Review Group 175Encouraging participation in the elective DM Regime- Potential Models 22 November 2007

2

Objectives

To develop a number of business models to support/enhance the DM elective regime

Identify process flow owner and draft obligations – using a top down approach

To enable Advantages/Disadvantages to be identified for each business models

Enable preferred business model to be identified

3

Current Situation

Transporter responsible for and maintains device

Charges applied

Device provides reading direct to Transporter

Transporter validate information and provides reads to Shippers/suppliers

Obligations are on the Transporter

Estimates

4

Current Situation

<Transporter> Validate Read

<Device> Provide Read

5

Current Situation

<Transporter> Validate Read

<Device> Provide Read

<Transporter> Provide Validated

read

6

Current Situation

<Transporter> Validate Read

<Device> Provide Read

<Transporter> Provide Validated

read<Transporter>

Estimate

7

Current Situation

<Transporter> Validate Read

<Device> Provide Read

<Transporter> Provide Validated

read<Transporter>

Estimate

<Shipper/Supplier>

Validate read

8

Current Situation

<Transporter> Validate Read

<Device> Provide Read

<Transporter> Provide Validated

read<Transporter>

Estimate

<Shipper/Supplier>

Validate read

<Transporter, Shipper, MAM>

Investigate Issues

9

Current Situation

<Transporter> Validate Read

<Device> Provide Read

<Transporter> Provide Validated

read<Transporter>

Estimate

<Shipper/Supplier>

Validate read

<Transporter, Shipper, MAM>

Investigate Issues

<Transporter> Maintain Device

10

Current Situation

<Transporter> Validate Read

<Device> Provide Read

<Transporter> Provide Validated

read<Transporter>

Estimate

<Shipper/Supplier>

Validate read

<Transporter, Shipper, MAM>

Investigate Issues

<Transporter> Maintain Device

<Shipper/Supplier>

Request Work

11

Model 1 – Minimum Change Transporter Retain obligations

Shipper responsible for and maintains device

Device provides readings direct to Transporter

Transporter validate information and provides reads to Shippers/suppliers

Obligations are on the Transporter as now

Estimates

Device provides additional stream of data direct to shipper and/or customer

12

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

13

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

14

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read

15

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read<Transporter>

Estimate

16

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read<Transporter>

Estimate

17

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read<Transporter>

Estimate

<Transporter, Shipper, MAM>

Investigate Issues

18

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read<Transporter>

Estimate

<Transporter, Shipper, MAM>

Investigate Issues

<Shipper> Maintain Device

19

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read<Transporter>

Estimate

<Transporter, Shipper, MAM>

Investigate Issues

<Shipper> Maintain Device

<Shipper> Update Device

details

20

Model 1 – Minimum Change Transporter Retain obligations

<Transporter> Validate Read

<Device> Provide Read

<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read<Transporter>

Estimate

<Transporter, Shipper, MAM>

Investigate Issues

<Shipper> Maintain Device

<Shipper> Update Device

details

<Shipper/Supplier>

Request Work

21

Model 2 : Shipper takes obligations

Shipper responsible for and maintains device

Device provide readings direct to Shippers

Shipper validate information and provides reads to relevant Transporter

Obligations are on the Shippers

Estimates

22

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

23

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

<Shipper> Provide Validated

read

24

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

<Shipper> Provide Validated

read

<Transporter>Validate read

25

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

<Shipper> Provide Validated

read

<Transporter>Validate read

<Shipper> Estimate

26

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

<Shipper> Provide Validated

read

<Transporter>Validate read

<Shipper> Estimate

<Transporter, Shipper, MAM>

Investigate Issues

27

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

<Shipper> Provide Validated

read

<Transporter>Validate read

<Shipper> Estimate

<Transporter, Shipper, MAM>

Investigate Issues

<Transporter>Request Work

28

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Device> Provide Read

<Shipper> Provide Validated

read

<Transporter>Validate read

<Shipper> Estimate

<Transporter, Shipper, MAM>

Investigate Issues

<Transporter>Request Work

<Shipper> Maintain Device

29

Model 2 : Shipper takes obligations

<Shipper> Validate Read

<Shipper> Maintain Device

<Transporter, Shipper, MAM>

Investigate Issues

<Shipper> Provide Validated

read<Shipper> Estimate

<Device> Provide Read

<Transporter>Validate read

<Shipper> Update Device

details

<Transporter>Request Work

30

Model 3 – Competitive Data Collector

Device owned and maintained by Shipper

Appointment and de-appointment of Data Collector (DC) required by shipper

RGMA type process?

Device provides readings direct to Data Collector

Data collector validate information and provides reads to Shippers/Transporter/Customer

Read Obligations are on the shipper, discharged to the Data Collector (DC)

Device maintenance obligation on Shippers, May be discharged to the DC

31

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

32

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

33

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

<Shipper>Validate read

34

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

<Shipper>Validate read

<Transporter> Validate Read

35

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

<Shipper>Validate read

<Transporter> Validate Read

<Data Collector> Estimate

36

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

<Shipper>Validate read

<Transporter> Validate Read

<Data Collector> Estimate

<Transporter, DC, Shipper, MAM>

Investigate Issues

37

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

<Shipper>Validate read

<Transporter> Validate Read

<Data Collector> Estimate

<Transporter, DC, Shipper, MAM>

Investigate Issues

<Transporter>Request Work

38

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Device> Provide Read

<Data Collector> Provide Validated

read

<Shipper>Validate read

<Transporter> Validate Read

<Data Collector> Estimate

<Transporter, DC, Shipper, MAM>

Investigate Issues

<Transporter>Request Work

<Shipper> Maintain Device

39

Model 3 – Competitive Data Collector

<Data Collector> Validate Read

<Shipper> Maintain Device

<Transporter, DC, Shipper, MAM>

Investigate Issues

<Data Collector> Provide Validated

read<Data Collector>

Estimate

<Device> Provide Read

<Shipper>Validate read

<Shipper> Update Device

details

<Transporter>Request Work

<Transporter> Validate Read

40

Model 4 – Single Data Collector

Shipper responsible for and maintains device

Data Collector (DC) Appointment by Transporter

Device provide readings direct to Data Collector

Data collector validate information and provides reads to Shippers/Transporters/Customers

Read Obligations are on the Transporter, discharged to the data collector

Device maintenance obligation on Shippers

41

Model 4 – Single Data Collector

<Data Collector> Validate Read

<Shipper> Maintain Device

<Transporter, DC, Shipper, MAM>

Investigate Issues

<Data Collector> Provide Validated

read<Data Collector>

Estimate

<Device> Provide Read

<Shipper>Validate read

<Shipper> Update Device

details

<Transporter>Request Work

<Transporter> Validate Read

Note: Same process as in model 3

42

Model 1(Minimum Change) – Evaluation

Positives Negatives

Minimises change

(assumes change required)

Allows for other options at a later date (staged roll out)

Low risk to participants

Lowest set up costs Scope for cost reduction limited

43

Model 2 (Shipper Obligation) – Evaluation

Positives Negatives

Significant reduction in Transporter operation costs

High volume/risk of change & cost of change

(potential barrier to entry)

Shipper visibility of actual costs

Change of Supplier issues / Device ownership

Possible additional switching costs

44

Model 3 (Competitive Data Collector) – Evaluation

Positives Negatives

Introduces competition High volume of change/risk & cost of change

Potential reduction in costs Higher CoS issues / Device ownership

(DC competition)

45

Model 4 (Single Data Collector) – Evaluation

Positives Negatives

Introduces transparency Medium volume of change &/ cost of change

Single DC service provider CoS issues

Economies of scale Monopoly DC costs

Direct pay

46

Questions / Areas to Consider

Initial Preferences?

Can any models be immediately excluded?

Other models to consider?

More evaluation required of costs and benefits