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Meeting customer requirements – Constraints faced by Service Providers Chris Smith UK Hydrographic Office.

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Presentation on theme: "Meeting customer requirements – Constraints faced by Service Providers Chris Smith UK Hydrographic Office."— Presentation transcript:

1 Meeting customer requirements – Constraints faced by Service Providers Chris Smith UK Hydrographic Office

2 What the customer wants Safe and compliant service Safe and compliant service Cost effective solution Cost effective solution Simple service proposition Simple service proposition Reliable service Reliable service High quality support High quality support Choice Choice

3 ENC Stakeholders – Some Needs Equipment manufacturers Equipment manufacturers – Support of development –Resolving customer problems Distributors Distributors –Sound service proposition –Demonstration capability –Customer service support Ship owners / Mariners Ship owners / Mariners – Service trials

4 Lack of consistency in Terms and Conditions of ENC use Hydrographic Offices Hydrographic Offices RENCs RENCs

5 Concessions What are they? The ability to offer free trial, demonstration and developer licenses to support sales Issues: Not all suppliers allow concessionary licenses Not all suppliers allow concessionary licenses Some suppliers excessively limit volume of concessions within a fleet Some suppliers excessively limit volume of concessions within a fleet

6 Cost of using ENCs in ECDIS Factors affecting the cost Factors affecting the cost –Base ENC cost –Scheming –Flexible licensing –Number of users

7 Base ENC cost Wide variability on cost per ENC Wide variability on cost per ENC –$2 - $30+ per ENC –Licensed for one year including all updates Annual licence not suited to some vessel types Annual licence not suited to some vessel types –Perceived by many ship owners as being too expensive.

8 Flexible Licensing The ability to buy on shorter period than 12 months Issues: Some nations do not allow at all Some nations do not allow at all Not all nations all 3,6 & 9 month Not all nations all 3,6 & 9 month Different discount structures used Different discount structures used –36%, 60% & 80% –25%, 50% & 75%

9 Scheming of ENCs What is this?: The way HOs arrange production of their ENCs The way HOs arrange production of their ENCs –A wide variety of coverage area Service Providers sales propositions Individual ENC Individual ENC –Cost variable with size Units (group of ENCs that approximate to a paper chart) Units (group of ENCs that approximate to a paper chart) –User may not use all ENCs in the unit Folios Folios –Grouping of all ENCs in an area for a particular navigation purpose Issues: Can affects customer perception of value for money Can affects customer perception of value for money Not possible to meet all customer wishes with a single system Not possible to meet all customer wishes with a single system

10 Number of Users What does this mean? The maximum number of ECDIS systems that can be used when paying for a single ENC licence. The maximum number of ECDIS systems that can be used when paying for a single ENC licence.Issues: Different suppliers have different limitations – the majority allow 5 but some only 2 concurrent users Different suppliers have different limitations – the majority allow 5 but some only 2 concurrent users

11 Further Considerations Individual ECDIS capability Individual ECDIS capability Vessel installation Vessel installation Navy requirements Navy requirements

12 Non-Navigational Use Increasing interest in shore based use Increasing interest in shore based use Constraints Constraints –Existing distribution agreements are too restrictive –Existing pricing is too high for non- navigational use

13 Conclusions There is a need: for closer co-operation between HOs on licensing terms and conditions for closer co-operation between HOs on licensing terms and conditions for HOs and RENCs to be responsive to service providers for HOs and RENCs to be responsive to service providers to ensure innovation is not stifled to ensure innovation is not stifled


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