Smart Mobility Management 8 by Nexus Communication

www.smart-mobilitymanagement.com

Nexus Communication â&#x20AC;&#x201C; Smart Mobility Management #8 - Quarterly periodic magazine December 2012

International Integrated Corporate Mobility Solutions

I DOSSIER

sing Telematics & Technology as U mobility management enablers

I Case Study

NP Paribas Fortis, winner of the B International Fleet Mobility Award 2012

I Strategy

The value of face to face meeting

The rise of low cost airlines in B2B

I INDUSTRY

Smart Mobility Forum & Award 2013 - Save the date: April 18, 2013 in Brussels

Trusting in your own intelligence will help spare the environment. The success of any organisation stands or falls with the input and commitment of all its employees. And their involvement will only increase if you show that you are also aware of your social responsibility. Do what your natural intelligence suggests and choose now as the moment to make the case for a sustainable mobility policy. A policy that cuts consumption of fossil fuels and reduces CO2 emissions and that deliberately promotes alternative methods of travelling and working that spare the environment without sacriďŹ cing productivity. Here at Athlon Mobility Consultancy, we are keen to help you devise a solution. We have the know-how and experience to come up with a form of implementation that will satisfy your overall mobility requirements in a sustainable and cost-efďŹ cient manner. Interested to see how objective advice can help your organisation get ahead? Then go to www.athlonmobilityconsultancy.com.

Athlon Mobility Consultancy, Re-think your connection

Athlon Mobility Consultancy is part of De Lage Landen International B.V.

edito

on the

WWW

Steven Schoefs sschoefs@nexuscommunication.be

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Moving on is better than standing still

hile exact figures cannot be given with confidence – no-one has a crystal ball – recent studies into economics, sociology and transport mobility all agree that there will be a serious increase in urbanization. In 2050 from 70 to 80% of all people on our globe will live in cities. This means that enabling efficient urban mobility will be a huge challenge for all mobility suppliers. This was also made clear at recent international events where mobility management has been under consideration. A key lesson is that we will all need to positively embrace innovation if we want to stay successful in what we do and if we want to keep being at the forefront of professional mobility initiatives. One of the innovation fields in this corporate mobility is the world of Telematics. With the need to focus on mobility efficiency, successful management will come to depend more and more on the integration of telematics devices at a company-wide level. But in a world in which the supply side does not seem to be lacking – almost all OEMs have a connected vehicle strategy in place or in the pipeline – and smart corporates, like this year’s winner of the International Fleet Mobility Award BNP Paribas Fortis, integrate new telematics and connectivity solutions for easier urban mobility, other elements are nevertheless blocking the smooth transition towards telematicsguided mobility: infrastructure, legislation and public authorities to name just three... Knowing that most of us will live in city areas in the future and with the prediction that by 2050 we will have around 2 billion cars on our planet instead of 900 million now, it is high time that these blocking elements get unblocked, or otherwise we will really be standing still. And that is not where 2000 years of civilization and three industrial revolutions should lead to. www.smart-mobilitymanagement.com.

smart mobility management - n°8 I 3

CO²OL*

*The new A-Class with CO₂ emissions as low as 98 g/km.

A Daimler Brand

The pulse of a new generation. Thanks to state-of-the-art technical features such as the ECO start/stop function fitted as standard, the new A 180 CDI BlueEFFICIENCY is one of the most efficient diesel vehicles in the compact car segment – with CO₂ emissions from just 98 g per kilometre. And because road safety is not a matter of price at Mercedes-Benz, the radarsupported COLLISION PREVENTION ASSIST system also comes as standard. Find out more at www.mercedes-benz.com/fleet

Fuel consumption urban/extra-urban/combined: 8.4–4.5/5.1–3.3/6.4–3.8 l/100 km; combined CO₂ emissions: 148–98 g/km. Figures do not relate to the specific emissions or fuel consumption of any individual vehicle, do not form part of any offer and are intended solely to aid comparison between different types of vehicle.

THE NEW SEAT IBIZA ST

The Fleet car that’s big on space and small on emissions

ENJOYNEERING MORE BOOT SPACE, LOW EMISSIONS – THE CAR THAT MEETS ALL YOUR FLEET NEEDS The New SEAT Ibiza ST is designed to be perfectly in tune with the requirements of today's fleet driver. With an outstanding boot space of 430 liters, you can take on board all the essentials you need for your business and everyday life. This translates versatility without renouncing to a superior driving experience because of the beauty of its new design lines and the technology of its latest TSI and TDI engines. With emissions from only 89 g CO2*, it even reduces the Total Cost of Ownership through lower fuel costs and tax, this makes it a great choice for your balance sheet. The New SEAT Ibiza ST is a perfect chord between beauty, functionality, performance and economy. /Petrol engines from 1.2 to 1.4 TSI (from 60 HP to 150 HP) /Diesel engines from 1.2 TDI to 1.6 TDI (from 75 HP to 105 HP)

SEAT Fleet

Average consumption: 3.4-5.9 l/100 km. Average CO2 mass emissions: 89-139 g/km. * Ibiza ST 1.2 TDI CR (55 kW) Ecomotive. Combined fuel consumption of 3.4 l/100 km

SE AT.COM

Content 8

DOSSIER

strategy

case studY

industry

8 Introduction

25 Environment

28 BNP Paribas Fortis

32 News

Telematics and the future of mobility

The carbon issue: is there the energy to change?

International Fleet Mobility Award 2012 Aiming to successfully change mindsets

News from the industry suppliers

TELEMATICS & TECHNOLOGY

12 Implementation To install or not to install car telematics?

26 Meeting

34 Bike-sharing What about your two-wheeler policy?

F rom time consuming to time effective

14 Management

36 Pool cars

Telematics in the age of mobility

Sharing your fleet

38 Fleet & mobility

17 Smart Apps

ALDO, the new personal mobility assistant

The connected car through apps

40 Air travel

18 Management The new dawn of value creation

The convergence of the short haul the market

20 Connectivity

42 Events

The connected car

Mobility & Telematics on stage

22 Management Changing the mindset

ISSUE N째9 SMART MOBILITY MANAGEMENT: publication mid-February 2013

24 Telematics & Technology N ews

Caroline Thonnon Content & Business Development (cthonnon@nexuscommunication.be)

Thao Vandepoel INTERNAL SUPPORT (tvandepoel@nexuscommunication.be)

Steven Schoefs Chief Editor (sschoefs@nexuscommunication.be)

Filip Van Mullem Marketing & Development (fvanmullem@nexuscommunication.be)

David Baudeweyns Sales & Business Development (dbaudeweyns@nexuscommunication.be) Romina De Gregorio Internal Sales (rdegregorio@nexuscommunication.be)

CONTRIBUTORS: Tim Harrup, Frank Jacobs, Philippe Martin, Jonathan Green (3SIXTY), Bart Vanham, Martyn Briggs (Frost & Sullivan)

Kathleen Hubert Operations & Communication (khubert@nexuscommunication.be)

MANAGING PARTNER: Thierry Degives

EDITOR: Nexus Communication SA, Parc Artisanal 11-13, 4671 Barchon (Belgium) Phone: +32 4 387 87 94 Fax: +32 4 387 90 63 URL: www.nexuscommunication.be

SMART MOBILITY MANAGEMENT www.smart-mobilitymanagement.com contact@nexuscommunication.be

Reproduction rights (texts, advertisements, pictures) reserved for all countries. Received documents will not be returned. By submitting them, the author implicitly authorizes their publication.

smart mobility management - n째8 I 7

DOSSIER

Telematics & technology

The Mega Trend set to underpin the future of Mobility Global mobility is becoming more connected, and thus facilitating industry convergence, with several mobility providers looking to take advantage of the wealth of opportunities that connected services can provide in our transportation networks. Whilst telematics products have been available since the mid 1990’s, recent technological advancements (the smartphone in particular), the reducing cost of the equipment, and changing customer preferences, has led to a proliferation of products available across most modes of transport, but especially cars.

he main deployment of the technology is centred around infotainment, diagnostics, electric vehicles, and safety in particular, but also increasingly a tool used by companies to improve efficiency across their fleet, by understanding driving patterns and utilisation, or by facilitating virtual access to vehicles, for example.

tinue gaming, social networking, or reading the news for example; all of which is possible via the smartphone. Therefore, the way in which smartphones continue to improve the transfer of information to users, innovate through location based services, and provide entertainment, is having a profound effect on the future of mobility, encouraging the use of multiple transport modes.

Mega Trends Influencing the Market for Telematics and Connectivity Of course, the main driver for this increased demand and changing business models has been the smartphone. There is a view by many that a key risk to the future of the automotive industry is that younger drivers, “generation Y” in particular, place a higher importance on connectivity and their smartphones over purchasing a car; this argument is seemingly supported when looking at driving license applications amongst 18-29 year olds, which have reduced by 9% in the UK, and 30% in Germany between 2000-2010.

This trend has certainly not gone unnoticed by car manufacturers and suppliers, who are desperate to increase smartphone type technology in cars to both ensure these

Indeed, the services afforded by a smartphone in many cases remove the need to travel at all, but where travel is required, information about the nearest bus, train or car sharing service can be obtained, and increasingly travellers would rather take public transport over a car to con-

smart mobility management - n°8 I 8

changing customer demands are met, and leverage this technology to increase sales of their vehicles. This is proven by the continued focus of connectivity at all major motor shows and vehicle product launches; Ford’s launch of the Sync connected B-Max at this year’s Mobile World Congress in Barcelona has been the most obvious example so far. In turn, this connectivity in the car also provides a considerable CRM opportunity to the manufacturers, to engage with their customers directly with a view to vehicle maintenance or offers,

The main driver that impacts and stimulates the Telematics & Connectivity market is the smartphone.

for example. There is also a key revenue stream potential available to OEMs and third parties through the connected car – that of automotive app stores, enabling paid content to be accessed and downloaded beyond the point of sale of the vehicle, and vastly improving the customisation options to drivers. There are at least six main areas where connected cars will benefit drivers, as shown in figure 1. Challenges Faced by the Connected Car era However, whilst this technology trend and generation Y users are of particular importance to vehicle manufacturers, they are not the most lucrative proposition to in the short term; the 50+ age group poses higher affluence and therefore ability to purchase premium segment vehicles. This is the segment traditionally more likely to offer services and technologies such as telematics and connected services, yet many more of these services are being offered by mass market manufacturers, due to the higher value placed on these technologies by younger drivers and the reducing costs attributed to the technology. Therefore, the challenge for the premium segment manufacturers in the short term is firstly to differentiate the offering to make it more attractive and aspirational than that available to the mass market, but also to invest in such technologies when their current customer base is potentially not as interested/willing to pay for the technology. Whilst the returns may not be immediate, the benefit of doing so is to make the brand more accessible and indeed interesting to younger drivers, to entice the next generation of customers. A good example can be seen in the BMW Connected Drive series, centred around providing convenience, infotainment, and safety with features such as remote locking, navigation and information sent to the vehicle prior to a journey, and online assistance. Furthermore, BMW have created a whole new brand, BMWi, where connectivity will play a key role in the assistance services to the all electric vehicles, to check

fig.1: There are several advantages for OEMs to integrate

connectivity in cars.

Outside the Vehicle Sensors, V2V, V2I, V2H, D2D, ADAS, Crowd sourcing, Cloud Interaction

Cloud Management Toyota, Ford and now Nissan also partnering for Cloud usage

Eco-Driving Aids Eco driving analysis and information presentation to driver

Device Connectivity Both for content and data pipe (tethered connectivity model)

the battery status of the vehicle, or to locate charging stations for example, as well as integrating the aforementioned connected drive technologies. Similarly, the new Mercedes A-Class launched this year proudly announced to have “put the iPhone on wheels” by developing an interface in the vehicle that replicates content on the users phone, named the digital drive style, leveraging key services on the smartphone, such as social media, facilitated by the Siri voice recognition technology, for example. Almost all OEMs have a connected vehicle strategy in place or in the pipeline, with some solutions shown comparatively in figure 2, which shows that a combination of solutions are or will soon become available, which will either become embedded within the vehicle (such as the GM OnStar service), or tethered using the connectivity of a smartphone (such as the Ford Sync for example). In addition to addressing the correct customer demographics, a key challenge for OEMs is how to maximise the potential of connected services in the vehicle whilst ensuring driver distraction

Within the Vehicle Multimodal HMI information presentation to user

Personal Media iPod, iPhone, iPad all bridging digital life style gaps in car

is kept to a minimum. This in many ways can be seen as what is delaying the wholesale adoption of connected services in the car, as OEMs strive to ensure a safe human machine interface (HMI) yet still providing an intuitive product. Another key challenge lies in choosing the right technology and approach to connected cars, whether through an embedded device or sim card, tethered connectivity, or a combination of the two. The benefit of using an embedded solution is that it is more reliable, being built into the car and can be used even if you don’t have your phone present or don’t own a smartphone. The downside to this is that it requires additional cost for another SIM card and data plan. Of course, most users are likely to change their phone much more often than their cars, and so a consideration and challenge is to ensure the content, HMI, and access to content is relevant and able to evolve in line with smartphone technology, especially where tethered solutions are preferred. Future Outlook Considering the rapidly evolving customer preferences with regards to

smart mobility management - n°8 I 9

DOSSIER

Telematics & technology

fig.2:: All major OEMs have understood the importance of connectivity and soon a combination of connectivity solutions will be available. Tethered Connectivity

GM MyLink Basic Solutions Low choice of apps + basic HMI

Ford SYNC Applink

Toyota Entune

MB Digital Drive Style

Harman Aha Radio (Subaru, Acura, Honda)

Renault R-Link

Jaguar Connect & View

BMW Connected

Advanced Solutions High choice of apps + Multimodal HMI

Peugeot Connect Apps

• Only in case of Renault and PSA all apps are hosted on head unit

Embedded Connectivity

connectivity, and the business opportunities to manufacturers and third parties through enhanced driver engagement and automotive app stores, the growth opportunities for telematics and connected services in vehicles are considerable. Future legislation, such as eCall in Europe, which is set to mandate the deployment of telematics devices in all new vehicles by 2015 (to enable automatic calls to emergency services in the case of accidents), will further increase demand for connected cars, and increase the advent of vehicle to infrastructure and vehicle to vehicle connectivity. Also, the emergence of 4G LTE mobile data connectivity will facilitate in car connectivity at increased speeds, and thus greatly improve the service level to consumers. This is set to see the market size more than treble in terms of new telematics subscribers between 2011 and 2016, from around 7m new subscribers to over 20m per year globally, according to Frost & Sullivan analysis, with North America and Western Europe

smart mobility management - n°8 I 10

The market leaders (in terms of volume) for tethered services will continue to be Ford, who have accumulated more than 5m sales of cars equipped with Sync in the USA, and has recently been launched in Europe in the B-MAX, and in China on the new Focus. The market leader for embedded connected solutions will be GM, with their OnStar service already having over 6m subscribers. Increasingly, premium OEMs are looking to connectivity to play a key role in their mobility strategy. For example, BMW’s Connected Drive series provides specific city level information, such as local restaurants and services, but also showcase local available parking services, and public transport/taxi information for example, and several other services. Similarly, Daimler’s new moovel application provides detailed journey planning across all modes of transport; thus these OEMs and many others have realised they are no longer in the business of manufacturing and selling cars, but in the business of providing mobility, and are beginning to adapt their product offering accordingly.

With the above in mind, connectivity and telematics is set to revolutionise the automotive sector in particular, leading to a cleaner, greener, safer, smarter and more multi modal transportation network of the future. The resulting opportunities and industry convergence are there for the taking, and with all cars set to be connected in the US and Europe by 2020, connected services will become critical for vehicle manufacturers to add incremental revenues. Martyn Briggs, Frost & Sullivan

Martyn Briggs is the Programme Manager for Mobility Research, in the Automotive and Transportation practice at Frost & Sullivan, a Global Research and Consulting company. Martyn is currently managing strategic mobility assignments, helping clients to identify growth potential through leveraging technology and new business models. Contact Martyn via email (Martyn.Briggs@frost.com) or linked in (http://www.linkedin.com/ pub/martyn-briggs/24/346/76b).

ADVERTORIAL

A blog for movers and drivers Mobility is a fundamental aspect of professional and private life. And is has been evolving rapidly in recent years due to economic, social and political changes. To encourage a productive discussion on the subject, Alphabet International launched its business mobility blog. It features news, information and tips from experts and provides a forum for all parties involved in the conversation.

etting from A to B efficiently is more complex than one might think. The many different stakeholders who have to deal with mobility on a daily basis are inevitably faced with a host of questions. For instance, how can a fleet manager reduce mobility costs for the company while maintaining the company car as a fringe benefit and incentive? Or, what is the best way to finance a fleet? Are electric vehicles a viable alternative? How can a company meet the challenge of increasing urban traffic and greater regulations on cars?

Mobility has been changing because its parameters have been changing. Companies, for example, are increasingly under pressure to cut down on expenses. Fleet managers can contribute by seeking alternatives such as corporate car-sharing schemes to optimise operations. This meshes well with a paradigm shift among drivers, who are increasingly favouring use of vehicles over vehicle ownership. In some countries, environmental regulations, too, have been placing constraints on the make-up of fleets. The result has been a wide range of innovative solutions that include use of other modes of transportation in mobility, such as bikes and trains. Increasing congestion in cities is also promoting the use of alternative means of travel. These vital mobility-related topics and many others are explored in depth on the Alphabet Business Mobility Blog. Each week, a team of experts from the company create content on a wide range of topics, from the latest twists in corporate car-sharing to tips on saving fuel. E-mobility has been given a separate category altogether, as it is bound to become a major topic in the coming years. Each author is named personally and can be contacted directly via LinkedIn.

Alphabet Business Mobility on blog.alphabet.com the latest mobility information from both sides of the industry

The Alphabet Business Mobility Blog is above all instructive and entertaining. It represents a dynamic, interactive platform geared not only towards fleet managers and company car users, but also other employees curious about developments in the corporate mobility market, and private individuals. As a leading provider of business mobility solutions, Alphabet’s goal is to foster a productive dialogue among opinion leaders and users on all the topics related to mobility. Visitors are encouraged to contribute their thoughts and ideas and maintain a spirited conversation that will ensure the blog’s neutrality.

Nancy Storp Head of Marketing and Business Development of Alphabet “We are involved in the public discussion about mobility. Alphabet has a great deal of experience in designing innovative and trendsetting mobility solutions, but we are very interested in our readers’ feedback and comments. We want the Alphabet Business Mobility Blog to be a channel for fleet managers and drivers too. We feel it’s important for us to listen to and respond to opinions, questions and ideas related to the changing needs of mobility. The Alphabet’s blog will play an important role in staying in touch with our clients.”

smart mobility management - n°8 I 11

DOSSIER

Telematics & technology

To install or not to install? As telematics enter the mainstream, fleet and mobility managers will be expected to explore how solutions can be deployed to optimise fleets and improve business performance. Communicating the Benefits Fleet vehicles are delivery agents for a corporation’s products and services, and an essential way of enabling company representatives to meet with suppliers, clients and consumers to market and sell products and services, build business intelligence.

According to Jim Nardulli of NNG users of telematic devices are not really interested in how the technology works, they are just interested in what the result is. The technology enables the experience, but it isn’t itself the experience. Copyright - NNG

leets are under increasing levels of scrutiny as corporations demand cost savings and better fleet utilisation and efficiency. Vehicle telematics, a term that covers a diverse array of solutions that use machine to machine communication (M2M), are emerging as the next generation of solutions that fleet managers can use to optimise fleets. The emerging territory of telematics demands new techniques to appraise the opportunities and risks of new fleet management solutions. As telematics become embedded in vehicles, and plug and play

smart mobility management - n°8 I 12

solutions are downloaded via smartphones, fleet and mobility managers will be required to understand how the connection and its outputs can be used to change behaviours, and improve performance. Dominique Bonte, Keynote speaker from ABI Research, shared at the Telematics Update conference in Munich the results of a survey conducted by his firm that showed utilisation of telematics in fleets had significantly increased and that this trend was set to continue. As acceptance of telematics grows, evidence of value is emerging and new products are becoming available.

The purpose of a fleet vehicle is to enable a corporation to achieve an outcome. Understanding corporate outcomes – and the role that fleet can play in optimising them - is imperative when refreshing fleet strategies and exploring telematics potential. The ultimate question that shapes a decision on investment is, “How will telematics support my corporation become better at what it does, and does this outcome justify the investment that will be required?” Candido Peterlini, VP Marketing Innovation at Fiat Group, explained that a compelling business case for telematics depended on aligning three interlined pillars. Namely; (a) understanding stakeholders needs, how telematics could achieve these and communicating the results to diverse stakeholders; (b) Intuitive systems that presented insightful outputs, informing decision making and creating a compelling business case; and (c) ensuring the digital connection was appropriate for a telematics application and that different applications could be integrated.

The Fear of Big Brother Telematics can access various types of data in real time and gain locational information about the car and/or the driver. The degree of information available depends on system employed. This opens up the complex topic of privacy, especially if employees believe their personal lives are to be ‘invaded’ by an eye in the sky. Jim Nardulli of NNG suggested that users, including fleet managers and those on the ground using the solution, were not interested in how the technology worked and decision makers should not get bogged down in technical issues associated with how solutions work. The need to ensure inter-operability of different telematics solutions, their impact on drivers and privacy however should not be dismissed. It was explained to delegates that transparency was needed to allay user concerns. There was also a recognition that legislation was catching up with innovation and this could offer the assurances needed to support behavioural change. The future is connection Telematics is potentially the biggest revolution in motoring since the advent of the motor car itself. Vehicles will become increasingly connected, linking the driver to the office and local environment. Big data will improve visibility of fleet operations, the evidence base of value will grow and working practices and fleet management strategies will be challenged. There are hurdles to be overcome, including financial, technical and social issues, but these are not insurmountable. The potential prize on offer to the industry, to suppliers and for fleet managers is so great that research and investment will result in solutions. Tim Harrup & Jonathan Green

“Telematics is potentially the biggest revolution in motoring since the advent of the motor car itself.”

Do’s & Don’ts of 3 Fleet & Mobility Clients Wim Schellekens, Global Lead Buyer, Corporate Services, BNP Paribas Fortis: + Do communicate to the staff - installing telematics is kind of an ‘intrusion’ into the private life of the employee and can be considered as a breach of trust between employer and employee – it’s key to explain why you are doing this, what the data look like, and above all, what is going to be done with the data. - Don’t forget to involve HR and the work force representatives in this discussion - if you make the link green / CO2 emission reduction / eco driving / safety, there will be a sure sell in there.

Karel Boussu, Facilities & Real Estate Manager, Mobistar: + Do make sure the telematics can transmit the information to a central monitoring tool. + Do check costs for purchase, licenses, installation, re-installation in other cars... - Don’t select telematics that are difficult to install - Don’t select a device which causes issues with the manufacturer’s warranty

Jean-Noël Gouillou, General Purchasing Director, Rexel Group: + Do involve the driver as a key contributor for optimization, with the support of the management board and social committee: consider benefits for the company as well as personal benefits. - Don’t consider it as a personal evaluation: secure & limit access to data.

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DOSSIER

Telematics & technology

Welcome to the age of Mobility Imagine a future where a traveller is able to enter the origin and destination of their trip into a mobile device and the end to end travel options, based on a range of pre-determined criteria in the corporation’s mobility policy are presented in real time. With one touch of a screen the reservations are made and stored on a smartphone ready for use.

Is this the future? In an age of Machine to Machines (M2M) communication and big data an integrated transport network is within reach.

There is a big chance that the fact of getting the transport policy right, will be the enabler of a successful, smart city.

The smarter city supports the smarter economy Congestion is a consequence of economic progress and eventually it becomes a barrier to growth. It costs an awful lot of money: in lost time, delays and inconvenience and a spectrum of other areas. Barb Samardzich, VP Product Development at Ford Europe, speaking at The Future of Sustainable Transport Conference this month in London, said, “the freedom of mobility is threatened” by congestion. As urbanisation and disposal incomes rise the economic, social and environmental impacts of congestion are getting bigger. With vehicle number predicted to increase to 2 billion by 2050, from around 800 million today, getting transport policy right is perhaps been the single most important enabler of a successful, smart city.

Talk to me said one machine to the other: M2M communication is a ‘what if?’ technology. From simple in car navigational devices and route planning, through to vehicle optimisation and across to real time journey planning the potential of M2M communication is constrained only by our imagination.

The smart city is heralded as the answer to many of the futures challenges. With their smart transport and communication systems these conurbations present models of development encourage a culture of investment, incubate innovation and energise enterprise. M2M is the gel that binds together a smart city. Sylvain Haon, Executive Director of POLIS, believes that “More integration,

smart mobility management - n°8 I 14

Wireless technology is bringing the office to the car, so that travelling can be done in a productive way.

2. The new mobility solutions present an attractive opportunity to create a new landscape of work.

less fragmentation” is the answer and that it’s a joint effort between policy makers and corporations. He adds that mobility is, “Not a choice, but a necessity.”

Making the right choice: TravelHub, an innovative online optimisation tool, from Sustainable Opportunity Solutions (SOS) has been designed to support corporation’s choose the most appropriate travel and communication choices. Paul Adderly, CEO of SOS, says “TravelHub measures value, cost, productivity, carbon and wellbeing and helps to incorporate corporate culture in a managed travel programme.” Adderly added that TravelHub, which can analyse end to end journey options, “Connects the contracted with the uncontracted travel environment.” Paul Hinds, Sustainability Director, who worked with SOS when rationalising said Natural England’s travel programme said, “The results of this project provide valuable data intelligence for wider education and engagement.” NE realised £2.1m in efficiency savings and £700K from improved productivity as a result of changing its travel and meetings programme.

Creating the Mobility Framework Today a business traveller has choice about the mode of transport that will be used when planning a journey. With M2M, tomorrow’s traveller will be advised about the most appropriate way to meet a business aim or objective. If applied in a holistic way M2M presents a game changing proposition. The annual reports of many publicly listed entities proudly state that people are their greatest assets. If this is true, the converse applies. People can be liabilities. A mobility strategy enables human assets to be effective. If a mobility strategy is not aligned with a corporation’s culture, workplace and cost control practices it means that its human assets can turn into liabilities.

The building blocks of mobility future are here and are already helping corporations make the most of human assets. M2M communication is connecting cars, aeroplanes, trains, trams, bikes and buses to the world around them. This connection, and the big data that it presents, is enabling corporations optimise business process and presenting employees with more informed travel information.

Air Travel or Air Time: Tele-presence and video conference solutions are breaking into corporate travel and meeting programmes as companies seek to reduce travel budgets. Suppliers to the business travel industry are responding to the demands of corporations for video based solutions. In the past year Sabre/Get There, the GDS, has incorporated video offers air fares alongside tele-presence suites in its booking tool.

Building the Mobility Solution Today Today’s model of business travel and fleet management is entering unchartered waters. The nature and scope of the new mobility solutions on offer today present an opportunity to create a new landscape of work. A corporation’s culture, its ability to create productive and innovative work spaces, and practice effective cost control determine the nature of the workplace landscape. These factors are influenced by fleet, travel and communication practices. If fleet, travel and communications strategies are managed independently of each other the big solutions required for a smart business culture, in a smart city, will not be created. Professor Fabio Orecchini, from the University of Rome, speaking at the same conference as Barb Samardzich warned that, “Silos of thinking leads to silos of doing.”

smart mobility management - n°8 I 15

Creating the business case When creating the business case Giles Margerison, Sales Director UK and Ireland for TomTom Business Solutions advises, “Sit down and think what you want to achieve and focus on the low hanging fruit first and demonstrate the ROI. Move onto the more strategic possibilities when the value of the system has been demonstrated.”

Connected Cars

It is in the fleet space where the impact of M2M is being experienced most keenly. When calculating ROI of M2M three interlinked areas can be considered;

Access and Allocation: The keyless car Car clubs pioneered keyless technology. A keyless car creates the opportunity for an expensive asset to be allocated to multiple users which, in turn, has the potential to improve utilisation rates. With ease of access and changing purchasing behaviours, the PAYG model of car use is an area of exploration in B2B environments.

> Performance in use: ROI calculation to consider fuel efficiency, safety and security, collision reduction and lower insurance costs. > Back office administration: Telematics that enable remote servicing and maintenance, streamlining back office management and costs. > Productivity Gains: This could include business process and asset optimisation, alongwith route optimisation and the cars ‘mobile office’ systems.

Wireless technology is bringing the office to the car, where voice controlled emails can be read and sent and dairy’s managed. Travelling time need no longer be unproductive time. Connected cars are able to reduce downtime via remote optimisation and maintenance management.

Safety First M2M technology is enabling fleet managers to appraise driving styles, identify at risk drivers and proactively mitigate the risks. Safer fleets use less fuel and reduce insurance premiums. Cars that sense danger, respond and prevent collisions are in real world testing and those with bio sensors, able to assess risks and prevent sleep, drunk, excited or fatigue driving are on the horizon. Which Way? Want to know the best way to get somewhere in real time? Route optimisation technology has moved to the next level, planning journeys in a fuel savvy way taking account of geographical conditions in real time. Frank Pauli, Vice President Map Division EMEA at Navteq, said, “Our Advanced Driver Assistance Systems, with their in detail mapping of geography like height and slope analysis of roads, lead to very accurate fuel savings.” Collaborating for Change Barb Samardzich from Ford believes that collaboration is the key. She said that “an OEM cannot execute urban mobility alone. Collaboration between previously unrelated industries will be essential. No one corporation however large and powerful can do this alone.” She added that, “Mobility is the single most important factor at Ford Motor Company.” M2M and other technologies can have a big impact if corporation’s focus on outcomes that could be achieved. Getting people together to collaborate is not the challenge. The challenge facing policy makers and corporations is creating the business models and investment arena that creates an environment for mobility imagination and innovation. Jonathan Green, Partner 3SIXTY

The new mobility solutions present an attractive opportunity to create a new landscape of work.

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DOSSIER

Telematics & technology

The Connected Car through Apps In a connected world it seems unthinkable that a vehicle, a corporation’s work horse delivering products or services to consumers, will be unconnected to the world around it. The rollout of connected cars will not be simple, but the seeds of connection have already been sown.

ttend any motor show and there is a buzz about connection. From the futuristic, where connectivity enables cars to drive themselves through to the seemingly mundane but essential vehicles diagnostics systems, the scope of applications available seems limitless. The Challenge of Connection Policy makers, OEM’s and telecommunications providers are collaborating to create fertile ground for mainstreaming connected cars. The challenges of; creating a viable business model; establishing the right type of connection for different market segments and applications; and designing cost effective applications that create value are some of the barriers to achieving widespread connection that industry players are addressing. Getting connected A car can be connected in one of three ways, via; > Embedded solutions – Connectivity is built into the vehicle; > Tethered solutions – A smart phone provides connectivity; > and Integrated solutions - Smartphone Apps are integrated into the car’s systems.

The type of connection will depend on a plethora of factors, such as the vehicle segment, the type of application and how a vehicle is being used. Getting the right information Information is the king of effective decision making. Andreas Hecht, from Inrix, was keen to stress at Telematics Update Conference in Munich about the risk of collecting information for information sakes. As connection increases more data will become available. Fleet managers need to determine what information is of value, and the best way of gathering, analysing and communicating this information to stakeholders. What type of applications could benefit your fleet, help streamline business processes and improve relationships with consumers? These are not hypothetical questions for generic fleets. Connectivity demands connected thinking about real world scenarios. Keeping Pace with People and Change Darren Burrell of Ford Europe, speaking at Telematics Update Munich Conference explained that client’s demands were changing at an unprecedented pace, stimulated by innovation in technology. Volkswagen and BMW, alongside Ford and other manufacturers, described the complexities this led too. The timeframes of vehicle design

As connectivity between car and driver, but also between different cars will increase in the future, more data will become available. and launch are much longer than that of the design timeframes for technology applications, and flexibility of vehicle design is needed if the pace of change in technology is to be accommodated effectively. The Road to Connection Policy makers create game changing environments. The EU’s mandating of eCall, a system that enables the automated calling of emergency services in the event of a road accident via an embedded connection, is an example of potentially game changing legislation. eCall will mean the architecture of embedded connection will be installed in vehicles as standard, reducing technology costs, potentially changing perception of vehicle tracking systems and value, and opening up the minds of corporations to opportunities that applications could offer in the management of vehicle access, deployment and use. Tim Harrup & Jonathan Green

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DOSSIER

Telematics & technology

The new dawn of value creation Please talk to me said one machine to the other. There are more machines talking to one another than there are humans and their numbers are increasing at an exponential rate. The question for the Mobility Management professional is how Machine to Machine communication (M2M) can be used to create value and how can this be evidenced.

achines are able to perform a plethora of different tasks yet they have one thing in common. They are installed to create value. How value is created is a subjective.

M2M is a ‘what if’ technology. Innovation in this space is happening at such a pace that the possibilities on offer are only bound by the imagination of the corporation. To realise the possibilities the Mobility Management professional needs to engage across the corporation, with all business support functions, and explore the opportunities. The rise of M2M A Frost & Sullivan study paints a picture of the growth of M2M communication. “M2M communication is expected to provide an explosive opportunity for VC investors across different verticals including automotive, utilities, healthcare and security” said Senior Research Analyst K Renganathan. “It is expected that by 2017, the automotive industry would be consuming M2M SIM cards worth $66.6 million per year while utilities would be consuming M2M SIM cards worth $24.8 million.” In business travel sector, Carlson Wagonlit Travel (CWT), the leading Travel Management Company in Europe has recently acquired Worldmate, a leader in Mobile Travel Technology. Douglas Anderson, CWT president and CEO commented: “This acquisition puts us in an exciting place within the industry; working with the expert in mobile technology puts us in control of our own ‘mobile destiny.” B2B suppliers of fleet, travel and communication solutions are creating new offers for corporations and, as a result, connectivity is going to become increasingly visible.

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M2M and Mobility The capability of M2M devices in the market today is skimming the surface of what is possible. The potential prize is much bigger. M2M is being used by fleet managers to optimise vehicle and driver performance, enable travel managers to streamline booking process and support ‘on the move’ travel and meetings bookings. M2M capability presents an opportunity to integrate all modes of fleet, travel and communication and in doing so creates a fertile landscape for mobility management. In a mobility-centred world a traveller will be able to book an end to end journey in a seamless manner, selecting planes, trains, cars, meeting venues or video suites via a single device in accordance with policy. The integration of travel and communication systems not only has the potential to enhance traveller experiences, it will also enables corporations to explore the reasons for travel employee decisions. Robin Duke-Woolley, CEO of Beecham Research said of M2M that, “It reveals exactly what’s happening at the customer site – allowing organizations to connect the dots in ways not previously possible.” Building Relationships A study from Axeda Corporation, a cloud-based software service, finds that integration of M2M data with Enterprise Resource Planning and Customer Relationship Management systems is a top priority. According to Axeda, 67 percent of M2M adopters are interested, planning, or scheduled to integrate M2M data with back-end systems. This will enable the data to be leveraged by many functions across the corporation. When product and machine data feeds directly into business systems, it creates an array of new touch points to gain deeper insights into business practices and streamline processes.

To seize the opportunities in today’s world of Mobility Management the company needs to engage across the corporation, with all business support functions included.

Operational teams can; track, monitor and manage assets more efficiently; service teams can reduce support costs and increase service revenue; whilst marketing and sales teams are able to gain accurate insight into customer needs. It is these factors that drive demand for travel. By understanding these factors, mobility managers will be able to create the evidence base and ROI calculations that will lead to changes in the way that fleet, travel and communication solutions are used, perceived and managed. The focus on back-end integration represents a shift in the maturity of M2M adoption. From deployment that started as a tool to improve operational efficiency, it has moved to the front-and-centre as a strategic initiative for connected enterprises. Dan Murphy, Axeda’s vice president of marketing said, “Having insight into how each and every customer interacts with your products is an enormous competitive advantage, and

sharing that advantage across the enterprise enhances all business functions.” He added that, “When savvy M2M adopters use machine data to unify functional roles within their organization, it accelerates growth, creates opportunities for brand differentiation, and impacts the company’s core culture by creating a social enterprise.” The return: It’s about the impact The big data sets presented by M2M present a corporation with the information required not only to optimise operational performance but drive strategic change that is focused on outcome delivery. With visibility of costs, time impacts and employee effectiveness in sight through the roll out of M2M communication at the operational and back end, mobility strategist will increasingly have access to the data that is needed to support a corporation optimise its business. Jonathan Green, Partner 3SIXTY

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DOSSIER

Telematics & technology

The connected car: Connected to what and why? If transport is to be connected then three things need to happen. The value of connection needs to be demonstrated to stakeholders, the investment and commercial opportunities need to be evidenced, and a communications framework that allows cars to talk to traffic and urban infrastructure needs to be established.

he physical environment that enables connection has been created in Ann Arbor, Michigan, US. Here 3,000 vehicles have been connected to one another and public infrastructure. Machines, in cars and on the roadside, are talking to one another, advising drivers and taking control of vehicles when necessary to avoid collisions. Researchers at the University of Michigan cite improvements in road safety, transport management and congestion as opportunities of connection and are testing these hypotheses. In an increasingly urbanised and connected world, where congestion plagues cities and constrains growth, applying new technology to enhance traffic management and urban mobility would seem an integral component of smart city.

ics, tethered telematics via smartphones or by integrating the two platforms. There is not necessarily a ‘right way’. The question of connection is shaped by exploring the desired outcome and establishing the connection that best fits. For example, with eCall, embedded telematics provided the best solution for policy makers, whereas for other situations, like stand-alone traffic guidance systems, tethered solutions may be appropriate. The other of the twin steps in a holistic system is connection to infrastructure, like traffic lights or parking spaces, and linking these urban management systems and vehicles in real time. From a zero starting point, vision will be needed to secure the significant levels of investment, and this supports the call for legislation.

Getting the right standards for connection Inter-operability and communication between machines in cars and on the roadside is a pre-requisite of successful connectivity. A universal standard of communications, the architecture that enables connection between different machines is essential if they are to talk to one another. If different communication architecture is used then complexity and disconnection will ensue. The need for a common language again points to the value of legislation in creating a framework that benefits commercial operators and users alike. Tim Harrup & Jonathan Green

Creating Connection The creation of a framework that enables urban designers, traffic managers and transport service providers to create connectivity solutions is the challenge and the opportunity for policy makers. It was often heard on stage at Telematics Update conference in Munich that, “Legislation is needed, it will come and it will drive the telematics market.” There are two inter-related first steps needed to create a connected environment. The first is connection in the car. Cars can be connected through embedded telemat-

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The creation of a framework that supports the creation of connectivity solutions is the challenge for policy makers.

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Real solutions for your mobility needs As the industry transitions from fleet management to mobility management, fleet supplier Athlon is determined to be in the forefront of that shift. “Our group’s ambition is to be a major supplier of sustainable mobility in Europe”, explains Alexander Prinssen, Managing Director of Athlon Mobility Consultancy.

“The fleet market is moving towards a mobility market. More and more questions have been coming in from customers and non-customers about the mobility issues they are facing, and Athlon Car Lease did not initially have all the right answers. But one of the most important drivers in setting up this new business, which is called Athlon Mobility Consultancy, has been to help these customers to address their mobility needs and to be able to answer the questions with real solutions”. What are the key elements of your mobility approach? Alexander Prinssen: “When tackling the market issues, we need to consider three angles: people, planet and profit”. “From the people angle, we see customers facing parking issues, generation Y employees with different mobility needs and a need of benchmarking their mobility policy to peers in the market”. “The planet angle requires accurate appraisal of the carbon footprint of corporate mobility solutions. This isn’t just important when tendering for public contracts, it also explains why companies implement flexible working solutions”. “The profit angle is important as the economic slowdown increases the relative cost of office space. That cost is quantifiable, but mobility isn’t. It is too fragmented. In order to calculate it, companies would need to take into account the bewildering variety of stakes and stakeholders. Our Mobility Consultancy Business answers all of these issues. Firstly, we provide mobility scans, giving companies a transparent overview of current costs, benchmarking, and any scenarios possible”.

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“Following this high-quality assessment of the current mobility situation, we proceed with a mobility audit. This digs deeper into cost, usage, CO2 and the different mobility policies available within the organisation. Based on our audit of the mobility needs of all employees, future mobility policies can be built”. “There’s yet another element: Momas, our Mobility Management System, which comprises almost 50,000 active mobility contracts. It integrates all the mobility processes in a company, taking care of invoicing, cost control, and administration increasing efficiency. Our customers tell us that on average, following implementation of Momas, they save 7% on their total cost of mobility”. Athlon’s main activity today is leasing vehicles. Do you see the shift towards mobility management leading to a bigger or a smaller overall fleet? Alexander Prinssen:“In the short term, and even in a longer perspective, I think we’ll have less cars - because that is what the market wants. There will be a change from car possession to car use. So expect more flexible mobility, and fewer cars on the road, and a better use of infrastructure. The market will be redefined, the scope will be broadened and not limited to only the employees eligible for a lease car”. Will Athlon also be supplying other mobility solutions such as scooters, bikes and public transport? Alexander Prinssen: “Not just yet, but as we progress towards being a true mobility supplier, we will partner with suppliers of those and other mobility elements. Our role will be to bring all these disparate elements together and manage them coherently for our customers”.

DOSSIER

Telematics & technology

Mobility management means that you are always looking at the greater picture.

Changing the mindset Today most corporations manage fleet, business travel and IT independently. Together these business support functions provide the solutions that enable employees to communicate with other another and clients. As corporations strive for new solutions and the creation of smarter operations is there an opportunity for business efficiency if these aligned support functions are brought together under the umbrella of mobility management.

magine what a corporation would look like if fleet, travel and communication were managed in a co-ordinated and holistic manner – and linked to the corporation’s property footprint. Would organisational structures change?

Today’s fleet managers have more sophisticated solutions to improve performance than ever before. From telematics that can optimise vehicle and driver performance through to corporate car-pooling or external city car sharing changing. Innovation in business travel is transforming how travel is booked and technology presents ever more ways for virtual communication. As procurement professionals chip away to find ever decreasing levels of savings is it time to change the model? It is widely accepted that people are a corporation’s greatest asset. People need to be enabled to do things. People who are unable to communicate efficiently are an ineffective or underutilised asset. This is where mobility management is different. It is based on designing solutions around people to ensure a corporation’s greatest asset is effective.

Changing Organisational Structure John Blackwell, CEO of Quora Consulting, thinks that business case for corporate change needs to be rooted in “cost control,

productivity and innovation, and enhancing an organisation’s corporate profile”. CEO’s, Finance and Procurement Directors can explore; > Is there a need for better cost control? Is it possible to identify the total cost of fleet, travel and information communication solutions, not independently but collectively? If costs are not known they cannot be controlled. > Can productivity be improved? What output is being achieved by employees, how is productivity compromised and is there scope for improvement? Is an environment conducive to innovation created? > Is the corporate profile as attractive to investors and employees as it could be? People are a corporation’s greatest asset and can the talent pool be improved? If a corporation has the appetite and energy to ask itself these questions then the value of change, a shift to mobility management can begin. Jonathan Green, Partner 3SIXTY

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DOSSIER

News

Zurich Germany selects TomTom Zurich Germany has chosen TomTom fleet management to provide the telematics capability behind Zurich Fleet Intelligence (ZFI). Launched in Germany, the integrated service is aimed at corporate fleets and combines vehicle telematics, reporting, driver development tools and risk engineering support. TomTom technology will be integral to the proposition, helping businesses to actively improve driver safety, reduce operational costs and minimise environmental impact. ZFI customers will have on-line access to the Zurich proprietary risk management web portal where both drivers and fleet managers can track and analyse performance based on detailed fleet management data.

TomTom releases Android map and navi app The TomTom Navigation app for Android now is available to download from Google Play for the first time. The new app is an addition to TomTom’s existing navigation app for iPhone and brings TomTom’s navigation to millions more smartphone users. The TomTom Navigation app for Android has been designed especially for drivers. The latest TomTom maps are included and stored offline, which means that users don’t have to worry about losing signal in the middle of their journey or roaming charges when travelling abroad. The app includes, free quarterly map updates which ensures that drivers always have the latest map on their smartphone.

Germany UR: BAN project to develop next gen driver assistance systems

A total of 30 partners, comprising automotive manufacturers and suppliers, electronics, communication technology and software companies, universities, research institutes and cities, have joined forces in the UR:BAN project (the German acronym stands for “Urban space: user-oriented assistance systems and network management”), a research initiative aimed at developing new driver assistance and traffic management systems for the cities of tomorrow. The UR:BAN partners’ total budget over the four-year lifetime of the project will be 80 million euros. UR:BAN comprises three projects: “Cognitive Assistance”, “Networked Traffic System” and “The Human Element in Traffic”: to help ensure that vehicles of the future can serve as an “active helper” in hazardous situations, technical solutions must be combined with appropriate interaction concepts to achieve an optimal synthesis between safety, efficiency and comfort.

Renault launches Twizy Way After a trial phase, Twizy Way by Renault is now opening up its car-sharing solution to the general public. One of the concept’s main benefits is the fact that users don’t have to worry about charging the vehicle or about parking. Users enjoy complete freedom as they can leave the vehicle in any car park within the service zone. They can pick up the vehicle where they find it and leave it where they like, 24 hours a day, 7 days a week. With Twizy Way by Renault, the user pays only for actual use. Users can instantly find out where the nearest available Renault Twizy is parked in real-time using a smartphone application or the web. Users can pick one up immediately by flashing the QR code on the vehicle, or they can book the Twizy of their choice on the web or using their smartphone.

The new TomTom Navigation app for Android has been designed and developed for drivers. With Twizy Way, the new car pooling initiative by Renault, users can pick a Twizy up immediately by flashing the QR code on the vehicle.

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STRATEGY

Environment

Is there the energy to change? In the late 2000’s it seemed that almost every sizeable corporation had started to explore or take action on the business risks of climate change and environmental sustainability. As the science behind climate change was accepted Governments started to pass legislation and the business opportunities and risks came into focus. Then the economic crises came and it was all hands on deck to ensure business survival.

oday’s economies and corporations bear the scars of the economic crises. In the past few years attention has focused squarely on economic recovery and it could seem that climate change had disappeared from the mainstream.

The European Commission agrees. It believes, “A strategic approach to CSR is increasingly important to the competitiveness of enterprises. It can bring benefits in terms of risk management, cost savings, access to capital, customer relationships, human resource management, and innovation capacity.”

Delving a little deeper into the corporate psyche it is becoming clear that corporation’s engagement in sustainability has not disappeared. The two pronged challenge that policy makers face today is turning around battered economies and, in doing so, creating a low carbon marketplace. Perhaps the two, a rejuvenated, sustainable and low carbon economy go hand in hand?

The language of sustainability has changed as the agenda has matured. It is no longer about carbon footprints but the optimisation of resources. Patrick Andersen adds that, “Now, more than ever, corporations need to demonstrate good governance and business practice.”

More than trendy It would appear that the most progressive Travel Management Company engaged in sustainability space thinks so. Patrick Andersen, Executive Vice President, UK & Ireland, Nordics and Eastern Europe from Carlson Wagonlit Travel comments in CWT UK and Ireland’s first CSR report that, “The world is changing. The model of corporate reporting based on financial performance alone is no longer sufficient.” He goes on to add, “We must not forget that sustainability is an opportunity.”

Sandy Moring, Senior Director Programme Management and Sustainability at CWT UK and Irelands, goes on to explain that, “We have seen a huge change in the past five years. Sustainability has moved from being an ad-hoc requirement in tender documentation to a pre-requisite of a successful bid.” Moring adds that “We expect that our business, clients and value chain will be subject to increasing levels of carbon legislation and we are preparing for this.” This strategic approach to sustainability takes account business risks and opportunities that shape the business

Although the business focus today is related directly to cost-efficiency and economic recovery, sustainability has found its place in the corporate environment and can be used as an opportunity on business level. environment in a holistic way. It is clear from CWT’s approach that climate change and sustainability remain a strategic business issue for both CWT and its client base. With the appointment of Françoise Grumberg, to the newly-created position of senior director global responsible business, and the publication of this report, CWT is demonstrating its commitment to climate change and sustainability issues and the value that can be gleaned as a result. It will be interesting to see if and how CWT’s competitors respond to the challenge. Jonathan Green, Partner 3SIXTY

The full report produced by CWT can be viewed by scanning the QR-code or by surfing to http://www.carlsonwagonlit.co.uk/export/sites/cwt/en/ countries/uk/pdf_downloads/cwtsustainabilityreport2012.pdf

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STRATEGY

Meeting

From time consuming to time effective Dictionary.com, the online dictionary, describes a meeting as “the act of coming together” and “an assembly or conference of persons for a specific purpose”. It goes on to explain that a meeting can be “a hostile encounter” and even a “duel. Some business meetings can be.

usiness to business meeting platforms have never been more varied. From face to face meetings, to high end tele-presence or Skype, through to social networking, there is huge choice available. The challenge for the meeting professional is providing the best meeting solutions and encouraging employees to explore the appropriate options. Age of Change Corporate culture is changing in response to the changing nature of workspace, enabled by innovation in the digital age. The face of corporate meetings has changed in front of our eyes. A few years back here a file of paper accompanied the business traveller on the plane to a far flung land. In today’s global village the smart phone and iPad accompany the global executive on his or her travels. If instant communication is desired then video and shared desktops are part of the solution;

enabling communication immediately without the cost, inconvenience and risks of travel. What makes corporations different? Corporations essentially use the same IT systems, have the same property outlook and similar Human Resources policies yet perform differently. It’s how they are deployed that makes the difference. John Blackwell, CEO of Quora Consulting, explains why, “What makes an organisation vibrant and innovative? It’s the interaction between the business support functions [(typically, HR, IT, Property, and Management Culture] that makes the business buzz.” Meetings ROI Measuring the value of meetings is not as simple as comparing the financial costs. People attend meetings to learn and then act. The impact of learning is one area where ROI can be explored, yet does a generic model of value for meetings exist?

Caroline Allen, Regional Director, Europe, Middle East & Africa for the Association of Corporate Travel Executives, doesn’t think that it does. Allen said, “There is no set way of calculating ROI. Corporations create, appraise and communicate value in different ways.” Ad hoc appraisal of value, without understanding the culture of a corporation or the purpose of a meeting presents risks. US Travel Industry Consultant, Scott Gillespie, believes that, “It is possible to put numbers against just about anything. It is the integrity of those numbers that matters”. He adds that “Managers are paid to make good judgements and should be trusted”. It would appear that the meetings manager is not well placed to make these judgements, as he or she is housed in a business support function any from the coal face of the business meeting.

Face to Face or Virtual: Factors informing decisions

Agenda

Cost Control

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Culture and Demographics

Accessibility

Impacts

It is not easy to measure the exact value of business meetings.

Agenda: What’s being discussed, by whom and where? The agenda sets the size and shape of a meeting and will influence the type of meeting platform that is appropriate. Cost Control: What are the total, end to end costs, of meeting options? Financial costs are one consideration, yet what are opportunity costs that need to be built into the equation? Culture and Demographics: The culture of the organisation and participants will influence how business is conducted. Demographic segments will respond to meeting platforms in different ways. Allen from ACTE believes that, “We are in a period of financial, social and demographic change. We need to be aware of social and demographic change as much as the new tools that are becoming available”. Accessibility: How accessible are the meeting solutions on offer? Its more than just the location that needs to be considered. Blackwell from Quora said, “There are 900m Facebook users and 1 billion smartphones. No one has ever

been trained how to use Facebook. It’s intuitive. For modern technology solutions to be universally embraced, throughout the workplace, IT professionals must recognise they need to strike a careful balance between potentially diverging interests of; intuitive, ease of use; complexity; pace of adoption; and the agility offered by the solution”. Impacts: What impact is desired and does this influence the means of communication. Impact, the outcome of the meeting, is where value is created. Cultural Change As workspace becomes more mobile and diverse there will be more meeting space and less office space. It is suggested that The ROI of a meetings strategy best measured in the way that it supports wider cultural change. Blackwell believes that, “Corporations have to root the desire for change in one, two or all of the following drivers. They are looking to either; (1) gain greater levels of cost control, (2) improve staff effectiveness (aka productivity) which in turn increases

innovation and/or, (3) enhance their corporate competitiveness (which includes enhancing their profile to shareholders and analysts, and improving the attraction, recruitment, and retention of staff)” On creating the right environment for organisational growth and change Blackwell adds, “Successful change is rooted in the four P’s. People need to understand the big picture - what is happening. They want to know what the purpose of change is and the plan that is going to be rolled out to achieve change. Lastly, they need to know what their part is in achieving change.” Perhaps we should also be challenging the very essence and structures of meetings management. As a thought experiment, consider the impact of every meeting should have one less person – perhaps the chairperson. What would the effect be? Jonathan Green, Partner 3SIXTY

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case studY

BNP Paribas Fortis

Aiming to successfully change mindsets To win International Fleet Mobility Award at the Fleet Europe Awards 2012, you have to have strong case to put forward. And this is exactly what Wim De Wit, Human Resources Director Retail and Private Banking, and Wim Schellekens, Global Lead Buyer, at BNP Paribas Fortis did. Designing a mobility plan for an entire company, not just the ‘chosen few’ is a formidable task, which has been undertaken by BNP Paribas Fortis with outstanding success. Their reward was to be called onto the stage at the prestigious Palais des Festivals in Cannes in November, to receive first prize.

Wim De Wit, Human Resources Director Retail and Private Banking at BNP Paribas Fortis: “We hired a lot of young people, so we were looking to offer them something attractive.”

he Green Mobility Plan by BNP Paribas in Belgium is one of the most ambitious ‘alternative mobility’ plans yet to emerge. We asked the happy winners of the International Fleet Mobility Award 2012 to explain the scheme in their own words.

Wim De Wit: “The project is called the Green Mobility Plan, and each of these three words is important. It’s all about mobility in all its forms, and it is a plan which we started around a year ago, ambitious enough to need planning. I took the role of sponsoring the Green Mobility Plan. The context of this project was the need for a complete reorganisation of our rewards programme, taking into account the fact that in a bank, staff costs represent the most important part of our cost structure and we need to keep this under control. So we redesigned our rewards structure but we made a choice not to make it less attractive, but to reschedule various elements. We launched a cafeteria plan in which there are different options and choices. In this case the choice is between cash, a bonus pension plan, and a mobility package. The mobility package involves a car or another mobility solution aiming to attract the best people in the market and especially to retain the best people. We have

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hired over 3,500 people in the past two and a half years, and we have invested a lot in improving the quality of the people we hired. We hired a lot of young people, so we were looking to offer them something attractive. This helped bring about the Green Mobility Plan which was initially intended for a limited population, but expanded to the whole of it very quickly.” What about the green element? Wim de Wit: “At first was just a car, and in this we wanted to show that we are environmentally friendly, so the choice was limited to ‘green’ cars with CO2 limits. Most categories are limited to 115 grams per km, with higher categories at 120 grams. Then we developed an extension to the mobility package which is a car-sharing programme set to start at the beginning of next year along with Peugeot and their ‘Mu’ programme. It should also be remembered that by offering new cars, we are contributing to replacing older, higher emitting cars. We don’t give parking spaces and we don’t give fuel cards, so we do not think that people will use their cars any more than in the past. This is especially true as we offer to all people the reimbursement of home-work travel by public transport in combination with their car.” How does it work in practice? Wim de Wit: “The choice that people have is to put part of their variable salary into one of the elements I mentioned. Of the 16,500 or so employees of BNP Fortis, 9,000 indicated that they were interested in a car. Because 9,000 cars were therefore to be involved, we decided that for logistical reasons we would go with one leasing company. We launched a call for tenders and Arval came in with an attractive price. We have already ordered more than 2,500 cars and this will be 4,500 by the end of this year. At that point we will go back to the market again to see if we want to extend to other suppliers.”

You talk of a car or another benefit – can it be a car and another benefit…? Wim Schellekens: “Yes, it can be a mixture, combining with public transport and the ‘Mu by Peugeot’ system, so it really is a mobility programme which may go as far as bikes and scooters – we are trying to expand the scope. We will also be involving Europcar and Carbox. There are more initiatives for management too, with the possibility of giving up a dedicated parking space in return for public transport use. The purpose is to change mindsets. We realise that cars are a major part of the budget for many families, which is why offering cars in a cafeteria scheme was logical, but it is not the intention that people use these cars to come to work, and increase traffic jams! In Brussels, where we have our headquarters and main offices, along with numerous branches, 68% of the personnel come to work by public transport.”

Wim Schellekens, Global lead Buyer at BNP Paribas Fortis: “Management has the possibility of giving up a dedicated parking space in return for public transport use.”

Open cafeteria plan You have mentioned management. Are their company cars involved in this scheme too? Wim De Wit: “There are about 1,500 management cars, so we decided we should do something here too. We reduced the maximum CO2 emissions and we also offered managers the option of taking a smaller car, which is where ‘Mu by Peugeot’ comes in. If they opt for a smaller car – for example a Mini instead of a BMW 5-Series – the rest of the car budget can be used within the Peugeot scheme. This enables the managers to take a larger car for going on holiday, or even a small van for doing some work in the house during the weekend… Then there is a category of managers who opt out of a car completely and here we can offer a very good alternative, which is car-sharing using some models kept in our Brussels car parks. This will probably involve both electric and hybrid cars. This element of the scheme could be extended to anyone who has to drive on business and who would normally be reimbursed for using their own car. They can use these green ‘pool’ cars. So a whole change of mindset – using cars differently, using shared cars and smaller cars, electric and green cars… We are trying to help families from a budget point of view, but also trying to make them responsible where the use of a car is concerned. We think that where managers who opt for a smaller car and a mobility budget are concerned, they may even decide to get rid of the second family car,

Just what were the key points which convinced the international jury that BNP Paribas Fortis deserved to win the International Fleet Mobility Award? This category recognises the growing shift from fleet only to true mobility, and rewards a project that focuses on enhancing mobility within the company while offering original mobility alternatives and optimisation of the use of the car. Within this context the jury were especially impressed by fully detailed and well balanced mobility programme offering different alternatives, replacing a conventional car policy, amongst other factors, impressed the international jury. The fact that this flexible ‘cafeteria plan’ is open to all employees, and not just those who were already entitled to a company car, was also a very strong point. The advantages of this type of forward-thinking project in terms of attracting and retaining staff also weighed in favour of BNP Paribas. And clearly, with 9,400 cars ordered during 2012 and 2013, the Green mobility Plan is extremely popular with the bank’s staff. The functionality is also up to the minute, with employees receiving personal vehicle ordering codes to be used with the leasing company supplier. And finally, various departments – Facilities, Human Resources, Finance and Procurement – so it benefits from the vital inclusion of the whole company.

smart mobility management - n°8 I 29

Wim De Wit and Wim Schellekens can be proud of their International Fleet Mobility Award 2012. “It is not just the company mandating green cars, but the people themselves who are asking for them.”

Three categories of Mobility because their new mobility arrangements make having two cars unnecessary. When the Peugeot scheme starts it will be interesting to see how people’s attitudes to their cars evolve.” Do the various elements of the mobility plan bring the staff all together as one large community? Wim De Wit: “Of course the cars are green. We would even have liked to go lower than the 115/120 gram limit, but we do not think that the current supply situation gives enough choice below this limit, and as people are ‘financing’ their car them selves, they have to have some choice. One of the pleasing things about all this is that it is not just the company mandating green cars, but the people themselves who are asking for them. All together we have made and are still making great efforts with this plan to bring down CO2 emissions.” Tim Harrup

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Green Manager: Opting to give up the dedicated parking space in return for public transport. Green Traveller: Opting for a smaller car in combination with ‘Mu by Peugeot’. Green Driver: Giving up the car completely.

OFFER 1: Green Company Car

OFFER 3: 100% Mobility Account

OFFER 2: « Downs-sized » company car + mobility account

SIMPLY CLEVER

ŠKODA Rapid. A great news for your fleet.

Regardless of which angle you look at the new ŠKODA Rapid, you will always discover many good reasons why to make it a member of your company fleet. Rapid is a representative as well as a practical car. Behind its elegant clean lines awaits a spacious interior and many clever details that will make traveling pleasant for the entire crew. For example, the side pockets where you can place your cell phone, an ice scraper mounted on the fuel tank lid or the multimedia holder located on the center console. While drivers will enjoy the high performance of TSI engines, fleet managers will appreciate their efficiency. The offer also includes extremely efficient 1.6 TDI diesel engines. All TDI and TSI engines are also available in Green tec versions that are particularly environmentally friendly. With the new ŠKODA Rapid your fleet will reach a completely new level. Contact us as soon as possible. We will gladly introduce you to other ŠKODA models from our fleet offer. www.skoda-auto.com

Combined fuel consumption and CO2 emissions for the Rapid model: 3.9–5.8 l/100 km, 104–134 g/km

industry

News

Danone opts for Carbox Mobility scheme Food-products multinational Danone has decided to take up the ‘Mobility Credit’ scheme in France developed by Carbox. This scheme enables employees to opt for an alternative to a company car, or a complement to it, in order to guarantee the most suitable type of mobility. Danone has conducted a test project this year, and as a result the Mobility Credit will be offered to all eligible employees. Mobility Credit involves enabling employees to select from a two options: giving up the company car and benefiting from a car-sharing scheme for evening and weekend use, along with a mobility budget which can be used for other modes of transport; the second option is to keep the company car but opt for a smaller, less polluting model and also receive a (smaller) mobility budget.

Mobility app «moovel» covers Berlin The mobility application “moovel” is now also operating for Berlin. “moovel” bundles the offers from mobility providers and links private transportation with public transit. In Berlin, Daimler is integrating its car-sharing subsidiary car2go into the mobility platform for the first time. For the launch of “moovel” in Berlin, offers from Verkehrsverbund BerlinBrandenburg and mitfahrgelegenheit.de are integrated. The “moovel” app will also display free car2go vehicles, which users will be able to reserve. It will additionally list the public transport offers in the VBB area along with travel times and prices. Users can search for a suitable ride or post a ride as well. A taxicab call function completes the first version of “moovel” in Berlin. It allows customers to order a cab from one of the local taxi companies by phone from the app. Offers from the smartphone based “myTaxi” app will also be integrated into “moovel”.

Mobility management is on the mindset of Danone.

ALD sets up new mobility team in Benelux ALD Automotive has announced that it is starting up a new Benelux consultancy team focusing on new smart mobility solutions. This specialist team enables ALD Automotive to support companies in the form of advice and joint testing and development of new services. Companies in the Benelux can make use of the mobility consultants’ advice on alternative mobility forms, or on innovation and sustainability of the total mobility. The team also prepares mobility plans, developing new mobility services in collaboration with the customer.

ALD Automotive appointed Pierre-Yves Meert (left) as the Smart Mobility Consultant Benelux in the new mobility consultancy team. Arie Klut (right) was appointed as Smart Mobility Representative.

smart mobility management - n°8 I 32

A free app and a mobile website (m.moovel.com) enable “moovel” to be used on smartphones.

Smartphones to enable all elements of a business trip A report published by DMM says that the business trip of the future is to benefit from modern communications methods and become totally paperless. This will include not just the airline ticket and boarding card, but also hotel reservations and other elements of a trip. The website quotes VDR president Dirk Gerdom, who says that the rapid installation of the apps involved in this, along with their cost-effectiveness, marries very well with the requirements and wishes of travel managers and their companies.

Mobility Mixx launches own business chip card Mobility Mixx has recently signed a contract with Trans Link Systems (TLS), the company behind the OV-chipcard, to develop a new business chip card. With this card, business travelers will soon be able to check in and out from all public transport modes. In addition, the card also provides the possibility to use it for car sharing and rental as well as for refueling and parking. Mobility Mixx takes the entire financial and administrative handling of the covered travel kilometers accounted for, regardless of the mode of transport. Mobility Mixx strives to be end the first phase of the connection process to be completed by the end of 2012.

Airberlin check-in app passes one million Airberlin has announced that it has just passed the milestone of one million passengers checked in using the iPhone app. The remote check-in is available from thirty hours before the departure. This is of particular interest to business travellers, the airline believes. Airberlin has integrated ‘passbook’ into the latest version of its app, which offers an extended range of services including boarding cards. These are read from the iPhone screen.

CiteeCar, new low cost car-sharing scheme A new car-sharing scheme under the name of CiteeCar has is being launched in Berlin. Using only Kia Rio models, the idea is to make car-sharing available at low cost. Those users who have a parking space to offer use the service free of charge, while others pay a rock bottom price of one Euro per hour plus 20 cents per kilometre. The ‘Host’ – the person offering the parking space – takes care of the car. Unlike some other city schemes, the cars cannot be left in any legal parking space, but must be returned to the space offered by the ‘Host’. Users are required to fill the car with fuel when it is three quarters empty, using the fuel card kept in the vehicle. It is planned to have 100 cars in the scheme by the end of 2012, and a smartphone booking app is set to follow in 2013.

Car-sharing scheme car2go, which is becoming more widely available in Europe and North America , has added a new function in northern German city Hamburg. Subscribers can now take one of the smartfortwo cars to the airport and leave it at the Europcar station, thus avoiding the time and cost involved in using a car park. The cars left at the airport are then available for use by incoming passengers who are members of car2go. Passengers arriving who are not yet members can register for the service with Europcar when they arrive. And recently car2go has also been launched in London and Stuttgart, home town of Daimler, using vehicles equipped solely with electric drive systems. car2go is operating Germany’s biggest all-electric fleet in Stuttgart, encompassing a total of 300 battery-electric smart brand cars. EnBW will set up 500 charging points throughout the city and its surrounding region until end of 2013 so that drivers can recharge electricity from renewable sources of energy. Worldwide, car2go now operates almost 6,000 cars in 17 cities in Europe and North-America, and has some 250,000 registered users in total.

1 million checked in using the airberlin IPhone app.

Car2go adds Hamburg airport, Stuttgart and London to programme

Worldwide, car2go operates in 17 cities, and has some 250,000 registered users.

smart mobility management - n°8 I 33

industry

Bike-sharing

What about your two-wheeler policy? The future belongs to multimodal transport. An important role is reserved for the bicycle in that future. The variety of shared bikes offers some unique opportunities in that context. They are an expression of a new development, which will also have consequences for mobility managers: The Eharing Economy.

he ‘sharing economy’ is on the rise. The 60,000 shared bikes in the Chinese city of Hangzhou bear strong witness to that phenomenon. In Paris, they have 20,000. By March 2013, New York wants to have 10,000. Right now, there are more than 300 cities that have shared-bike programmes: Mumbai, Tel Aviv, London, Mexico City, Melbourne, etc. and the numbers are growing by the day. Shared urban bikes Many cities offer ‘shared urban bikes’. They are usually IT-based. Luud Schimmelpennink, who was the first in the world to experiment with shared-bike systems (1965) and is still doing it today, describes it as a “central computer connected to the depots – where the bikes are parked – a chip-card for booking the trip and a rack where the bikes are locked to and released after the trip is booked’ and the bikes as “types of individual public transport that waits for you and follows your route precisely.” Many of those systems have been installed by outdoor advertising companies, like JCDecaux and Clear Channel: some of the costs for installing and operating those systems are borne by the advertisements, which they are allowed, by the municipal authorities, to place at the depots, on the bikes and in other places for free. In some cases, a sponsoring company provides the support: Citibank in New York, for example, or Barclay’s in London. Sometimes,

smart mobility management - n°8 I 34

the government does it without support from advertising companies. A noteworthy version of that kind of bike system has been operating in the Suzhou Industrial Park in China since 2012: the project numbers 65 depots with 2,000 bikes, many of which are adjacent to residential neighbourhoods so employees can bike to work quickly. Public Transit Bikes The Netherlands was a pioneer in what has come to be known as the Public Transport bikes. They can be found in more than 230 train and bus stations and underground stops, in some city centres and in Park&Ride areas. People who arrive at a station by train rent a bike quickly to get to their appointments. Other countries have similar systems, too: Germany has ‘Call a Bike’ and the Belgians have the

‘Blue Bike’, initiatives that are both run by the national railway companies. In Guangzhou, China, the local ‘bus rapid transit system’ was designed to combine public transport bike depots and bicycle lanes. The Belgian Dieter Snauwert, coordinator of the Bike to Work project points out that similar concepts are expanding into industrial parks, with bikes serving as shuttles. Payment is done at the end of the month by invoice. Bikes with ties In 2010, the ‘Bikes with Ties’ project started in Romania. The non-profit organisation Green Revolution started in Bucharest to help the commuters who were getting stuck in traffic jams and were losing a lot of time searching for parking spots. They placed bicycle racks close to the offices of three major companies:

One of the inherent benefits of the use of bikes in a corporate environment is that cyclists take one fewer sick day per year than other employees.

Orange Romania, Raiffeisen Bank and ING Life Insurance. Green Revolution takes care of maintaining, repairing and cleaning the bikes. The personnel of the participating companies can use them to bike to work, to meetings or elsewhere. During the first year of operation, 1,500 people were using the system. Corporate bikes The ‘Bike to Work’ project has been operating in Denmark for 10 years. That programme also involves a competition that 100,000 people take part in every year. In Switzerland, 50,000 employees take part. Dieter Snauwaert coordinates the Belgian version, with the assistance of a who’s who of international companies: BNP Paribas Fortis (see also interview page 29), Arcelor Mittal, Procter & Gamble and many more. That experience has led him to call for a comprehensive bike policy, similar to car policies. Bikes have a great deal of inherent benefits: lower costs for parking facilities, for example. And businesses become more accessible for customers and suppliers when there are fewer cars to contend with. No time is lost due to traffic jams and searching for parking spots. And research shows that cyclists take one fewer sick day per year than other employees. The challenge is for companies to get the employees on their bikes, of course. To meet that challenge Snauwaert recommends the following: First, give employees a bike allowance. Second: provide good infrastructure: attractive, covered and high-quality bicycle stalls, not too far from the company entrance and – “very important – provide facilities for cyclists to take a shower so that they don’t have to be concerned about ‘bike sweat’ at work.” Thirdly, and also ‘very important’: awareness, in the form of targeted communication that promotes the benefits of cycling. The ‘Bike to Work’ project does that through posters, banners, folders, etc., and by awarding ‘bike points’ (analogous to Air Miles®) that give participants a lot of benefits, such as cinema tickets and discounts for sporting events. An increasing number of companies are trying to persuade employees to take the time for distances greater than 7.5 km. For those kinds of distances, electrical bikes are making inroads. And an increasing number of suppliers are offering corporate rates for rental, lease or maintenance for bikes.

“A corporate bike project is one thing, but the challenge is to get the employees on their bikes.”

The Netherlands is one of the pioneers of bike-sharing projects.

Koen Vandepopuliere

smart mobility management - n°8 I 35

industry

Pool cars

Sharing your fleet Fleet Management is changing. Taxation, environmental compliance and CSR dictate a need for fleet managers to think outside the box when it comes to introducing alternative mobility methods, including pool car functions. But implementing such initiatives is only half the battle, selecting the right management approach is essential in order to ease the transition and safeguard successful uptake.

ccording to a recent survey of GE Capital in the UK, company cars will remain at the centre of business travel for the next five years. However, the survey into fleet trends also identified that increasing pool car usage was a core focus for the 250 fleet decision makers questioned, with a majority of survey entrants ranking pool car usage a top priority, second only to the continued use of the company car. Pool car usage was followed, in terms of importance, by: alternative travel, shared company car schemes, home-working initiatives, outsourced fleet management and the introduction of a public transport only travel policy. Pool car usage hasn’t always been so high on the agenda. Although the benefits of operating a pool car function have always been obvious, reality has often prevented successful uptake. Traditionally, company cars have been viewed as far more than a vehicle to take a person from point A to point B. They have been an extension of an employee’s personality. Changes in taxation and CSR agendas are demanding a shift in corporate perspective: company cars are now required to say more about the company than the individual. In many cases, this has resulted in considerably less choice for the employee,

smart mobility management - n°8 I 36

with a focus on more fuel efficient or hybrid alternatives. With the appeal of company car schemes in question by many – and with a cultural shift towards more sustainable transport solutions pool car usage is a hot topic. However, without appropriate management, pool car functions can soon become disjointed and inefficient – both financially and in terms of failing to meet CO2 reduction targets. A complex task Introducing pool car schemes brings with it a number of business benefits. For appropriate business models, the simple argument suggests that purchasing and maintaining a smaller shared fleet of vehicles is a more cost effective approach compared with operating a large fleet of company cars. Whatever happens to the role of the company car, as working practices change, technology advances and businesses adopt remote ways or working the physical requirement to drive a car every day is likely to reduce. This represents an opportunity for progressive businesses to adapt fleet models, direct greater emphasis towards implementing pool car functions and realise significant cost savings. A pool car function is great in theory and ticks all the relevant boxes relating to reducing harmful emissions and cutting financial overheads, without compromis-

The context “The demise of the company car in Europe remains a long way off. Yet, for many businesses, implementing a more diverse and sustainable mobility strategy is a necessary step in order to rise to the increasing number of challenges impacting the fleet sector. And to implement effective strategies, appropriate management of data is critical to success.” ing employee mobility. Yet barriers to successful uptake and implementation exist in many forms. From selecting a range of appropriate vehicle types to optimising utilisation and reducing environmental impact to effectively managing allocation to capitalise on fuel, maintenance and external vehicle hire savings: introducing a pool car function can be a complex task. Taxation as a driver In previous years, Benefit in Kind tax in the UK was calculated based upon miles travelled: the more business miles travelled the less tax paid. Replaced with an emissions-based category structure, BiK tax in the UK now incentivises employees to select efficient vehicle types – as does the road tax structure. However, a problem still exists relating to the frequency in which regulations and category criteria is revised, making budgeting forecasts difficult.

Pool car usage hasn’t always been as high on the agenda as it is today, and even though several advantages are clear, there are still some barriers to successful implementation of pool cars in a corporate environment.

Similar barriers exist on the continent with new tax legislation introduced in Belgium this year making owning a company car a more expensive option for employees. In addition to rising taxation costs, traffic congestion and a lack of parking facilities in inner-city areas is playing a key role in encouraging businesses in the Netherlands to introduce mobility budgets to empower employees to select alternative travel solutions that match their individual needs – such as public transport, bicycle or car sharing schemes. Although some countries are typically more attached to their company cars than others, this suggests a social and corporate acceptance of alternative methods of transportation. Regardless of changes in tax, legislation or economic pressures, company cars will remain an appealing option for a large percentage of employees and businesses alike. The point of increasing pool car uptake is not to necessarily replace the core function of the company car but

to complement it, reduce reliance upon it and offer a greener, cheaper mobility options if the circumstances are right. Easing the transition towards pooled vehicle models can be achieved in a variety of ways. Primarily, by reassuring employees that utilising pool cars will be as convenient as the experience of operating their own or company-owned vehicles. This means implementing a structured repair and maintenance schedule, conducting checks after each usage and developing a robust allocation model – to ensure the most appropriate vehicle is available for the corresponding requirement. To achieve these ideals, stringent management of associated data, and real time access to that data, is fundamental. In addition, handing over the controls to employees when it comes to booking vehicles will not only ease their user experience but also reduce the amount of manual administration required from the fleet department. In turn, this will empower employees to

select the vehicle they need, when they need it and what and how long they need it for, without depriving the fleet manager of vital visibility. Paul Verkinderen

About the author With more than 20 years’ experience in the automotive sector, Paul Verkinderen heads up the European operation of Chevin Fleet Solutions, specialist in fleet management software.

smart mobility management - n°8 I 37

industry

Fleet & Mobility

ALDO, the new mobility assistant of ALD Introducing ALDO, the first intelligent and personal mobility assistant, ALD Automotive has taken the initiative, trying to outwit its competitors. The first French fleet manager (and the third largest in the world) seeks to get a head start in the booming enterprise mobility sector.

LDO is an application accessible from a smartphone, tablet or computer, enabling all staff (and not just drivers) to optimise their professional or personal travels. From your computer, each user can plan travel arrangements based on real transport conditions. ALDO helps you to choose the mode best suited to your journey (vehicle, motorcycle, personal bike, public transport, walking), but also to combine transport means. Continuously connected to a great number of information sources, the application informs the users about transport conditions in real time (traffic situation, weather, Vélib’ availability), provides live alerts in relation to changes (weather, congestion, full car parks). Let us consider some examples. You would like to travel to your appointment in the city where your office is located. You are not sure as to what means of transport to take, and you decide to use ALDO. It will show you, initially, the fastest route of travel. This might be by car but ALDO, on its own, will start looking for possible congestions. If it still retains this option, it will verify the fuel level which you have on board, and if necessary show you the cheapest gas station on your itinerary as well as the car park where you might find free parking spaces.

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Aldo enables you to share information with your community and your environment.

If the car option does not seem to be the most pertinent one, ALDO will find you a two-wheel solution. You do not have a bike at your office? ALDO locates the nearest Vélib station and shows you the number of available bikes. But at the same time, it will analyse the public transport which corresponds to your route, and will tell you if, after all, this is not the most suitable and most certain solution, whilst integrating trips made

on foot between the transport arrival and your meeting point. Efficient mobility community ALDO is also capable to adapt to your habits (it knows that you do not appreciate two-wheel solutions, unless motorised) or the environmental impacts of each chosen solution (it computes the CO2 emission in case individual transportation is chosen, and compares it

with a carpool solution, in the event of distant travel). It is equipped with voice command and you can ask it questions, even en route. It can go a long way in adapting to your own transportation pattern: the more information you provide it with, the more it will refine the solutions put forward. ALDO is also a community-based transport management. “It creates a link between each company driver”, explains François Estrabaud, marketing manager Orange Business Service, who is developing this product together with ALD Automotive. “It optimises one’s daily mobility, thus creating an efficient mobility community.” Finally, for the fleet managers, the ALDO application constitutes a precious enterprise mobility reporting tool: preferred transports, most frequent routes,

clear overview of travel costs, environmental dimension. At present, the application is in a ‘pilot phase’, being tested by 1000 users, coming from the business communities Société Générale and Orange. The marketing phase should be launched in early 2013, starting with the French market, with a project to expand towards the Benelux, northern Europe and Italy. The price of the app is not yet set, but it does not involve a free product, since the subscriptions to various live information sites come with a cost which needs financing. It is expected to be around €2 per month, to be paid by either the driver or by the company or by a combined solution: it is also a choice of human resources. Philippe Martin

Not afraid of copycats ALDO was launched on 17 September in Paris in the presence of the entire ALD Automotive staff: Mike Masterson, chief executive officer ALD International, Jean-François Chanal, managing director ALD Automotive France, and Laurent Corbellini, marketing director ALD Automotive France, who has answered our questions. You report a growth of 9% last year, which is the same as during the years before the crisis. How do you explain this?

Laurent Corbellini, Marketing Director ALD Automotive France.

The ALDO app, the first personal and intelligent mobility assistant, is at present being tested by 1,000 employees of Orange and ALD Automotive.

Laurent Corbellini: “The activities of ALD Automotive are based on the triad “customer relation, quality of service, capacity to innovate”. Perhaps it is the third point that makes us stand out. Our Ecodrive was commended by Microsoft, which we are currently developing in seven countries. We have created an “electric car showroom” and have put in place specific training dealing with

electric vehicles, for the benefit of our customers.” The ALDO mobility assistant is part of this process? LC: “Absolutely! We plan to develop it in around ten countries: France, Benelux, northern Europe and Italy.” By introducing this very early, ahead of marketing, are you not afraid of copycats? LC: “You know, this operation is the result of a lengthy process, which has matured a lot. We have been testing this product for several months using “meta testers”. We have decided to unveil our project at the time of the International Car Show, since we are in the strong trend according to the study conducted by the national Syndicate of Renters, which emphasises mobility. All lights are green: we think it is the right time. We have a considerable head start and we are not afraid of copycats.”

smart mobility management - n°8 I 39

industry

air travel

The convergence of the short haul market The Low Cost Carriers (LCC) no longer offers just cheap fares, but prime locations and frequencies. In the past decade the LCC has transformed the short haul travel market and managed travel programmes have evolved to accommodate LLC offers. With budgets under scrutiny is it just price that drives the design of managed air programme?

he LLC market share in Europe has grown from 9% to 39% in the last decade. LCC’s have been able to use their expanding networks and low cost model to build a solid foundation in the lucrative corporate travel market. Hybridisation The modus operandi of the LCC is no longer unique. The extensive use of the Internet, e-ticketing and new labour deals have put legacy carriers on a par in one respect. As the LCC’s have grown up, increasing their passenger numbers and primary route structures, they have begun to offer new services too. Lesley Turvey, Senior Partner at specialist travel consulting firm 3SIXTY says, “The LCC is, in a way, disappearing. There is a greying of the lines between LCC and legacy carriers. The LCC can’t be ignored in a managed travel programme.” Caroline Allen, Regional Director of Association of Corporate Travellers for EMEA, agrees, “Generally speaking negotiated rates are a thing of the past. This means that the best available fare on the day is the area of focus.” The services offered by airlines on short haul routes are changing too. A study by Alamdari & Mason in 2007 suggested

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that business class will eventually disappear. Whilst there has been some recovery of business class on international routes since the start of the financial crises, demand for business class on short haul continues to decline, matching Alamdari & Mason’s predictations. There is more than price Peter Morris, Chief Economist, of Ascend commenting on his company’s 2012 survey of business travellers in North America and Europe said, “It is not just enough to say ‘that is the price, take it or leave it’ – because it appears some customers will leave it”. The LCC needs to match traveller expectations.

In squeezed economic times price can be king but savvy buyers think about value creation. Corporate travel buyers make decisions based on a plethora of factors including availability of content, end to end costs, programme management, productivity and traveller expectations. It is in the areas of price, distribution, analytics and traveller experience where access to the lucrative corporate travel market is decided. If LCC wish to build on the inroads that have been made then building products and services for the corporate traveller is the priority.

Factors influencing corporate travel programmes Pre Travel

In Transit

Post Travel

Buyer wants Access to content and fares to be presented in a seamless, integrated fashion and complaint with policy

Buyer wants Health, safety, wellbeing and security of the traveller, and the reputation of the company, to be assured

Buyer wants Analytics that enable travel patterns and behaviours to be explored, and business opportunities and risks identified

Traveller wants A simple, efficient booking process that presents the information needed to make an informed decision

Traveller wants A hassle free travel experience, in a safe and secure environment

Traveller does not want A complex or time consuming administration processes or have to think about the anything that distracts them from the business trip

Flying with a LCC does not necessarily mean a lower fare. Legacy carriers have responded by adopting the cost saving approach of low cost carriers, whilst maintaining their service flexibility and route structures. Calculating the total cost of a flight is also a challenge with the advent of ancillary fees (also called unbundling). The Amadeus Worldwide Estimate of Ancillary Revenue predicts that income from ancillary sales will rise 11.3% to $36.1 billion this year. Price comparison is not as simple as it once was. Scott Gillespie, a US Travel Consultant, says “LCC developed unbundling into an art form.” The practice of unbundling is now industry wide to some extent. The ability to compare airline costs is a constant challenge for corporates. Buyers must strive for an understanding of the total cost of a ticket to fly. Distribution Distribution of content is where it is at. A system that presents full content, clear pricing and has in depth analytics is needed. Sounds simple? Not quite. LCC have traditionally sold content directly – being unwilling to pay GDS fees. This means airline content is held in different places and can get horridly complex. The GDS’s have been keen to capture LCC content and coverage improved. Many LCC’s now subscribe to the GDS and with screen scraping technology fare from LCC is being presented. It is not perfect though. Gillespie adds,

“Travellers are forced to sift through lots of options. That’s fine, in the leisure market, but a corporate traveller time matters. Corporate travellers do not want a great deal of choice.” Perhaps the time for transformation is now in the sphere of distribution – especially in the light of ancillary fees. Gillespie, whilst praising GDS innovation recognises that “They don’t easily present unbundled options.” Traveller Expectations Homer Simpson, the cartoon philosopher, said, “If something’s hard to do, then it’s not worth doing.” Travel managers have to make booking simple, yet content availability and unbundling hinders this. The experience of travellers is also critical. There is a potential army of business travellers who don’t fly with LCCs because of the stampede to board. To cater for business

travellers LCC easyJet, for example, has announced flexi fares, is rolling out cabin wide allocated seating across all flights and offering priority boarding. Back to the Future So what does the future of air travel look like in Europe? With hybridisation the similarities between LCCs and legacy carriers are blurring out the differences. Perhaps aviation market dynamics – in the short haul market have finally settled down? Allen of ACTE sums it up, “The use of low cost comes down to what is appropriate. If the service is right, the location is right, the flight time is right and the price is right then low cost can be the right choice.” The challenge for buyers however, is ascertaining this. Jonathan Green, Partner 3SIXTY

The importance of the business community We asked Flybe about their engagement with the corporate travel market. They told us, “With over 40% of Flybe’s revenue being generated by the business community we have cultivated solid relationships with TMC’s and work closely together to understand the requirements of each account. Flybe’s all-inclusive ‘Plus’ product offers fully changeable tickets, lounge access, seat assignment, dedicated check in, complimentary drinks and snacks on board and double frequent flyer rewards. A new mobile booking website was recently launched for smart phone users with apps for check in, making it easier to do business with Flybe while on the move and hand baggage sizes have been increased. Flybe is exploring numerous exciting ideas including automated check in and on board entertainment through wi-fi that our passengers can access via their own iPads and laptops. Integration of the internationally recognised Airplus payment card in to Flybe.com is also underway to streamline the expense management process.

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industry

Events

Mobility & Telematics on stage The rapidly evolving landscape in terms of efficient mobility for company employees is amply demonstrated by the growing number of specialist conferences dedicated to the subject. On this page, we take a look at two recent international conferences.

he E.N.G. 2012 MOVE conference which recently took place in Brussels was an ideal forum for hearing how some of the major players in company fleets are making the transition to overall mobility. The conference heard that by 2050, more than 80% of Europeans would live in cities, which brings huge mobility challenges. Various types of car-sharing schemes are therefore springing up everywhere, including those that allow ‘one-way only’ and whose cars can be left in any legal urban parking space. Smartphones are used to find and book the cars. These schemes represent the clearest indication yet that there really is a move from car ownership to car use. The conference heard that within this context, the involvement of the public authorities is critical, as they not only enable this type of transport mode, but try to build an integrated mobility platform whereby people choose the most appropriate mode for each portion of their journey. Changing mindsets One of the expert speakers was Alexander Prinssen, Vice President of Athlon Mobility Consultancy, who emphasised the need to build a ‘mobility services platform’ to serve the travelling population. Companies like his, previously identified only with car leasing, are transforming themselves first into what Alexander Prinssen called ‘mobility chain integrators’, and then going even further, becoming ‘true mobility solutions providers’. A fourth stage in this transformation might involve travel planning and the involvement of infrastructure technologies. Speaking on behalf of ALD Automotive, Deputy CEO Tim Albertsen and Strategy Director Christophe Duprat said that their company had identified mega-trends which will influence mobility over the coming decades. Where demographics are concerned, these trends involve both the ageing population and the growing popularity of social networks, while technology developments would see open data, new equipment and increasing connectivity. The question of transport congestion would have to be tackled, they said, while governmental regulations would clearly have a role to play. A good start has been made in some areas, and Tim Albertsen pointed to Amsterdam, which he described as having a high level of regulation and of connectivity, a city in which mobility allowances for employees are used, enabling multi-modal solutions. This mutation would lead to a demand for TCM – or Total Cost of Mobility – in the same way as fleet managers calculate the Total Cost of Ownership of their vehicles. Tim Harrup

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“The involvement of the public authorities is critical for the success of efficient integrated mobility.”

Tim Albertsen, Deputy CEO of ALD Automotive, described Amsterdam as a city with a high level of connectivity, where multi-modal solutions are supported.

Telematics waiting for answers Another recent conference, this time organised by Telematics Update, took place in Munich. Car manufacturers, mobile communications operators, software and hardware suppliers, all gave their points of view on the future development of car embedded telematics and connectivity solutions. Some of the main conclusions to be drawn are that nobody can yet say exactly in which direction telematics are moving, nor who will eventually emerge as the major players. When some of those whose names are mentioned include manufacturers themselves (Volkswagen, BMW, Fiat…), alongside Google, Apple and Nokia, it is immediately clear that there is a long way to go yet before any ordered form of future infrastructure becomes clear. Another conclusion was not to be so wrapped up in the future that we forget to serve the present, but on the other side of the coin not to forget that current ‘apps’ have a very limited lifespan – much shorter than the development timescale for new cars into which they may be integrated.

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