http://www.solvaybusinessgame.com

1. 17 February 2012
Single card for network mobility:
creating multifunctional loyalty
system in Belgium

2. 2

3. cv
3Source: Benchmark company analysis, case data.
Current ticketing system isn’t perfect and definitely
there is a room for improvement
1 Overview Stakeholders BenchmarkingMarket
Infrastructural hubs of networked
mobility are being created
around stations…
… but still all services require separate
cards and there’s no single solution for
network mobility
Separated Blue-bike card
required (Subscription
€10 + usage payment)
Single tickets/MOBIB card
required (unified urban
transport card)
Cambio Card required
B-Parking card/single
ticket required
0
20
40
60
80
100
2011 20122010
Cambio-locations
Cambio-cars
Parking areas near stations built in 2010-2012
Tickets bought online/in
the ticket office required
Service Type of ticket/card
Bike rental
Car rental
Parking
City
transport
Trains
Number of Cambio car rental locations
and cars provided near stations
The integrated
ticketing system
to simplify network
mobility should be
implemented

4. cv
4Source: Benchmark company analysis, case data.
The new model should meet goals of key stakeholders: the
government, citizens and 4 transport operators
1 Overview Stakeholders BenchmarkingMarket
Operators
Citizens
Stakeholders Specific objectives and conditions of stakeholder Shared goals
• Faster boarding and changing transport
• Minimize offline ticket sales,
automatic card charging
• Smart pay-as-you-go system
• Easier, low-threshold transport for the customer
• Stimulate a technical compromise
between operators
• Reduce pressure from car traffic on the cities
• Operators' independence
• Remain current ticketing during the new system
implementation
• Improve 3rd Party Payer system
• Decrease fraud
• CRM at the level of individual customer
• Phased transition to smart card
• Good cost to profit ratio
• Continued compatibility with the current fares
• Maintain the role of the train conductor
• Separate customer management and fares offering
Government

5. 5Source: Benchmark company analysis, case data.
There are many successful interoperable models with South
Korean as the most suitable for the Belgium situation
1 Overview Stakeholders BenchmarkingMarket
Hong-Kong
Seoul
Moscow
Types of cardsServices provided
• Home portable card reader - to check the balance on the card (Denmark, Hong Kong)
• Cards as a payment instrument in retails stores, cafes, vending machines (South Korea)
• Special security protection system against loss or theft of the card (England)
Netherlands
OV-chipkaart
T-money card
Octopus card
• Issued by transport
authorities (monthly
limited /unlimited
passes)
• Issued by banks
• Just check-in
• No info for customer
• Plans for huge
modernization
- as an electronic purse
-as a means of storing
a travel product
• Check in/out
compulsory
• Anonymous
(Child/Adult/Elder)
• Personalized
• Branded cards
• Airport Express Tourist
• Single journey cards
(reusable)
• T-money journey cards
(incl. affiliated cards)
• T-money chip
• City transportation
• City transportation
• Trains
Octopus Rewards
program - rewards at
merchants that are
program partners
• Disposable (no top-up)
• Anonymous (reusable)
• Personal (possible to
store tickets and other
products >1 month)
Personal cards are
available for the
citizens of Belgium,
Germany and
Luxemburg
• City transportation
• Retail stores
• Parking
• Leisure activities
Functioning Special features
• City transportation
• Retail stores
• Parking
• Leisure activities
For cards issued by
banks trips cost less
when customer travels
a lot
Other ideas
Single
Moscow card
• Just check-in
• Detailed passenger
information
Wide variety of
partners
Deposit system for
non-personal cards for
foreigners
• Check in/out compulsory

6. 6

7. 7Source: Benchmark company analysis, case data.
We offer the simple interoperable ticketing model that fits
stakeholders conditions…
2 Proposition Product details Marketing Distribution Business model Plan & RisksConcept
1 Please, refer to the next slide to look at the product features deeply
2 Including current fare types of different operators.
At the heart of the system there will be a multifunctional payment & loyalty chip card for Belgians with a
smartphone chip option and non-personal rechargeable & reusable chip card made primarily for foreigners
Producttypes
Fare
types
Services
provided
Issuers
Banks SPV SPV SPV
Pay as
you go
Seasonal 2 Pay as
you go
• ID card linkage
• Provides maximum variety
of services of new ticketing model
• Deposit payment required
• All features of chip card are included
• The main difference is an integration with
customer smartphone
• No linkage with ID (for non-residents)
• Rechargeable and reusable: one can buy
the card, charge/recharge it and then
return it in the exchange of deposit value
Loyal
Pay as
you go
Seasonal 2
Users
Belgian
citizens
Belgian
citizens
Foreign
people
Public
transport
Additional
services
E-money Public
transport
Additional
services
E-money
Public
transport
Additional
services

8. 8Source: Benchmark company analysis, case data.
…and has great features in terms of services provided, loyalty
program breadth and different types of issuers and fare types
2 Proposition
Issuers and
fare types
Product features Short description
Services
Loyalty
program
• Public transport services is the
heart of the system
• Includes services of 4 operators
(trains, buses, trams, subway)
• The interoperable concept will
include car parking, rental of
bikes and auto, leisure activities
and so on (provided by operators
and its partners)
• The wide loyalty program will
allow to use the card to pay in
retail stores and other partners
• There will be an opportunity to
use for Internet payments
+ -
• The program will include
transport operators and wide
variety of partners that give
users miles points for every
usage of its services
• Factors defining the amount of
points: type of service, type of
customers amount of
purchase/length of trip/traffic
absence, intermodality
combination and so on
• Points will be used to pay for any
services provided by the whole
loyalty system
• Opportunity to transfer points or
donate them
• SPV will issue the majority of cards and give the
issue rights to the banks
• Banks will issue co-branding cards that contain
special bonuses provided by them
• Pay as you go – smart system that allows consumer to
use the products at the optimal price
• Seasonal – fare for the certain time periods (incl. the
option of separate or combined usage of services)
Product details Marketing Distribution Business model Plan & RisksConcept

9. Develop mobile/web application with
wide gamification options based on
mile points that stimulates people to
use product more, compete with each
other, etc (together with exploring all
information about the services)
9Source: Benchmark company analysis, case data.
The only way to succeed with such product is to inform
citizens, involve them into its creation and stimulate to use
2 Proposition
Stimulating to use it
Reach quantitative and qualitative growth by offering different
incentives and providing customers with the unique experience
Getting to know it
Spread the idea of new ticketing model by involving customers to
creation process, educating them and stimulating word of mouth
21
Involve Belgian citizens into product
development through creation of
discussing crowdsourcing platform
and surveys “Make your future
experience awesome” (channels:
official site, social networks)
Create simple and clear “how to”
guides and brochures emphasizing
advantages of the card and the
importance of wide card penetration
(channels: official site, social networks
partner sites, advertising on transport)
Stimulate customers to spread the
word about the project via social
networks and word of mouth (#, by
offering the most active users options
of cards pre-order and welcoming
mile points)
Inspire people to switch to the card by
offering them welcoming mile points,
awarding them for referrals and other
useful actions that expand user base
Encourage customers to use
intermodality opportunities by creating
“city quests” and giving bonuses for its
completion (#, use train, bike rental
and bus in 1 trip)
Product details Marketing Distribution Business model Plan & RisksConcept

10. Wide range of distribution channels makes it easy to get a card, use or dispose it
10Source: Benchmark company analysis, case data.
In order to provide convenient, quick and easily accessible
service, broad distribution channels should be used
2 Proposition
Source: Benchmark company analysis, case data.
Card top-up Exists now
• Vending machines
• Ticket windows
• Kiosks, shops,
tourist centers
• Web-site/app
• Ticket windows
• Vending machines
• Tourist centers
• ATMs
• Auto load
• Web-site
• Ticket windows
• Post
To build a proper network, the infrastructure development is needed
App & site
providing info
about network
mobility issues
Special vending
machines on all
stations, parking
and bike rentals
Portable card-
readers for
conductors in
trains
Card readers at
check in/out points
in transport,
parking, rentals
Card purchase Exists now
Loyal
Type of card
Product details Marketing Distribution Business model Plan & RisksConcept

11. 11Source: Benchmark company analysis, case data.
The organizational structure will be based on SPV runned by 4
operators in cooperation with the government & partners
2 Proposition
Management process is held by SPV:
• Creating & maintaining cards
• Float management
• Travel data management
• Clearing between operators
• Infrastructure and distribution
management
• Infrastructure and maintenance
costs shared between the 4
operators (major part), government
and partly banks
• SNCB covers the bigger
part of costs
• Partners and additional service
providers pay the royalty for each
transaction and for the miles
• Payed by the customer
• Payed by Third party payers
(employers, government, other
parties)
Management Costs & Income distribution Card payment
Partners of loyalty
program
Technical support
(cards issuers)
SPV
Income from
services
Investments and
operation costs
InvestmentsControl (partly)
SNCB STIB
De Lijn SRWT
Government
Royalty for
customers Thales
Banks
Personal
cards/…
Credit cards
Rent/parking
HoReCa
Retailers
Airlines
Product details Marketing Distribution Business model Plan & RisksConcept

12. • Providing the first issue of the cards to
the citizens
• Creating and activating the promotion
program in offline/online
• Developing the smartphone app and
web-site to support the system
• Finding partners for the loyalty program
and contracting with the banks
2 Proposition
• Forming SPV by the
transport operators
• Making design of the card and
specifying its technical features
• Determining the fares and
elaborating the loyalty program
• Supplying stations with special
equipment
2q 2013 1q 2014 1q 2015 1q 2016
3 quarters 4 quarters 4 quarters
1. Product Development 2. Brussels pilot launching
• Spreading the system on all major
stations and transport hubs
• Increasing the number of partners
involved in the loyalty program
• Developing the Third Party payments
program within employers and schools
• Adjusting the product and fares
specifications according to the
customers needs
3. Country expansion
The project will be divided into 3 phases starting from the
product development till the whole country is covered
Low demand:
People prefer the old tickets
Type of risk Threat level Measures to prevent
Card won’t function due to
infrastructure drawbacks
The loyalty program will not succeed
due to lack of partners
• Explain the promotional effect of the program to the
companies
• Involve more partners
• Offer the card that is more convenient and/or provides
cheaper services than simple tickets
• Promote new card &explain network mobility pros
• Provide the overall access to the card purchase/top-up
infrastructure
• Install equipment within all the operators
There are some serious risks but they all can be eliminated by certain measures
12Source: Benchmark company analysis, case data.
Product details Marketing Distribution Business model Plan & RisksConcept

13. 13

14. 14Source: Benchmark company analysis, case data.
The proposed system simplifies and unifies current transpor-
tation and other relative services and provides intermodality
3 Summary
cv
Stakeholders Shared Goals
Services
simplification
Single card for
wide variety
of services
Improved
intermodality
Suggested Solution
Key advantages:
1. Improves the service convenience and accessibility
2. Simplifies network mobility
3. Aggregates all services within transportation hubs
4. Provides loyalty bonuses to save money
Transportation
operators
Belgian
government
Belgian
Citizens
Services provided:
• Transportation (bus, tram, train, etc)
• E-money (retail stores, internet purchases)
• Additional services (parking, rental, leisure)

15. Benchmark Company
high-experienced team of fellows with strong
spirit that study and work together for 4 years