Review Group 175 Encouraging participation in the elective DM Regime - Potential Models 22 November...

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> Provide Validated

read

6

Current Situation




read<Transporter>

Estimate

7

Current Situation




read<Transporter>

Estimate

<Shipper/Supplier>

Validate read

8

Current Situation




read<Transporter>

Estimate

<Shipper/Supplier>

Validate read

<Transporter, Shipper, MAM>

Investigate Issues

9

Current Situation




read<Transporter>

Estimate

<Shipper/Supplier>

Validate read


Investigate Issues

<Transporter> Maintain Device

10

Current Situation




read<Transporter>

Estimate

<Shipper/Supplier>

Validate read


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




13




<Shipper/Supplier>

Validate read

14




<Shipper/Supplier>

Validate read

<Transporter> Provide

Validated read

15




<Shipper/Supplier>

Validate read


Validated read<Transporter>

Estimate

16




<Shipper/Supplier>

Validate read



Estimate

17




<Shipper/Supplier>

Validate read



Estimate


Investigate Issues

18




<Shipper/Supplier>

Validate read



Estimate


Investigate Issues

<Shipper> Maintain Device

19




<Shipper/Supplier>

Validate read



Estimate


Investigate Issues


<Shipper> Update Device

details

20




<Shipper/Supplier>

Validate read



Estimate


Investigate Issues



details

<Shipper/Supplier>

Request Work

21

Model 2 : Shipper takes obligations


Device provide readings direct to Shippers

Shipper validate information and provides reads to relevant Transporter

Obligations are on the Shippers

Estimates

22


<Shipper> Validate Read


23




<Shipper> Provide Validated

read

24





read

<Transporter>Validate read

25





read


<Shipper> Estimate

26





read


<Shipper> Estimate


Investigate Issues

27





read


<Shipper> Estimate


Investigate Issues

<Transporter>Request Work

28





read


<Shipper> Estimate


Investigate Issues



29





Investigate Issues


read<Shipper> Estimate




details


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


<Data Collector> Validate Read


32




<Data Collector> Provide Validated

read

33





read

<Shipper>Validate read

34





read



35





read



<Data Collector> Estimate

36





read




<Transporter, DC, Shipper, MAM>

Investigate Issues

37





read





Investigate Issues


38





read





Investigate Issues



39





Investigate Issues


read<Data Collector>

Estimate




details



40

Model 4 – Single Data Collector


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




Investigate Issues


read<Data Collector>

Estimate




details



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

Review Group 175 Encouraging participation in the elective DM Regime - Potential Models 22 November...

Documents

Transcript of Review Group 175 Encouraging participation in the elective DM Regime - Potential Models 22 November...