Development And Evaluation Of A Business Concept For The Galileo Based Time Synchronisation Services

Abstract

Galileo is the EU´s GNSS providing accurate timing and positioning information. As GNSS timing and synchronisation is at the core of several critical infrastructures which currently rely on GPS in Europe, using Galileo for time synchronisation is a strategic objective for the EU. Therefore, a business concept for a Galileo based time synchronisation service was developed and evaluated. In this regard, firstly, a service concept for users requiring the accurate synchronisation of remote devices was proposed and assessed. Next, the business logic of the concept was developed and refined by implementing the business model canvas methodology. Finally, a cost-benefit analysis was conducted to determine the conditions under which the service could be financially sustainable. It was found that the service might be both technically feasible and commercially viable. However, the number of service providers in the European market depends on pricing scheme as well as the market penetration rates.

Keywords

• Galileo
• commercial service
• time synchronisation
• business model canvas
• cost-benefit analysis

References

1. Amit, R. & Zott, C., 2001. Value creation in e‐business. Strategic management journal, 22(6‐7), pp.493–520.
2. Bellman, R. et al., 1957. On the construction of a multi-stage, multi-person business game. Operations Research, 5(4), pp.469–503.
3. Beukers, E., Bertolini, L. & Te Brömmelstroet, M., 2012. Why Cost Benefit Analysis is perceived as a problematic tool for assessment of transport plans: A process perspective. Transportation Research Part A: Policy and Practice, 46(1), pp.68–78.
4. Brent, R.J., 1996. Applied cost-benefit analysis., Cheltenham: Edward Elgar Publishing.
5. Browne, D. & Ryan, L., 2011. Comparative analysis of evaluation techniques for transport policies. Environmental Impact Assessment Review, 31(3), pp.226–233.
6. Cantrell, L.J. & Linder, J. (2000)., 2000. Changing business models: surveying the landscape., Accenture Institute for Strategic Change.
7. Chesbrough, H., 2010. Business model innovation: opportunities and barriers. Long range planning, 43(2), pp.354–363.
8. Chesbrough, H. & Rosenbloom, R.S., 2002. The role of the business model in capturing value from innovation: evidence from Xerox Corporation’s technology spin-off companies. Industrial and corporate change, 11(3), pp.529–555.

9. Demil, B. & Lecocq, X., 2010. Business model evolution: in search of dynamic consistency. Long range planning, 43(2), pp.227–246.
10. Diakoulaki, D. & Karangelis, F., 2007. Multi-criteria decision analysis and cost–benefit analysis of alternative scenarios for the power generation sector in Greece. Renewable and Sustainable Energy Reviews, 11(4), pp.716–727.
11. DiCicco‐Bloom, B. & Crabtree, B.F., 2006. The qualitative research interview. Medical education, 40(4), pp.314–321.
12. Dubosson‐Torbay, M., Osterwalder, A. & Pigneur, Y., 2002. (2002). E‐business model design, classification, and measurements. Thunderbird International Business Review, 44(1), pp.5–23.
13. EC, 2017. European Commission (EC): Galileo. Available at: https://ec.europa.eu/growth/sectors/space/galileo_en [Accessed November 6, 2017].
14. EGNSS Agency, 2017. GNSS Market Report: Issue 5. Available at: https://www.gsa.europa.eu/system/files/reports/gnss_mr_2017.pdf [Accessed May 10, 2017].
15. EU, 2014. Commission Delegated Regulation (EU) No 480/2014. Available at: http://eur-lex.europa.eu/eli/reg_del/2014/480/oj [Accessed August 7, 2017].
16. Fielt, E., 2011. Business service management: understanding business models. Queensland University of Technology, Australia. Available at: http://eprints.qut.edu.au/41609/1/Business_Service_Management_Volume_3_Mar2011_Understanding_Business_Models_Final.pdf [Accessed May 19, 2017].
17. Fritscher, B. & Pigneur, Y., 2014a. Computer Aided Business Model Design: Analysis of Key Features Adopted by Users,. In Proceedings of the 47th Annual Hawaii International Conference on System Sciences,. Hawaii, pp. 3929--3938.
18. Fritscher, B. & Pigneur, Y., 2014b. Visualizing Business Model Evolution with the Business Model Canvas: Concept and Tool. In IEEE 16th Conference on Business Informatics (CBI). Geneva, Switzerland, pp. 151–158.
19. George, G. & Bock, A.J., 2011. The business model in practice and its implications for entrepreneurship research. Entrepreneurship theory and practice, 35(1), pp.83–111.
20. Gordijn, J., 2002. Value-based Requirements Engineering-Exploring Innovative e-Commerce Ideas. Vrije Universiteit, Amsterdam, Netherlands. Available at: https://www.wi2017.ch/images/wi2017-0392.pdf.
21. Gordijn, J. & Akkermans, J.M., 2003. Value-based requirements engineering: exploring innovative e-commerce ideas. Requirements engineering, 8(2), pp.114–134.
22. Johnson, M.W., Christensen, C.M. & Kagermann, H., 2008. Reinventing your business model. Harvard Business Review, 86(12), pp.57–68.
23. Jones, G.M., 1960. Educators, electrons, and business models: a problem in synthesis. The Accounting Review, 35(4), pp.619–626.
24. Kowalska, A. et al., 2015. FOTsis Project: D5.11 M46 Final Business Cases. Available at: http://www.fotsis.com/index.php/library/deliverables-old?start=30. Lewandowski, W., Azoubib, J. & Klepczynski, W.J., 1999. GPS: Primary tool for time transfer. Proceedings of the IEEE, 87(1), pp.163–172.
25. Lombardi, M.A. et al., 2016. Accurate, Traceable, and Verifiable Time Synchronization for World Financial Markets. Journal of Research of the National Institute of Standards and Technology, 121, pp.436–463.
26. Magretta, J., 2002. Why business models matter. Harward Business Review, 80(5), pp.86–92.
27. McCarthy, W.E., 1982. The REA accounting model: A generalized framework for accounting systems in a shared data environment. Accounting Review, pp.554–578. Available at: http://www.paulallen.ca/documents/2015/05/mccarthy-we-the-rea-accounting-model-a-generalized-framework-for-accounting-systems-in-a-shared-data-environment-1982.pdf.
28. Osterwalder, A., 2004. The Business Model Ontology: a proposition in a design science approach (PhD Thesis). University of Lausanne. Available at: http://s3.amazonaws.com/academia.edu.documents/30373644/thebusiness-model-ontology.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1494835692&Signature=EcBUDyo9hz%2BS2kdL6ul%2B3%2FIn2HI%3D&response-content-disposition=inline%3B filename%3DThe_Business_Mod.
29. Osterwalder, A. & Pigneur, Y., 2010. Business model generation: a handbook for visionaries, game changers, and challengers., Haboken: John Wiley & Sons.
30. Osterwalder, A., Pigneur, Y. & Tucci, C.L., 2005. Clarifying business models: Origins, present, and future of the concept. Communications of the association for Information Systems, 16(1), pp.1–40.
31. Özel, F.M., Davies, H.C.. & Ernst, Christian--Simon Nieuwenhuis, P., 2014. How to strategically position European SMEs as part of an electric vehicle technology value chain. International Journal of Electric and Hybrid Vehicles, 6(3), pp.227–254.
32. Petrov, D., Melnik, S. & Hämäläinen, T., 2016. Distributed GNSS-based Time Synchronization and applications. In Proceedings of the 8th International Congress on Ultra Modern Telecommunications and Control Systems and Workshops. Lisbon, Portuga, pp. 130–134. Available at: https://jyx.jyu.fi/dspace/bitstream/handle/123456789/52381/petrovmelnikhamalainen1570297233.pdf?sequence=1.
33. Sartori, D. et al., 2014. Guide to Cost-Benefit Analysis of Investment Projects -Economic appraisal tool for Cohesion Policy 2014-2020. European Commission. Available at: http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cba_guide.pdf [Accessed August 1, 2017]. Schneider, S. & Spieth, P., 2013. Business model innovation: Towards an integrated future research agenda. International Journal of Innovation Management, 17(1).
34. Slywotzky, A.J., Morrison, D.J. & Andelman, B., 2007. The profit zone: How strategic business design will lead you to tomorrow’s profits., New York: Crown Business.
35. Teece, D.J., 2010. Business models, business strategy and innovation. Long range planning, 43(2), p.172–194. Available at: http://www.businessmodelcommunity.com/fs/root/8jig8-businessmodelsbusinessstrategy.pdf.
36. Teece, D.J., 2007. Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance. Strategic management journal, 28(13), pp.1319–1350.
37. Timmers, P., 1998. Business Models for Electronic Markets. Electronic Markets, 8, pp.3–8.
38. Winter, S.G. & Szulanski, G., 2001. Replication as strategy. Organization Science, 12(6), pp.730–743.
39. Yip, G.S., 2004. Using strategy to change your business model. Business Strategy Review, 15(2), pp.17–24.
40. Zolnowski, A. & Böhmann, T., 2013. Customer integration in service business models. In 46th Hawaii International Conference on System Sciences (HICSS), IEEE. Hawaii, pp. 1103–1112.
41. Zott, C., Amit, R. & Massa, L., 2011. The Business Model: Theoretical Roots, Recent Development, and Future Research. Journal of Management, 37(4), pp.1019–1042.