Session two: unlocking the opportunities
James Catmur
Director
Arthur D. Little
New ways of generating revenue from improved utility need to be
unlocked, or better ways of working remotely provided
Revenue threat
What are transport providers already doing?
Car manufacturers ►
service providers
Wifi on trains & buses
Manchester, Nottingham,
Cambridge
Advanced Traffic
Management
This morning we talked about levers….
Information provision – smarter travel choices
Better infrastructure and communications
Interoperability – e.g. smartcards
… now let’s find some short term solutions
Internal rivalry
(among existing
competitors)
Threat of new
entrants
Threat of
substitution
Suppliers’
bargaining
power
Customers’
bargaining
power
Business
Source: Porter, 1980
Five forces
Traditional forces…
…changing face of the business environment
Internal rivalry
(among
existing
competitors)
Threat of new
entrants
Threat of
substitution
Suppliers’
bargaining
power
Customers’
bargaining
power
Business
Source: Porter, 1980, Arthur D. Little Analysis
Greater
strategic
partnerships
with suppliers
to address
risks
Power of reputation
as a business asset
Growing
loyalty
towards
‘responsible’
suppliers
Greater
differentiation in
performance of
product/services
Increased barriers to
entry
Socio-
demographics
Ecology
Technological
Political and
legal
Tightening
regulation but
growing leniency
towards responsible
companies
Gro
win
g p
res
sur
e to
add
res
s
det
erio
rat
ion
of
eco
-sy
ste
ms
&
clim
ate
ch
ang
e
Growing pressure to
address
social exclusion
Ra
pid
gro
wth
in
dem
and
for
tec
hno
log
ica
l
sol
utio
ns
The new balance
Environmental Stewardship
Sustainable
development:
“meeting the
needs of the present
without
compromising the
ability of future
generations to meet
their own needs”
Economic Prosperity
Social Responsibility
Climate change, land use, noise, air
quality / emissions, resource use, fuel /
energy use, land contamination
Social inclusion, safety, health,
quality of li