During the preparation talks it was sometimes pointed out to me that I could start implementation of the infrastructure by just placing a single battery charge- and swapstation. If it works, subsequently members would just apply by themselves to become part of the network. I replied intuitively that a restaurant can’t be opened with a single plate, nor a railway line can’t with a single railway station, either.
The proposals exhibited a naive faith in the possibilities for an entrepreneur in a capitalistic system. Whatever the funds are an entrepreneur might has, he will still be bound to the laws of physics, as well. By implementing an infrastructure e.g. the law of Metcalfe, also known as the network effect, will come into play. For a potential member it will be interesting to join the infrastructure once an attractive number of charge- and spastations is available and operational. This increases the the potential cruising range, the cruising time, and by this the added value of such infrastructure as a whole. At the same time by the number of charge- and swapstations also the area of potential members increases exponentially, which is attractive to the operator, who by this has a greater chance to depreciate the investments in reasonable time.
It is of importance that stakeholders in this undertaking are acquainted with these synergies, to be able to invest sharply. For the implementation of the infrastructure in e.g. Amsterdam 12 battery charge- and swap stations are necessary to have full gain of Metcalfe’s law. The implementation is preferably scheduled in a single process. Because the density of boats is higher in he city center the process could be divided into two parts, as well, in order to let the investments overlap with the rising admissions of members. Expansion plans to the region could be fully financed by the Amsterdam member admission fees, subsequently.
The size of specific charge- and swapstations and the number (and the type) of battery packs available in that charge- and swapstation are important parameters being part of the research question.
While new members are joining, in a cruising area like the city a saturation effect takes place that will override the network effect at a certain moment. Business wise this is the best moment for further expansion of the network to the region.
The business model of the infrastructure is for a great part a calculation model, as well. If the public-private cooperation can evolve under optimal conditions all attention should be focused on the development of this calculation model. This model is about the efficient application and wise usage ion (charging/ cruising) time, (berth) space, resources (batteries, stations), (cruising) range, electricity (prizes) and (energy management) responsibility of users of the network, and its effects that go along with it.
Obviously, data is needed for the development of this model. A part of the data, e.g. on the system of waterways or the traffic flow, is publicly available via the government. A part of the data owned by the government is not free available, as e.g. personal data in regard to boats, which is handled by Waternet (the water board).
In a growing infrastructure the operator has the opportunity as well to collect his own dat in order to optimize his computational business model. As explained on the XXX-AIS page it concerns traffic data here. Data that in general is not as sensible as shared personal data on social networks, e.g. The data can be encrypted and used for optimization of the operational processes/ the service, exclusively. If this dat is being collected via the docking station on the boat, these docking stations become parts of IoT, the internet of things. We don’t know yet how this augmented connectivity around us will change our future. We do know that the quality of these devices will be determined by the organizations and the people who invent, design, develop and operate them.