Business Models for Traffic Management System: Business model analysis for traffic system based on mobile communication networks

This work deals with the economic evaluation of a new traffic management system being able to replace all current traffic signs by dynamically bringing these signs to the display in the car front panel. The increasing traffic safety and the cost reduction of the traffic management by exploiting available technologies are the two main motivations for this new system. Several additional benefits are offered to the system operator, the public authorities responsible for traffic signs and to the car drivers.The economic feasibility of the business model is the most important criteria for the implementation decision and success of this technical concept. Parameters of the business case are quantified and a business model including taxes and depreciation with a complete asset balance is proposed and discussed. Different methodologies are applied to evaluate the profitability of the business. With sensitivity analysis the robustness of the profitability is outlined and the top critical model parameters are analysed by goal seek. Finally a risk assessment is made in order to derive a final conclusion of economic profitability of the proposed system.