Real-Time & Predictive Traffic Real-Time & Predictive Traffic Emerge as the Killer AppEmerge as the Killer App

Location Intelligence ConferenceLocation Intelligence ConferenceApril 4, 2006April 4, 2006

LBS Grows Up: LBS Grows Up: Business Models for SuccessBusiness Models for Success

Bryan Mistele, President & CEOBryan Mistele, President & CEO

Source: Driscoll-Wolfe, “Consumer Interest in Real-time Traffic Information”

Study based on 900 participants across 4 major cities who were cellular subscribers with a minimum income of $40,000 who owned a vehicle.

ConsumerConsumerInterestInterest

Summary

• 91% of participants would pay at least a small monthly fee

• 30% of participants stated they would pay $5/month or more

– Up from 24% in study done a year earlier (shown in graph above)

Interest in Traffic Alerts Service at $4.95/Month

Among cell phone users who made…

0%

10%

20%

30%

40%

50%

T otal 1+ Cellular

Calls

$100K

Inc ome

41+

Cellular

Calls

24%28%

31%

44%

"Real-time traffic-enabled systems are likely to capture the attention of many new vehicle buyers, as nearly every navigation system owner surveyed expressed interest in this new feature.”

Melissa SauterDirector of Automotive Emerging TechnologiesJ.D. Power & Associates

ConsumerConsumerInterestInterest

Study based on based on responses from 9,271 owners who recently purchased or leased vehicles with factory-installed navigation systems

New Vehicles Sold with Navigation

Systems

0 200000 400000 600000 800000 1000000

2004

2003

2002

2001

2000

1999

1998

# of New Vehicles with Navigation Systems

* J.D. Power & Associates 2004 Navigation Usage & Satisfaction Study

DiscussionDiscussionKey Trends Impacting LBS AdoptionKey Trends Impacting LBS Adoption

At a Key Inflection PointAt a Key Inflection PointThe Traffic Value ChainThe Traffic Value Chain

Data Collection

• Road Sensors• GPS Probes• Cellular• Toll Tags• VII

Processing Delivery End User

New Ways to Collect

• Prediction• Forecasting• Comparative• Personalization• Relevance

More Value Add

• Cellular • Satellite• Internet• FM Side Band• Digital Radio• WiFi/WiMax• Broadcast

More Options

• In-Car Nav• Portable Nav• Mobile Phones• MRM Service Providers• TMS/FSA/SCM solution

providers

More Devices & Customers

Our Focus

Aggregate traffic-related content from public and private sources

Enhance real-time data using proprietary error detection and correction. Utilize sophisticated Bayesian modeling for prediction and forecasting

Distribute to customers via XML services

WhatWhatWe DoWe Do

Channel Typical Applications End-User Scenarios

Web Portals & Media Sites

• Consumer mapping and routing services

• What is the traffic like right now before my commute?

• What is the best time to leave for work - 6:00? 6:30? 7:00? How long will it take me?

• What is the quickest route to the airport right now? Next Friday morning?

• Is traffic today better or worse than normal?

• What time will traffic start to back-up tonight on the SR-520 bridge?

Mobile Phones • Mobile navigation apps

• SMS alerting services

• Are there any accidents right now that will impact my commute? Should I take an alternate route or stay on my current one?

• What is the quickest route to the airport right now?

• What is the drive time to downtown this morning? Is it better or worse than normal?

In-Vehicle Devices • In-car navigation application

• Alerting & rerouting applications

• Show me current traffic in Chicago. What areas should I avoid?

• Should I reroute around the current accident on I-75? When will it clear? How long will it take to get through?

• Is the congestion I’m in normal or an anomaly?

Fleet & Commercial • In-vehicle application

• Dispatch center applications

• Incorporate of data into logistics/JIT applications

• What is the fastest route around traffic to make our deliveries?

• Can one truck make all six deliveries we have scheduled for tomorrow? How long will the deliveries take?

• What time should our truck leave the dock to make a just-in-time delivery to the plant which requires the parts between 4:00 and 4:15?

Public Sector • 511 voice services

• Road planning & analysis

• Homeland security/what-if scenarios

• If there is a hurricane or terrorist attack in my city, what impact will it have on traffic?

• When is the best time to do construction on I-75? What will the impact be?

• If we were to eliminate/add HOV lanes on I405, what impact would it have on traffic?

Vertical Markets Have Unique Solution NeedsVertical Markets Have Unique Solution NeedsCustomer ScenariosCustomer Scenarios

What business models will win with Traffic and Location-Based Services?

ModelsModelsBusinessBusiness