CERRE-Workshop on Consumer privacy in network industries Panel 1: Dealing with personal data Deutsche Bahn AG Dr. Markus Ksoll Brussels, February 2015 With its nine business units DB is active in all segments of the transport market Passenger Transport : Transportation and Logistics: Infrastructure: Domestic and European-wide mobility Intelligent logistics services via land, Efficient and future-oriented rail services air and the sea infrastructure in Germany DB Bahn Long Distance DB Schenker Rail DB Netze Track Long-distance rail pass. transport 1 European rail freight transport Rail network DB Bahn Regio DB Schenker Logistics DB Netze Stations Regional/urban pass. transport (GER) Global logistics services Traffic stations DB Arriva DB Netze Energy Regional/urban pass. transport (EU) 2 Traction current DB Services 3 Integrated range of services 1 Within Germany as well as cross border traffic; 2 In UK with Arriva-affiliate ‘CrossCountry’ also long-distance passenger transport; 3 Business unit is assigned to the Infrastructure and Services division Deutsche Bahn AG 1 DB is the second biggest provider in the European passenger transport market 2.7 DB Bahn Long Distance DB Bahn Regional billion passengers per year in trains and buses 25,000 passenger trains per day 250 trains are included in ICE fleet of DB 9 neighboring countries can 1 be reached directly via DB DB Arriva DB Bahn Sales As of December 31, 2013; Figures on the left side are rounded and exclude Arriva; 1 DB Bahn Sales is a service center within the passenger transport division Deutsche Bahn AG 2 DB Bahn Sales In passenger transport, DB offers its customers a variety of distribution channels Distribution Channels: Passenger Transport Unit mix 311.5 Mio. Tickets Ca. 400 travel centres und 5 mobility Centres in % 1 Travel Centres Ca. 3.000 employees Ca. 35 million sold tickets 6 11 17 6 Ca. 3.000 agencies Agencies 20 million sold tickets 60 Ticket Machines Ca 7000 vending machines all over Germany Ca. 187 millions sold tickets Revenue mix 7 528 Mio. EUR Internet and Up to 195 millions requests for journey information per month in % Ca. 53 millions sold tickets E-Ticketing 14 20 Subscription Centre Service for 590.000 customers 27 11 Ca. 5 millions sold tickets 28 6 call centre locations with 1,400 employees Call Centre ca. 12 million customer contacts per year Travel Centres Agencies Ticket machines Ticket sale in train ca. 6 million sold tickets on the train per year Internet Other 1 natural persons Status: 31 Decembre 2012 Deutsche Bahn AG 3 DB has a special unit on privacy, acting as an advocate of customers and as a consultant to business units DB privacy unit: General principles Claim: Leading in customer privacy Customer data is generated and processed only as long as neccessary and legally compliant Customers are transparently informed about content and scope of data processing All products and services comply with customers informational self-determination Data design and content of websites and apps are characterised by high legal protection of data privacy DB is a trustful partner for its customers, Customer confidence is a strategic advantage, it strengthens DB`s position and is a valuable good Deutsche Bahn AG 4 The issue of personal data and privacy is increasingliy relevant to DB and its customers Consumer expectations are influenced by possibilities of digitisation – rules for privacy stem from the analog world Service Privacy Making traveling easy : customer Clear rules regarding processing and expects easy solutions regarding travel storange of personal data according to information, access, booking and relevant legal rules payment Transparency about use of travelers Knowing travelers preferences : provide personal data personalized information, using e.g. Why is the information needed? knowledge about prefered transportation Who has access? mode. How is fraud usage prevented? Anticapting travelers needs on way : Connecting economically feasible solutions inform customer during his travel about for easy and safe technologies with delays, change of plattforms and further automated decision making and connections etc. predictions Deutsche Bahn AG 5 Along with digitisation, transparency on both market-sides is rapidly increasing Transparency on both market-sides … on products … on customer behaviour You know availabilities of all products We know where you want to go You know prices of all products We know when you want to travel You know characteristics/ real time status of all products We know who you want to travel with You know trustworthyness/ experiences of other users … We know which level of comfort you prefer … Deutsche Bahn AG 6 DB effectively uses possibilities of digitisation and sets standards Successful examples Online DB Ticket Navigator Flinkster- Qixxit Plattform Deutsche Bahn AG 7 The market for mobility platforms develops dynamically Mobility platforms: Current examples Qixxit is an independent travel platform initiated by DB The mobililty platform shows alternative door-to-door options with 13 different tranportation modes It allows an easy comparison of travel time, costs and transfers Moovel is driven and developed by Daimler It connects Daimler‘s car-sharing products with public transportation, taxis and other services Waymate and Allryder are driven and developed by third parties Allryder is a specialized app for short distance travelling, it considers public transportation as well as cabs, car sharing etc. Waymate is specialized on long distance travelling including international connections Deutsche Bahn AG 8 Commercial interest is driven by different motivations – DB focusses on added benefit to customers in its core markets Potential business models in platform markets Advertising fees and provisions vis a vis other firms (incl. sponsored hits) Access fees and provisions vis a vis the customer Arbitrage profits between customers and firms Trading of customer data Positive spillovers and added value/ demand for other products in vertical value chains (easier access, higher awareness, transparency) Current DB focus! Deutsche Bahn AG 9 New competitive and regulatory issues arise Selected questions Which level of data processing and privacy do customers want? Is there room for differentiation? Do competitive advantages arise from different privacy standards? How important is access to the customer interface for service operators? What is the value of personal data? Which extend of market power arises from ownership and availability of data? Which rules and practices are suitable regarding ownership, trading and sharing of personal data? Deutsche Bahn AG 10.