optimisation, car policy and employee benefits.

I CIEM

The Inter-University Mobility Study Centre is a platform which brings together teachers and researchers in Belgium, in order to benefit from the high level transversal knowledge necessary for tackling the problem of personal mobility, from an integrated, prospective and innovative angle.

8I

smart mobility management - n°0

Join our community of international decision makers in mobility management in corporations and international mobility experts. This platform is linked to the smart mobility management media platform and expertise centre. Exchange ideas and best practices with your peers.

Privileged

Mobility Management is key Why have you decided to partner with smart mobility management?

Mobility Management is a key objective for Peugeot. The PSA group created “l’Institut de la Ville en Mouvement” (http://www.ville-en-mouvement.com) some years ago. Peugeot launched Mu (“Mobilité Urbaine”) some months ago in France, Germany and will launch this programme soon in the Netherlands. With Mu, anyone can rent a car, a van, a scooter, a bike or even an accessory at a Peugeot dealership.

How do your activities relate to smart mobility management?

Mr Pierre Garnier Director International Corporate and Business Sales

Peugeot is the only company today able to offer mobility for cars, vans, scooters and bicycles.

The brand offers cars and vans with conventional petrol or diesel engines, and soon will launch the world first diesel electric hybrid engine. In addition to this, Peugeot will soon launch a full electric city car and a fully electric van providing the most diverse and relevant range of mobility solutions.

How can your products and services impact the overall mobility costs and efficiency?

Managing TCO is a vital element in any fleet managers book. To ensure the highest level of operating efficiency, Peugeot ensures its cars and optimise their TCO efficiency at the conception of a new cars design stage.

Peugeot is the first manufacturer to combine eco-friendly vehicles with a true Eco Consulting approach. This consists of an efficient CO2 management system providing a positive impact in terms of managing TCO. Supporting this is a unique CO2 improvement programme designed to enable fleet managers realise extra savings by reducing CO2 emissions. This is achieved through a CO2 diagnostic system that establishes a fleet CO2 footprint and then, via an Eco Drive Training, finds solutions for reducing CO2. Both sets of data are analysed by the Peugeot Connect Fleet system helping to further reduce the CO2 footprint.

How do you see the future of integrated mobility management, the next steps?

Following the launch of the all electric city car iOn, Peugeot will be launching the next generation of engine technology. First will be the launch of e-HDi in the new 508, followed shortly afterwards by the worlds first diesel hybrid engine in the 3008 Hybrid 4 combining ZEV mode and also the option of 4 wheel drive.

I The Peugeot 508: emotion and environmental efficiency.

e-HDi system • The HDi, one of the most efficient engines in the industry • A Stop & Start system with a second generation reversible starter-alternator • An e-booster system, for instantaneous engine restart • An electronic alternator management system, for regenerative braking • A gearbox with optimised gear ratios

smart mobility management - n°0 I

9

Privileged

From Cars to Total Mobility Recent developments in and around the marketplace have changed the needs of market participants. The requirements and expectations of customers have been newly shaped.

More and more, they have realized a new and increased need for mobility solutions.

Athlon has recognized this need early on and is offering its customers and prospects customized mobility solutions.

New trends and needs “The success of such a large-scale program that introduces a new company goal mostly depends on the acceptance and support within the organization itself,” says Hans Blink. “It requires a mind shift from us all.”

Trends such as renewable energy and electric cars have attracted and received growing attention in the public eye. Governments worldwide have responded to this new matter of public interest by implementing new rules and regulations. This enforced a change of mindset also in the automotive industry, and products and services offered to the market have been adapted accordingly.

Consumers, on the other hand, have experienced a similar change in mindset. The increased concern for costs has encouraged customers to look at alternative travelling options.

Enabling sustainable mobility Athlon has recognized the new need of customers for mobility solutions very early on.

Today, their position as a frontrunner in mobility solutions is also strongly embedded in Athlon’s vision. “Our vision is to enable sustainable mobility for our customers. Therefore we are continuously improving and extending the services and products that we can offer to prospects and clients”, explains Athlon’s president Hans Blink.

From vision to reality One of the many things that Athlon has developed to satisfy customer’s mobility needs is the 5-step Sustainable Mobility Plan.

The 5-step Sustainable Mobility Plan tackles the two issues that companies have identified to be of major concern to them and influence on their choice in mobility solutions: Environmental sustainability and cost efficiency. In 5 steps, it offers companies sustainable mobility solutions to choose from and thus allows them to reduce their CO2 footprint as well as to lower costs.

Flexibility and Efficiency through MoMas Broadening the spectrum of mobility management further and aiming at increasing the flexibility as well as efficiency of its customers, Athlon has introduced its mobility management system MoMaS to the European Market through Fleet Solutions, a wholly owned subsidiary of Athlon, in 2009.

“MoMaS manages the mobility package of each employee in the most effective way. It is a tailormade mobility management system that meets our customers’ special needs with a focus on cost and workflow management”, explains Johan Serrien, General Manager of Fleet Solutions.

On the forefront of mobility Despite its advanced position in the mobility market, Athlon is continuously evolving and developing its products, services and collaborations with other service providers. “We expect that customers will increasingly focus on mobility options. Therefore, we need to continuously adapt further, stay on top of our customers’ needs and move even closer towards becoming a total mobility provider”, explains Hans Blink.

Being considered one of the frontrunners in mobility solutions, Athlon has also agreed support the mobility domain in its umbrella function of the i-mobility management platform and share their insights and experience with all users in the course in the upcoming months.

10 I

smart mobility management - n°0

Privileged

Integration can bring new opportunities Why have you decided to partner with smart mobility management?

For Alphabet, mobility management is one of the most important industry trends. With such high relevance for us, we are very pleased to take part in an international dialogue via a modern and professional platform like i-mobility management.

Dr. Nancy Storp, Head of International Sales and Marketing at Alphabet International.

How do your activities relate to smart mobility management?

Alphabet is a leading international multi-brand fleet management company that provides a onestop-shop solution for both company cars and employee motivation schemes.

Alphabet has already launched several mobility management activities. For instance, Alphabet International has discussed mobility management with its international customers during its Alphabet Intelligence Forum by analyzing a case study. Generally, we think that it is important to make Fleet Managers aware of the importance of mobility management which will ultimately enhance their responsibility. From our point of view, in the nearby future, mobility management will take into consideration not only fleet related costs of car eligible employees, but all costs related to the mobility of all employees (including e.g. public transportation costs of employees, parking costs etc.).

How can your products and services impact the overall mobility costs and efficiency?

We are currently piloting a Mobility project at Alphabet France. The main goal of the project is to provide a company-specific urban mobility solution in Paris. The car sharing solution, “AlphaCity,” is customized for a specific customer with the aim to decrease mobility costs by increasing efficiency.

How do you see the future of integrated mobility management, the next steps

source : Alphabet

Needs for employee mobility along with increased focus on integrated management of a company’s mobility, in general, are evolving. We expect all different segments of company mobility: fleet management, travel management, etc. to grow closer to each other with the use of evolving technologies. Integrating all those involved sectors can bring new opportunities for sustainable fleet management as an integral part of mobility management.

“From our point of view, mobility management takes into consideration not only fleet related costs of car eligible employees, but all costs related to the mobility of all employees.”

smart mobility management - n°0 I

11

strategy

Fleet trends

From fleet management to mobility management Over the last few years, Fleet Managers operating at an international level have been facing multiple challenges.

Today, we understand that fleet management will continue to undergo change. New trends are continuing to have an impact on the business. In the future, fleet management pure and simple will be extended to encompass total mobility management - which will include a focus on the motoring specifics of each individual employee.

Caroline THONNON

ne of the major goals of the past decade, which was characterised by the internationalisation of fleet management, was the rationalisation of fleets’ overall costs. That challenge has been met - it seems that all classic methods of cost optimalisation have been explored and implemented by a lot of companies. Pressure has been applied to the suppliers, the optimum of car use in relation to taxation and fleet optimalisation has been reached, more or less...

More or less, because TCO management never stops. New opportunities arise. Integrated mobility management is becoming more than a trend, it is transforming into a necessity, especially for big corporations.

O

Global CO2 reduction For several years now, companies have been looking at the CO2 emissions of

12 I

smart mobility management - n°0

their fleet and have developed policies to try to lower them. Car policy adaptation, downsizing, CO2-efficient engines, incentive programs, ecodriving, reporting tools, audit programs…

All these elements have an influence on the total CO2 emissions and influencing them has a direct impact on the total cost of ownership of the fleet.

Next step in this area could be influencing the use of the car, in a global mobility strategy, which again could influence the total CO emissions and TCO.

Highlighting new demands Fleet Europe is continuously collecting its readers’ latest demands and needs.

Some highlights: 1. Individual mobility as such - and not the vehicle itself - needs to become the central focus in the search for the best and the most cost-effective mobility solution. Questions to con-

sider: to travel of not to travel; how to travel (i.e. alternative transport modes); which travel/meetings policy will combine most advantageously with fleet policy...

2. It is very likely that the fleet policy will need to be adapted in order to support a global mobility policy.

3. Fleet suppliers are asked to adapt their product offer, even to become a mobility solution connector, providing multimodal mobility packages (such as car sharing, pay-per-use models, and alternative transport modes).

4. Driver management requires a very individual approach. Thus, modular products are needed to help educate different types of drivers to influence their motoring behaviour in a positive way.

5. Information management has been the key in recent years in fleet management. Today and tomorrow, new

Challenges to overcome The most important challenges to solve within a company related to corporate business mobility are:

1. Top sponsorship The key stakeholders need to be convinced of the need for a mobility plan; the commitment of the higher echelons - and finding a budget - are necessary ingredients of a successful mobility plan.

2. Adapt the organisation An integrated mobility strategy needs to be conceived to fit the size of the company. But the company itself also needs to adapt: it will need to review and adjust its policies, and re-analyse the local rules and regulations to see what possibilities they offer.

3. Think global, act local‌ also on mobility Local people need to be involved, as they have a good overview over what are realistic and reachable objectives on a local level towards integrated mobility concepts.

I How to lower overall costs Are you looking for solutions to lower your overall costs regarding integrated mobility and what is the degree of priority?

Car fleet

25%

Rail 11% Air travel 11% Travel services technology will play that pivotal role.

Not just in the cars themselves, but also in supporting and reporting disciplines.

6. Over 70% of our panel agreed that different departments, like HR, Fleet and Travel, need to communicate and collaborate better towards a more comprehensive concept of mobility.

7. Reducing CO2 emissions and enhancing safety are main drivers of fleet management and will remain so in mobility management. I

38%

13%

44%

33%

11%

22%

11%

Caroline Thonnon Fleet Europe chief editor

11% 11% 0%

11%

44% 33%

22%

20%

22% 56%

40%

1= No priority

2

60% 3

4

80%

100%

5 = Highest priority

I How to higher overall employees efficiency Are you looking for solutions to higher the efficiency regarding integrated mobility and what is the degree of priority? (1= no priority, 5= highest priority) Car fleet

33%

Air travel

11% 11% 11%

Rail Travel services Conferencing

11%

22%

11%

11%

34%

44%

44%

33%

33%

22%

33%

22%

11%

20%

40%

1= No priority

33%

33%

11% 11% 11%

0% www.fleeteurope.com

33%

44%

Car rental 11%

Expertise Center

22%

44%

Car rental Conferencing

13% 13%

2

33% 56% 60%

3

4

80%

100%

5 = Highest priority

smart mobility management - n°0 I

13

strategy

Travel trends

Compliance to travel progra Compliance to company travel programmes and maximizing the return on investment (ROI) of travel and meetings are at this point in time the main topics of focus for Europe’s travel and meetings buyers. Environment is ‘somewhat’ important to European companies, but the major topics of importance looking forward are safety and security of travellers and the ROI of face-to-face meetings.

14 I

smart mobility management - n°0

Europe launched a research project across the buyer community to gauge the common issues and provide some clear direction on pan-European advocacy efforts, but at the same time it acts as a benchmark survey for travel buyers to measure key elements of their programmes against European peers. The online survey of NBTA Europe buyer members was conducted in the spring of 2010. In total, 152 members completed the survey. They are predominantly travel and meetings buyers with global or EMEA responsibility (70%) and 75% of respondents operate a programme with an expenditure between 1 million and 50 million euro.

NBTA

Visual communication Alternative technologies to face-to-face meetings have had a diverse affect to date on the European travel buying community, with around half saying they

have already contributed to reduced travel and the other half saying there has been no impact.

Airline unbundling In this year ahead, buyers fully expect to see greater airline unbundling in tandem with the potential of additional costs as carriers pass on merchant fees. The issue of unbundling tops the list for engagement with the European Commission, alongside traveller safety and security and a European rail infrastructure. Buyers consider a centralized travel policy as the most effective way to create a pan-European or Global programme, with a single, centralized TMC as the second most effective way and technology a close third.

With continued shifts in pricing and distribution expected to be significant, it appears that a great deal of attention is being given and will continue to be given across Europe to policy, compli-

I Which one the following requires the most attention from you across your travel & meetings programme at this present time?

Enforcing Policy Compliance

30 %

ROI of Travel & Meetings

23 %

Implementation Technology

13 % 9%

Supplier Product Changes Content Fragmentation Environment and CSR

4% 4%

Other (please specify) N/A

10 % 7%

I How important are each of the following subjects going to be for your company in the coming year?

Reducing the impact on the environment of your company’s travel emissions

11 %

36 %

11 %

ammes key

42 %

Understanding the ROI of business travel and face-to-face meetings

2% 79 %

1%

18 %

Very important Somewhat important Neither important or unimportant

I What impact, if any, have alternative technologies (such as video conference, second life, teleconference etc.) had on your company’s travel and meetings programme?

They have resulted in more travel

Expertise Center Paul Tilstone NBTA Europe (powered by ITM)

2% They have had no major impact

These technologies have resulted in less travel

56 %

42 % paul.tilstone@nbtaeurope.com

smart mobility management - n°0 I

15

Source : Pan - European Buyer Issues Research by NBTA Europe

ance and enforcement and the tools available to business travel and meetings buyers to manage these aspects.

But issues previously considered to be emerging are now becomingentrenched in the travel and meeting manager’s portfolio. Content, environment and determining the ROI of travel and meetings programmes appear to be fundamental elements of ay modern travel and meetings programme, with traveller safety and security underpinning I everything.

best practices

Torbjörn Erling, IKEA

Meet more, travel less !

IKEA is a world-renowned supplier of self-assembly furniture and household items, carving out an undisputed market leadership position with its reputation for innovation. We asked Torbjörn Erling, Meeting and Travel Manager, to explain the company’s policy in terms of mobility.

Tim HARRUP

16 I

smart mobility management - n°0

I What does mobility management mean within IKEA? It was in 2007 that we started to look into the meetings element and integrated this into our responsibilities, both face to face meetings and virtual meetings. By these I mean web meetings, phone meetings and video-conferencing. I can certainly see the cross-fertilisation of various areas into the notion of mobility.

The very first question we ask ourselves in this area is ‘Should there be travel? There are so many tools available now. We can use tools which do not necessarily involve travel. And this leads on to the question of how you handle virtual meetings, video-conferencing. If the decision is to substitute a physical meeting by a virtual meeting, the question then arises, ‘how do you structure this and how do you run it?

And if the decision is that in fact people should move, and should physically go to a meeting, then the question involves the best way of getting from A to B, knowing that there are a number of solutions for doing this.

I Is the notion of ‘integrated mobility management’ relevant to you?

We will definitely be giving more thought to this entire notion. We have a strategy called ‘Meeting the IKEA way’. We think about the benefits of the various solutions, and consider whether we need to meet face to face.

We have an internal communications department which works very closely with us. We are taking part in a steering group which analyses the need for collaborative tools and the need for tools to help in the area of ‘how to meet’ I How does IKEA define ‘When to travel’ for its personnel?

What we try to do is analyse which type of communication method might be best in any given circumstance, in order to do what you are required to do. So we encourage and challenge our co-working teams to define purposes and needs. The right solution might of course still be a physical meeting, if it is necessary to develop a relationship, have a creative workshop and so on, whereas if the need is just to see each other, body language, to have more eye-contact etc, then the video meeting might be an alternative solution. If the meeting is simply to make a presentation, maybe to show

certain documents – i.e. essentially to impart information – then of course the web meeting is the best choice. We are trying to train our co-workers to make a deliberate choice based on what the needs are. We have done this fairly simply by publishing a couple of slides on our intranet site, showing people how to make the decision, based on factors such as whether the people involved already know each

pliers but not involving new negotiations, could be done in a virtual environment, and do not necessarily require physical presence.

Cost versus efficiency I Have you taken steps to optimise overall mobility efficiency?

We have of course the web meeting facilities we offer all our co-workers, along with the video-conferencing

“I haven’t yet seen a fully developed collaboration between all the departments which are involved in mobility management – HR, Finance, Facilities management, Procurement, IT etc. I think that’s key to success.” other or whether it’s a new relationship. We don’t make any particular distinction between internal meetings and external meetings, although we do recognise that if there is a meeting with a client, there may be a higher need to arrange a face to face meeting. You may be showing products or negotiating agreements. But we still ask our coworkers to evaluate whether certain follow-up meetings, perhaps with sup-

possibilities on selected locations. But then there are other tools, and we are looking at the possibility of rolling these out – chat rooms for example, which will make it easier to communicate, and including smart phones, Blackberries etc. But up to now we have not put a great deal of emphasis on upgrading to the very latest in smart phones – and they are evolving very quickly of course.

IKEA - the figures Founded

1943, Sweden

Type of company

Private

Current headquarters

Delft, The Netherlands

Personnel worldwide

128,000

Turnover

€ 22 billion

Present in

50 countries

Total stores

280

Annual store openings

15

Alternative fuels “We haven’t fully investigated the possibilities for these fuels in all the countries we operate in. Though it remains our policy to use as environmentally-friendly cars as possible and it will be a priority for us to challenge the fuel companies and other suppliers in the car domain to provide us with better environmental solutions for the fleet management side of our operations. Another important point for us is to have the technology to communicate when using public transport or while in the car – something which is allowed in Sweden although I know it is not allowed in some other countries. If you have to travel a lot by car and have no other option, it is an added value to be able to communicate in a safe way.

smart mobility management - n°0 I

17

best practices

Torbjörn Erling, IKEA

I What about alternative modes of transport?

What we have on our intranet is an application called IKEA Locations, where we have all our worldwide locations.

And this gives precise directions in a module called Directions’ on how to get to any particular location, including the alternatives such as trains and other forms of public transport. We are working on having the environmental impact of each of these transport modes presented in this module too.

This will enable our co-workers to make more of a deliberate decision themselves on which mode of transport to choose, in the knowledge of what this means to the environment.

I Where does the cost question fit into all this?

Obviously IKEA is a very cost-conscious company. It is part of our culture and is reflected in the products we sell to the public at large, our customers. We promote ourselves as a low price company, and so we have always had a strong focus on cost. So we monitor travel costs and we have seen that travel costs were increasing from 2005 by around 20% annually, so this is the reasoning behind our new strategy of challenging the need to travel. There is obviously a need to travel to support our expansion, but the correlation between this and the increase in costs was not really clear.

Since we started this, we have reversed the trend and for the past couple of years we have seen a decrease in travel costs of around 20%.

I What do you expect of mobility suppliers such as travel companies, airlines…?

Well of course most of the travel suppliers want us to use them as much as possible! So we are now challenging them to support our strategy in any way they can. Talking about airlines, there will always be a need to fly, so we ask the airlines and airports to help us remain mobile while travelling, by providing such things as wireless internet connections, if possible also on the aircraft itself. For other modes of transport, it is important for them to be competitive from a price point of view, but also from an efficiency perspective. If they can be more time-efficient they will be more attractive to us. We are also trying to use rental cars only

18 I

smart mobility management - n°0

Already a decrease of 20% in travel costs.

when it is absolutely necessary, and when we do, these should be as environmentally friendly as possible, bio-fuels, ethanol etc.

I Do you have KPI’s to measure progress?

We measure travel costs and the usage of virtual meeting alternatives, the number of web meetings and the number of participants in them. The challenging part is to relate these to travel costs and to see how many of these meetings have actually replaced travel. We are encouraging our coworkers to meet even more and to exchange information even more by using these virtual meetings, but we know that not all of them would have travelled even if the virtual meetings had not taken place. We have a slogan ‘Meet more, travel less’. We see that with this travel costs are decreasing, and the number of virtual meetings has skyrocketed – we have had 52,000 T meetings with 170,000 participants just in the first two years since we launched this policy. We currently have around 350 web meetings per day within the company and we are trying to see whether there really has been a change in behaviour.

I Have you identified best practices in any other companies?

The Swedish telecom company Telia has done a great job in implementing telecommunications technology and measuring the impact on the environment by using these tools, and they’ve also managed to cut travel costs quite a lot. What I haven’t yet seen is a fully developed collaboration between all the departments which are involved in this domain – HR, Finance, Facilities management, Procurement, IT etc. I think the key to success will be when we can work together with different stake-holders within IKEA to achieve the common goals which will be good for the whole company.

The next big thing I Tell us what you believe the next big thing, or the next big challenge, will be in mobility management?

It is always a challenge when you start trying to work together in this way, there will always be issues including political issues, roles and responsibilities. So I would see this integration issue as being both the challenge and the key to success for us. I have noted that there are a lot of tools on the market which might not precisely meet our needs. I think there is a danger of getting too focused on technology and in believing that there are technological tools which will solve all your problems. So we spend a lot of time on analysing our real needs, also based on the company culture and values.

We have to recognise that we are not an IT company, so we try to keep it simple, something which we have always advocated, so our message to mobility suppliers is to be sensitive to the different needs of clients and to respond as much as possible to those needs. We would ask them to guard against trying to create a package solution which will not be flexible enough for different needs. We have different needs from other companies, and although providing these different solutions for different companies might be challenging from a cost point of view, I think it needs to be done.

I

best practices

Corrado Simontacchi, Huntsman

Making integrated mobility reality

Huntsman takes a realistic view of where the company (and the wider business world as a whole) is in terms of mobility management.

We asked Corrado Simontacchi, Corporate Purchasing Manager, Goods and Services, to tell us how the notion of mobility management can move forward from its current status to a true business model.

Tim HARRUP I How do you define mobility

Corrado Simontacchi: Thinking in a new way, approaching a business model in a new way… The suppliers which do this will be the winners in the future of mobility management.

management?

For me it is a question of integrated management, approaching the management of your company’s requirements in an efficient way. But mobility management is not a totally new concept, this is not the first time I am hearing about it. In fact the first time the subject was mentioned in my experience was by a travel management company, and this was seven or eight years ago. Then the subject started to crop up in different ways from different places. At the beginning it seemed to be a concept which wasn’t really exploited. Of course nowadays mobility management is coming back as a concept and an idea much more strongly than before. Even before mobility management started to take off as an economic notion, there were some preliminary signs of it starting, but then everything went back to sleep as a result of the emergency situation which companies had to face up to in response to the economic crisis. But now that people are starting to look at the medium and long term again, and not just the short term, I see the concept coming back.

I Do you think that it was

www.propaganda.be

20 I

smart mobility management - n°0

the crisis which pushed companies towards the notion of mobility management?

I would say that the crisis, as in many other areas, can be

seen as an opportunity to stimulate discussions and discover opportunities to do things differently from before. It is also a way of tackling the cost base which is in certain areas attached to mobility. I would add that the cost element cannot be the main driver, but the situation we have been through can persuade people to think ‘out of the box’. And look at an alternative ways to manage their business.

I If cost is not the main driver, what is?

For me the main driver involves today’s business requirements. Most major companies work in a global environment, and they therefore obviously need to have a mobile organisation. A mobile organisation needs to be equipped with the right level of tools and resources. This then all leads back to the question of how you can best manage the day to day requirements which are needed to support your company’s activities. In a cost-effective manner of course, but in the most productive way for your company, your organisation and your people.

I Do you need to be together to be connected?

For me, yes. This type of interaction often requires a physical element. So this means being in many different locations, but still able to carry out all of your functions as effectively as possible, just as if you were sitting in your own office. But in these circumstances, the tools are needed in order to make sure you are fully operational, because you are clearly not going to be in your office 100% of the time.

About Huntsman Huntsman is a global manufacturer and marketer of chemicals. It manufactures products for a variety of global industries, including chemicals, plastics, automotive, aviation, health care, and others.

Huntsman is of American origin, and employs over 11,000 persons worldwide, of which 6,500 are in the EAME region. Turnover generated in 2009 was around $ 8 billion. Huntsman’s European main head offices are located in Everberg close to Brussels airport in Belgium, Basel in Switzerland and Billingham in the UK.

EMEA Region Fleet management * Total fleet

800 cars

Percentage of employees with company car

12%

Total annual spend

€ 6.5 million (TCO)

Total FTE on Fleet Management

No full time

Travel management * I Annual travel spend = €

9.5 million € 0.2 million

€ 0.5 million

Total spend others

Total spend in car rentals

€ 0.2 million

€ 2.5 million

Total spend in rail travel

Total spend in hotels

€ 6.1 million Total spend in air travel

I Employees travelling (rail, air) + 5 annual trips = 1000+ * Figures from 2009

Strategy I Do you have a mobility management strategy in Huntsman?

Not really yet, we are very much in the preliminary stages of this. And part of this thinking is to try and discover new ways in which to manage the business, not necessarily the way we did it before, and at the same time to generate cost savings. So we are looking at ways of combining together existing methods and operations within the organisation. I nevertheless consider travel and telecommunications to be different things. Travel is simply moving from A to B and getting a hotel room, while telecommunications are a method of staying connected. Smart

phones, laptops etc. are part of this, with video-conferencing perhaps coming between the two. But it is true that it is sometimes hard to draw a clear distinction between one area and another, and this is certainly leading me to think more about mobility as a whole.

I Does this mean that these different areas – including fleet & travel – will start to work together in Huntsman?

I would actually like to go a little further. I think we could consider this to be a sort of interim phase. Because even if you have one ‘mobility man-

agement’ department managing all of the various aspects together, but still as separate entities, this is not yet for me a mature or intelligent mobility management situation. Maybe one day, it will not be necessary to go the travel manager, or fleet manger or events manager, even if they are all under one umbrella, but simply go to one coordinator. At the moment in Huntsman, all of these areas fall under purchasing – I’m not saying this is good or bad, but just that this is the way it is now. HR obviously also have policies for most of these areas. I do not believe that a mobility strategy would require a major policy change. smart mobility management - n°0 I

21

best practices

Corrado Simontacchi, Huntsman

The green question “We’re making progress in the car fleet, which is getting greener. And when there is a choice of travelling by train, plane or car, we can obviously opt for the greenest option.

But sometimes the only option is to travel by plane, and in these circumstances we look at which is the greenest flight.

It is possible nowadays to get this information when booking a flight, even down to the type of aircraft being used on a particular flight. Our travel management company provides this information for us. We have to be realistic though. Cost remains an issue, and it may not be the case that an organisation is always prepared to select the greenest flight if this is much more expensive.”

I Does your company define ‘when to travel’ to the personnel?

We have policies in place to tell people what to do in these areas. But I do not believe in 100-page policy booklets which try to define every single aspect of a particular domain. Our business is also about having motivated personnel, and in this respect they are also responsible for what they do to a certain degree. The ultimate decision lies with the employee, although of course the company’s policies provide the framework definitions within which they can make these decisions, along with the tools which enable them to do the job which is required of them.

ers can play a role. In the past, you had to go to various different suppliers for all the products and services you needed to run your office – now a single facilities management company does everything for you. But in the domain we are talking about, I don’t see anyone yet who is able to supply solutions in each area. All of them talk about mobility management, but they all come from different start-points: some are experts in fleet, some in travel, some in communications… I think we are in a position where there is a ‘supply and demand’ problem. Is there sufficient demand for suppliers to invest, know-

“By just providing an integrated solution, you will help to optimise costs and efficiency.”

I How do you think companies could optimise overall mobility costs for their employees?

I return to the notion of developing an integrated mobility function. At the moment, if I’m travelling and I have a problem with my flight, I have to get in touch with one person, if I have a problem with my smart phone it’s another person…This is obviously not optimal, and by just providing an integrated solution, you will help to optimise costs and efficiency.

I Do you think, then, that optimised mobility management is an internal matter, or does it involve external suppliers?

I think it’s a combination of both.

I would point to facilities management as a domain in which external suppli-

22 I

smart mobility management - n°0

ing that this means positioning themselves entirely differently from the way they did before, and if the supply isn’t there, is this why the demand is lacking? Not quite ‘chicken and egg’, but similar. Anything which can help in acting as a catalyst to get things moving – including this new magazine – can be a help in stimulating the demand to drive supply, and vice-versa. ‘Green fleets’ are an obvious parallel. Ten or twenty years ago it was little more than a notion, now we have green fleet management specialist companies!

I Which type of company do you see leading the new supply?

I cannot say whether it will be leasing companies, travel agencies or some other type of supplier. What I can say is that it will be the company which takes

a totally innovative look at the situation and is prepared to invest in doing business in a different way. And of course in these days of financial constraints, there also needs to be a very strong business case made. The one big obstacle to overcome, the one thing which will get everything moving, will be thinking in a new way, approaching your business model in a new way. The companies which do this will be the winners in the future.

I What would you like to achieve (or to see achieved in general) during the next year?

I would like to be able to say that in a year’s time we can talk about mobility management in our industry and in others, and that everyone understands what we’re talking about. I think it might still be too early to talk about total solutions, or any key players having taken a real hold, but I think we’ll be able to say that the ball is rolling, and now its time to make sure it’s rolling in the right direction! I hope we’ll be able to talk about mobility management as a reality, and not just still as a notion.

I

best practices

Dries Cuypers, Accenture

Flexibility in and out the office Accenture describes itself as a global management, consulting, technology services and outsourcing company.

It operates in many domains of activity, with clients in sectors as diverse as Government departments, health care, media, retail, industry and transport. So how does a company which specialises in advising other companies handle the rapidly evolving notion of employee mobility?

Tim HARRUP

24 I

smart mobility management - n°0

To gain an insight into the Accenture philosophy where mobility is concerned, we asked Marketing Director Dries Cuypers for some explanations.

I Let’s start with these offices here in Brussels. Does any notion of mobility operate here?

Yes, because we have no fixed desk space for specified persons. It is a form of hot-desking, where people come in, find an empty workspace, sit down and plug in their PC. To show how effective this is, we have around 400 work-stations in our Brussels, Vilvoorde and Luxembourg offices, for some 1,200 members of staff. So one desk per four people. Yet with all the comings and goings which the nature of our business entails, there is always available space.

I This suggests that coming to the office is not necessarily a fiveday, nine-to-five occurrence.

This is true. I encourage people to ask the question: ‘Should I be going to the office today?’ Our work is very frequently carried out at clients’ own premises. And more and more of our work is also delivered from world-

wide delivery centres, of which we have around 50. This means that our work is a mixture of on-site and remote working. In this global working age, it is simply not necessary (and in any case not always possible) to all be in the same office together. Evening conference calls are more and more a reality, for example, and we are very open indeed to flexible working hours.

I Do you have adequate control, working like this?

We don’t manage the input, we manage the output. This means that our consultants have objectives to be achieved, and we have regular evaluations to measure their performance against these objectives. It doesn’t matter how long you work, or where, so long as you deliver the results that Accenture clients are paying for and are entitled to receive.

I Are there no team spirit issues, if people are not together as they are in traditional working environments?

Actively promoting rail travel wherever and whenever it is feasible is part of the mobility strategy.

Not in our case, because our consultants are so often out on their own at different client premises anyway. In fact it is to our consultants’ credit that they quite often feel part of the client when they are undertaking a long term project. We take this as bearing witness to the dedication they (and Accenture as a whole) bring to each project. Some even get hired by the client! We are also flattered by this, although obviously sorry to lose such a colleague. But in these cases they remain our friends, and indeed our ambassadors! I am happy to say, though, that the quality and variety of projects we have makes

most of our consultants want to stay here.

I Let’s move out of the office: what about your philosophy concerning travel?

Part of our company ambition is to reduce overall CO2 emissions by 40% by 2012. And this obviously involves the cars we drive. So we have a policy with our fleet supplier Athlon Car Lease to choose greener cars. We have around 800 cars under management with them, and we are constantly challenging each other to come up with greener solutions within this partnership. We were trying to achieve an aver-

The logistics of mobility management Have you been able to put a cost saving figure on your actions in modifying travel philosophy?

If you take the 6.200 metric tons of carbon emissions we avoided between November 2007 and August 2009 because of the use of tele-presence, this amounts to avoidance of 1,116,000 air miles (conversion based on a carbon calculation web site). A financial figure could obviously be put to this, along with the cost savings from fleet use, but at the moment we are concentrating on the ecological savings.

What do you think will be (or should be) the next big thing in business mobility solutions?

Make telecommuting an obvious choice within every company and organisation, not only with the early adopters. Then it would be great to get more recreational traffic out of rush hours. And to achieve this, offer a viable alternative by public transport to more people, by extending the networks, increasing comfort and creating combined fees/season tickets for train/tram/bus.

Does Accenture have specific mobility management challenges/objectives for the coming year.?

We want to reach our goal of reducing our per-employee carbon footprint by 40% from our 2007 fiscal year baseline, by the 2012 fiscal year (ending August 2012).

As for challenges, these constitute getting more people to use more of the options we offer them (tele-presence, telecommuting, exchanging car miles for train miles …), breaking through the ‘ceiling’ of early adopters. We know that in any change situation, if you eliminate those who are enthusiastic from the start and those who dig in and will almost certainly never change, there remains around 60% who are susceptible to persuasion – so we concentrate our efforts on these.

Accenture Accenture was created at the beginning of 2001, growing out of the former Andersen Consulting. Although originally founded in America, the new company elected to locate its headquarters in Dublin, Ireland. The company is estimated to be the largest consulting company in the world, operating in over 50 countries and employing a total of more than 190,000. It is a Fortune 500 company. The name Accenture is derived from ‘Accent on the Future’. The company is quoted on the New York stock exchange and turns over more than 22 billion dollars (around € 18 billion) annually. The company’s clients include more than 90 of the largest companies worldwide.

smart mobility management - n°0 I

25

best practices

Dries Cuypers, Accenture

age of 120 grams of CO2 emissions per km, and with our ‘Green Fleet Car Contract’ we have already managed this here in Belgium.

I What about other forms of transport?

We worked with the lessor and Belgian Railways on a system called ‘Railease’.

This gives our personnel a season ticket valid for any station in Belgium. And we promote rail travel wherever it is feasible, especially TGV and Thalys.

On many of these trains there is a Wifi connection in first class, so people can work perfectly normally while travelling.

I You have mentioned conference calls, but does other technology come into play here?

Our advanced video-conferencing system makes it feel as though everybody is together in one room, around the same table. This is known as tele-presence. I spoke about our worldwide delivery centres. These all have their conference rooms set out and decorated identically, with video cameras positioned in the same place (these are the ‘Microsoft Round Table’ version, a sort of round web-cam). So when you look up at the screen on the wall, it’s just as though your colleague in Delhi, or Los Angeles or

“It’s the output that counts, not the input.”

And there are at least two other advantages: people spend far less time in traffic jams, so are less stressed, and we will eventually be able to substitute ‘car kilometres’ for ‘train kilometres’ where the leasing contract is concerned – so we will end up with lower mileage and higher residual values too, a payback for the rail travel! Car sharing, as used by our company in France, is also on the drawing board. We already have a few pool cars, so staff can still come to work by public transport and get out to clients’ premises by car if necessary.

We are actively considering electric cars in this respect, because many of our staff movements here are in and around Brussels.

London… is sitting right across the table from you. Because it looks exactly the same! The only way you can tell where the person is located is by checking the city name displayed on the screen. ‘Face to face video-conferencing’, I call it.

Quite often our clients have tele-presence facilities too, so we can use these, or in other cases where clients want to speak to other of their plants, we can let them use two of our offices if these are conveniently located. I

Accenture encourages people to ask themselves the question: “Should I be going to the office today?”

26 I

smart mobility management - n°0

Work-life balance Accenture’s mobility policies helps the work-life balance.

“For our people it is all about increased satisfaction and flexibility. We position ourselves to be an employer of choice.

We invest in real and better mobility solutions. Traditional working methods – the daily unquestioned slog into the office by car – puts a great strain on work-life balance, and we try to eliminate it.

Losing time in traffic is not only frustrating but it makes no sense. If we can improve the working conditions of our staff in this area, they are happier and work with more enthusiasm. As well as enabling better travel conditions, everyone also gets a laptop with the technical installations to do any type of work in any place, and a smart phone with a mobile data card. It may be a sign of the changing times, but the only place in our offices in which you will find a fixed phone is the meeting room!”

best practices

Fred Turco & Ivor Johnson - Pfizer

Between mobility and connectivity management Pfizer is the world’s largest pharmaceutical company, and is known across the globe for its medicines and other products. We asked Global Fleet Leader Fred Turco (New York) and Regional Lead EMEA Ivor Johnson (London) to explain how the notion of mobility management can be integrated into such an enormous entity.

I First of all, how do you define mobility management?

Fred Turco : We define it as the safe and efficient movement of people and the things they have to take with them.

It encompasses a company philosophy which includes policies, practices and procedures which meet business needs while providing a sustainable solution for the movement of colleagues, their goods, and information. We do differentiate between mobility management and connectivity management. By connectivity we mean getting people well connected in meetings etc., using modern technology such as video-conferencing.

I Does Pfizer have a mobility management strategy in place?

Ivor Johnson : We have the makings of a mobility strategy, but we recognise that there is a lot of work still to do to better integrate mobility solutions across different functions within our organisation. For example, at the moment we have a separate fleet policy and a separate travel policy both of which touch on mobility and connectivity. Then there is the question of how

Tim HARRUP

Reduce the impact on the physical environment is one of the focus area.

Pfizer wants to reduce the GHG emissions by 20% between 2008 and 2012.

28 I

smart mobility management - n°0

these domains touch on other related areas such as IT, communication platforms. The biggest challenge is how we arrange the logistics in order to be able to conduct our business.

FT: We also have to take into account the cultural aspect of the solutions we may adopt. This can be quite complex. It will take time to look for integrated solutions, and this may be an over-simplified way of approaching the subject anyway.

Optimisation I How can you try to optimise overall mobility efficiency for your personnel?

IJ: We are clearly at the start of what will be quite a long journey, which is not made any easier by the lack of existing integrated solutions in the marketplace. At the moment there is no single organisation able to deliver a comprehensive solution from end to end, but it is fair to say that all the various components in order to do this are there, though it will be a slow process to combine these into what will ultimately be a combined programme. As an example, imagine a trip which entails taking a bus from home, getting to an airport or railway station, and then picking up a hire car from the destination to travel to the meeting, before repeating the entire process on the way back. This is a form of mobility, and the procedures involved in all this (buying the ticket, paying and all the rest), means we are a very long way from having a viable solution that will encourage people to move away from cars.

I Have you considered alternative modes of transport, and what are the problems allied to this?

FT: This is also a cultural question.

We need a framework to help us to find an integrated solution, and one which helps make a cultural shift away from the car. But Pfizer has shown that we are willing to move forward in this, we have vastly increased our number of home workers, and in the offices themselves, the space is increasingly being used as flexible office space and shared work environments. We have also piloted alternative mobility projects in New York and Paris, which are suited to such schemes. With these we are looking at the feasibility of replacing the vehicle, when possible, with

more public transportation. It is important that our colleagues feel at home with this, and do not feel a loss due to the lack of vehicle transport.

options as meeting these criteria, and we recently piloted a reimbursement programme in the USA which actually gets away from the fleet option.

I How do you try to optimise mobil-

I What would you like the mobility

ity costs for your colleagues?

IJ: One of the ways to manage and optimise costs is to better integrate our policies across various functions – integrate the fleet policy with the travel policy, have better connectivity with our IT people to make sure we’re using the tools they can provide. We also have to look at the logistics of our particular business, such as field opera-

supply industry to give you?

FT: Well we use a number of major leasing companies including LeasePlan, ALD and Wheels (USA), and we ask them to provide integrated solutions.

But working alliances obviously go further than just fleet management companies. The industry has to work out how it can make mobility a commercial notion.

“I would like to start by applauding your new magazine in helping to share best practices.”

Fred Turco, Global Fleet Leader

“One of the ways to manage and optimise costs is to better integrate our policies across various functions.”

Ivor Johnson, responsible for EMEA

tives going to meet doctors for example. We recognise that one set of values impacts on the others, so we need to make sure all of this integrates together.

We’ve certainly made a start to this, with better alliances within our businesses, improved communications of the business objectives around mobility. We recognise that there is still a great deal of room to make progress, and I believe the market needs a major mind shift in terms of the types of products and services that it is providing. Some of this may also be driven by the demand for oil and the ultimate end of that resource.

FT: I think we also have to understand that whatever alternatives we decide on have an impact on cost, and need to be cost neutral or cost beneficial. Fortunately, we see mobility

I Do you think technology has an important role to play?

IJ: Technology is at the heart of the problem, and some of the frustrations in putting together mobility solutions are caused by the lack of systems that can tie all of this together on one platform, to provide improved booking, improved payment procedures for example.

The need is to cut out some of the inconvenience of travelling. Going back to my previous description of a journey to a meeting, half the time is spent just waiting – waiting for a ticket, then waiting for the train… The industry has to cut this out. We also need greater capacity for virtual solutions, enabling people to access the web, to use tele-presence. The tools are all there, but it hasn’t yet all been integrated into a practical solution. smart mobility management - n°0 I

29

best practices

Fred Turco & Ivor Johnson - Pfizer

Part of the European fleet team trying out alternative transport in Rotterdam…

FT: I would agree with the concept of travelling less yet meeting more and working better, but there is an issue in our business whereby the medical profession likes to maintain the physical presence.

As some 70% of our fleet is driven by field operatives, it will therefore not always be easy to get away from face to face meetings. When the end user – our client – accepts more virtual meetings, then I think you’ll see a more dramatic shift.

I Do you have KPI’s to measure performance?

IJ: We are at the beginning of this journey, but we know that we need to measure the utilisation of the different modes of travel (trains, planes, car sharing), and also look at the impact on the business, its

30 I

performance and overall productivity, along with compliance to policy.

FT: There is also of course the cost per kilometre travelled between the various modes of transport. We have to use this as a KPI as well.

I Have you identified any best practices in this area?

FT: I would like to start by applauding your new magazine in helping to share best practices. But I don’t think too many people are yet thinking a lot about this. I don’t think many organisations yet have a great grasp of the subject or a global policy – never mind an integrated global policy! Best practice at the moment probably focuses on connectivity rather than mobility.

I What about the next big steps and

technology, looks at all the various products that exist independently and trying to combine them all together.

Systems will be the single biggest driver to mobility, because they will enable people to work out what the smartest way of moving about is in order to achieve the employee’s and the company’s objectives in relation to travel.

Our challenge in Pfizer is therefore to stay ahead and embrace new products and technologies as they become available. And we have a healthy attitude to this, challenging our suppliers as to how they are going to meet Pfizer’s needs going forwards. Our responsibility is to push the boundaries out.

FT: The second challenge is, as I said before, the cultural aspect, both externally and internally. The car is still king but we’re working on the cultural shift to change this where it is possible. I

challenges in mobility management?

IJ: I think the next step is an integrated system that embraces the latest

The I-Phone concept

About Pfizer

“I compare the mind shift required to the i-phone concept. This required that industry to realise that it was an entertainment industry, not just a music or a TV industry – and market leader Apple managed to bring all these areas together and provide consumer entertainment. I think the same will have to happen with mobility. Someone has got to work on this, providing integrated solutions and marketing it bringing different areas together”.

Founded by Charles Pfizer and Charles Erhart in the United States in1849, Pfizer Inc. manufactures a portfolio of pharmaceutical products and medicines within the domains of health and disease prevention and cure. It is active in developing drugs to help in the fight against illnesses including cancer and Alzheimers.

The company is also active in animal healthcare. Pfizer is based in New York and operates in around 80 countries, employing over 100,000. Pfizer turns over more than 70 billion dollars worldwide.

smart mobility management - n°0

best practices

Giovanni Tortorici - Barilla

Business trips are not rewards!

For Giovanni Tortorici, Mobility Management is a truly global concept.

Tortorici is senior buyer for Barilla, a worldwide leader in the pasta industry. He changes attitudes and behaviour towards transportation, thus managing demand and making transportation as a whole more sustainable. For this innovative, sustainable way of fleet management, Tortorici received the 2009 Fleet Europe Mobility Award.

Frank JACOBS

Giovanni Tortorici, winner of the 2009 Fleet Europe Mobility Award.

32 I

smart mobility management - n°0

I How does your company’s Mobility Management Strategy (MMS) work out on a global, local and regional level?

There are four areas of implementation: cars, business travel, credit cards and travel virtualisation. Our global policy for cars is translated for regional (e.g.

Nordic) and local (e.g. Turkey) use. For business trips, we have general rules, local policies - but always the same travel agency. As for credit cards, we maximise synergies with business travel, and even more with the finance department. Last but not least, we are ‘globalising’ a videoconferencing system on all our PCs, starting this year.

I What are you looking for in Integrated Mobility Management (IMM)?

I see IMM as a method, to focus on successive aspects of the business: first the car fleet, where we have almost reached our goal; then business travel and finally virtualisation.

The challenge is to change the way we travel and also the way we work. This last bit is the most difficult.

It requires a

cultural shift, which takes time. In a medium to large company, I’d say: two years before you see any results.

Essential travel I In which circumstances do you consider that travel is indispensible to business?

Good question. This is the key to corporate travel.

Our new ICT systems (document sharing, videoconferencing, ToIP, etc.), which will come online this September, will reduce the physical need to travel, allowing us to review the travel authorisation process. This review closely affects administrative and accounting processes. Human Resources will have a tough time deciding what does and doesn’t make travel “business-critical”.

Most likely, each department will establish its own process, and only later, and if necessary, there would be a company-wide policy.

I How can companies optimise mobility for their employees?

Can you provide examples?

Mobility managers need to encourage the culture of sustainable mobility, by offering alternative mobility and virtual mobility solutions. The biggest problem is cultural: everyone thinks he or she is the best driver (or even mobility manager) on the market...

I How could companies optimise overall mobility costs? Have you taken steps in this direction yet?

Companies need to establish a simple rule: business trips are not rewards.

So: who decides if a trip is businesscritical? This boils down to the authorisation process. By the end of the year, we will have reviewed ours. The result will be interesting, I’m sure. The synchronised release of our new, globally integrated ICT system will cut the cost of travel in all departments. This operation may be a bit brutal, but it will raise awareness of travel costs, and decrease the need for physical travel.

I How could mobility suppliers (travel, car, leasing, air, rail, rental and other companies) help businesses improve their business mobility?

Most current initiatives are limited to each single sector. That’s why we need mobility managers. They need to connect the dots. Why don’t airlines try to

pollute less by offering short distance trips on buses powered by natural gas?

And why do car manufacturers produce ever cleaner cars, but still distribute them via road rather than rail? On a national level, at least in Italy, the lack of a real mobility plan is a huge problem.

I What kind of service or product offer would you like suppliers to develop in order to help you build a true mobility management strategy?

The work of a mobility manager is, I believe, to invent new solutions for sustainable mobility. I wish we had a culture of saving and sharing with an ecological rather than an economic motive. We are seeing some movement towards ‘eco-calculators’, but for now they remain too focused on economic cost.

I put my hope in knowing that, in the end, many small steps will be what changes our global mobility strategy.

So the best service or product I can wish for is education about sustainable mobility. For the next generation will need this concept rooted in its dna.

I What do you think about smart technology to enhance business communication and thus decrease costs?

I have been a fan of mobile telephony and videoconferencing since the Nineties. I think it’s a great and noble project to switch from physical to virtual mobility. Smart technologies like these can easily lead to 10% cost savings.

But to achieve the highest savings, you need to change the way you work.

ICT tools today have far greater potential than is currently realised. That’s why education is so important.

Barilla Name: Barilla G. E R. Fratelli Società per Azioni Activity: Food and Beverage Product & service: Wheat Semolina Pasta, Egg Pasta, Sauces, Breads & Logistic Headquarter: Parma (Italy) Number of employees: About 18.000 (Lieken* included) Sales 2009: 4,171 million euro * Lieken is a German company that is part of the group but not yet fully integrated).

The weight of Lieken is likely to double the numbers of the entire Barilla Group.

Fleet Management at Barilla* Total fleet

about 985 cars

Company cars

9% to 12% of employees. The percentage varies greatly per country. In Italy, where the HQ is based and there are more executives, the average is highest.

Total annual spending Total FTE on Fleet Management

about €7,1 million/y currently eight people, but far from FTE. The number of FTE would be four

*Lieken excluded

Travel Management at Barilla* Annual travel spending Total spending in rail travel Total spending in air travel Total spending in hotels Percentage of employees travelling (rail, air)

about €8,9 million/y about €110.000/y about €5,2 million/y about €2,1 million/y about 1.050

*Lieken excluded

smart mobility management - n°0 I

33

best practices

Giovanni Tortorici - Barilla

I What tools would you need to measure KPIs to optimise overall mobility costs?

Mobility can’t easily be measured. We need to understand KPIs as a tool in current and future trends of sustainable mobility. Our analyses are fairly accurate, but the main difficulty remains correlating data from different areas of mobility. Fuel consumption and pollu-

a concept that needs to mature, to be seen in its entirety. The job of mobility manager is still often confused with that of fleet manager or business travel manager. The mobility manager needs to become the architect of mobility, and therefore needs to know about fleet cars, business travel, IT, etc. And he needs to interact both with global and local entities. Professional training

“Awareness is the next big think in mobility management.

Without it, our efforts are a drop in the ocean.” tion alone as KPIs don’t suffice. Travel time is an essential KPI, but even more so if related to the travel reservation system.

The first generation of this software application will be out soon, but the complexity of readjusting KPIs will require a very difficult fine-tuning by the mobility manager.

for the function - or an EU directive mandating it - would be a step in the right direction.

I Have you come across best practices in your own company or others that you are willing to share?

I think we will be ready for that after the first quarter of 2011, when we’ll have collected the first data since the release of our new ICT system. Right now, there still is a long and hard way to go. But I don’t mind complex challenges - I like them!

I What are your challenges in mobility management for 2011?

2011 will be an interesting year. I remember when e-mail first spread, and it was not a very user-friendly system. But it grew into a tool we now use every day.

Similarly, the introduction of our new communication system is a step forward, but it will take time to optimise.

Nevertheless, e-mailing a Word document is much more convenient than sending it by physical mail. ‘Snail mail’ will continue to have its uses next to email, just like business travel will coexist with sharing of e-documents and videoconferencing. We can and we will combine physical and virtual mobility.

I In your opinion, what is the next big thing in business mobility?

Awareness. Without it, our efforts are a drop in the ocean. Business mobility is

I What is your opinion on our new project i-mobility management?

More than positive. There was a need for this, and I am not surprised that you

Organisation MICE is currently decentralised, but obviously we need to create a process that provides synergy and coordination with its mobility aspects. This idea came to us when we were preparing for an international HR meeting.

The mobility group had organised the meeting and of course paid particular attention to the mobility aspects. The results were very positive. For the fleet and for business travel we have a two-person main team in the Italian HQ and at least one person in each country. It would be nice if people working on mobility and business travel would be full-time equivalents, but as one might think, tasks and their complexities grow but the number of people remains the same...

seized the opportunity. I think i-mm can become a mobility consultant with international visibility - and the need for such a thing is great! For example: our travellers don’t know that renting a car in one country and dropping it off in another is very expensive because the car needs to be driven back to its original location. I hope i-mm can contribute to the education and a culture of sustainable mobility. It’s a big responsibility. Good luck! I

Barilla is a leading company in the Italian and international pasta market.

34 I

smart mobility management - n°0

news Mobility leasing in the Netherlands Business, governments and leasing companies in the Netherlands have started a pilot project for mobility leasing, a new type of leasing that combines a traditional leasing contract with a so-called ‘mobility budget’. Mobility leasing is based on the principle that the lease driver uses part of the budget calculated in advance for every kilometre driven in the leased vehicle. Any amount of the budget that is not used is paid out in cash.

The intention is to encourage the lease driver to use the leased vehicle smarter

and more selectively. That could, for example, mean working from home more frequently, or using alternatives, such as public transport, taxi or bicycle. The mobility pass that the lease drivers are issued gives access to all of those alternatives and takes care of the billing automatically.

The pilot project will run for two years in the Dutch city of Maastricht. The project has been budgeted for 500 vehicles.

Leasing companies Mobility Mixx and Athlon have signed up from the leasing side.

New smartphone application from Europcar Europcar has announced a new application which will benefit users of the Samsung Wave Smartphone. The free download is available from the Samsung Application Store, and enables rapid access to the entire Europcar offering in terms of rental cars and utility vehicles. Available 24 hours and 7 days, the application has information on vehicles in around 150 countries. The nearest Europcar station can be located, and a ‘tachograph’ can indicate current speed while driving, and it will enable special equipment in hired cars to be ordered, such as GPS, baby seats etc..

London gets bike scheme

The intention of the Dutch project of mobility leasing is to encourage the lease driver to use the leased vehicle smarter and more selectively.

Benefits of car-sharing demonstrated A study into the practical benefits of car sharing schemes carried out by the German Environmental agency UBA in, has shown concrete results. There is a positive impact on the environment. Many companies and public organisations have seen the social and ecological advantages of using such schemes. Both private individuals and business users are able to take advantage of the cost-efficiencies offered by car-sharing – especially as an alternative to automatically offering employees their own individual cars – and the system is particularly attractive in cases where public transport does not offer a suitable solution for a particular journey. There are currently around 158,000 registered car-sharing members in 110 schemes in Germany. Some 25% of these are business users.

London is motivating the car drivers to use the bike.

Many companies and public organisations have already seen the social and ecological advantages of using car-sharing schemes.

Thousands of bikes have been made available for hire across central London in a Barclays-sponsored scheme which very much has the backing of Mayor Boris Johnson.

The scheme is similar to those in operation in other major cities such as Paris and Brussels. The annual membership fee is £ 45; and users are then charged from £1 per hour, although trips of under 30 minutes are free. Users receive an access key which enables them to pick up a bike – without reservation – from any of the docking stations.

smart mobility management - n°0 I

35

digest Finnair emissions calculator Finnair has launched a new emissions calculation system. This is the first time such a system has taken into account the real load level of the aircraft, including the number of passengers and actual fuel consumption, rather than being based on manufacturers’ figures. Finnair has committed to reducing its emissions by 24% between 2009 and 2017, and along with measures already taken, emissions will have decreased by 41% from 1999 to 2017.

Europcar and Thalys renew partnership Car rental company Europcar and high speed train operator Thalys have renewed the agreement they first signed in 2005 involving ‘green mobility’. Through this agreement, Thalys clients receive preferential tariffs when hiring Europcar vehicles, and for each rental, one Euro is donated to Europcar partner Climate Care.

International train trips via Mobility Mixx In the Netherlands, clients of Mobility Mixx can now also book international train travel with the mobility card. For booking the travel, Mobility Mixx and American Express have entered into an agreement that gives access to the international railroads in Europe. Mobility Mixx is an initiative of LeasePlan Nederland.

The system gives the lease driver the option of determining how best to reach his or her destination. The options include train, taxi, bicycle, rental car and, of course, the driver’s own vehicle.

Car sharing

by Daimler Daimler is offering a new service to give drivers independent mobility without having their own car, reports autohaus online. The ‘Car2gether’ website is being developed by the manufacturer, enabling easy arrangement of shared vehicles via a smartphone. The move is in response to a growing trend towards what Daimler calls ‘zero car households’ as more people, particularly in urban areas, prefer not to have their own car.

Subscribers register online for the use of the cars; the price has been announced as 9.5 cents per minute for those accompanying the driver.

It is planned in the future to make payment possible without cash.

Field trials have started in mid September in Ulm.

36 I

smart mobility management - n°0

Extended bike use in Paris The Parisian authorities have announced that they want to double the use of bicycles in the city within ten years. There will be an extra 700 km of bike lanes created, including two major routes (north-south and east-west). A number of itineraries will be signposted in a similar fashion the metro system. Starting from this month, two-way bike lanes will be created in all 30 km/h zones, including on one-way streets.

To facilitate the logistical issues, one thousand extra bike parking stands will be installed each year, and bike garages will be set up near railway stations. Extending the network to surrounding towns is also under consideration.

Paris wants to double the use of bicycles in the city in the next 10 years.

The Mu mobility service arrives in the Peugeot scooters network

The customers of Peugeot get the chance to rent scooters and bicycles at attractive rates.

The Mu by Peugeot mobility service has now also arrived in the Peugeot Scooters network, offering customers the chance to rent scooters and bicycles at very attractive rates. 13 pilot sites in the Paris region are offering scooter and bicycle rental, providing a more effective solution to new mobility requirements, with a more flexible free choice service. Each sales outlet will have at its disposal a selection of 3 vehicles, comprising 1 bicycle and 2 scooters.

In addition to this service, each sales outlet will be equipped with a self-service terminal for access to the Mu website, so customers can subscribe to the service or replenish their account with points.

After the Paris region, Mu by Peugeot will gradually be rolled out in the provinces, to Nantes, Rennes, Brest and Lyons in France, then Europewide, to Italy, Spain, Great Britain, Germany and Belgium by the end of 2010.

Arval offers car sharing Arval is continuing with its development of alternative mobility solutions, through a car-sharing scheme. This system enables company fleet managers to operate their own car sharing process with the advantage of Arval technology. The objectives are to improve the mobility of employees and to increase the usage ratio of cars, while delivering cost savings and reducing the company’s environmental footprint.

Arval Director General François Piot comments: “Our position as a major player in the multibrand long term rental sector makes it imperative that we are present in all sustainable mobility solution”.

Arval’s system enables company fleet managers to operate their own car sharing process with the advantage of Arval technology.

Go-Mobile launches real time-information platform mobility Belgium saw the launch of Go-Mobile, a joint venture of Be-Mobile and Syntigo, the IT subsidiary of railway company NMBS Holding.

Go-Mobile is responsible for the development of a new and multi modal IT platform which offers information and services to travellers in real time. In the first place, GoMobile will be aimed at companies and administrations who want to inform their subscribers, employees or users about the actual mobility situation in Belgium. Go-

Brussels Airlines goes mobile

Mobile points out that the Belgian roads are slowly reaching their saturation point and that there are no more alternative routes. Go-Mobile’s services want to offer the travellers the possibility to opt for the best solution at any moment, with regard to the route as well as the means of transport. Among other things, travellers can compile a route with various means of transport and then adapt it to the actual situation. It is also possible to opt for the most environmentally friendly routes.

Brussels Airlines offers more flexibility for their travelers via their website.

Go-Mobile will be aimed at companies who want to inform their subscribers, employees or users about the actual mobility situation in Belgium.

Brussels Airlines launches a mobile version of brusselsairlines.com for greater flexibility whenever and wherever you like. All you need to do is use your internet-enabled mobile phone* and surf to m.brusselsairlines.com. Find many services, such as checking your personal flight details, consulting the flight timetable of all Brussels Airlines flights and looking up the actual status of your flight.

Alphabet introduces Alphacity in Paris “Alphacity is a relevant addition to a regular car fleet, meeting today’s mobility needs that are satisfied via the use of taxis, short-term rentals and lease cars. ”

Strategy Alphabet's strategy is for Alphacity to provide a concrete, innovative and distinctive response to the urban mobility needs of our customers.

Stéphane Crasnier, Head of Department at Alphabet France.

Alphacity, a new urban mobility solution for businesses Did you know that, on average, a car remains parked for 95% of its time in a city?

This makes car-sharing an attractive option to reorient business mobility. Alphabet, a subsidiary of BMW Group Financial Services specialised in managing multi-brand fleets, is now offering an innovative concept for urban mobility called Alphacity. The concept has been established with the help of Mobizen, a subsidiary of Veolia Transportation.

The initiative conforms with Alphabet’s cus-

tomer care philosophy, among other things by improving their environmental management. Alphacity operates by offering shared cars to any employee from Monday to Friday between 6:00 and 23:00 o’clock. These vehicles are available in the parking lot of the company, where they should be returned after use. Reservations can made at every hour of the day via the company’s intranet, up to 5 minutes before departure if the vehicle is available, and for up to 5 hours a day.

An electronic badge reader on the windshield controls the central opening and locking of the doors. The ignition key is attached to a keychain reel beneath the starter.

A ‘black box’ transmits all relevant data to the fleet management. As in any community, users must follow a number of rules for Alphacity to work properly: return the car in a clean condition, be on time and report any incident to the staff. At present, the Alphacity fleet is composed of 4 MINI Cooper Ds.

smart mobility management - n°0 I

37

industry

Deutsche Bahn

Rail as provider of multi-fa For some years now, Deutsche Bahn (DB) has been more than merely a provider of rail connectivity. As indicated by their slogan ‘Die Bahn macht Mobil’ (‘Deutsche Bahn creates mobility’), DB today offers a wide range of mobility solutions, bundled together in a catalogue of no less than 226 pages.

Michel WILLEMS

nyone who inspects DB’s internet pages will be baffled by the great amount of additional services offered. DB has got the message that fast and comfortable rail connections alone are not enough to persuade business clients.

This particular customer segment requires door to door connections. This is why the German Railways have been offering alternative transportation modes for the last decade, either under own management or via external providers.

A

The “BahnCard” At the centre of this concept of mobility is the rail card, the so-called “BahnCard”. First and foremost, this is a card, holding client data and offering reduced travel rates. More important in this context is the fact that the BahnCard also is the key - quite literally - to supplemental modes of transport at special rates. For passengers who often

38 I

smart mobility management - n°0

use the train, there’s a “Mobility BahnCard 100”. This card provides unlimited access to the entire German rail network and includes special rates for international rail travel to neighbouring countries. The BahnCard 100 costs 350 euro per month in second class (based on a yearly subscription) and is offered with a free discount card of 25% for the card holder’s partner.

Children less than 15 years of age travel free. Also included and free are the transport of a bike and DB’s courier service for one item of luggage.

Card holders are also entitled to exclusive reserved seating on busy lines, free access to the DB Lounges and service at special ticket counters, and a free DB concierge service. The Mobility BahnCard 100 can also be fitted with a free Mastercard payment function. This comprehensive service can be a valid alternative to owning a car. There are also cheaper formulas, guaranteeing a

reduction of 25% (57 euro per year) or 50% (230 euro per year) on the regular ticket price. These cheaper cards also provide access to special rates on the supplemental modes of transportation.

Supplemental modes of transportation These days, the following supplemental modes of transportation are on offer: bike rental (DB Call A Bike in 13 major cities), carsharing (DB Carsharing in over 100 cities, including the first ‘plug in’ vehicles), ultra short term car rental (www.flinkster.de), ‘classic’ car rental (Hertz, Sixt, Europcar, AVIS discounted to 35%), chauffeur service, pool car rental, and leasing of new and used cars through DB’s own car concessions. For all these services, there are special rates for BahnCard holders. Where and when bicycles or cars are available can be checked on the special website http://www.dbfuhrpark.de.

aceted mobility www.bahn.de/bahncorporate • Key Account Tickets: special conditions for international connections using Thalys, Eurostar and the SNCF network; • A specific programme for trips to the hub airport at Frankfurt combined with a European or intercontinental flight ticket (in cooperation with several airlines).

• All these advantages combined with the aforementioned benefits of the Mobility BahnCard through corporate login and password.

Cityticket Owning a BahnCard offers the advantage that a ticket for a journey of more than 100 km will include local transport on arrival in 118 German cities, on both the days of arrival and return.

TheMobility BahnCard 100 also includes local public transport in the city of departure.

The corporate programme DB offers a special internet portal for business travel. There is a separate service analysing the mobility needs of companies and offering a total concept within the various formulas. These services are provided by the subsidiary DB Rent, headquartered in Frankfurt. A number of services such as car-sharing, are offered through agreements with local companies. DB has recently started offering a special online tool for business travel, called “OBT”.

This tool provides mobility solutions

outside Deutsche Bahn’s traditional range: booking hotels via ehotel, hotel.de and HRS.de, booking rental cars via Europcar, Hertz and Sixt and booking plane tickets with more than 800 airlines at day rates. All of this can be done from a single platform, with only one login and password. The bookings are then summarised on a travel planner. OBT seeks to increase cost efficiency of business travel substantially, through transparent comparison of rail, air and hotel costs. It also provides access to rates negotiated exclusively with OBT. No additional fees are charged for using this tool. The additional travel management functions will assist companies in controlling and optimising their travel budget. Professional experts in business travel are available for consultation by phone.

A mobility concept personalised for a company by DB Rent may look as follows: leasing a fleet consisting of

assigned vehicles and a few pool cars, combined with a number of rail subscriptions with BahnCard, a number of transferable rail network cards, access to car-sharing, bike rental and use of the "OBT" platform for business travel.

A specific account profile enables online booking. All services may be centralised through periodic payments.

The website http://www.umweltmobilcheck.de allows comparisons of the environmental impact between rail, car and airplane.

I

Expertise Center Michel Willems Fleet, mobility & Ecology consultant in Belgium & Germany www.mobilitas.bee-mail

smart mobility management - n°0 I

39

industry

Air Travel

How air travel integrates w In the world of mobility, airline travel has its specific role. How does it engage in integration initiatives with the other travel players?

And in which of its initiatives does it have an impact on a company's mobility policy?

Diane BROEKMANS

40 I

smart mobility management - n째0

with mobility first element of response is to investigate the purpose of travel. This is fairly simple: the objective is to move

A

people…

People travel because they need to: work, visiting family and friends, socializing, or because they like to: leisure, holidays, students exchange. But in a business environment in essence, very often there is an element of communication behind the motive. We want/need to see people to share thoughts, negotiate or exchange ideas in a direct, personal manner. Or we desire an input that can (only) be found by physical presence.

I need to be there!

Physical presence certainly is essential for leisure travel. We can hardly compare the feeling of tanning under a sun bed with relaxing lazily on a sunny beach, nor watching exotic TV programmes with the experience of a holiday resort by being there and enjoying the scene.

We can thus state that for leisure purposes, and for a large part of the destinations that we have in mind when planning our holidays, air travel will remain an essential element in letting us fulfil the expectations of travel.

As the nature of leisure travel is difficult to compare with business travel both in requirements and in sacrifices that the traveller is considering acceptable, we will not further elaborate on this subject.

In fact, we can more generally conclude that business air travel can only be considered as "essential" when the distance of travel and the quality objective of the communication issue both warrant using this mode of transport.

Air travel: a world apart?

Air travel has several characteristics that set it aside from other travel modes. Only the more fortunate have a private "airship", dispose of a private "airfield", have their own "air driver's licence" and can "foot it" to the air departure point. “Flying cars” may be

a future fact and an interesting aspect for an impact study in another column, but not of immediate high importance on the travel industry in general.

Air travel is therefore by definition a multi-modal means of transport, where part of the journey is by air, but connected to other means of transportation at the points of departure and arrival.

Air travel is also a high investment industry, both in transport vehicles, as in the infrastructure to make their operation possible, amongst others airports and air traffic control. International regulations, safety standards and - as of late a very serious issue - security measures are extra elements that add on to its complexity.

But even if it is a complex mode of travel, it still will be "essential" when the domains of distance (the time-issue) and quality of communication dictate to do so.

When do essential purposes become a necessity?

Admitting it is "essential", the aim of “smart mobility management” goes further: when is air travel "necessary", can we call it "effective", does it operate "efficiently" ?

If distance (time) and quality of communication have been the pillars of our qualification "essential", they are also the drivers that may upgrade the motive to "necessary". In various discussions it has been attempted to put a figure to the minimum distance below which surface transport would take priority over air travel. Usually figures between 300 and 500 km are given as the lower threshold under which air travel cannot compete. However this statement relies entirely on the relationship between time and distance being linear. This may well be true for the train, but certainly no longer valid for the road. Admittedly, air travel is not entirely predictable either, as congestion and weather conditions may severely impact on the expected duration of the journey, not to speak of cancelled flights and deviations to other airports.

Therefore, an exact figure for distance is not really a sufficient justification when choosing a specific mode of travel. This is certainly true if the journey encompasses a sea crossing, because then the aircraft obviously offers an advantage both in speed and time.

Effectiveness: only through integrated mobility Effectiveness we here understand as “that you should reach your intended destination point at - approximately the expected time”. As flying relies on other travel means from/to the airports of arrival/departure, the effectiveness is the compound total of the individual effectiveness of each segment.

The fact that the air travel segments are supplemented by land transportation is a first example why the airline industry is forced to enter into the game of integrated mobility. And, that it needs to take into account the potential shortcomings of surface transportation, regardless whether it is provided by the airline itself or through another supplier.

Efficiency: a far more critical criterion The first items that come to mind when one considers air travel's efficiency is time and cost. How fast can I get there and at what price?

Aircraft speed is fast compared to any

Communication yields to distance For business purposes it makes sense to consider the quality of communication more important than the time/distance element. For a contract closure meeting, it is expected to have an eye-toeye contact and hence one can state that air travel is "necessary". It goes without saying that video conferencing must be considered as a valid alternative in today’s' technical environment and surely often replaces the need to travel by whichever means.

smart mobility management - n°0 I

41

industry

Air Travel

other travel mode, but boarding the plane is hampered by rules and regulations, one of which – security – is increasingly adding to the total journey time.

If the departure airport offers a direct flight to your destination, there is no minimum connecting time penalty, otherwise the total journey time will be seriously increased. In other words, the efficiency of air travel relies not only on the airline’s efforts, but has much to do with the connections that are offered from your nearby airport.

Cost has become a strong differentiation factor: on one hand we have the traditional airline companies (the “legacy” carriers), on the other hand the low cost carriers. Both approaches tend to meet in the reality of “low fare”.

There are the low fares offered by the legacy carriers, these fares are usually related to more restrictive conditions and the omission of “luxuries”, as opposed to the low cost carriers who tend to add supplements for services previously considered included.

For companies with important travel budgets, the price issue and the resulting multiple choice of operators has

become if not a headache, certainly an issue of priority.

The other efficiency component: “how fast can I get there”, remains the prime objective. You could indeed choose to arrive at a secondary airport closer to your final destination and hence pocket the lower fare and a time gain, but it may just as well be true that the principal airport would in the end have served the purpose far better.

Leaving the issue of delays out of our discussion for the moment, it goes without saying that the airlines have a serious incentive to take part in integrated mobility.

Intermodal travel Although there are efficient airline initiatives which provide the traveller with direct surface services to his airport of departure, the major accent has always been to feed by air the hub airports, which offer a high level of direct onward connections. The reason why the airlines use connecting flights is to capture the smaller volumes available at surrounding airports. Again, distance plays an important role to determine whether feeding by air service makes sense.

Also, rail/road transportation is not only a separate expertise but the integration of tariffs and fare collection with air travel tickets is far from transparent, and the international conventions that regulate the air carrier’s liabilities for loss of life and/or baggage are not automatically applicable to surface transportation.

It is therefore not a surprise that the supply of surface transportation has principally been ensured by the players directly involved. Public (State) initiatives, possibly combined with (private) airport participation, have supplied the infrastructure and classic public transportation (railways, coach and bus companies) have set up the operations.

Nearly all major airports have their railway station directly integrated into their facilities, many with HST services.

The same applies for bus, tram or underground stations and the airport car parks have become a source of revenue.

Preferential access to other travel partners Being aware of the difficulties to provide inter-modal travel themselves on a sufficiently broad basis, airlines established partnerships with other players in the travel, trade and tourism industries.

Many products and services have been made available to the end users by special programmes. A few examples can be listed: preferential rates through web booking, at certain holiday resort hotels or business chain hotels (MICE), restaurants, rental car companies, and excursions when booked through certain tourist boards and so on. Furthermore, the airlines and above partners have jointly extended their frequent flyer programmes in exchanging their fidelity points for their customers.

I

Score?

Air travel has become an essential part and is integrated in our business and leisure way of life. Travelling has become cheaper, is more accessible and offers a wider range of products and services responding to the travellers’ demand.

Yet it has lost some of its early glamour, congestion and delays are a nuisance and hassle and security queues have not improved its quality. Unfortunately for airlines and airports, the credit that they get for the positive elements resulting from their own initiatives is overshadowed by the shortcomings that are often not within their own control.

Considering the difficult and strictly environmental regulations, the high level of investments, the inherent

42 I

smart mobility management - n°0

weakness to external crises and the resultant rapid changes in traffic volume, we believe that progress in air travel quality and performance is still remarkable. A positive score, with merits, is entirely justified. Improving integrated mobility will alleviate some of the hardships, but it is a joint task for every actor supplying travel services or taking part in the journey.

Suppliers and customers should all be aware of their common challenge and collaborate to provide the solutions. “i-mobility management” has decided to be an active player in providing you updated information on the aviation industry, with case articles and specific themes throughout our communication platform.

strategy industry

Leasing

Concentration on car mobility Over the past decade leasing companies have been able to fully concentrate on their core business product full service leasing or operational lease. But today a new leasing era may be emerging.

An era where fleet management and strict car leasing will evolve to mobility management and a revised offering.

The mobility aspect is on lessors’ agendas, but it is especially allied to the car and not enough to alternative transport modes.

Steven SCHOEFS

ver the past three years the fleet management focus has been much more sharply put on clear environmental concerns than ever before. Stricter regulations for car manufacturers coupled with tighter ecological laws, in which CO2 is a core

O

element, have pushed this evolution forwards. On top of this, the financial crisis made credit difficult to obtain, so that cost cutting measures, an emphasis on greener car policies and a greater attention paid to driver behaviour were the result. As the driver gains in importance, so will the idea that mobility is

key – being sufficiently mobile is what really matters for employees and a welloiled mobility process at a low cost price is what matters for employers.

According to recent survey carried out by our sister magazine Fleet Europe, it emerged that the mobility aspect is now on lessors’ agendas, but not yet

smart mobility management - n°0 I

43

industry

Leasing

high up on the list. Mobility today is especially allied to the car. This is logical, because whichever way you look at it, the car is the core business of leasing companies. The result is firstly somewhat timid though forward-looking initiatives, which will have to meet with the approval of existing clients, but which are probably not strong enough to attract new clients in.

Preparing the future Pascal Serres of ALD Automotive puts it like this : “Today we see mobility and mobility advice as a way to optimise the use of a fleet, rather than a threat to the existence of a fleet as such.

Rightsizing a fleet to the needs of the customer has become an essential part of our fleet management advice.”

GE Capital is rather cool when it comes to giving mobility information. “To give mobility advice can be one of the tasks of the lessor, but it has to be within reason.”

Other companies are more enthusiastic.

Fleet Synergy International has been

profiling itself for some years as a mobility partner. “We are providing customers with consultancy on overall mobility”, says Wim Halsberghe of Fleet Synergy International. “Our shareholders believe that moving towards becoming a mobility provider is the right way to support the customers in preparing their staff travel requirements for the future.” With regional leasing company Athlon Car Lease, which is part of the Fleet Synergy International association, we hear much the same.

No wonder that both companies have been experimenting for some time with alternative formulas such as Railease, in which cars and trains are in a combined offering. “The focus of car leasing companies will move away from the car itself and move more towards total mobility offerings”, says Valentijn de Jong. Athlon Car lease already has a 5-stage plan regarding mobility which involves looking at what the best solution is to meet needs, and what is the most environmentally friendly solution.

“Mobility management has to be a corporate move, involving the decision makers.”

Grégoire Chove, Arval

44 I

smart mobility management - n°0

Driver contact At Arval and Daimler Financial Services the whole mobility aspect fits into a wider company philosophy. “Mobility management has to be a corporate move, involving the decision makers”, says Grégoire Chove of Arval. “And many types of mobility initiatives are possible. The most common are route planning optimisation or alternative transportation policy. We assist customers in working out a mobility strategy and plan based on a few basic principles.” These principles come together with the five stage plan we referred to above. At Daimler Financial Services, the captive lease company of Mercedes-Benz, mobility advice is an integral part of the consulting approach for fleet customers. “Mobility management comprises several elements, such as providing replacement vehicles of the same car segment as the lease car or to looking into the actual use of the fleet vehicles and checking whether there are alternatives available, such as intra-company car pools”,

“In most markets we can help our customers with their mobility strategy and planning.”

John Houtsma, LeasePlan International

explains Jörg Essig. In some countries Daimler Financial Services offers the FleetSelect product with short-term rental. And at competitor company Alphabet too, a member of the BMW Group, mobility management is the priority for the future. “It’s important to define the responsibility for mobility management the same as that of our fleet managers at our customer companies”, states Dr Nancy Storp.

“Mobility management should not only focus on fleet-related costs for eligible employees, but on all expenses related to mobility of all employees. This includes public transportation costs, parking tickets, etc. We are piloting a mobility project in Paris, called AlphaCity, where the core idea is to look for a company specific mobility solution for short term rentals.” Last word here goes to LeasePlan International. The largest leasing company in Europe believes in offering mobility solutions. “With more pressure on company costs and evolving needs for employee mobility, we can expect

an increased focus on the overall management of a company’s mobility”, is how it was put. “In most markets we can help our customers with their mobility strategy and planning” explains John Houtsma. “Analysis of fleet usage and driver behaviour allows us to provide specific client recommendation points and the established driver contact allows us to extend this contact with additional mobility services. For example in the Netherlands we already work with Mobility Mixx, a product fit for a comprehensive mobility solution.”

Accelaration?

Trying to establish how leasing companies will profile themselves in the future where mobility management is concerned is like trying to look through clouds. Because company mobility depends on individual employee mobility, it is clear that managers will have to pay more attention to the individual driver over coming years. Telematics, an offering which leasing companies, and above all car manufacturers wish to

“To give mobility advice can be one of the tasks of the lessor, but it has to be within reason.”

Pascal Serres, ALD Automotive

integrate even more – with their eyes on safety – can help in observing driving behaviour, and identify channels for improvements. Alongside this, the use of telematics can help better identify mobility requirements. It is perhaps regrettable that current legislation surrounding privacy stands in the way of the application and extrapolation of this. Another element is the evolution of fiscal laws and the industry offering.

When fiscal legislation is strong, this can act as an impulse for clients to think about mobility solutions other than cars. When car manufacturers finally achieve to produce cars using alternative fuels or electricity, as attractive and efficient as today’s cars with combustion engines in terms of use, comfort and price, the mobility offering of leasing companies will of necessity find itself pulled along by a stronger current. But that’s for tomorrow. I

“The focus of car leasing companies will move away from the car itself and move more towards total mobility offerings.”

Valentijn de Jong, Athlon Car lease

smart mobility management - n°0 I

45

industry

Virtual meeting

Less business travel, mo Companies are slashing their travel budgets.

But it doesn’t follow that managers are becoming less mobile. The so-called mobile office is continuing its victory march.

And videoconferencing is staging a comeback.

Team System ©Tandberg

ravel budgets are under pressure. Since the start of this year, travel agencies have seen a drop of about 20% in the number of airline tickets bought for business trips. It’s hard to predict whether the situation will improve soon. But research by the Economist Intelligence Unit shows that almost half of respondents indicate that in the next twelve months, they’ll make less business trips. Even luxury travel is declining. Airlines are noticing fewer passengers using first or business class. European airlines saw the sales for their top market segments decline by over one fifth since the beginning of this year.

T

Comeback Travelling in general and flying in particular may be in decline, and yet managers these days seem more mobile

46 I

smart mobility management - n°0

than ever. The time when everyone sat at their own desk at the office every single working day seems definitely over. We are working from home, and working on the road, as well as working at the office, and even there we are less and less attached to a fixed spot.

Ever more companies and organisations are phasing out dedicated work desks for each of their employees.

Instead, they are hooking their laptops into whichever workstation is available in the office.

For the first time ever, according to IDC and other research institutions, laptops have been outselling desktops on a global scale over the past few months.

A strongly emergent trend, dovetailing with the needs of the ever more mobile manager, is the popularity of lightweight mini-laptops, also called netbooks. In short, technology has achieved all this

by becoming more reliable and more affordable. Remaining problem areas, such as the limitations of battery life of laptops at this moment in time, are being actively pursued by the manufacturers.

Technological evolution is also the reason for the comeback of videoconferencing. Video conferencing is gaining popularity especially for events where face to face meetings aren’t absolutely necessary, like for internal meetings.

For companies, it’s also a matter of saving time. Just imagine the amount of time that managers normally spend waiting for trains and planes that they’d be saving this way.

Star Wars Videoconferencing is obviously not new, but the reputation of this form of virtual meeting has not always been

ore video conferencing

great, plagued as it often was by faltering video images, sound with lots of echo and the impossibility of having more than two people talk in an understandable fashion. But the quality of all these aspects has greatly increased over the last few years. For example, today it’s even possible to make eye contact during virtual meetings.

Companies like CapGemini, Thomas Cook and Atlas Copco use such systems for virtual meetings, recruitment and remote training. Next to the technological advances, video conferencing also profits from the ever tighter travel budgets. If we are to believe Gartner, video telepresence will replace about 2.1 million air tickets by 2012.

Savings are especially realised by holding virtual meetings with colleagues in offices far afield. The office and hotel industry is capitalising on the trend by offering

spaces to be used for virtual meetings. An office specialist like Regus, one of the largest providers of video conferencing studios in the world, saw the demand for video meeting rooms increase by 40 percent in 2008. According to Regus, companies can save an average of 75 percent when a business trip is replaced by a videoconference.

Dinner Savings or not, telepresence still isn’t very cheap, especially not for compa-

nies that want to implement it throughout all their branches. In the higher market segment, for example, where major IT companies like Cisco, HP, Tandberg and Polycom call the shots, installing telepresence initially was something only for those multinationals with large budgets. For it involved installing special rooms with custom furnishings, providing high definition pictures and little or no visible delay. The rooms are always exactly the same with the same colors, furniture and technology. It gives

2,100,000 Two million fewer airplane seats in 2012

If we are to believe polling company Gartner, video telepresence will replace in the neighbourhood of 2,1 million air tickets in 2012.

This represents an annual loss of €3,5 billion per year for the travel industry.

Source: Gartner, 2009

smart mobility management - n°0 I

47

industry

Virtual meeting

Regus Group provides a cost-effective way to hold remote meetings by providing the most expansive network of public access videoconferencing studios. Video Phone ©Tandberg

Video Phone ©Tandberg

participants the feeling of sitting at a large conference table, with the interlocutors on the other side.

Yet even here the price is declining.

Teleportel, for example, claims it can offer a system for virtual meetings from €30,000 to €100,000 per location, depending on the size of the room and the number of participants. A company such as CISO recently announced an even cheaper teleconference system.

For example, $89,000 buys you a system with a single screen. This is unlike Cisco's flagship product, a system with three screens that costs $300,000 (€230,000). Another money-saving measure is that existing meeting rooms can easily be customized.

All these developments will probably make video conferencing and telepresence the most common of practices in the business world. But economic crisis or not, these techniques won’t completely replace business travel. Long distance travel remains the thing to do for certain important negotiations and contacts. Because the biggest misconception about this technology is that replaces rather than enhances the real thing. Business lunches remain crucially important... But only if they are enjoyed face to face...

I

Expertise Center William Visterin Editor in Chief Smart Business Strategies E-mail : william.visterin@minoc.com

48 I

smart mobility management - n°0

Who's who in business video communications I Telepresence Rooms With these high-end systems, almost an entire wall of your communications room will be taken up by one or more large screens, presenting you with life-size renditions of your correspondents. The aim is to generate the impression that those people are in the same room with you. Surround sound will ensure that the sound of someone speaking on the right hand side will also appear to come from that side.

I Team Systems These team systems are designed to be in a meeting room and enable and facilitate team meetings between different sites. Usually it involves one oversized screen with a camera, with or without a microphone built into the table. These systems are a bit more affordable and don’t require too much bandwidth.

I Personal Systems These technologically more advanced personal video systems are primarily designed for executive use. They consist of an LCD screen the size of an ordinary computer screen (17 to 20 inches) with a built-in high-definition camera and microphone. Nice touch: they often come with a so-called 'privacy shutter', meaning that the boss doesn’t need to look his best all the time.

I Videophone Phone-like devices with built-in video screens and cameras have been common currency in science fiction films for decades, but have yet to break through in real life. A small number of manufacturers keeps working towards that goal. These prodcuts are generally designed for use by secretaries and receptionists, other employees but may also put them on their desk.

I Webcam A standard webcam will go a long way in covering the needs of your average home-worker. A number of systems is compatible with standard webcams, others sell their video conferencing software also for desktop computers, equipping them for use with the same database of phone contacts.

Industry

Electric vehicles

In this session, we will take a closer look at different types of electric vehicles, ranging from cars to scooters and city vehicles, and from individual electric transport to mass air and rail transport.

Pierre AMBINET

I The e-Solex is the little brother of a two-wheeled legend, the design of which has been restyled by Pininfarina.

This newly equipped and modified vehicle has a top speed of 35 km/h and a range between 30 and 40 km.

I Personal Rapid Transit (PRT) is an avant-garde means of personal transport, used in Terminal 5 of London’s Heathrow airport. This vehicle is part of CityMobil, a Europe-wide project.

I The Peugeot Ion and the Citroën C-Zero are indebted to Mitsubishi’s I-MIEV concept of electrical propulsion. The Japanese brand’s French sister models will be available at the end of the year.

Copyright: e-Solex

I The Green Cricri is the world’s first electrical fourengine airplane.

It was unveiled at the Salon for Green Aviation in Le Bourget, Paris, which was held from 18 to 20 June 2010.

Copyright: EADS

I SkyTran is a mode of transportation being developed by NASA Ames. It will be able to transport close to 14.000 people per hour, at a speed of 100 km/h, via magnetic suspencion.

Copyright: Unimodal Systems

Copyright: Peugeot

I Four wheels, but no bodywork – this is one of Toyota’s takes on tomorrow’s mobility.

This vehicle, called iUnit, has as a particular feature a backward tilt related to its speed, allowing for better handling and safety.

I These electrical scooters are the handiwork of a company called T3Motion. They are testing these vehicles with a few US police forces. The Green Police is coming to get you!

Copyright: T3-Motion

smart mobility management - n°0 I

49

policy & processs

Training

How to become Mobility Manager The extreme issues on climate, the daily transhumance related to economic and social activities and the reinforcement of legal obligations in mobility management put pressure on companies to anticipate and manage the trips of their employees. eTodays’ Mobility managers are mostly self-proclaimed and have to innovate constantly to develop this new and unknown expertise. Their personal motivation compensates the lack of knowledge and they are keen on exchanging on these topics with their rare counterparts. Such motivation is important because their role is to act as a coordinator or even facilitator in most cases.

Todays’ mobility managers have a transversal role but it is not a well-identified and dedicated function yet. Mobility management remains often a secondary issue.

T

The wizards However the consistency and coherence of initiatives requires a good understanding of the different transport modes specificities and/or complementarities and a multidisciplinary approach to consider the problem in a

Expertise Center X. Tackoen Corporate Mobility Management c/o Centre Interuniversitaire d’Etude de la Mobilité (CIEM)

www.corporatemobilitymanagement.be

50 I

smart mobility management - n°0

broader context. Strong partnerships need to be built with the stakeholders to achieve an effective modal shift. There is no magic formula than can be applied to every similar situation or company.

The mobility manager must be a wizard and ingenious to reach his goals, negotiating with the top management and the unions and exploring the different paths of corporate communication to change the minds.

Mobility policy The advantages of a clear and ambitious mobility policy within a company are still underestimated but cost-benefit analysis showed that the initial costs would rapidly be overcome by the benefits for the employees, the company and the society as a whole. The precursors have gained an excellent image in their sector and mobility concerns become an important factor for efficient staff recruitment.

Mobility management requires a good knowledge of how and why people (and goods) are moving.

Mobility Management has become a real although imperfect science and specific trainings are now flourishing across Europe. This is the case of the « Corporate Mobility Management initiative » launched in 2008 by CIEM with the collaboration of Dexia Bank Belgium. CIEM is an interuniversity platform grouping the Belgian french-speaking universities for all issues related to transport and mobility. A 5-days training has been build up to help companies setting up managerial solutions for improving the daily commuting of their collaborators, reducing the impact of these travels on their environment and enhancing the credibility of this new function within the company. The second edition will be organised in October 2010 and regular events on specific topics are organised in parallel. The necessity of optimizing the professional trips is gaining awareness among the companies and authorities are encouraging (or imposing in the case of the Brussels region) the latter to be proactive in this field.

But many structural and psychological barriers must still be overcome…

I