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Making the Business Case for Intelligent Transport Systems in the
Highways Agency
Brian HarbordIntelligent Transport Systems Research Group
Highways Agency, UK
Business Case or Model?
• Business Case – WHY something is worth doing• Limited funds & other resources
• Compares cost and benefits/disbenefits (>>BCR)
• Usually for a project or programme of work
• Confirms the need (and ownership)
• Demonstrates value for money
• Prioritisation of alternative solutions
• Foundation of the business model
Business Case or Model?
• Business Model – HOW something can be done• “Framework for creating value”
• Public or Commercial Service
• Example models• Razor and blades (bait and hook)
• Pyramid scheme
• McDonalds – fast/cheap food, consistent “quality”
• Usually (but not always) based on business case(s)• Beijing Olympics?
Business Cases in the UK
• Business cases key element of all Government procurement
• NHS – NICE
• OGC – Office of Government Commerce
• Treasury guidance – “Green Book”
• Business cases for ITS – a brief history, with examples.
Business Cases for Roads?
• 1956 – M6 first motorway
• MOT Business model >> roads vs rail
• Business Case?
• Now COBA
Early ITS
• 1959 – first ERT
• 1960s – first signals
• Ministerial decree – justify by accidents/safety
Early ITS Business Cases
• 1970s – Increasing cost of ITS, benefits questioned
• 1978 – Autowarn• Pilot on M4 successful
• No business case for wider deployment
Early ITS Business Cases
• 1980s – ramp metering, variable speed limits, M1 AID• Treasury doubts over trials/assessment
• Stricter controls on evaluation/business case
• Research >> trial/pilot >> standard/deployment
• Assessment should be independent
• Results >95% confidence level
• Resulted in long, expensive trials
• HA/NAO – Guide to Pilots and Trials
Basis of Guidance
• Late 1980s – research showed potential of ITS
• 1990 – M25 Review/M25 Action Plan• Improved signals/automatic operation
• Queue protection (AIDS >> MIDAS)
• Controlled motorways
• Ramp metering
• Driver information (RTTI)
• Business cases based on safety and congestion
Example 1 - Controlled Motorways
• Early ’90s – computer modelling > business case
• 1995 – one year trial (including RTA/SpeedAlert)
• 1997 – indications of benefits – safety & JT
• Trial > operational system, monitoring continues
• 1999 – safety benefits confirmed but +/- 25%
• 2000/02 – scheme extension
• 2005 – benefits confirmed @ 95% confidence...similar (but longer) story for ramp metering
Example 2 – Driver Information (RTTI)
• 1980s – DfT business model – private sector
• 1991 – business case for RTCC and NTIC
• Kent Corridor Pilot (PLEIADES) – VMS based
• TIH – sharing of private and HA traffic data
• MDIS – strategic VMS based
• 2001 – NTCC launched• Initially VMS, but developed alternative delivery
mechanisms (Traffic England, HANET, HA Radio, etc)
Things are Getting Better for ITS?
• 2000 – Triple Package Business Case
• Later same year - Ten Year Plan• ATM – hardshoulder running
• Regional Control Centres
• “Roles & Responsibilities” Review
• All had good business cases, but did not fit Agency business model, then...
• White Friday >> HA as Network Operator
Agency as Network Operator
• Business case previously based on safety, congestion and environmental impact
• New target – journey time reliability (AVDs)
• Traffic Officer Service/Incident Management
• ‘Relaxed’ approach to business cases
• M42 ATM pilot results (safety vs capacity)
• 2007 – ATM Feasibility Study (sustainability)
• 2008 - Managed Motorway programme
European R & D Business Cases
• EC funded R & D programmes rarely deliver business case for UK deployment
• Insufficient duration/data collection
• Lack of rigour
• Lack of independence
• Traffic and other conditions not representative of UK