Function-Based Assessment for Business Modelling of Electric Road Systems

Abstract: The transformation of road transport towards sustainable vehicle powering technologies provided an opportunity for the development of several electromobility solutions among which are Electric Road Systems (ERS). However, a large-scale implementation of ERS involves a challenge for potential participants to develop business models for ERS. Thus, the purpose of the thesis was to explore an assessment process to be used by potential ERS participants to identify related business models. The purpose was operationalized by a research question seeking to identify how business models and subsequent interactions are to evolve for potential participants. The thesis was built upon a theoretical foundation of the intersection between technological innovation system (TIS) and business model (BM) theories. The methodology followed a threestep research design that revolved around a selected case study – eRoadArlanda – and the gathering of empirical information from interviews and documents. The research design involved empirical and theoretical definition and breakdown of ERS, the development and application of a function-based assessment process for ERS and the evaluation of function-based and relational BMs. Consequently, the assessment process yielded a breakdown into five functions: ‘Energy’, ‘Road Operation’, ‘Power Transfer’, ‘Vehicle’, and ‘Road’. Followingly, the assessment process was applied for potential ERS participants where individual ERS-based BMs – defined by value proposition, value creation cost, and value capture revenue – for the functions was collected. The information was then aggregated to establish the function-based and relational BMs for ERS. Thus, the results yielded an overview of a systematic process for business modelling in the ERS context founded on TIS and business model theories. It provides practitioners with a systematic process that provides a dynamic view for business modelling. The results further enriched the academic literature within the ERS context while providing a basis for future research regarding policy-making and information sharing among others.