CrowdSmart Parking System

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CrowdSmart Parking System

*CrosPass*

ITP 800

Technology Commercialization

Prepared by: Riri Kusumarani /20155636

Course Offered by: Prof. Choi Munkee

ITTP Spring 2016

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Table of Contents

Table of Contents .................................................................................................................................... 2

Table of Figures ....................................................................................................................................... 3

Executive Summary ................................................................................................................................. 4

Highlights ............................................................................................................................................ 4

Objectives............................................................................................................................................ 4

Chapter I. Introduction ........................................................................................................................... 5

Problem Definition .............................................................................................................................. 6

Automotive Industry ....................................................................................................................... 6

Parking Space .................................................................................................................................. 7

Parking Problems ............................................................................................................................ 8

Limitation of Study .............................................................................................................................. 9

Chapter II . Literature Review ............................................................................................................... 10

Introduction to Smart Parking System .............................................................................................. 10

Here Balloons ................................................................................................................................ 10

Parking Space Information ............................................................................................................ 10

Self-Parking Gateway .................................................................................................................... 11

Elevator Parking ............................................................................................................................ 11

Other Technologies ....................................................................................................................... 11

Existing Business Model .................................................................................................................... 12

Chapter III. CrowdSmart Parking System .............................................................................................. 14

Introduction to CrosPass ................................................................................................................... 14

Who is the crowd? ........................................................................................................................ 14

CrosPass Features ............................................................................................................................. 14

Examples of Scenario .................................................................................................................... 14

New Product Development for CrosPass .......................................................................................... 16

Two-Dimensional Typology ........................................................................................................... 16

Related Marketing Questions ....................................................................................................... 16

Porter’s Five Forces ........................................................................................................................... 17

Threat of New Entrants ................................................................................................................. 18

Threat of Substitutes ..................................................................................................................... 18

Supplier Bargaining Power ............................................................................................................ 19

Buyer Bargaining Power ................................................................................................................ 19

Industry Rivalry ............................................................................................................................. 19

CrosPass Business Model .................................................................................................................. 21

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Key Resources ............................................................................................................................... 22

Key Partners .................................................................................................................................. 22

Key activities ................................................................................................................................. 23

Channels ........................................................................................................................................ 24

Value proposition .......................................................................................................................... 24

Customer segments ...................................................................................................................... 24

Customer relationship .................................................................................................................. 25

Cost structure ................................................................................................................................ 25

Revenue stream ............................................................................................................................ 25

Chapter IV. Conclusion .......................................................................................................................... 26

References ........................................................................................................................................ 26

Table of Figures Figure 1 International Car Sales (Statista ,2016) ..................................................................................... 6

Figure 2 Off-Street and On-Street Parking Space in the EU (source: Europeanparking.eu) ................... 8

Figure 3 Porter's 5 Forces Analysis on CrosPass ................................................................................... 18

Figure 4 CrosPass Business Model ........................................................................................................ 21

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Executive Summary

This final project proposed an improvement in smart parking system which an added service for

allocation of parking lot. I combined existing smart parking system and modified it to make it

innovative from both product and service perspective. This proposed business model also seeks to

modify existing system by adding building owners / parking space owners as part of key resources

and also customer.

This project uses the term ‘Crowd’ because the information will be available from the customers as

in community.

Discussion section will elaborate the parking system industry by using tools such as Business model

canvas and Porter’s five forces model. I also did analysis of strength and weakness on each

competitior.

Highlights

A crowd-based parking system is proposed and argued to become an innovative model in the area.

While existing parking systems puts building owner/ parking space owner as customers, this new

proposed system put them also in key resources.

To propose a new product , this paper elaborates features of our new proposed products. This paper

will also compare existing system and analyze their weakness.

As a part of final project assignment, this paper includes proposed business model for parking

system by using business model canvas.

Objectives

The objective of this final project is to propose an enhancement model of existing smart parking

system and combined it with available technologies.

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Chapter I. Introduction

The world population is increasing year by year. According to geohive.com, there will be 58.2% of total

global population that will stay in urban areas in 2025. In general this amount of population will lead

to several problems such as pollution, health & education, food distribution, availability of public

spaces and last but not least: transportation.

Several solutions have been done to overcome these problems. Starting from solution that

incorporates ICT to the most conventional styles. For example, in transportation issue, most cities seek

to install intelligent transportation system which is hoped can tackle traffic congestion problem . While

for pollution, ICT solution related with waste management is also wide spread.

As there are many problems that appear in urban city areas. This paper will focus on one of the basic

issue of transportation in urban cities : parking.

I focused my project in this area because of several things :

1. Increasing number of car owned by people

2. Decreasing number of public spaces designated for parking

3. Society need to manage parking solution as effective as possible.

Automotive Industry

Worldbank stated that number of car sales in the world is stagnantly increasing. During the year

1999 to xxxx , the number of sales reached around 50millions in total. Hence, in 2016, more

numbers are recorded in just one year. These car owners have to consider not only the price , but

also the place where they will park the vehicle.

Without this growing number of car sales, there are already existing problems in the urban city

areas : Traffic jam. A failure of local government to implement mass rapid transportation and also

public space allocation will just make traffic congestion becoming worse each year.

Public Space

Public space can be defined as location that is designated for public use. The easiest example of

public space is park and playground. Urban cities usually struggle to allocate number of public space

to its citizen. More buildings were built without proper city planning lead to limited number of public

space.

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Society Needs

The vast availability of cars in urban areas must be followed by a vast number of parking spaces.

Although most buildings provide parking facilities, these numbers do not added up to total parking

lot. The result? Parking on the street that can lead to traffic jam.

This paper seeks to create a maximum utilization of parking spaces by providing empty spaces

location to the public. By accessing our system, society can seek for the nearest or emptiest parking

spaces available. No more on the street parking.

Problem Definition

Automotive Industry

There are two different opinions regarding the growth of automotive industry. According to a press

release by Alixpartners.com , the global vehicle market will have a reduction of growth of around 2.6%

in the next seven years. This is partially because of Brazil’s automotive industry, as one of the engine

of growth in automotive industry, has starting to fallen apart. Demand of automotive vehicle is

starting to become saturated.

However, statistic shows different facts. According to a data from statista.com, numbers of cars that

are being sold worldwide is steadily increasing. In 2020 itself, it’s expected that there will be more

than 100 millions unit sold .

Figure 1 International Car Sales (Statista ,2016)

0,00

20,00

40,00

60,00

80,00

1990 to1999

2000 to2012

2013 2014 2015 2016

IN M

ILLI

ON

S

YEAR(S)

International Car Sales

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Parking Space Before changing our focus on parking problems, I will discuss about the availability of parking space

in general.

In general, we can divide parking space into two categories : Off-Street and On-Street. Off-street

parking is a public-use parking space with access control, usually owned by management team. This

type of space may be publically or privately managed but most of the time , drivers have to pay for

using the space.

Off-street parking can also be classified into several types :

- Structure based : Multilevel, underground space.

- Surface : Uncovered space within street level with signs and access control.

- P&R : Detterent parking , with the majority located in the outskirt of large cities. Normally

located near rail station or other transportation interchanges.

- Sport, Cultural and leisure facilities: Located in stadium , museums, theatres etc.

- Shopping centres : integrated with existing shopping areas/ centres.

- Others : public facilities parking : hospitals, airports, universities etc.

On-street parking can be defined as the space which is regulated by some authority with the

availability of signaling, control or even surveillance. These space can be free of charge or paid. Some

spaces are designated for general public use, exclusively available for residents, for loading and

unloading , motorbikes, reserved spaces (handicapped, police etc) and unregulated on-street spaces.

Data from European parking in 2013 shows a prediction of total number for parking spaces . Off-

street parking space is estimated at the number of more than 21 millions while on-street spaces

only estimated around 12 millions. Below picture shows the detailed data :

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Figure 2 Off-Street and On-Street Parking Space in the EU (source: Europeanparking.eu)

A studies conducted by Manville and Houp in 2005 founds that denser cities tend to devote more

space to building street but also creating less street space per-person.

What is the correlation between number of street-building spaces and parking space?

According to a data that is included in Manville and Houp paper, there are only 31% of parking

coverage in Central Business District. Central Business Districts that are included in the data

consisted of 44 big cities including Seoul, Manila and Los Angeles.

Eventhough this data is originated from 1990, we predict that there will only slight change.

Parking Problems

There are more parking space than number of parked vehicles. This lead to the first parking problems :

Finding a parking space. During rush hours, it will be difficult for driver to locate empty space. One of

the reason is the lack of information for empty spaces . According to Goodwin, 30 percent of traffic in

a typical downtown area consists of cars seeking a place to park. Of course, driving and looking for

empty spaces consumes time and gasolines.

Another issue raised in parking is locating your parking lot after finishing with activities. We have seen

and maybe experience it by ourself the feel of getting lost in parking areas not knowing where we

parked our car. Eventhough most parking lot provide signs to help us recognizing the space, still more

people struggles to get back to their own car and ended up circling the parking area.

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As stated previously, number of parking spaces are available compared to number of vehicles.

However, these numbers are not evenly distributed. Some parking areas are known only by people

who regularly passed by , others are even un-noticeable. For parking spaces in big spaces, most drivers

choose to park nearby the entrance, which lead empty spaces in another side of the parking lot. For

parking management, failure to maximize spaces of course unexpected.

Last but not least is the misused of parking facilities such as disabled parking or ladies parking area.

We have seen most of the times people who used these facilities without any remorse.

Limitation of Study

This study seeks to propose new business model in parking system. However this study will not

elaborate in detail about technology specification of the proposed system. All information is

gathered from internet as secondary sources.

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Chapter II . Literature Review

Introduction to Smart Parking System

Smart parking system utilization is getting more attention especially in big cities where parking

becomes a problem. The presence of internet of Things (IoT) contributes to the growth of several

parking solution. This chapter will discuss several technologies and solution related with parking

system. Please note that some of these solutions are already implemented and gain big respects

from users.

Here Balloons This solution becomes famous because of S-Oil published

the video in youtube.com Overall, this simple solution does

not use complicated technologies and is considered as

breakthrough solution in parking problems.

The “Here” Ballons will float on the air in which there is no

vehicle is parking below it. Drivers who seek for empty

space just need to hover around and see the “Here”

Balloons. As car trying to park , the ballons will slowly

shifted to eye level, making it not possible to see from the distance.

Although this solution is very cheap, I found that it will become vulnerable to weather conditions.

Balloons need to be kept on floating in order for drivers be able to see. Consider days where it’s

windy and heavy snow. Not to mention the balloons need to be pumped out every time it is

flattened. Installation time and number of ballons needed will also become an issue . More people

are needed to one-by-one go to parking lot and put these ballons. Another important issue is that

this solution is not suitable for indoor-parking area as it will become more difficult to look for the

balloons in covered area.

In conclusion, I believe that this solution is not viable as a parking solution.

Parking Space Information This might be the most common parking system that is noticable by people who

park inside a building. Integrated with sensors, this board of information

gives us information on how many empty spaces are available.

I found this solution is enough but still lack of enough information about the

location of empty spaces. Drivers still need to wander around to find the

exact location of empty spaces.

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Self-Parking Gateway

Self-parking gateway is very popular in US and Europe and offer

additional comfort to pay directly to machine after drivers’ park.

The machine works as a gateway in which a driver must put parking

location ID, number of hours and payment.

I found this gateway is helpful for areas that already have

standardized parking tariffs. However, when looking through more on

detailed information, I found several weaknesses such as No notification

if parking is overdue, installation and maintenance cost will be high and no information to drivers

who’s looking for empty spaces.

Elevator Parking As cities grow, more spaces are needed to be allocated

as parking space. The lack of space available triggers the

invention of elevated parking as shown by picture on

the left.

Elevator parking seeks as an answer to limited ground

parking space and maximize vertical space instead. This

parking elevator is run by one attendance who shifts

over space for drivers to park.

In the plus side, this elevator can maximize space

available. However, this type of elevator is very

expensive to be installed in general areas. A price for $15,000 up to $50,000 per unit is needed. One

unit usually covers 12 -16 cars depend on the specification. This solution also requires big power to

run the elevator. Not to mention that this elevator slightly slow in loading and unloading cars.

Other Technologies Other technologies are available that integrates with smart parking system. Sensors are the most

common technologies that go along the system. A sensor is put on top of the ceiling and scan cars

below it. Data will then be sent to servers and processed into information that can help drivers to

know how many empty spaces available.

Sensors also integrates with lamps on the ceiling. The lamp will turn into green or red so that drivers

can see which empty spaces are available.

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Existing Business Model The following figure is depicting business model for existing system.

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Business model canvas can be used to explain and also elaborate existing business model. The

canvas will include several categories :

- Infrastructure

o Key activities : The most important activities in executing a company's value

proposition.

o Key partners : In order to optimize operations and reduce risks of a business model,

organization usually cultivate buyer-supplier relationships so they can focus on their

core activity. Complementary business alliances also can be considered through joint

ventures, strategic alliances between competitors or non-competitors.

o Key resources : The resources that are necessary to create value for the

customer. They are considered an asset to a company, which are needed in

order to sustain and support the business. These resources could be human,

financial, physical and intellectual.

- Offering

o Value proposition : The collection of products and services a business offers to meet

the needs of its customers.

- Customers

o Customer relationship : To ensure the survival and success of any businesses,

companies must identify the type of relationship they want to create with their

customer segments.

o Customer segments : To build an effective business model, a company must identify

which customers it tries to serve. Various sets of customers can be segmented based

on the different needs and attributes to ensure appropriate implementation of

corporate strategy meets the characteristics of selected group of clients.

o Channels : A company can deliver its value proposition to its targeted customers

through different channels. Effective channels will distribute a company’s value

proposition in ways that are fast, efficient and cost effective. An organization can

reach its clients either through its own channels (store front), partner channels

(major distributors), or a combination of both.

- Finance

o Cost structure : monetary consequences while operating under different business

models.

o Revenue streams : The way a company makes income from each customer segment.

Several ways to generate a revenue stream

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Chapter III. CrowdSmart Parking System

Introduction to CrosPass

CrosPass is an abbreviation from Crowd Smart Parking System. I used the word crowd because

CrosPass will incorporates people as source of information on parking space.

Who is the crowd? The crowd is someone who has information on parking space and also drivers who are looking for

empty parking spaces. We classify crowd into two categories : Space Owner and Space Locator.

CrosPass Features

For drivers, CrosPass will have features as the following :

Booked a Space

Pay as You Go

Notification Service

Find your car easily!

Real-time & Online Information

Detailed information on empty space (GPS Based)

Give Feedback for improvement on facilities

For Space owners, CrosPass will have additional features as the following :

Publicize Space

Freedom to set Tariffs

VIP Parking Space

Allocate Your Space in Advance

Examples of Scenario To give a deeper understanding on how CrosPass will work, several parking scenarios are prepared.

Parking Search

Miss X is driving towards Seoul and is looking for parking space nearby her destination. In advance,

she looked it up parking space in our application, browse available parking facilities and found empty

spaces with these information :

Parking Facilities : Empty Spaces, CCTV , Elevator etc

Parking Fee : per Mins, Hour, Day?

Membership available? VIP?

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Car/ Motorcycle/Bus?

Ladies parking , Disable Parking?

Indoor/Outdoor?

Parallel Parking only?

After browsing, she choosed the space which is more convenient and clicked ‘Guide Me’ . Mobile app

will give the fastest route to arrive at designated area.

When Miss X finish her activities, she needs to go back to her car. She then clicked “Find My Car” and

mobile app will again give direction to the place where she parked her car. Mobile apps will also

provides payment system so Miss X can directly pay the parking fee as soon as she is leaving.

Booked a Space

Booked a space will be a feature that available for premium users. Eventually, people who looked for

empty spaces can book a space for his/her parking lot. System will set minimum availability of minutes

that a driver need to arrive at parking lot. Failed to do so, system will automatically deduct the first

payment for the first 1 hour and cancel the reservation.

A driver must then go through booking procedure once more.

As for implementation stage, I think about providing special area for space that can be booked in

advance. This is to make sure that there will be a non-user driver who will park in a place which it’s

already booked.

Parking on an Event

If most of the times people are struggling to find empty spaces in big events, CrosPass will hold

partnership with event organizers to tackle this problem.

Event organizer can promote their event in crosPass and provide subsidies for space owners nearby

that want to open their space for parking. The subsidies can come in the form of discount or any

other formats. Space owner at the same time, can set the tariffs as high as they prefer because of

the scarcity of space available.

For drivers who seek for attending big events, they can book available space before hand and are

more comfortable in looking for empty spaces.

Integrated with On-Board GPS

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CrosPass will seek to collaborate with GPS Producer with hopes that people who installed the GPS

will have CrosPass application at hand. GPS will have and additional feature of parking space search

and directing driver to go to the area.

Further technology specification is not provided in this proposal.

New Product Development for CrosPass

CrosPass is a new product that we proposed can change how the parking system works. I based the

process of new product development by using theories and information on Paul Trott Book :

Innovation Management and New Product Development edition number 5.

Two-Dimensional Typology Based on the book from Trott published in 2012, a two dimensional typology of innovation project

illustrates the range of innovation projects required to be managed. CrosPass will be found in the

left quadrant.

CrosPass will offer as a new product in parking system which is a mobile application and creates new

process in parking allocation activity. It will also seek to enhance existing parking system .

Related Marketing Questions Furthermore, we try to answer questions on marketing issue based on page 65. In order for a

product development to be successful, these key questions need to be addressed :

1. What are the potential application of the products?

2. What benefits can the proposed product offer to potential customer?

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3. What is the potential market size and is this sufficient?

CrosPass is applicable to location where parking space is offered. That means literally almost every

place in the cities. It can be applied to place like shopping mall, shopping centers, amusement park,

stadium, airport, rail station and even business districts. As CrosPass seek to provide information

about empty parking spaces, we will rely solely on the information that parking space owners send to

the server.

CrosPass is designed to give maximum benefits to its users. I classify two big customer segments as

the following :

1. Space Owner

2. Vehicle Owners

For space owner, crosPass can give the following benefits :

Maximum utilization of parking space,

Freedom to set tariffs,

Integrate with existing parking system

generate profits

While for vehicle owners, crosPass offer benefits such as :

Easy to find empty location

Safe Time, Gasolines

Locate parking spot after finish with activities

Get instant notification for overtime fee

reserve parking lot beforehand!

Access to membership area

However, in bigger picture, crosPass also targets customer segments such as event organizers, local

government and business owners. In this project, I will focus on discussing two main customer

segments as initial stage.

Porter’s Five Forces

Porter's five forces analysis is a framework that attempts to analyze the level of competition within an

industry and business strategy development. Porter's five forces include – three forces from

'horizontal' competition: the threat of substitute products or services, the threat of established rivals,

and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of

suppliers and the bargaining power of customers.

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Figure 3 Porter's 5 Forces Analysis on CrosPass

Threat of New Entrants Profitable markets that yield high returns will attract new firms. This results in many new entrants,

which eventually will decrease profitability for all firms in the industry. In the parking industry, there

are several market entry barriers that can hinder new companies to enter. Focusing on CrosPass, the

threat of new entrants will range in Low to Medium range because of the business model that we are

proposing is easy to imitate by competitor. Therefore, time to entry the market is crucial.

We also seek to collaborate with local government to get maximum application on our product. We

are also open to collaborate with local government in order to established a law in parking industry.

Because crosPass will be mobile application, therefore we feel it is important to consider the network

effect to gain more customers. To do so, crosPass will provide ‘member get member’ concept in its

initial stage .

Threat of Substitutes The existence of products outside of the realm of the common product boundaries increases the

propensity of customers to switch to alternatives. In parking system industry, the threat of

substitute is in medium to high level. I noticed that there are several startups that have interest in

this area. However none of them seek to integrate existing system with the new product.

At the same time, crosPass will compete with existing conventional parking system as substitute.

Differentiation strategy must be considered in order for customers use substitute services.

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Supplier Bargaining Power The bargaining power of suppliers is also described as the market of inputs. Suppliers of raw

materials, components, labor, and services (such as expertise) to the firm can be a source of power

over the firm when there are few substitutes.

In crosPass, who will be our supplier?from where crosPass will rely the business on?

CrosPass is a company that does not produce tangible product . Yet, it offers integrated solution of

parking system to its customer. Our supplier will be human resources that will develop the mobile

application. Therefore, I can conclude that the supplier bargaining power is Low.

Buyer Bargaining Power The bargaining power of customers is also described as the market of outputs: the ability of customers

to put the firm under pressure, which also affects the customer's sensitivity to price changes. CrosPass

is predicted to have threat from buyer bargaining power due to small differentiation service offered.

Industry Rivalry

Until date, I found that there are several mobile applications that are available . I limit the number

into 3 : ParkMe, VoicePark and Secure Parking Mobile App. The following discussion will analyze

both strength and weakness on each competitor.

ParkMe

The first competitor is established in in 2011 and aims to simplify parking experiences for users by

reducing time wasted in searching for car park spots. Based in Santa Monica, California, ParkMe has

become the leading global provider of real-time and static on-street and off-street parking data to

navigation companies, internet search and mapping portals, municipalities, parking operators and

consumer smartphone platforms.

ParkMe users can access ParkMe via GPS and in-car navigation systems, ParkMe.com, online

widgets, and Android, iOS and Windows Phone apps. Latest news from ParkMe that it is recently

acquired by INRIX, the preferred provider of real-time traffic information, connected driving

services, and driving intelligence to leading automakers and transportation agencies worldwide.

Current INRIX clients include Audi, BMW, Toyota, Daimler and more than 60 U.S. Departments of

Transportation, including the U.K. Highways Agency and the Denmark Road Authority.

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This acquisition however, will make it difficult for ParkMe to enter and penetrate in global parking

market.

Based on the features, parkMe allows building owners to post the availability of parking space to

their website and also allows business owners to advertise in the app.

One weakness that we found is there’s no information on plan to integrate with existing parking

system. For example, if a building already installed parking system,then it will be difficult for them to

adapt ParkMe since parkMe also covers payment system of parking.

VoicePark

Similar with ParkMe, VoicePark is an Australian based parking system mobile application . I failed to

differentiate between voicepark and ParkMe since the two offers similar service. However, judging

from range of features that are being offered, VoicePark offer less features in parking solution. Unlike

ParkMe, VoicePark does not have feature for payment. This is one of the key weakness for VoicePark.

Secure Parking

Secure Parking is one of the leading parking management solution and offers installation of

technologies in its solution. Technologies here includes sensors that is integrated with management

system.

As a leading parking management solution, Secure Parking open branches in 6 countries such as UK,

Indonesia, India, Australia, Chine,Lebanon and Malaysia.Their parking products ranged from daily

parking to event parking.

One of the strength of Secure Parking is their experience and understanding about parking industry,

make it difficult for new entrants to enter the market and compete. However, I found that this

company is a late entrants in term of mobile application parking searching.

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CrosPass Business Model

Figure 4 CrosPass Business Model

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This section is describing proposed business model for crosPass as summarized in figure 4. As

already described in previous section, business model canvass can explain items that need to be

considered when designing a business model. These items are elaborated as the following :

Key Resources

Key Partners CrosPass key partners will be parking management companies, valet parking companies, event

organizers, GPS manufacturers, car manufacturers, phone + smartphone manufacturers and local

governments.

These segments of partnership will be one of important pillars to create high market entry barriers

and also to help crosPass compete with existing players.

Parking Management Companies

We will hold partnership with parking management companies and valet parking to

help spread the adoption rate of CrosPass. CrosPass will be able to integrate its

solution to existing system which then will let users of existing parking management

system easily combine them both. In the plus side, crosPass will be able to get the

customers from parking management companies and leverage it into a bigger market.

While for valet parking, we seek to have cooperation in the type of VIP parking

facilities. Valet parking already has value proposition which is VIP parking.

Cooperation with VP means that in the future, the same value proposition can be

acquired.

Event Organizer

Event organizer can acts as our customer and also partners. In the case when there’s

an event which require massive availability of parking space, crosPass can offer

partnership by providing additional features. Event organizer can also provide park in

advance facilities to its future guests and allow more convenient parking facilities.

Further scheme of cooperation is needed to be elaborated.

GPS Manufacturer

The essence of crosPass is parking search which means that it will tightly related

with GPS and location-based services. Therefore, I believe that it will be important to

get partnership with GPS manufacturers. To those manufacturers that already agree

to cooperate with crosPass, a built-in application will be provided in the GPS devices.

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Car Manufacturer

There are many car manufacturers that offer smart-car types. Most of the time,

these manufacturers provide built-in functions to help drivers drive conveniently.

This lead us to a decision to hold cooperation with car manufacturers.

Phone Manufacturer

crosPass will be available on mobile application based on Android, iOs and Windows

phone. Therefore, we will seek for cooperation with phone manufacturers to have a

built-in installation application on the phone.

Online Payment Provider

One of the feature that crosPass offers is the availability to directly pay parking fee

online. It is why we choose to build partnership with online payment provider to

gain more trust from our customers.

Key activities The following list is crosPass detailed key activities:

Parking Search

CrossPass provides search ability that allows drivers to scan available empty spaces with

detailed information. It can direct drivers to choosen parking space with fastest/ shortest

route available.

Parking Allocation

For parking space owners, crosPass give the flexibility for parking gate to allocate vehicles to

designated parking space.

Parking System

Overall activities will be related with parking system including the management of space.

Rating System of Facilities

CrosPass provides drivers to rate exisiting parking facilities that can help other drivers to

choose spaces and also become a feedback for owners to improve their facilities.

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Parking Payment System

one of our partners will be online payment providers therefore the key activities in crosPass

is paying parking fee directly or by cash. Both options are available for general user.

Parking Reservation

CrosPass provides the availability to book for parking space beforehand. To avoid empty-

order, crosPass will charge the first one hour fee for the customer to book. If during the one

hour the customer does not park in booked area, then charge will apply . To make it more

flexible, crosPass will give the decision to accept booked-order to space owner. Cancellation

charge will also be left up to space owners.

Location- Based Advertisement

A growing number of business owner might be needing another means of advertising.

Location-based service will serve as a direct advertisement that based on current position of

customers. Users who is nearby business owner will have the information about closed-by

business available.

Channels In crosspass, channels will be from key partners, mobile apps and tourist information center.

We believe that these channels will help the adoption and acceptance rate of our

application.

Value proposition Crosspass will offer secure,fast and convenient parking experience for its customer. While

for space owner, we offer maximum utilization of parking space which later can increase

revenue from parking. For business owner, we provide targeted advertisement that can

increase the effectivity of business advertising activity.

Customer segments CrosPass divides customer segment into several categories :

Owners of vehicle

Rental Car / Bus Provider

Event Organizers

Parking Space Owners

Building managements

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Local governments

Business Owner (Advertisement)

All of benefits and role already explained in crossPas Features.

Customer relationship Crospass also provides customer management system to engage with its customers. Plans such as

VIP membership, discounted price, loyalty and points collection will be applied in crosPass.

Cost structure crosPass cost structure comes from the following sectors :

Mobile Application platform maintenance fee

BigData management system

Enhanced GPS Technology

Marketing & Partners Management

Customer Management System

Revenue stream Revenue stream will come from the following sectors :

Charge of 1-5 % of total Parking Fee Transaction

As we are looking for return of investment as soon as possible, we aim low for profit in each

transactions and seek for small profit but bigger scale. The amount of charge that we will give

to our customer will range from 1% to 5% at maximum. Number of transaction daily will be at

least 3x from number of parking spaces registered.

Driver Membership fee

Membership fee as low as $10 per month will be given to those who registered as premium

user. Premium user will have benefits such as discount, event priority , free booking

cancellation fee, payment by direct deposit etc. We aim to have more membership so there

is possibility that membership fee will be as low as $5 permonth.

Premium Space

Location-based advertisement

26 | P a g e

Chapter IV. Conclusion

I will conclude my final term paper with the following quote from Paul Trott Book:

“New Products are not just needed because they are new, but because they serve a customer need.”

I choose the topic on smart parking because of its scale and related closely with daily activities. Parking

is part of our everyday life, therefore this project is more reliable in term of proposed solution .

The proposed business model might have similarities with other mobile application, thus, further

research is needed to make it unique.

References

. "ParkMe." Retrieved June 17th 2016, 2016, from www.parkme.com.

(2009). "Urban Problems." from http://www.oocities.org/ghsgeography/CE/14urbpb.htm.

Association, E. P. (2013). Scope of Parkingin Europe, European Parking Association.

Jaffe, E. (2015). "How Parking Conquered LA.". Retrieved June 20th 2016, 2016, from http://www.citylab.com/commute/2015/12/parking-los-angeles-maps-study/418593/.

Litman, T. (2009). "Parking Management: Innovative Solutions to vehicle parking problems." from http://www.planetizen.com/node/19149.

Manville, M. and D. Shoup (2005). "Parking, people, and cities." Journal of Urban Planning and Development 131(4): 233-245.

R.Hunt, P. (2015). "The Solution to the parking problem is... more parking." from http://pages.uoregon.edu/ocomment/ocarchive/oc01_02/oc2_01_02.html.