Designing of Digital Business Models for Barrier-Free Travel Assistance Services Gert Breitfuss1 and Wolfgang Narzt2 Abstract.2 Using public means of transport implies making travel Proposition Canvas [3] approach helped to reflect the fit of the arrangements. Passengers have to study route schedules and are product/service offer with the corresponding customer segments. A required to obtain tickets. For these tasks (mobile) assistance final SWOT analysis identified the robustness of the designed services already enable travelers to comfortably compile their business models. journeys online. The Be-In/Be-Out (BIBO) principle implements this consideration and enables hands-free interaction for all travelers automatically by obtaining the right to use public transport while boarding. The infrastructure in the vehicles detects the presence of passengers and initiates invoicing in the 2 BUSINESS MODEL INNOVATION background. Besides the development of a prototypical BIBO Generally speaking, the term “Business Model” refers to a system we designed a (digital) business model in order to description or model that represents a firm’s logic to create, commercialize the offered products and services. This paper provide and capture value from and for its stakeholders [4]. By presents the results of a structured business model design and validation process. Business Model Innovation (BMI) we refer to the ways organizations establish or change their business logic from the moment that an idea is created, analyzed, tested and in the end 1 INTRODUCTION adapted to form their business model [5] in parallel with technological, social, product or service innovation. In the course of a national research project within the research In order to design business models in a digital environment it is initiative “Mobility of the Future”, funded by the Austrian useful to distinguish the offering (product/service bundles) into Research Funding Agency FFG, a research team at Johannes Kepler University Linz has developed new paradigms and a four core categories [6]: technical system for obtaining tickets in public transport. The  Software functions ambition was to simplify usage of public transport by implementing new ideas and technologic solutions. Users and their  Data – collected via sensors, actors or users needs were put forward for designing innovative services that omit  Data sets/data files – aggregated data for developing technology-focused interfaces and assist travelers seamlessly. value added services The approach for an appropriate (barrier-free) ticketing system  Hardware is derived from the Be-In/Be-Out (BIBO) principle [1]. It enables people to implicitly obtain tickets simply by entering and leaving public means of transport. The infrastructure in busses and trains 3 BIBO GENERIC BUSINESS LOGIC detects the passengers’ presence and issues tickets while boarding The legal prerequisites for BIBO systems are following: A contract (referring to the exact routes passengers have taken). Thus, people between a transportation company and passenger may originate are able to interact with a technical system while continuing their without active acknowledgement of the passenger, so the boarding natural behavior – no need to glimpse at displays, to press buttons process on its own may initiate ticketing. This will be realized via a or to follow instructions. smart phone application or alternatively via a simple object like a In addition to the technical solution an appropriate business key fob [7] (equipped with transmission technology and a battery) model (business model scenarios) was developed by project partner that passengers keep in their pockets performing the same evolaris. Due to the variety of stakeholders and the complexity of procedure. the business processes a structured approach of designing digital The system currently in use consists of two parties: the business models was applied. Based on the Business Model Canvas passenger and the transport company. As shown in Figure 1, the from Osterwalder/Pigneur [2] two generic business models for bank enters as mediator. Passengers need to inform their bank if B2B and B2C usage were elaborated. Subsequently the Value they want to use the BIBO system. The bank encodes their personal data and provides an encrypted key that authorizes 1 passengers to use the new electronic ticket. For the transport evolaris next level GmbH, Hugo-Wolf Gasse 8/8a, A-8010 Graz, Austria, companies, passengers are anonymous, represented by numbers in email: gert.breitfuss@evolaris.net 2 Johannes Kepler University Linz, Altenberger Street 69, A-4040 Linz, the system. Their movements via public transportation cannot be Austria, email: wolfgang.narzt@jku.at traced back to them personally. At the end of each month the accrued costs are transferred to the bank, where the anonymous numbers are mapped and connected to real customers. As the bank receives no movement information, we have a clear separation of personal payment and dynamic location data. The bank simply bills passengers for their trips. Thus passengers are the only ones who know where and when they traveled and how much they paid. [8] Figure 2. BIBO generic business model Through the use of the Value Proposition Canvas [3] the “pain creators” and “pain relievers” of the proposed product/service Figure 1. BIBO generic business logic bundle were evaluated and compared with the “pains” and “gains” of the respective target customer group. The evaluation had been This principle is according to the model of Apple Pay3 or conducted via UX (User Experience) tests with 16 test persons in Google Wallet4, where the payment process is separated from the order to get feedback about utility and usability. The majority of purchased goods. More and more payments in the United States the test persons were students aged 21 to 30 (8 persons), 4 persons follow this mechanism (or at least a similar version of it). Europe is were between 31 and 40 and 2 persons each were either below 20 supposed to broadly adopt anonymous payments in the next years, or above 40 years. We had a balanced sample of persons regarding which creates the future basis for our accounting model. their attitude in terms of public means of transport. The comparison results in an acceptable match of offer and customer needs. 4 BIBO BUSINESS MODEL SCENARIOS Moreover, the subsequently performed SWOT analysis revealed valuable information for the planned implementation of the In the course of several business model workshops a generic BIBO business model. business model was established (B2B and B2C scenarios) by considering the following digital core offerings: 5 CONCLUSION  Software functions: Smartphone application, web- The applied business model design approach by starting with the backend, tracking function, payment function BM Canvas, evaluation via Value Proposition Canvas and final  Data: collected via passengers and public transport check with a SWOT analysis has proven to be appropriate. The vehicles split up into B2B and B2C business model scenarios lead to a reduced complexity and a better understanding for the customer  Data sets/data files: Information graphics, reports groups. The UX testing has been proven to be a suitable method to  Hardware: BLE (Bluetooth low energy) receiver, key fob match the offered product/service with the customer needs. It remains to be seen if a “smart city” or “smart region” will The B2B business model covers the perspective of a BIBO implement such a system in future in order to convince and attract system provider (e.g. startup company). Customers are primarily more people to use public transportation. public transport companies and public transport associations. The B2C model takes into account the view of a transport company with passengers as main customers. Figure 2 shows the BM REFERENCES represented in form of the Business Model Canvas [2]. [1] H. 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