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