telepass

Question 1

main issue

Answer 1

should they go into their insurance or stay with their telepass

Question 2

company overview

Answer 2

introduced in. 1990 to streamline traffic during the World Cup in Italy
was a tolling service
owned by the Atlantic group
OBU unit
Italys oldest fintech

Question 3

telepasspay

Answer 3

broad mobility platform offering wider services: fuel payments, bike sharing, parking, train tickets
you can bundle together these services in one device
gave telepass good info
only existing telepass subscribers could sign up
download the app and sign in with teelpass info
cresting an ecosystem –> 3-15 services, more services= more value

Question 4

economics*****

Answer 4

emerging mobility services industries
italy is among eu most expensive highway system covid 19 increased electronic payments and decreased usage of mobility services

Question 5

demographics*****

Answer 5

multi model future and shifting mobility preferences
tech savvy younger population is more inclined to use digital platforms

Question 6

political and legal

Answer 6

compliance reqyiremmts impacting data use and digital ppayemts
gvt incentives for digital payments

regulations concerning EU
GDPR –> companies have to protect consumers privacy , very costly penalties
gvt was planning to launch a program that would reward consumers who used digital payments methods
know your customer rule

Question 7

sociocultural

Answer 7

traditional cash transaction culture –> italeins perffered cash
conservative approach to banking
car ownership was seen as a part of adulthood if you lived in Italy but today we want scooters
increase in bike sharing, scooter sharing

Question 8

technological

Answer 8

adoption of digital platforms and data driven services
rise of mobility as a service

Question 9

porters

Answer 9

buyers: consumers have some leverage due to the availabiluy of substitute s, less likely to switch once integrated into telepass ecosystem , tele offers very competitive pricing and high convenience which is valued by consumers , merchants and customers
suppliers: depends on cloud service provider like google cloud and mobility tech partners, partnerships arent exclusive but important, also depends on highway operators
new entrants: high capital costs regulatory compliance, robust ecosystem are entry barriers, have to create relationships with governing bodies, new entrants can come in and disrupt
subs: cash, other digital payment, pricing power on telepass which may limit telepass ability to charge premiums for their convenient service offerings
rivarly: many competitors, fragmented market with low switching costs and cultural resistance to change, PayPal , postepay, same offerings

Question 10

industry size

Answer 10

the industry is the mobility and fintech industry that includes toll oayennets
annual transact volume of 7bn for telepass
digital payments segment in Italy was worth 270 bn in 2019

Question 11

industry growth

Answer 11

substantial growth potential
telepasspay revenues grew by 76% from 2019-2020
increasing urban mobility, preference for shared services and gvt incentives for digital payments drive grwth
digital payment has grown by 109%
movile payement apps are growing

Question 12

trends

Answer 12

rise of multimodal trasnpoation, car sharing
slow but growing adoption of digital payments
data driven personalization in services
post covid mobility shifts
regulatory pressures favouring transparency ( there are restrictions imposed on companies facilitating digital payments) and consumer rights
sharing services were emerging

Question 13

opportunities

Answer 13

expanding into multimodal mobility services
growing insurance
leveraging data analytics for personalized services
emerging tech
sustainability
expanding to europe
uniform merchant service

Question 14

threats

Answer 14

regulatory risks and compliance costs
intense competition
cultural resistance to digital payments (want to stick with cash instead)
tech avdnacennts

Question 15

strengths

Answer 15

strong brand recognition and reputation (can hire good people, consumers trust the company and dont even check their bill)
pricing power and cost advantage (Lower than tier companies)
technological leadership
unique and diversified offerings
uniform and convenient platform
not long wait times
first mover advantage
first to use DSRC
status to have telepass
cross selling through the app
good at navigating the regulatory

Question 16

weaknesses

Answer 16

dependence on tolling revenues
customer perception –> only as an OBU company
technological knowledge gap (they had always worked with IBM so they were having trouble adjusting to data lakes)
high investment rewuirennts for new services
existing assets and capabilities were being underanalyzed, they had a lot of data but never considered how important it is
telepass doesnt share its data with merchants

Question 17

finance

Answer 17

processed 7 bn in annual transactions
revenues grew by 76%
in 2016, revenues totaled €168 million

Question 18

Hr

Answer 18

hired cerveillin (15 years of data analytics experience)
diversified employment
investing in people who had skills with this tech (data science )
hired people fro different sectors who were doing
also hired people who had soft skills ( t factor)
their employees had been knowledgeable in the transpiration industry but needed pole who knew data

Question 19

information systems

Answer 19

relies on DSRC tech and It systems to manage operations
enhances efficiency
used the telepass pay to gain information about customers
data driven processes
google cloud data storage

Question 20

distribution***

Answer 20

direct dis of OBU devices
partners with toll operators to ensure service availability
across various segments

Question 21

operations*****

Answer 21

uses OBU devices for high transaction success rate
expanded operations
uses the DRSC tech

Question 22

supply chain amangeemt

Answer 22

focus on partnerships with toll operators and mobility service providers

collaborates with cloud providers

Question 23

marketing and slaes

Answer 23

promotes itself as a convenient mobility service that saves customers time and money, also simple
consumers were having a hard Time separating teelpass from the tolling sp have to market well
they were going to store all of their customer data in one place which would help build their marketing

Question 24

follow up services

Answer 24

high emphasis on customer satisfaction

Question 25

sources of competitive advantages

Answer 25

data utilization strategy
innovate tech and ecosystem
brand recognition and trust at a large scale (they trust them to act like a bank and customers don even check their bills)
market domince
costkeadership
diversification revenue and growth
uniform merchant agnostic service

Question 26

challenges

Answer 26

revenue is highly dependent on tolling services
customer brand perception as tolling only provider
financial strain from expansion and acquisitions

Question 27

current strategy

Answer 27

invest in tech:
- moved to the cloud to store data
- not data driven company
- had t figure put what data to collect
investing in people
- hired and patterned with industry experts, found ne hires who were skilled in data sincere, adjusted hiring practices,
investing in processes
- going more data driven –> everything used to be done manually through excel
invested 200 mm in tech [eople nd processes

Question 28

business level

Answer 28

cost leadership: come-give pricing, transaction fee is a lot cheaper , only a 0.28% trasnavtio. fee which was a lot lower than the normal 1.1%, wanted to provide customers a simple unfair experience
duffereination: integrated mobility system, easy to use platform, focuses on customer engamenet and retention

started off with cost leadership and then started diversifying with telepass pay

Question 29

cooperative strategy

Answer 29

grown through m and and partners
moved into new mobility categories
introduced existing services into nee cities
bought new merchants
partner with zig zag an italein company that has scooters

Question 30

zig zag

Answer 30

allows telepass to broaden its range of mobility services
can offer more diverse and sustainable trasnporatopn options

Question 31

m and a strategy

Answer 31

acquired a 70% stake in wash out which performs eco friendly car washing and it was an absorption
bought 75% equity stake in infoblu, a mobility tech company which was also preservation
acquired urbi which was a car cycle scooter platform which was also [reservatin

Question 32

why do the m and a

Answer 32

wash out: allowed telepass to offer more services and keep subscribers nebgaed, increase speed to market
infobluL combined infolbu real time traffic into and data analytics , more expertise
urbi: allowed teelpass to diversify its mobility service portfolio

Question 33

corporate level

Answer 33

has telepass pay and insurance brokerage
21% revenue was from non tolling services
insurance gets info from teelpass (synergy)

Question 34

telepass pay

Answer 34

launched in 2017
customers could pay for various mobility services
horizontal integration and multipoint

Question 35

insurance

Answer 35

existing telepass memebrs used
sperate company
cheaper
hpriztponal and multipont
they want to gp from being a brokerage to an insurance seller so going more downstream to the consumer (downward vertical integration )
opportutnies
its a highly competitive market but could be another industry to tap into
but there were risks with this industry
there are opportunities
SYNERGY: could use the data from telepass to understand customers better

Question 36

global

Answer 36

how would covid impact telepass
lot of deaths in Italy
was it the right time to invest in new tech

Question 37

how does telepass work

Answer 37

tolling device that had an OBU attached to the cars windscreen , used DRSC tech to exchange customer and payment info

Question 38

when telepass fits was launched what was the situation

Answer 38

autostrade per italia was the main Italian highway management maintenance company and owned the service
offered. ausbscription basis
Atlanta group then took a stale and expanded telepass offerings

Question 39

autostrade vs superstrade

Answer 39

auto: had tolls
super: if you didnt want to pay but increased travel time

Question 40

why did customers like telepass

Answer 40

liked the status by having it and passing directly through it

Question 41

why did Benedetto become CEO

Answer 41

lead a digital transformation process that would enable telepass to become more data driven
2) trasnsiton teelpass from a product based company focused on tolling to a platform based company offering many services

Question 42

why did telepass choose the lift and shift approach

Answer 42

bc the industry is changing fast and teelpass has to move fast

Question 43

why did telepass use google cloud

Answer 43

they used IBM and had databases but wasn’t good for managing digital services
they chose google cloud even though amazon was dominant bc they wanted to be on the journey with them

Question 44

horizontal devrsiifcation (tellepass pay)

Answer 44

3-15 services
more sevrices= more value
new mobility ctageroies
introduced exisintg services
new merchants
wanted first mover advantages
in 2019, telepass generated 21% of its total revenues from non tolling services

Question 45

vertical integration

Answer 45

wanted to go forward intergration by interacting with customers through their app unlike the tolling service
have subscriptions
also wanted to become more forward integrated with the imsiruance

Question 46

finance

Question 47

partnerships

Answer 47

entered one with NTT data to oversee the transisition to the cloud

Question 48

organizational resources

Answer 48

created a new unit dedicated to data management and analytics

Question 49

short run vs long run

Answer 49

short run: wanted to incorporate the customer data across the telepass ecosystem
long run: wanted to use telepass data to offer customized insurance products to customers who requested products tailored to their needs