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Real-Time & Predictive Traffic Emerge as the Killer App. LBS Grows Up: Business Models for Success Bryan Mistele, President & CEO. Location Intelligence Conference April 4, 2006. 44%. 31%. 28%. 24%. Consumer. Interest. Interest in Traffic Alerts Service at $4.95/Month. Summary
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Real-Time & Predictive Traffic Emerge as the Killer App LBS Grows Up: Business Models for Success Bryan Mistele, President & CEO Location Intelligence ConferenceApril 4, 2006
44% 31% 28% 24% Consumer Interest Interest in Traffic Alerts Service at $4.95/Month Summary • 91% of participants would pay at least a small monthly fee • 30% of participants stated they would pay $5/month or more • Up from 24% in study done a year earlier (shown in graph above) Among cell phone users who made… Source: Driscoll-Wolfe, “Consumer Interest in Real-time Traffic Information” Study based on 900 participants across 4 major cities who were cellular subscribers with a minimum income of $40,000 who owned a vehicle.
Consumer Interest "Real-time traffic-enabled systems are likely to capture the attention of many new vehicle buyers, as nearly every navigation system owner surveyed expressed interest in this new feature.”Melissa SauterDirector of Automotive Emerging TechnologiesJ.D. Power & Associates 1998 New Vehicles Sold with Navigation Systems 1999 2000 2001 2002 2003 2004 0 200000 400000 600000 800000 1000000 # of New Vehicles with Navigation Systems Study based on based on responses from 9,271 owners who recently purchased or leased vehicles with factory-installed navigation systems * J.D. Power & Associates 2004 Navigation Usage & Satisfaction Study
Key Trends Impacting LBS Adoption Discussion
The Traffic Value Chain At a Key Inflection Point Our Focus Data Collection Processing Delivery End User New Ways to Collect More Devices & Customers More Value Add More Options • Road Sensors • GPS Probes • Cellular • Toll Tags • VII • Prediction • Forecasting • Comparative • Personalization • Relevance • Cellular • Satellite • Internet • FM Side Band • Digital Radio • WiFi/WiMax • Broadcast • In-Car Nav • Portable Nav • Mobile Phones • MRM Service Providers • TMS/FSA/SCM solution providers
What We Do Aggregate traffic-related content from public and private sources Enhance real-time data using proprietary error detection and correction. Utilize sophisticated Bayesian modeling for prediction and forecasting Distribute to customers via XML services
Customer Scenarios Vertical Markets Have Unique Solution Needs
Business Models What business models will win with Traffic and Location-Based Services?