Cross Region Delivery Applications
Report on Pilot Applications WP 6-02v2.0
Thursday, 6 May 2004This report examines the four pilot projects that were initiated in an attempt to validate some of the concepts and conclusions described in WP6-01 - Commercial Applications: Final Report.
WP6-02 - Report on Pilot Applications - v2.0 Release (1.14mb) This report examines the four pilot projects that were initiated in an attempt to validate some of the concepts and conclusions described in WP6-01 - Commercial Applications: Final Report.
The four projects were:- Southampton Football Club
- Red Funnel Ferries, Southampton
- Southampton Bus Project
- Royal Borough of Windsor and Maidenhead "Advantage" card
Valuable lessons were learned from the early termination of the Football Club and Ferry projects, and from the need to amend the scope of the "Advantage" card proposal. These related partly to the timing constraints imposed on these initiatives, but also in part to the need to ensure that adequate account is taken of any prospective Commercial Partner's organisational, business and marketing plans, processes and objectives.
Both the Southampton Bus Project and the "Advantage" card scheme demonstrate positively that revenue contributions to the promotion and operational sustainability of Local Authority smart card schemes are achievable, as are capital contributions to the necessary infrastructure. Neither project has yet been developed to the stage at which a quantitative evaluation of the benefits to all three stakeholder groups - the Local Authority; Commercial Partners; and Citizens - can be completed, but the benefits have been identified in qualitative terms. There is every expectation that, once a body or evidence relating to the social and financial benefits has been developed, the scope and scale of Commercial Partners' contributions to the sustainability of Local Authority smart card schemes will increase.
Commercial Applications WP6-01v4.0
Thursday, 6 May 2004The benefits of including carefully selected and implemented commercial applications on a Local Authority issued Smart Card.
WP6-01 - Commercial Applications - v4.0 Release (724.50kb)The overall conclusion reached by this section of the NSCP was that there is a definite benefit to all parties by including carefully selected and implemented commercial applications on a Local Authority issued Smart Card. Selection of applications will depend critically on the strategic choice relating to the card technology chosen initially, and the development trajectory envisaged.
The work concluded that there are several potential revenue streams that may be developed by introducing commercial applications onto a Local Authority Smart Card scheme. However, merely identifying potential revenue streams does not mean that those revenue streams will be realised. It must be recognised that active marketing and business development is required on the part of the Local Authority. Local Authorities will need to learn to behave differently than hitherto to derive the revenue and other benefits that should become available to them through the deployment of a scheme with commercial links.
The investigation demonstrated that there is a sound potential for positive cost benefits to be derived from the addition of commercial applications to public sector Smart Cards. The evidence for this at present lies in the fact that commercial organisations are increasingly seeing the potential for working with the Local Authority where a Smart Card scheme is being implemented. The level of interest is currently environment/sector specific, such as closed environments like schools, universities and other "special interest" environments.
From the Local Authority perspective commercial applications offer a source of revenue that can either offset operational expenditure of running the scheme or be used to generate a revenue stream that can be re-invested to grow the scheme. Commercial applications also provide a mechanism for attracting and maintaining citizen interest in the scheme, encouraging regular use of the card and providing a means by which the Local Authority can reach areas of its citizen population that it finds difficult to access, as well as fostering development of closer relationships between authorities and their citizens.
For the commercial sector the major advantage of putting their applications on a Local Authority Smart Card is the opportunity for them to reach customers they may not otherwise easily reach, as well as the potential for much more targeted marketing and product/service development. It is an important consideration for Local Authorities wishing to engage the commercial sector in this way as to how attractive the scheme can be for commercial business.
For citizens the advantages of including commercial applications are twofold; firstly, the convenience it potentially offers for them in their varying lifestyles and at varying life stages and, secondly, the advantages and interest it offers in terms of mix of applications to suit their needs, particularly with loyalty and discounting available for frequent use.
