Application of QFD within a co-opetition network of public transport organizations

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1 BWI Abteilung VIII Lehrstuhl für Allgemeine Betriebswirtschaftslehre und Wirtschaftsinformatik II (Unternehmenssoftware) Prof. Dr. Georg Herzwurm Application of QFD within a co-opetition network of public transport organizations Sixten Schockert, Georg Herzwurm, Andreas Helferich University of Stuttgart, Chair of Information Systems II, Germany Computerlösungen GmbH th International Symposium on QFD Santa Fe, New Mexico September 2013 Funded by the Agenda The context: The (((eticket Germany initiative QFD process outline Surrounding conditions Methodical alignments Observed effects Methodical consequences 2

2 (((eticket Germany Vision: travel nationwide with one single ticket Numerous advantages: Customers can easily board and start traveling along their individual chain of travel With only one user media like smartcard or mobile-app as a ticket Using all of the mobility providers like train, subway, bus and even car-sharing or bikerental inter-/multi-modal transportation Ticket is available and valid everywhere No need to handle different ticket machines or different tariffs Connection to other services possible like paying for entrance fees, parking, discounts in stores etc. 3 Source: VDV-KA 2013 Example: Copenhagen Card (Denmark) RFID-based Smart Card Free of charge use of public transportation Free entry to more than 60 sights (museums, theme parks, ) Discounts for participating restaurants, Attractive, simple pricing model Age 24h 48h 72h 120h 16 and above clearance and revenue sharing between the participating partner somewhere in the back hidden from the customer little need for locking or security mechanisms 4

3 Challenges of implementing the (((eticket Germany to transport providers Requires significant investment in Information Technology (IT) acceptance infrastructure in front-office, user media, card readers, IT infrastructure, network capabilities and applications for back-office systems. But: about 90% of all German transportation providers are rather small and medium-sized companies with little IT know-how, no dedicated IT department, often rather outdated IT infrastructure and limited budget for IT investments. 5 General set-up for the research project Aprikose Appliance zur Unterstützung von KMU bei der Erbringung komplexer Mobilitäts-Services Primary goal of Aprikose: To provide small and medium-sized transportation companies a cost-effective and easy way of participating as one service supplier in the (((eticket Germany network 6

4 QFD process outline at the start of the project Project scoping determining system boundaries Customer Deployment identification of customer segments Identification of application/usage scenarios Iterated steps of planning the workshops Several workshops with customer and/or developers Gathering the Voice of Customer elicitation of customer requirements Development of product solutions setting development targets 7 Central determining factor: The VDV-Core-Application (VDV-CA) Common technical ( IT) and organizational standard for electronic ticketing in Germany Defines processes, data elements and interfaces between the roles of potential users of the VDV-CA Specification comprises of about 1800 pages Frequently changing (currently in the version 1.109) Dealing with such complex material in the daily routine is for the most of the (public) transport organizations nearly impossible To be accepted in practice an out-of-the-box -solution for the entry into the eticket Germany world is mandatory, ideally easy to install and maintain First solution idea: why not aim at an Appliance? 8

5 An Appliance? Example: wireless routers providing internet access Integrates and configures all the required functional components like firewalls, security mechanisms Dedicated in one unit often purchased from a single vendor Often incorporates both hardware and software (Mostly) easy to install and maintain Require almost no action from outside during normal operation Vision and scope of Aprikose: Pre-installed, pre-configured and instantly usable end-user device for transport organizations to apply the VDV-CA standard i.e. to join the (((eticket network All together in one box! 9 Customer Deployment: Role model of the VDV-Core-Application Customer/ Traveler Sales Clearing Control Logging Responsible for customer billing Contractual partner on customer media Technically represented through one media Responsible for product clearance Concrete transportation service Responsible for service accounting 10 VDV-KA GmbH Based on EN/ISO (on the basis of [VDV-KA 2010, p. 21]) Securit Certificatio y n Locking service transportation association i.e. tariff community (often different) transportation organizations

6 even more complicated: Co-opetition Network Artificial word composed of Cooperation + Competition Having war and peace at the same time Interoperable electronic ticketing, inter-/multimodal transportation services require technical as well as organizational networking of the transport organizations Cooperation! But e.g. suppliers of rental bikes or cars remain still competitors of the public bus transport organization in offering their service Competition! Difficult set-up for the QFD team composition: QFD needs open minded atmosphere where ideas can be stated without the fear that someone else adapts the ideas to his own competitive advantage But public transportation industry in Germany is still stuck in the traditional role allocation of competition rather than cooperation 11 Basic application scenarios of an appliance in a network of mobility service providers 12 Aprikose could be an alternative as well as a supplement to existing systems. act as a permanent technical system integrator. serve only as a puristic communication gateway between existing systems.

7 Moderated QFD workshops 13 Customer Requirements 14

8 Methodical alignments in QFD workshops 15 First goals: To reach a common ( Co-opetition) understanding of the customer s problems and requirements To give the developers guidance for first development actions to produce a first prototype of the appliance ( Innovativeness) Many customers participating due to many existing roles Two distinct VoC workshops for two existing pilot regions: Hamburg (north, Hamburger Verkehrsverbund HVV) Near Stuttgart (south, Kreisverkehr Schwäbisch Hall KVSH) Each participant had explicitly the time to reflect the evolving requirements on their own Prioritization not only individually but explicitly supplemented by group discussions of the assessments Observed effects (1) For the most broad and general requirements were identified Little guidance for first development actions and possible solution characteristics Developers felt rather uncertain and frustrated Reasons: Rather (too) many customers in the workshops Too rough initial project scoping: potential system boundaries not tight enough to focus the discussions in the workshops 16

9 Observed effects (2) More differences than similarities in the elicited customer requirements of the two VoC workshops Only 7 (of altogether 71) requirements represented exactly the same meaning in both workshops. Comprehensive but differentiated picture Reasons: Regional differences, resulting from the various sizes of the involved transport organizations and associations Even within companies we identified contrary views on the subject of co-opetition networks: Business view: costs but also the chances of selling complementary products are relevant Technical view: IT challenges of connecting different systems and actors more present 17 Methodical consequence: Aggregate the results of the two VoC workshops to ONE picture Requirements hierarchy of altogether 13 identical requirements categories used in both workshops Pairwise comparison to prioritize the requirement categories by each customer and aggregating the weights of the requirement categories of the participants of BOTH workshops Combine the category weights with the evaluation of each single requirement within the categories (similar to the AHP) Extended ABC-classification of the requirements in 5 ranking groups Building two matrices: Element level set focus: 18 single requirements within first two ranking groups vs. 59 solution characteristics Category level assure consistency: 13 requirement categories vs. 10 solution categories 18

10 Group House of Quality for transferring requirements categories into solution categories Legend: The fulfillment of the criteria [top] contributes 9 : inevitable and very strongly 3 : appreciable but maybe limited 1 : possibly and only limited 0 : indirectly or maybe not at all to the fulfillment of the requirement [left]. Importance Display Failover Data Management Customer requirements Administration 13,60% Event handling 12,90% Operational management 12,40% Flexibility 11,10% Security 9,30% Compliance 8,00% Availability 7,60% Administrate Standards 6,50% Individualization 5,70% Usability 5,40% Clearance 4,40% Support 2,20% Pricing Model 0,80% ,90% Absolute importance 3,2 2,0 1,6 2,1 2,7 2,9 1,7 3,2 4,1 3,0 Relative importance 11,9% 7,5% 5,9% 7,8% 10,2% 11,0% 6,6% 12,3% 15,5% 11,3% Rank Data Security Installation and configuration Control and testing Modularity Interfaces and Communication Monitoring Updates 19 Example: Aprikose offers interfaces between the standardized and the proprietary system landscape RCC Regional Clearing-Center (((eticket Germany network (so-called ION) standard Aprikose Systems of PVs At the PVs HuSst (tariff) difference data overlapping periods Aprikose Systems of the KVPs At the KVPs proprietary 20 Customer Center

11 Consequence for the research project: We have a box the first Aprikose-Appliance! which has to be further evaluated in the pilot regions now! 21 Consequence for the QFD process within the research project: Incremental development Stage 1: Appliance for use in public transportation Stage 2: Appliance for multi-/intermodal transportation (electromobility, conventional car rental and new mobility concepts) Stage 3: Appliance for complementary services with relation to the mobility field (especially tourism services) 22 Stage 4: Appliance beyond the mobility coopetition network and supplementary services related to the appliance

12 Consequence for the QFD process: Incremental development Continuous QFD! Development of product solutions setting development targets Project scoping determining system boundaries Customer Deployment identification of customer segments Gathering the Voice of Customer elicitation of customer requirements Identification of application/usage scenarios 23 Summary: according to famous German soccer coach, Sepp Herberger, world champion 1954 "After the game is before the game." "After QFD is before QFD." 24

13 Thank you for your attention! Funded by the 25