2
Importance and roleof parking in the
real estate sector
Parking is a critical component of the real estate sector, playing a crucial role in
property development, management, and overall urban planning. The importance of
parking cannot be overstated, as it directly impacts property values, tenant
satisfaction, and the overall functionality of a real estate project. In this section, we
will explore the significance and role of parking in the real estate sector.
One of the primary reasons why parking is essential in the real estate sector is its
influence on property values. Adequate parking facilities can significantly enhance
the value of a property, making it more attractive to potential buyers or tenants.
Properties with ample parking spaces are in high demand, especially in urban areas
where parking is scarce. Investors and developers often consider parking availability
when assessing the value of a real estate project, as it can have a direct impact on
the property's marketability and profitability.
Parking also plays a vital role in tenant satisfaction and retention. Tenants, whether
residential or commercial, are more likely to choose a property that offers convenient
and secure parking options. Insufficient parking facilities can lead to tenant
dissatisfaction, increased turnover rates, and difficulty in attracting new tenants. By
providing adequate parking amenities, property owners can improve tenant retention
rates, enhance the overall tenant experience, and create a competitive edge in the
market.
Moreover, parking is essential for the overall functionality of a real estate project.
Well-designed parking facilities help to manage traffic flow, improve accessibility, and
enhance the overall user experience. Efficient parking layouts can reduce congestion,
enhance safety, and optimize space utilization within a property. Properly planned
parking spaces also contribute to the overall aesthetics and functionality of a
development, creating a more inviting and user-friendly environment for residents,
visitors, and customers.
In addition to its direct impact on property values and tenant satisfaction, parking
plays a crucial role in urban planning and sustainability. As cities continue to grow
and urbanize, the demand for parking spaces has intensified. Sustainable urban
3.
3
planning practices emphasizethe importance of integrating parking facilities with
public transportation systems, promoting alternative modes of transportation, and
reducing reliance on private vehicles. By incorporating sustainable parking solutions
such as bike racks, electric vehicle charging stations, and car-sharing services, real
estate developers can contribute to building more environmentally friendly and
livable communities.
Furthermore, parking requirements and regulations imposed by local authorities and
zoning codes also influence the design and development of real estate projects.
Developers must comply with specific parking standards and guidelines to obtain
necessary approvals and permits for their developments. Understanding and
addressing parking regulations are essential for successful project planning and
execution in the real estate sector.
In conclusion, parking plays a crucial role in the real estate sector, impacting property
values, tenant satisfaction, urban planning, and sustainability. Adequate parking
facilities are essential for enhancing property values, improving tenant satisfaction,
optimizing traffic flow, and contributing to sustainable urban development. Real
estate developers and property owners must recognize the importance of parking in
their projects and prioritize the implementation of well-designed parking solutions
to create successful and sustainable developments.
Market size and structure
The parking market within the real estate sector is a significant and dynamic industry
that continues to evolve in response to changing demographics, urbanization trends,
and technological advancements. The market size and structure of parking in the real
estate sector are influenced by various factors, including demand for parking spaces,
property types, location, and regulatory requirements.
The market size of parking in the real estate sector is substantial, with billions of
dollars invested annually in parking facilities worldwide. The demand for parking
spaces is driven by factors such as population growth, urbanization, economic
development, and car ownership rates. In urban areas, where land is limited and
congestion is a common issue, the value of parking spaces is particularly high, leading
to significant investments in parking infrastructure by real estate developers and
investors.
4.
4
The structure ofthe parking market in the real estate sector is diverse, with a range
of players involved in the development, ownership, operation, and management of
parking facilities. Real estate developers typically integrate parking spaces into their
projects to enhance the marketability and value of their properties. Parking
management companies specialize in operating and maintaining parking facilities on
behalf of property owners, providing services such as valet parking, security, and
revenue collection.
Furthermore, technology is playing an increasingly important role in shaping the
structure of the parking market within the real estate sector. Innovations such as
smart parking systems, mobile payment solutions, and automated parking facilities
are revolutionizing the way parking is managed and accessed. These technological
advancements not only improve the efficiency and convenience of parking but also
provide valuable data and insights for property owners and operators to optimize
their parking operations.
In summary, the market size and structure of parking in the real estate sector are
substantial and multifaceted, driven by demand, location, regulations, and
technological advancements. As urbanization continues to increase and
sustainability becomes a key focus in urban planning, the parking market is likely to
undergo further transformation, presenting new opportunities and challenges for
stakeholders in the real estate industry.
Market trends
Market trends in parking within the real estate sector are continually evolving in
response to changing consumer preferences, technological advancements,
urbanization trends, and sustainability concerns. Understanding these trends is
crucial for real estate developers, investors, and parking operators to stay competitive
and meet the evolving needs of tenants, customers, and communities.
One prominent trend in the parking market is the increasing adoption of smart
parking solutions. Smart parking systems leverage technology such as sensors, data
analytics, and mobile applications to enhance the efficiency and convenience of
parking operations. These systems provide real-time information on parking
availability, enable cashless payments, and optimize parking space utilization. As
5.
5
urban areas becomemore congested, smart parking solutions are becoming
indispensable for improving traffic flow, reducing emissions, and enhancing the
overall parking experience for users.
Another significant trend is the integration of sustainable parking practices within
real estate developments. With a growing emphasis on environmental sustainability
and reducing carbon footprints, developers are incorporating green parking solutions
such as electric vehicle charging stations, bike-sharing facilities, and green roofs into
their projects. Sustainable parking initiatives not only align with regulatory
requirements and corporate social responsibility goals but also appeal to
environmentally conscious tenants and customers.
Furthermore, the rise of shared mobility services and the increasing popularity of
ride-sharing platforms are impacting parking trends in the real estate sector. As more
people opt for shared transportation options over private car ownership, the demand
for parking spaces may shift, leading to changes in parking requirements and
strategies for real estate developers and operators. Flexibility in parking design and
management, such as convertible parking spaces and partnerships with ride-sharing
companies, are becoming essential to adapt to the evolving mobility landscape.
The market trends in parking within the real estate sector are shaped by technological
innovations, sustainability considerations, and changing mobility patterns. Real
estate stakeholders must stay abreast of these trends and proactively incorporate
innovative parking solutions to meet the evolving needs of tenants, customers, and
communities while remaining competitive in the dynamic real estate market.
The classical business model of parking garages
The classical business model of parking garages revolves around providing a physical
space for vehicles to park in exchange for a fee. This traditional business model has
been a staple in the real estate sector for decades, serving as a reliable source of
revenue for property owners and operators. Parking garages typically operate on a
straightforward revenue model, where income is generated through hourly, daily,
monthly, or long-term parking fees.
One key aspect of the classical business model of parking garages is the pricing
strategy. Parking garages typically set their rates based on factors such as location,
demand, competition, and operational costs. Prime parking locations in busy urban
6.
6
areas command higherprices due to high demand, while parking facilities in
suburban or less congested areas may offer more competitive rates to attract
customers. Pricing strategies may also vary based on time of day, day of the week,
and special events, allowing parking operators to adjust rates dynamically to
maximize revenue.
In addition to basic parking fees, parking garages may offer additional services to
enhance the customer experience and generate supplemental revenue. These
services may include valet parking, car wash services, electric vehicle charging
stations, reserved parking spaces, and loyalty programs. By diversifying their
offerings, parking garages can cater to a wider range of customers and differentiate
themselves in a competitive market.
Operational efficiency is another critical component of the classical business model
of parking garages. Efficient operations help to minimize costs, maximize revenue,
and provide a seamless parking experience for customers. This includes optimizing
staffing levels, implementing technology solutions such as automated payment
systems and license plate recognition, and maintaining a clean and well-maintained
parking facility. By streamlining operations and providing excellent customer service,
parking garages can increase customer satisfaction and loyalty while driving
profitability.
Moreover, location plays a crucial role in the success of parking garages under the
classical business model. Proximity to high-traffic areas such as commercial districts,
entertainment venues, airports, and public transportation hubs can significantly
impact the demand for parking services. Strategic partnerships with nearby
businesses or property owners can also help parking garages attract customers and
drive foot traffic, benefiting both parties through revenue sharing or cross-
promotional opportunities.
Overall, the classical business model of parking garages continues to be a viable and
essential component of the real estate sector. By focusing on pricing strategies,
additional services, operational efficiency, and strategic location, parking operators
can optimize their business model to meet the evolving needs of customers and
remain competitive in the dynamic parking market. Adapting to technological
advancements, changing consumer preferences, and sustainability trends will be
7.
7
crucial for parkinggarages to thrive in an increasingly competitive and innovation-
driven business landscape.
What is a business model?
Before discussing the change in business models through the digital transformation,
a short definition of business models and their constituents should be made. A
business model describes the ways in which companies generate revenues and make
profits. A business model explains the mechanics, resources, and competences to
generate products and services along a value chain and explains the company’s
market access and position and how customers are reached and attracted.
A useful visualization tool for describing, developing and analysing a business model
is the business model canvas developed by Alexander Osterwalder. In the business
model canvas 9 different building blocks of a business model are systematically
described.
Those 9 building blocks are:
▪ The cost structure
▪ Key partners
▪ Key activities
▪ Key resources
▪ The value proposition
▪ Customer relationships
▪ Channels
▪ Customer segments
▪ And revenue streams
The segments are logically ordered in the business model canvas based on the
market and resources sides. The resource side elements are on the left side and the
market side elements are located on the right side, while the financial perspective
with the cost structure and revenue streams is located on the bottom of the business
model canvas.
The resource-based element are the key partners, key activities and key resources in
the business model and the related cost structure. The market-based elements are
the customers segments, customer relationships and channels as well as the related
8.
8
revenue streams. Thelink between both sides is the value proposition, which is
describing the value the company is offering to the customers compared to the
competition.
The business model of parking garages revolves around providing parking space for
vehicles in urban and high-traffic areas, where the demand for parking often exceeds
the supply. The key elements of this business model include the revenue model,
business partners, and cost structure.
Revenue Model
The primary revenue source for parking garages is the fees charged for parking
vehicles. This can be categorized into several segments:
▪ Hourly/Daily Parking Fees: Charges are based on the duration a vehicle is
parked. Hourly rates are common in high-turnover areas like downtown
districts, shopping centers, and airports.
▪ Monthly/Long-term Parking: Subscriptions or leases are offered for regular
users, typically residents or employees in nearby buildings. This provides a
stable and predictable income stream.
▪ Event-based Pricing: During events such as sports games, concerts, or festivals,
parking garages can charge premium rates due to increased demand.
▪ Valet Services: Some parking garages offer valet parking, where attendants
park and retrieve cars for customers, allowing higher charges for the added
convenience.
▪ Advertising: Spaces within the garage can be leased for advertising purposes.
This can include digital displays, posters, and banners.
▪ Additional Services: Some garages provide car wash, maintenance, and electric
vehicle charging stations, generating additional revenue.
Business Partners
Parking garages often collaborate with various partners to enhance their service
offerings and streamline operations:
9.
9
▪ Property Owners/Developers:Many parking garages are part of larger real
estate developments. Property owners may partner with parking operators to
manage the garage and optimize its use.
▪ Municipalities: Public-private partnerships with local governments can be
established, especially for garages in city centers or near public transport
hubs. This can also include revenue-sharing agreements.
▪ Technology Providers: Collaboration with companies providing parking
management systems, mobile payment solutions, and automated ticketing
systems enhances efficiency and user experience.
▪ Transportation Services: Partnering with ride-sharing companies or public
transportation authorities can create integrated mobility solutions, promoting
the parking garage as a transit hub.
▪ Retailers and Businesses: Agreements with nearby businesses can include
validation programs where customers receive discounted or free parking with
a purchase, driving traffic to both the parking garage and the businesses.
Cost Structure
The costs associated with operating a parking garage can be significant and are
divided into several categories:
▪ Initial Investment and Maintenance: Building or acquiring a parking structure
involves substantial capital expenditure. Ongoing maintenance costs include
repairs, cleaning, and general upkeep to ensure safety and usability.
▪ Labor Costs: Staffing is necessary for management, security, and customer
service roles. Automated systems can reduce labor costs but still require
oversight and maintenance.
▪ Technology and Equipment: Investment in parking management systems,
security cameras, payment kiosks, and other technological infrastructure is
essential for efficient operations.
▪ Utilities and Services: Costs for electricity, water, and waste management are
ongoing operational expenses. This is particularly relevant for well-lit and
climate-controlled garages.
▪ Insurance and Taxes: Property insurance, liability coverage, and local taxes are
significant cost components that must be accounted for.
▪ Marketing and Promotions: Expenses related to advertising and promotions
are often needed to attract customers and maintain occupancy rates.
10.
10
The business modelof parking garages is multifaceted, involving various revenue
streams, partnerships, and a complex cost structure. Effective management requires
balancing these elements to maximize profitability while ensuring a high level of
service for users. By leveraging technology and strategic partnerships, parking garage
operators can enhance efficiency, reduce costs, and create value for both themselves
and their customers.
New digital business models for parking garages
The advent of digital technology has significantly transformed the business models
of various industries, including parking garages. New digital business models for
parking garages leverage technology to enhance user experience, improve
operational efficiency, and create new revenue streams. Here are some innovative
digital business model elements for parking garages:
▪ Smart Parking Solutions: Smart parking solutions utilize IoT (Internet of Things)
sensors, cameras, and automated systems to manage parking spaces more
efficiently. These technologies enable real-time monitoring of parking space
availability, reducing the time drivers spend searching for a spot. Apps and
digital signage can guide drivers to available spaces, improving user
satisfaction and reducing congestion.
▪ Mobile Payment and Reservations: Digital payment solutions have
revolutionized the way customers pay for parking. Mobile apps allow users to
pay for parking via their smartphones, eliminating the need for cash or
physical tickets. Additionally, reservation systems enable users to book parking
spaces in advance, ensuring they have a spot when they arrive. This not only
enhances convenience but also allows parking operators to manage
occupancy rates more effectively.
▪ Dynamic Pricing Models: Dynamic pricing models adjust parking rates based
on demand, time of day, and other factors. Digital platforms enable real-time
price adjustments, helping to maximize revenue during peak times and attract
more customers during off-peak hours. This model is akin to surge pricing used
by ride-sharing services and can be implemented through mobile apps and
online platforms.
▪ Subscription-Based Services: Subscription-based models offer regular users
the option to pay a fixed monthly fee for unlimited or discounted parking
access. Digital platforms facilitate the management of subscriptions, providing
11.
11
users with aseamless experience. This model ensures a steady revenue stream
for parking operators and enhances customer loyalty.
▪ Integration with Mobility Services: Parking garages are increasingly being
integrated into broader mobility ecosystems. Digital platforms can connect
parking services with ride-sharing, car-sharing, and public transportation
options. For instance, a user can park their car in a garage and seamlessly
transfer to a shared bike or electric scooter for the last mile of their journey.
This integration promotes multimodal transportation and can attract a
broader customer base.
▪ Data Analytics and Insights: Digital technologies enable parking operators to
collect and analyze vast amounts of data on usage patterns, customer
preferences, and operational efficiency. Advanced analytics can provide
insights into peak usage times, preferred payment methods, and customer
demographics. This data can inform marketing strategies, optimize pricing
models, and improve overall service delivery.
▪ Contactless and Autonomous Solutions: The COVID-19 pandemic has
accelerated the adoption of contactless solutions. Parking garages are
implementing contactless entry and exit systems using QR codes, RFID, or
license plate recognition. Additionally, autonomous parking systems, where
vehicles park themselves using sensors and AI, are being explored. These
innovations enhance safety, reduce labor costs, and provide a futuristic user
experience.
New digital business models for parking garages are transforming the industry by
enhancing efficiency, user convenience, and revenue generation. By embracing smart
technologies, dynamic pricing, subscription services, and integration with broader
mobility solutions, parking operators can stay competitive and meet the evolving
needs of urban mobility.
Digital business model description
A digital business model is a framework that outlines how a company creates,
delivers, and captures value using digital technologies and platforms. At its core, it
leverages digital channels, data, and technology to transform traditional business
processes and interactions, to drive efficiency, agility, and innovation.
12.
12
Central to adigital business model is the integration of technology throughout the
value chain. This can involve digitalizing core operations, such as production,
distribution, and customer service, to streamline processes and to enhance customer
experiences. For example, an e-commerce platform utilizes digital channels to
showcase products, facilitate transactions, and manage inventory, providing
customers with a seamless shopping experience from browsing to purchase.
Data plays a pivotal role in digital business models, serving as a foundation for
insights-driven decision-making and personalized interactions. Companies harness
data analytics, machine learning, and artificial intelligence to analyze customer
behavior, predict trends, and optimize operations. By leveraging data-driven insights,
businesses can tailor their offerings to meet individual preferences, improve
targeting strategies, and enhance customer satisfaction.
Moreover, digital business models often embrace platform-based approaches, where
companies act as intermediaries connecting producers and consumers, or multiple
stakeholders within an eco-system. Platform businesses capitalize on network effects,
economies of scale, and ecosystem dynamics to create value for all participants. For
instance, ride-sharing platforms bring together drivers and passengers, leveraging
digital technologies to match supply with demand efficiently.
Monetization strategies in digital business models vary, ranging from subscription-
based models to freemium offerings, pay-per-use models, and advertising revenue
models. The ability to capture value hinges on delivering unique value propositions,
fostering customer engagement, and continuously innovating to stay ahead of the
competition.
A digital business model encompasses the strategic integration of technology, data,
and platforms to drive value creation, enhance customer experiences, and achieve
sustainable growth in today's digital economy. By embracing digital transformation,
companies can unlock new opportunities, optimize operations, and adapt to evolving
market dynamics in an increasingly interconnected and technology-driven world.
Strategy Development has to explain which market access routes the business uses
and which market position should be reached in order to leverage customers’
willingness to pay in the most advantageous way. Digital technologies have led to the
development of new market positions such as platforms (e.g. iTunes), marketplaces
13.
13
(e.g. Amazon), freeinformation with advertisements (e.g. Google), access-over-
ownership (e.g. Airbnb), and on-demand (e.g. Uber).
Finally, the differentiation must be communicated based on the USP offered. In this
sector, new channels like mobile devices, smartphones, cars, and augmented reality
are used to create new and unique customer experiences.
Thus, digital technology can be applied in all sectors and in more than one sector of
the business model description. Typically, digital business models are also not solely
based on digital or intangible aspects. Digital business models combine digital and
physical assets for value creation and delivery, and it is the smart and specific
combination of these assets that creates a competitive advantage.
Digital business models can be distinguished from traditional, physical business
models in three generic aspects: content, customer experience, and platform.
▪ Content refers to what is consumed, e.g. digital content such as digital music.
▪ Customer experience means how the product is packaged, e.g. streaming
enables music lovers to consume music anywhere and at any time on a
smartphone.
▪ Platform refers to how the product is delivered: a digital platform brings the
product and service offers, e.g. musicians and record labels, together with
customers and creates a new digital marketplace for music.
The digital business model of parking garages
The digital business model of parking garages is a modern approach that leverages
technology to optimize operations, enhance customer experience, and create new
revenue streams. This model integrates various digital tools and platforms to
streamline parking management and maximize efficiency. The key components of this
digital business model include the revenue model, business partners, and cost
structure.
Revenue Model
The digital transformation of parking garages introduces several innovative revenue
streams:
14.
14
▪ Dynamic Pricing:Utilizing data analytics and real-time monitoring, digital
systems can implement dynamic pricing models. Rates can be adjusted based
on demand, time of day, and special events, similar to surge pricing used by
ride-sharing services. This maximizes revenue during peak times and attracts
more customers during off-peak hours.
▪ Mobile Payments and Reservations: Mobile apps enable users to pay for
parking and reserve spaces in advance. This convenience encourages more
frequent use and allows for flexible pricing strategies, such as offering
discounts for advance bookings or peak-hour reservations.
▪ Subscription Services: Offering subscription-based parking plans for regular
users provides a stable and predictable revenue stream. Digital platforms
facilitate the management of these subscriptions, offering features like
automatic renewals and flexible plans.
▪ Value-Added Services: Additional services such as car washes, maintenance,
electric vehicle (EV) charging stations, and valet parking can be seamlessly
integrated into the digital platform. These services provide additional revenue
streams and enhance customer satisfaction.
▪ Advertising and Partnerships: Digital screens and mobile apps offer advertising
opportunities. Local businesses can partner with parking garages to promote
their services to users, creating a new advertising revenue channel.
Business Partners
Digital parking models rely on partnerships with various stakeholders to enhance
service delivery and expand market reach:
▪ Technology Providers: Collaborations with technology companies that provide
IoT sensors, mobile payment systems, and data analytics platforms are crucial.
These partners supply the necessary infrastructure to implement and maintain
digital parking solutions.
▪ Automotive and Mobility Services: Partnerships with car manufacturers, ride-
sharing services, and public transportation providers can create integrated
mobility solutions. For example, users can park their cars and seamlessly
transition to public transport or shared mobility options, promoting a holistic
travel experience.
▪ Local Businesses: Nearby businesses can collaborate with parking garages to
offer validated parking, discounts, or promotions. This not only drives foot
15.
15
traffic to localbusinesses but also enhances the value proposition for parking
garage users.
▪ Municipalities and Urban Planners: Working with city governments and urban
planners can help integrate parking solutions into broader urban mobility
strategies. Public-private partnerships can facilitate the development of smart
city initiatives, benefiting both the parking operator and the community.
Cost Structure
The digital business model introduces both initial and ongoing costs associated with
technology adoption and maintenance:
▪ Technology and Infrastructure: Significant investments are required for the
installation of IoT sensors, automated payment systems, and data analytics
platforms. These technologies are essential for real-time monitoring, dynamic
pricing, and efficient management.
▪ Software Development and Maintenance: Developing and maintaining mobile
apps, reservation systems, and digital platforms involve ongoing costs. Regular
updates and improvements are necessary to keep the systems secure and
user-friendly.
▪ Data Management: Collecting, storing, and analyzing data requires robust IT
infrastructure and cybersecurity measures. Ensuring data privacy and
compliance with regulations also adds to the cost.
▪ Labor Costs: While automation can reduce the need for manual labor, skilled
personnel are still needed to manage and maintain the digital systems. This
includes IT support, data analysts, and customer service staff.
▪ Marketing and Customer Acquisition: Promoting the digital services and
acquiring new customers involves marketing expenses. Digital marketing
campaigns, partnerships, and promotions are necessary to attract and retain
users.
The digital business model for parking garages transforms traditional operations
through technology, creating new revenue streams, enhancing partnerships, and
introducing a modern cost structure. By leveraging dynamic pricing, mobile payments,
and value-added services, parking operators can optimize their offerings and meet
the evolving needs of urban mobility.
17
IP design forthe digitalization of parking
Introduction to IP design
The starting point of a company’s organization is the appropriate division of labor.
The challenge is to quantitatively distribute the workload and qualitatively distribute
the various requirements for the work to be performed. The division of labor creates
interfaces and interactions between employees and organizational areas that need
to be optimized according to business objectives such as efficiency, flexibility, result
orientation, effectiveness, and controllability. The overall organizational objective
should be an organization designed to fulfil the strategy structure fit requirement:
The organizational structure as a control system and infrastructure to implement a
strategy. The strategy-structure fit thus specifies a quality criterion for an
organizational structure.
Alfred D. Chandler defines strategy as the determination of the basic long-term goals
and objectives, the adoption of courses of action and the allocation of resources
necessary for achieving goals. He defines structure as the design of the organization
through which the business is administered including the lines of authority and
communication and the data that flows through these lines. The consequence of
Chandlers work is clear: When a company wants to implement IP design, it needs an
appropriate organization. IP design is the ability of an organization to optimize IP
impacts according to its business needs, which means especially that the
organization is able to create the needed IP on purpose to enjoy the suitable
exclusivity for the respective business model.
The dominant businesses strategy in which IP design is used is a differentiation
strategy. Such a market and competitive strategy focuses on customer-relevant
unique selling points (USPs) and thus avoids an insulated price comparison with
competitive offers by the customer. This strategy is addressing immediate customer
benefits which are perceived by customers and reported by a willingness to pay for
the added value. Opposed to this are general product characteristics, in which from
the customer's perspective it is not clear which kind of benefits they provide.
18.
18
What is acustomer benefit?
A customer benefit refers to the advantage or value that a product or service provides
to its users. It is the primary reason why customers choose to purchase a specific
product or service over others. Customer benefits can be tangible, such as improved
performance, cost savings, or enhanced features, or intangible, like convenience,
satisfaction, or a sense of well-being.
Understanding customer benefits is crucial for businesses as it helps them align their
offerings with customer needs and preferences. This alignment not only enhances
customer satisfaction but also drives loyalty and repeated purchases. By focusing on
the benefits, companies can effectively communicate the value of their products,
differentiate themselves from competitors, and justify their pricing strategies.
Customer benefits are typically categorized into three main types: functional,
emotional, and social. Functional benefits relate to the practical or utilitarian aspects
of a product, such as durability, efficiency, and ease of use. Emotional benefits are
linked to the feelings and experiences that a product elicits, such as happiness,
confidence, and security. Social benefits arise from the social impact or status that
comes from using a product, such as prestige, acceptance, and belonging.
In essence, identifying and delivering customer benefits is essential for creating
products and services that resonate with customers, meet their needs, and drive
business success.
How to identify a customer benefit in IP design?
The customer benefits can be determined in multiple ways. The preferential method
is to make a survey about the customer needs and to identify the customer benefit
aspects with it. This guarantees that the creation of spheres of exclusivity
concentrates on those characteristics of the product or service which are perceived
and actually desired by the customer and which influence the willingness to pay. In
addition to a survey the customer benefit aspects should be investigated in
workshops.
19.
19
The required informationcomes primarily from departments with high market
intelligence, such as product management, marketing, and sales. However, also other
workshop participants, for example from the R&D department, should be integrated
in the discussion, as this often brings new customer benefit aspects to light that were
previously unknown to the market side or were only considered to a limited extent.
Figure 2: Principle of an intellectual property function deployment (IP-FD)
If the IPFD (Intellectual Property Function Deployment) methodology is used in an
early phase of product development as it should be, it may also make sense to
include customer benefit aspects which are not yet implemented according to the
current state of development. In this way, the procedure can be used to expand the
scope of the project and thus to achieve unique exclusivity positions that are more
market-driven and secured by IP.
In the case of multi-layered customer benefit arguments, and if this corresponds to
the customer´s understanding of the product or service, the aspects of customer
benefit can be structured and summarized into complexes. For example, the customer
benefits of high energy efficiency, high system availability and simple and fast
maintenance could be summarized under the complex of Total Costs of Ownership.
20.
20
This usually leadsto a reduced complexity and a better structuring of the subsequent
discussions.
It is also essential that the customer benefit analysis relates precisely to the object
specified in the target definition. The system limits of the product or service under
consideration must therefore be considered. If a single product, for example a
metalworking machine, is dealt with, only the customer benefit elements for this
machine need to be determined. If services that are complementary to the system,
such as external performance monitoring to optimize maintenance cycles, are
offered, the additional customer benefit aspects are only relevant if the overall
system is considered.
In order to clarify the importance of the individual customer benefit aspects for the
business model and to be able to weight the importance of the resulting fields of
action, priorities should be set for all aspects. For this purpose, criteria should be
used that apply to both the business model and the innovative product or service in
its competitive environment as good as possible. Examples of criteria for prioritizing
customer benefits and related questions can be:
▪ Recognizability for the customer:
o Does the customer perceive the specific benefit?
o Does the customer perceive the added value directly or does marketing
or product design make the customer aware of its existence?
▪ Relevance for pricing:
o Does the offer of this customer benefit influence the customer´s
purchase decision?
o Is the customer willing to pay a higher price for the added value?
▪ Significance in the (planned) customer communication:
o Is the offering of the customer benefit aspect mentioned in the
customer communication (e.g. in marketing and sales documents)?
o How strongly is the concrete added value emphasized compared to
other customer benefit aspects?
▪ Correspondence with the brand promise:
o Does the customer benefit aspect match the value proposition that the
brand makes to the customer?
o Is the customer astonished by this added value based on the current
brand associations?
21.
21
▪ Degree ofdifferentiation from competitive offers:
o Are the same customer benefits also offered by competitors?
o Does the customer assume that the innovation provides a higher
benefit in this aspect than competitive offers?
These examples for prioritizing aspects of customer benefits are by no means
exhaustive and should be determined individually depending on the innovation
project and business model.
Several criteria can be used for a finer differentiation. However, their meaning should
not overlap in order not to weight individual aspects twice. In addition, it is advisable
not to introduce too many prioritization criteria into the discussion, since a high
number of criteria usually leads to little gained knowledge, but at the same time to
increased complexity and confusion.
Creation of a cognitive walkthrough for the “customized
digital parking” use case
What is a cognitive walkthrough?
A cognitive walkthrough is a usability evaluation method used to assess the
effectiveness of a user interface. It focuses on understanding the cognitive processes
that users undergo when interacting with a system, particularly when they are
unfamiliar with it. The goal is to identify potential usability issues that might hinder
a user's ability to achieve their objectives efficiently and effectively. Even if the
cognitive walkthrough is primarily used to optimize user interfaces, it is also suitable
for identifying potentially patentable solutions in the innovation’s operating system.
In a cognitive walkthrough, evaluators follow a structured approach to simulate a
user's experience with the interface. This involves a series of steps:
▪ Preparation: Define the user profile, including their background, knowledge,
and goals. Specify the tasks that the user is expected to perform using the
interface.
▪ Task Selection: Choose representative tasks that are critical to the system's
functionality. These tasks should be realistic and relevant to typical user
scenarios.
22.
22
▪ Action Sequence:Break down each task into a sequence of actions that the
user would need to perform. Each action is analyzed to determine if it is likely
to be performed correctly by the user.
▪ Evaluation: For each action, evaluators ask four key questions:
o Will the user try to achieve the right effect? (Is the user’s goal clear and
correct?)
o Will the user notice that the correct action is available? (Is the relevant
control or information visible?)
o Will the user associate the correct action with the effect they are trying
to achieve? (Is it clear that this action will achieve the desired result?)
o If the correct action is performed, will the user see that progress is being
made toward their goal? (Is feedback provided to confirm the action
was successful?)
▪ Recording and Analysis: Document any problems encountered during the
walkthrough. Analyze these issues to understand their severity and potential
impact on the user experience.
Cognitive walkthroughs are particularly useful in the early stages of design when
major changes can still be made without significant cost. They provide insights into
how intuitive and learnable an interface is for new users, highlighting areas where
design improvements are needed. This method helps designers create more user-
friendly interfaces by focusing on the cognitive aspects of user interaction, ultimately
enhancing overall usability.
How does it look for the “customized digital parking” use case?
The cognitive walkthrough method is used to think through the use of a system by a
particular customer. It was originally developed as a design method for investigating
user interfaces in order to analyze the usability of products without a concrete
observation of the customer. In a cognitive walkthrough, the user of the method puts
himself in the shoes of a hypothetical user and analyses expected actions. He
assumes that the user will take the path of least cognitive effort.
The implementation of a cognitive walkthrough first requires the definition of a
specific user for whom the usage actions are determined. The individual steps of the
usage process are then intellectually reconstructed for this user. When applying the
method for IP design, system activities can be added to the actions triggered by the
23.
23
user. For theusage scenario of a digital parking experience, this usage process (in an
abbreviated form) could be illustrated as in the figure below.
Figure 3: Cognitive walkthrough for the customized parking experience
Introduction to White Spot analysis
White spot analysis is a strategic tool used by businesses and organizations to
identify gaps or opportunities in the market that have not yet been exploited. The
term "white spot" refers to areas within a market that remain untapped or under-
served, offering potential for growth and innovation. This type of analysis helps
companies understand where they can expand their operations, introduce new
products, or improve existing services to meet unfulfilled customer needs.
The process of white spot analysis involves several key steps:
1. Market Segmentation: The first step is to segment the market into different
categories based on various criteria such as demographics, geography,
behavior, and psychographics. This helps in identifying specific groups of
customers and their unique needs.
2. Data Collection: Gather data on current market trends, customer preferences,
competitors' offerings, and overall industry performance. This data can be
obtained from various sources including market research reports, customer
feedback, sales data, and competitive analysis.
3. Gap Identification: Analyze the collected data to identify areas where customer
needs are not being fully met. This could involve looking for segments with
limited product options, underserved geographical regions, or emerging
customer trends that competitors have not yet addressed.
4. Opportunity Evaluation: Once potential white spots are identified, evaluate
their viability. This involves assessing the size of the market opportunity, the
level of competition, potential barriers to entry, and the resources required to
capitalize on the opportunity. It’s important to ensure that the identified white
spots align with the company's strategic goals and capabilities.
24.
24
5. Strategic Planning:Develop a strategic plan to address the identified white
spots. This could involve creating new products or services, modifying existing
offerings, entering new markets, or enhancing marketing efforts. The plan
should outline specific actions, timelines, and resource allocation to effectively
exploit the identified opportunities.
6. Implementation and Monitoring: Execute the strategic plan and continuously
monitor its performance. Adjust the strategy as needed based on market
feedback and changing conditions to ensure sustained success in capturing
the identified white spots.
White spot analysis is beneficial for several reasons. It helps companies stay
competitive by constantly seeking out new opportunities and avoiding market
saturation. By identifying and targeting underserved segments, businesses can
differentiate themselves from competitors and build a loyal customer base. This
analysis also fosters innovation, as it encourages companies to think creatively about
how to meet unmet needs and explore new market possibilities.
Moreover, white spot analysis can reveal potential threats and weaknesses within the
market. By understanding where competitors may be lacking, businesses can
proactively address these areas and prevent competitors from gaining an advantage.
It also helps in resource optimization, ensuring that investments are directed towards
the most promising opportunities rather than spreading resources too thin across
multiple areas.
In the context of product development, white spot analysis can guide the creation of
tailored solutions that precisely address customer pain points. This targeted
approach not only increases the likelihood of product success but also enhances
customer satisfaction and loyalty.
In conclusion, white spot analysis is a powerful tool for businesses seeking to identify
and capitalize on untapped market opportunities. By systematically analyzing the
market to uncover gaps, companies can develop strategies that drive growth, foster
innovation, and maintain a competitive edge. It is a proactive approach that ensures
businesses remain agile and responsive to changing market dynamics, ultimately
leading to sustained success and profitability.
25.
25
The role ofpatent information in white spot analysis
Patent information plays a crucial role in white spot analysis, serving as a primary
data source for the entire process. It can be used for:
▪ Identifying Technology Gaps: White spot analysis aims to uncover areas of
technology that are underdeveloped or have potential for innovation.
Patent databases offer a comprehensive overview of existing technologies,
enabling researchers to identify gaps where new inventions could emerge.
▪ Mapping the Patent Landscape: By analyzing patent data, researchers can
create detailed maps of the patent landscape within a specific field. These
maps visualize the distribution of patents across different technologies,
highlighting areas with high patent density (mature technologies) and areas
with few or no patents (white spots).
▪ Generating New Ideas: The insights gained from patent analysis can spark
new ideas for research and development. By understanding the current
state of technology, inventors can identify areas where they can contribute
novel solutions and potentially gain a competitive advantage.
▪ Assessing Novelty and Patentability: Before investing resources in research
and development, inventors can use patent information to assess the
novelty of their ideas and their potential for patentability. This can help
avoid duplicating existing inventions and ensure that new developments
are legally protectable.
In summary, patent information is a key tool of white spot analysis, providing the
essential data needed to identify technology gaps, map the patent landscape,
generate new ideas, and assess the potential for innovation and patenting.
White Spot analysis for “customized digital parking”
A white spot analysis for customized digital parking involves identifying unaddressed
needs and untapped opportunities within the digital parking industry. This process
can help parking service providers develop innovative and tailored solutions that
better meet customer demands, enhance user experience, and optimize operational
efficiency.
26.
26
Market Segmentation
The firststep in conducting a white spot analysis for customized digital parking is to
segment the market. This can be done by dividing the market into different categories
based on factors such as:
▪ Geography: Different regions may have varying levels of demand for parking
services. Urban areas with high traffic congestion and limited parking spaces
will have different needs compared to suburban or rural areas.
▪ Demographics: Consideration of different user groups, such as daily
commuters, occasional visitors, tourists, and commercial drivers, each with
unique parking needs.
▪ Behavior: Analyzing parking behaviors, such as the frequency of parking,
duration, and preferences for convenience or cost savings.
▪ Technology Adoption: Segmenting users based on their willingness and ability
to adopt new technologies, from tech-savvy users to those less familiar with
digital solutions.
Data Collection
Gathering comprehensive data is essential for white spot analysis. This includes:
▪ Current Market Trends: Patent information and other data on the latest trends
in digital parking solutions, such as mobile payment systems, reservation
platforms, and smart parking technologies.
▪ Customer Preferences: Feedback from users about their parking experiences,
preferences, and pain points. Surveys, interviews, and online reviews are
valuable sources of this data.
▪ Competitor Offerings: Analyzing competitors' services and patent portfolios to
understand what solutions are currently available and identify any gaps.
▪ Industry Performance: Statistics and reports on the performance of the digital
parking industry, including growth rates, user adoption, and revenue figures.
27.
27
Gap Identification
Analyzing thecollected data helps in identifying specific areas where customer needs
are not fully met. Potential white spots in the customized digital parking market might
include:
▪ Real-time Availability: Lack of real-time information on parking space
availability, leading to user frustration and inefficient parking searches.
▪ Payment Flexibility: Limited payment options that do not cater to all users,
such as lack of support for mobile wallets or cryptocurrency.
▪ Customization: Generic parking solutions that do not allow users to customize
their experience based on their preferences, such as choosing preferred or
individualized parking spots or receiving tailored notifications.
▪ Integration with Other Services: Insufficient integration with other mobility
services, like ride-sharing, public transportation, or electric vehicle charging
stations.
▪ User Interface: Poorly designed mobile apps or websites that are not user-
friendly, making it difficult for users to navigate and utilize parking services.
Opportunity Evaluation
Once the white spots are identified, evaluating their viability is crucial. This involves:
▪ Market Size: Assessing the potential size of the market opportunity and the
number of users who could benefit from the customized solutions.
▪ Competition Level: Evaluating the level of competition, e.g. based on patent
information, in the identified white spots and the ease of entering these
market segments.
▪ Barriers to Entry: Identifying potential challenges in addressing the white
spots, such as technological requirements, patenting activities of competitor,
regulatory constraints, and investment needs.
▪ Alignment with Strategic Goals: Ensuring that the opportunities align with the
company’s long-term goals and capabilities.
Strategic Planning
Developing a strategic plan to address the identified white spots involves:
28.
28
▪ Solution Development:Creating customized digital parking solutions that
address the identified gaps, such as real-time availability tracking, flexible
payment options, user-customizable parking spots and other individualization
features and protecting them with patents and other IP.
▪ Partnerships: Forming partnerships with technology providers, local
businesses, and other mobility service providers to enhance the offering.
▪ Marketing Strategy: Crafting targeted marketing campaigns to promote the new
solutions to the identified market segments.
▪ Resource Allocation: Allocating the necessary resources, including budget,
personnel, and technology, to implement the strategic plan.
Implementation and Monitoring
Executing the strategic plan and continuously monitoring its performance is essential
for success. This includes:
▪ Feedback Loops: Establishing channels for user feedback to continuously
improve the service.
▪ Performance Metrics: Tracking key performance indicators (KPIs) such as user
adoption rates, satisfaction levels, and revenue growth.
▪ Adjustments: Making necessary adjustments based on feedback and
performance data to ensure the solutions meet evolving customer needs.
A white spot analysis for customized digital parking involves a comprehensive
approach to identify and exploit market gaps and associated gaps in the patent
landscape. By understanding and addressing the specific needs of different user
segments, parking service providers can develop innovative, tailored solutions that
enhance user experience, drive growth, and maintain a competitive edge in the digital
parking industry and protect them with patents.
AI-aided white spot analysis
Artificial Intelligence (AI) can significantly enhance the process of white spot analysis
by providing advanced tools and techniques to identify market gaps and
opportunities more efficiently and accurately. AI leverages data processing
capabilities, pattern recognition, and predictive analytics to uncover insights that
might be missed through traditional methods.
29.
29
Here’s how AIcan assist in white spot analysis:
▪ Data Collection and Processing: AI can automate the collection and processing
of vast amounts of data from diverse sources such as market reports, customer
feedback, social media, and competitor analysis. Natural Language Processing
(NLP) allows AI systems to analyze textual data, extracting valuable insights
from customer reviews, surveys, and online discussions. This comprehensive
data collection ensures a more accurate and complete picture of the market
landscape.
▪ Market Segmentation: AI algorithms can perform detailed market
segmentation by analyzing customer data to identify distinct groups based on
demographics, behavior, preferences, and purchasing patterns. Machine
learning models can detect subtle patterns and correlations that humans
might overlook, enabling more precise segmentation. This helps in identifying
specific customer groups that are underserved or have unique needs that are
not currently addressed.
▪ Predictive Analytics: AI-powered predictive analytics can forecast market
trends and customer behavior based on historical data. By understanding how
markets have evolved in the past, AI can predict future changes and identify
emerging white spots. This forward-looking approach allows businesses to
proactively develop strategies to exploit these opportunities before
competitors do.
▪ Competitor and Patent Analysis: AI tools can continuously monitor
competitors’ patenting activities, product launches, pricing strategies, and
customer feedback. Therefore, AI can identify gaps in the market that
competitors have not addressed. This real-time analysis helps businesses stay
ahead by spotting opportunities to differentiate their products and services.
▪ Customer Sentiment Analysis: Using AI for sentiment analysis helps
understand customer opinions and emotions related to existing products and
services. By analyzing social media posts, reviews, and feedback, AI can gauge
customer satisfaction and identify pain points. This insight reveals areas where
current solutions fall short, highlighting potential white spots for improvement
or innovation.
▪ Optimization of Product Development: AI can help optimize the product
development process by suggesting features and improvements based on
identified white spots. For instance, AI can analyze user data to recommend
specific functionalities that would meet unmet needs or enhance user
experience. This targeted approach ensures that new products or features are
directly aligned with market demand.
30.
30
▪ Resource Allocation:AI can assist in strategic planning by analyzing potential
white spots and evaluating their viability. It can assess the size of the
opportunity, competition level, and required resources. This helps businesses
prioritize the most promising opportunities and allocate resources efficiently,
maximizing return on investment.
AI-assisted analysis of the patent landscape
Especially, the AI-assisted analysis of the patent landscape offers companies a broad
range of advantages that can be used for a white spot analysis, such as:
▪ Automated Data Extraction and Processing: AI algorithms can efficiently extract
relevant information from the vast patent databases, saving patent searchers
time and effort in manual data collection and processing. This allows for a
more comprehensive analysis of the patent landscape in shorter time and
identifies white spots more effectively.
▪ Advanced Text Mining and Natural Language Processing (NLP): AI-powered
tools can analyze patent documents using NLP techniques to identify key
features, and relationships between inventions. This enables a deeper
understanding of the patent landscape, facilitating the identification of white
spots.
▪ Semantic Search and Similarity Analysis: AI-powered semantic search can
identify patents with similar features, even if they use different terminology.
This helps patent searchers discover relevant patents that might not have
been found using traditional keyword-based search methods.
Practically, a white spot analysis with an AI-based patent search tool can be
performed with the following steps:
▪ Identify the features which should be protected for the chosen use case (e.g.
marking an individualized parking spot)
▪ Search with the AI-tool for patents, which have similar features, and compare
them
▪ If patents with a high degree of similarity are found, modify those features to
come closer to white spots in the patent landscape
▪ Iterate this process until a white spot, which can protect the initially desired
features is identified
31.
31
AI-assisted analysis ofthe patent landscape with
patentbutler.AI by uptoIP® & ABP PATENT NETWORK
An AI-assisted white spot analysis of the patent landscape can be setup within the
patentbutler.AI tool with the following few steps. In the first step the initial features
of the desired patent, which should lie in a white spot need to be defined within the
system as a staring point. This can be done by the “create features” function of the
tool. An initial set of features for the use case of “customized digital parking” can
comprise e.g.:
▪ Sensors in each parking slot detect vehicle presence, providing up-to-the-
minute available data
▪ LED displays direct drivers to the nearest available parking spaces
▪ Users can view real-time availability, reserve spots, and receive navigation
assistance
▪ Cameras capture and log vehicle plates for seamless access control and billing
▪ Adjust parking fees based on demand, time of day, and occupancy rates
▪ Motion sensor-controlled lighting adjusts brightness based on occupancy to
enhance safety and save energy
Figure 4: Definition of the features which should be compared with the chosen patent literature to identify similarities in the
uptoIP® environment.
32.
32
Once the featuresare defined, any set of them can be used to identify patents with
similar features within a chosen patent portfolio, in this case a portfolio relevant for
digital parking solutions. The found patents can then be analyzed based on the
similarity and relevance of individual features or combinations of features. The
similarity is indicated by the shade of the green background color for each feature,
with dark green meaning a high similarity and white less then 50 % similarity. To get
more information about the similarities found in the patent document and to get a
more concrete understanding of the results the patentbutler.AI tool provides detailed
information for any compared feature, e.g. where the information can be found in the
original patent documents.
Based on the found similarities of the initial set of features with the patent literature,
in the next step features must be edited, deleted, added or combined to feature
combinations to identify features (or feature combinations), which are less covered
in existing patents. For example the above chosen set of features can be modified by
regrouping the features to multiple feature combinations and addition of new
features:
▪ Feature Group 1:
o Sensors in each parking slot detect vehicle presence, providing up-to-
the-minute available data
o LED displays direct drivers to the nearest available parking spaces
o Users can view real-time availability, reserve spots, and receive
navigation assistance
o Cameras capture and log vehicle plates for seamless access control and
billing
▪ Feature Group 2:
o Adjust parking fees based on demand, time of day, and occupancy rates
o Motion sensor-controlled lighting adjusts brightness based on
occupancy to enhance safety and save energy
▪ Smartphone assisted
This process of regrouping, editing, adding and deleting features can be iterated until
a desired degree of low similarity compared to the existing patent literature is
reached and a white spot is identified.
33.
33
Figure 5: Overviewof the similarities between the selected features and the chosen patent literature. Dark green tiles indicate high
similarities with the patent document. White tiles show a low similarity.
Characterization of white spots
A next step beyond the identification of a white spot is the characterization of a
white spot. This means that we are analysing the area, where we are expecting the
white spot, in various dimensions by measuring the number of patents covering the
different combinations of technical features which solve the given technical
problem.
As a starting point for such a characterization a method called “Morphological Box”
can be used.
The Morphological Box
A Morphological Box (after Zwicky) or Morphological Field is a creativity technique
and method for systematically exploring solution possibilities for complex problems
or developing new products and concepts. It was developed by the Swiss-American
34.
34
astrophysicist Fritz Zwickyin the 1940s to systematically analyse complex problems
and identify all possible solutions.
The method is based on breaking down a problem or object into its essential
characteristics or parameters. For each of these characteristics, various forms or
values are then defined. These characteristics and their forms are represented in a
matrix or a "box."
The step by step approach looks like this:
1. Define the problem/object: First, the problem or object to be analysed is
clearly defined.
2. Identify parameters: The problem or object is broken down into its essential,
independent parameters (characteristics, dimensions, functions). These
become the columns or rows of the box.
3. Determine forms/values: For each parameter, all conceivable, relevant forms
or values are identified and listed. These are the cells within the
columns/rows.
4. Form combinations: The morphological box then allows for systematically
forming all possible combinations of the different forms with each other.
Each combination represents a potential solution or a new configuration.
Illustrative Example
Let's imagine we want to develop a new mode of transport.
Parameter Form 1 Form 2 Form 3 Form 4
Type of Drive Electric Combustion Solar Hybrid
Locomotion Wheels Rails Wings Floats
Medium Land Air Water
Purpose Passenger Goods Leisure
Table 1: Morphological box for a new mode of transport.
One possible combination from this morphological box would be: "Electric drive +
Wheels + Land + Passenger transport" (which would be an electric car). Another,
35.
35
perhaps innovative, combinationcould be "Solar drive + Wings + Water + Leisure
purpose" (e.g., a solar-powered seaplane for tourism).
The advantages of using such a Morphological Box are:
• Completeness: It helps to systematically capture all conceivable
combinations and thus potential solutions, even those that might be
intuitively overlooked.
• Structuring: It provides a clear structure for analysing complex problems.
• Creativity Boost: Forming unexpected combinations can lead to innovative
ideas.
• Risk Reduction: Potential weaknesses can be identified early by excluding
unsuitable combinations.
• Collaboration: It's well-suited for teamwork.
White spot characterization with patentbutler.AI by
uptoIP® & ABP PATENT NETWORK
To apply the AI-assisted characterization of white spots with patentbutler.AI on the
“customized digital parking” scenario, we first have to define a morphological box
for the most relevant features of the parking system. The morphological box may
then look like this:
Parameter Form 1 Form 2 Form 3 Form 4
Sensors in each
parking slot
detecting vehicle
presence and
providing
availability data
providing up-to-
the-minute
availability data
LED displays directs drivers
to the nearest
available
parking spaces
User
communication
user can view
availability
and reserve
space
receive
navigation
assistance
36.
36
Cameras capture and
logvehicle
Access control
and billing
adjusts
parking fees
based on the
demand time
of the day
adjusts parking
fees based on
occupancy rates
(Quantum)
optimized space
utilization
using
quantum-
based
algorithms
allocate
parking spaces
using quantum-
based algorithms
process live
sensor data to
assign parking
spaces based on
vehicle size
using quantum-
based algorithms
process live
sensor data to
assign parking
spaces based on
special car
requirements
using quantum-
based algorithms
process live
sensor data to
optimize
assignments of
parking spaces
based on
predicted
patterns
Table 2: Morphological box for a quantum-based parking optimization system.
For the illustrative example, we only want to analyze the features dealing with the
optimized space utilization and only include features which are based on novel
quantum technology. In the next step we are using the patentbutler.AI to get an
overview of the patent landscape for all features defined in the morphological box.
The top two patents of the search are given in the Table below.
Features AU2021102339A4 (14/17, 82%) US20070061192A1 (14/17, 81%)
1.1 Parking system which
comprises sensors in
each parking slot
87% parking slot in the one or
more parking slots of the
parking area. Further, the
method
80% The invention relates to
vehicle parking. In particular,
it relates to apparatus and
method for locating,
identifying and tracking
vehicles in a car park.
1.2 sensors detect vehicle
presence and
providing availability
data
81% of sensors to detect the real-
time availability of the
parking space. The disclosed
80% Status related to vehicles
parking includes, but not
limited to,
1.3 Parking system which
comprises LED-
displays
84% parking slots (208) may be
marked with orange color, at
step 520. Successively, the
84% the display unit further
displays the locations of
vacant vehicle parking
spaces to people seeking to
park vehicles.
37.
37
1.4 LED- displaysdirect
drivers to the nearest
available parking
spaces
75% parking slot may be available
in the nearest parking area
(200) and therefore the
84% the display unit further
displays the locations of
vacant vehicle parking
spaces to people seeking to
park vehicles.
1.5 Parking system which
comprises user
communication
88% integrated parking
management system. The
method includes receiving
one or more
84% 8. 8. The system as claimed
in any one of claims 4 to 7,
wherein the display unit is
arranged to communicate
with one or more remote
devices for facilitating
displaying the locations of
the vacant parking spaces.
1.6 user can view
availability and
reserve space
78% therefore, the unoccupied
one or more parking slots
(208) in the reserved parking
81% provided for users to locate
an available, booked or
reserved
1.7 user can receive
navigation assistance
72% management system.
Therefore, there is a need for
an improved parking
78% of the vehicle, a predefined
set of directional instructions
can
1.8 Parking system which
comprises cameras
83% management system.
Therefore, there is a need for
an improved parking
88% each camera element
surveying one or more of the
vehicle parking spaces.
1.9 cameras capture and
log vehicles
84% [0013] It is yet another
objective of the invention to
keep a record of the vehicles
82% processing of one or more
images of the vehicles in
real-time,
1.10 Parking system which
comprises an access
control and billing
system
86% 1114. Thereafter, the
payment may be received at
the exit gate of the parking
area
86% 4. Parking enforcement
system to prevent illegal
parking or use of facility
1.11 access control and
billing system adjusts
parking fees based on
demand tome of day
82% embodiments provide a cost-
effective system and method
based on the duration for
which the parking slot is
occupied, such that, if the
duration is more, then the bill
that is paid by the user is
more or otherwise less.
Additionally, the disclosed
embodiment provides an
effective technique for eco-
friendly parking that allows
minimum use of vehicles in
parking leading to less
pollution
80% 8. Congestion pricing
system for balancing the
utilisation of the car park
1.12 adjusts parking fees
based on occupancy
rates
87% based on the time duration of
occupying the allocated
parking slot and discounts, at
83% 8. Congestion pricing
system for balancing the
utilisation of the car park
38.
38
1.13 Parking systemwhich
comprises a quantum-
optimized space
utilization
82% vehicle (206). Further, the
architecture of the parking
slots (208) may be explained
74% The invention relates to
vehicle parking. In particular,
it relates to apparatus and
method for locating,
identifying and tracking
vehicles in a car park.
1.14 quantum-optimized
parking space
utilization using
quantum based
algorithms allocate
parking spaces
80% allocating an unoccupied
parking slot in the one or
more parking slots to the
vehicle.
76% determining the locations of
vacant vehicle parking
spaces; and
1.15 quantum-optimized
parking space
utilization using
quantum algorithms
process live sensor
data to assignments
based on vehicle size
82% allocating an unoccupied
parking slot in the one or
more parking slots to the
vehicle.
81% this mapping, vehicles within
the car park premise can be
1.16 quantum-optimized
parking space
utilization using
quantum algorithms
process live sensor
data to assignments
based on special car
requirements
83% allocating an unoccupied
parking slot in the one or
more parking slots to the
vehicle.
81% this mapping, vehicles within
the car park premise can be
1.17 quantum-optimized
parking space
utilization using
quantum algorithms
process live sensor
data to optimize
assignments based
on predicted patterns
81% unoccupied parking slot, at
step 828. In another case,
the vehicle (206) may have
80% this mapping, vehicles within
the car park premise can be
Table 3: Output of the patentbutler.AI for a white spot analysis for a quantum-based parking optimization system.
In this illustrative example, we can now compare the 4 different chosen quantum
solutions for optimized parking and identify the solution with the smallest similarity
in the patent landscape. This solution is given in feature 1.14 covering quantum
based algorithms to allocate parking spaces. The other 3 solutions all have
consistently more than 80% similarity and are therefore further away from the white
spot.
To further characterize the surface of the white spot also non-quantum
technologies for optimized space utilization as well as other features of the digital
parking garage can be systemically varied and analysed based on the morphological
box method.
39.
39
The benefit ofusing this approach with the patentbutler.AI lies in the incredible
speed of AI-based patent searches, which allows the efficient searching of huge
patent libraries that was not possible by hand. This way, AI enables new insights
into patent landscapes and a more precise characterization of patent white spots.
Introduction to synthetic inventing
What is synthetic inventing?
Synthetic inventing as the basis for specifically created spheres of exclusivity as part
of the development of a 360° IP strategy, where the IP needs are systematically
identified and characterized. For this purpose, fields of action are defined in which
the creation of strong exclusivity positions through IP leads to a high strategic benefit
by applying the IPFD methodology and a fundamental understanding of the target
business model. Also, goals must be formulated which should be realized using IP in
the business model. This shows which types of IP rights are needed and what they
refer to. However, especially for patents, the specific inventions which should be
protected with IP are only in rare cases obvious at this point.
The implementation of a 360° IP strategy regularly requires the competence to
systematically identify inventions in the desired places by a white spot analysis and
to draft patent applications based on these inventions. This procedure can be
described as synthetic, as it does not start with a specific invention, as in the classic
patenting process, but rather focuses on the need for prohibition, which is realized
by patenting specifically created inventions.
40.
40
Figure 6: Businessmodel for the creation of an IP strategy for differentiation: The business model has four sectors, namely on the
resource side the value creation architecture and the key resources and core competencies and on the market side the market access
and market position and the differentiation potential and unique selling proposition (USP). In a 360° Strategy the sphere of
exclusivity is created around all four sectors of the business model.
Synthetic inventing is relevant for the implementation of the measures in two sectors
of the 360° IP strategy. In Sector (II) “Suppressing imitation”, the methodology serves
to use the company’s resources, especially the technical competencies created by
R&D, as exclusively as possible and to maximize the return on innovation resulting
from the use of the resources. Generally, it is not about the newly developed
technologies per se, but rather about the customer benefits that can be offered on
the basis of the technology use. The aim is to create legal positions that make it
possible to prohibit competitors from providing an equivalent customer benefit,
regardless of how this is technically produced.
While it is often difficult to identify objects of the invention at this point in order to
protect the own solution against unauthorized use by third parties with patents, the
creation of exclusivity of customer benefits represents a particular challenge. This
makes it necessary to use methods, which identify the areas where the intended
objects of the invention lie and which help to model these inventions to create
protectability such as an IPFD.
41.
41
Figure 7: Generic360° IP strategy for differentiation: In the value creation architecture sector (I) you need to manage the risks, so
that you are free from the rights of third parties. In the key resources and core competencies sector (II) you need to suppress the
imitation of your assets. In the market access and market position sector (III) you need to design our market position against third
parties. Finally, in the differentiation potential and unique selling proposition (USP) sector (IV) you need to continuously
communicate your USP.
In Sector (III) “Designing the market position”, synthetic inventing is used to
consciously create a certain competitive situation. The design of the IP position can
relate to a number of different goals, such as claiming positions for future
developments, actively designing the value chain, or avoiding the compatibility of
external services with the own product. Here, it is necessary to identify the technical
solutions whose protection through patents leads to the desired success.
The starting point for implementing the 360° IP strategy through synthetic inventions
is usually a workshop with the relevant market and technology experts. To this end,
one of the previously defined fields of action for the innovation project is selected
first. It is advantageous if the participants in this workshop are the same who have
42.
42
already created theIP needs matrix of the IPFD, as these people are informed about
all technical and economic project relationships. If the processing of the selected
field of activity requires specific technical or business model-related knowledge, then
appropriate additional experts should be consulted. In this workshop, the technical
solutions are identified, which are needed and which should therefore form the
subject of the patent activities. These are then subsequently transformed into
inventions and furthermore into patent applications in a collaboration between IP
and technology experts and under consideration of an white spot analysis including
the patent landscape.
Synthetic inventing for “customized digital parking”
When applying synthetic inventing on a practical case, it has proven to be expedient
to depict the examined usage scenario in a swim lane. However, this structure should
not be used in its original logic, namely, to show the interaction of various actors in
a process rather a modified swim lane display should be selected that is adapted to
the information requirements in the specific situation. For this it is advisable not to
document the process steps assigned to a specific actor in a swim lane, but to use
these lanes for certain types of context information, such as environmental
conditions or customer expectations. This means that the context information that is
collected for each process step must be defined in advance of processing.
The use of a swim lane display is of advantage for the procedure because it makes
the process of product use and the relationships between the scenario elements
immediately recognizable. In addition, by determining the information to be
considered, it helps to steer the discussions in the workshop and prevents essential
aspects from being ignored. The figure below shows an example of a swim lane
43.
43
display in whicha part of the usage scenario for customized digital parking was
prepared for the purpose of synthetic inventing.
Figure 8: Application of IP design methods within a swim lane diagram for a customized parking experience.
AI-aided synthetic inventing
Artificial Intelligence (AI) has become an indispensable tool in the realm of synthetic
invention, revolutionizing the way we identify new solutions to specific technical
problems in a targeted way. Through advanced algorithms and machine learning
techniques, AI accelerates the process of designing and optimizing synthetic
inventions, leading to a fast identification of a broad range of options for innovation
into technology fields, which are still unoccupied by competitors and patenting
positions.
Practically, this can be done by letting an AI generate new inventive solutions based
on known innovation principles, e.g. with TRIZ. TRIZ is a systematic methodology for
problem-solving and innovation developed in the former Soviet Union by Genrich
Altshuller and his colleagues. TRIZ is based on the idea that there are universal
principles of innovation that can be applied across different fields and industries.
In the case of the smart parking use case, a possible starting prompt for an AI in AI-
based systemic inventing is: “Act as an experienced engineer and inventor familiar
Select parking
preference
Selct optimal
parking position and
space
Identify user upon
entering
Be guided to aspired
parking space
Park the vehicle
Correct parking
position if required
Look for exit
Leave parking
garage
In cases more than one
vehicle per user
account or drivers
without reservation
Optimal way may
depend on traffic
inside the garage /
occupancy situation
Exact parking space
position and size
cannot be physically
marked (e.g. by lines)
User has left the car
and is hard to track
Upon return different
entrance to parking
garage may be used
…
User with
machine
- User makes
reservation and
communicates
preferences
- App suggests
parking options
- User selects parking
option
- Driver passes entry
- Driver recognizes
and follows
guidance
- Driver recognizes
parking space
- Driver uses marked
space to park the
vehicle
- Signage gives
feedback about
parking position
- Guiding system
leads user to the
best exit
-- …
Machine
with
machine
- App stores user
input
- App checks
occupancy status
- App selects valid
parking options
that fit with
preferences
- Entry system
identifies user
- Entry passes entry
time to billing
system
- Entry system gives
starting signal to
guidance system
- Car tracking system
recognizes vehicle
- Guidance system
identifies optimal
path
- Signage shows the
way depending on
vehicle position
- Signage shows
parking space
position and size
- Modular parking
cell checks vehicle
positioning
- Modular parking
cell communicates
occupancy status
- Guidance system
identifies optimal
exit
-- …
- Parking app
- Parking app
- Occupancy
monitoring system
- Parking app
- Billing system
- Entry system
- Guidance system
- Guidance system
- Car tracking system
- Signage
- Car tracking system
- Signage
- Lighting system
- Modular parking
cell
- Signage
- Guidance system -- …
Fast / comfortable
selection required
Only parking
suggestions that fit
with preferences
desired
No driver input
desired
Self-explanatory
navigation required
Shortest way to
parking space desired
Easy / immediate
recognition of right
parking space desired
Clear correction
demands desired
Guidance to the exit
which is closest to the
journey's target
desired
Upon return quick
finding of the car
desired
…
User
Acceptable vehicle
positioning especially
regarding adjacent
parking spaces required
User on the journey towards parking garage
→ no time for extensive interaction
Interactions
Environment
Objects
44.
44
with the TRIZprinciples. Apply the TRIZ principles to find new, and for an expert in the
technical field non-obvious solutions to the following problem: A car with a human
driver is supposed to park in a parking garage at a certain spot. This spot is not
permanently marked, it can be a random spot in the parking garage. Focus on the
following detail: What inventive ways are there to directly inform the driver or the car
where the spot is where the car should park? Please describe the necessary system
components and how they work together to solve the problem technically, such as
lights integrated into the floor to inform the driver. Do not describe a solution that
already appears in full in the prior art and patent literature. Describe 10 inventive
solutions to the problem. For each solution, state which TRIZ principle was used in the
solution.”
The answers will be different between various AIs, but here is an illustrative answer:
Solution 1: Dynamically Illuminated Parking Spots
• TRIZ Principle: Segmentation (Dividing an object into independent parts)
• System Components: LED tiles embedded in the parking garage floor, a
central control system, and in-car display connected to the garage system.
• Working: The central system assigns a spot and illuminates the LED tiles
forming an arrow pointing to the assigned spot. The in-car display confirms
the spot and mirrors the arrow directions.
Solution 2: Augmented Reality Navigation
• TRIZ Principle: Taking Out (Removing a troublesome or harmful part of a
system)
• System Components: Smartphone app with AR capabilities, parking garage
cameras, and a cloud-based coordination system.
• Working: The app interfaces with the garage system, which assigns a spot.
Using the garage's cameras, the app overlays a virtual path on the real-world
view through the phone, guiding the driver to the spot.
…
Those new solutions have so far only applied a single TRIZ principle at a time, but
also multiple principles may be used at the same time. When appending the prompt
with the following line, “For each solution, use more than only one TRIZ principle and
state which TRIZ principles were used in the solution.” you will receive more complex
new solutions such as:
45.
45
Solution 1: GamifiedParking Experience
• TRIZ Principles:
o Transformation of Properties: Turns parking into a game.
o Humor: Incorporates playful elements to make parking enjoyable.
o Psychological Inertia: Leverages the human tendency to follow game
rules and complete tasks.
• Components: In-car display with gamification elements, sensors in the
garage, and a central control system.
• Working: Parking is presented as a game with points or rewards for accurate
parking, time taken, etc.
Solution 2: Drone-Assisted Parking
• TRIZ Principles:
o Mediator: A drone acts as an intermediary between the car and the
parking spot.
o Copy: The drone replicates the desired parking position for the car to
follow.
o Pneumatics and Hydraulics: The drone could potentially use air
currents to nudge the car into the correct position.
• Components: Parking assistance drones, a central control system, and
communication between the drone and the car.
• Working: A drone is assigned to a car and flies to the designated spot. The car
follows the drone's movements to park accurately.
…
Based on such simple prompts a myriad of potential new and inventive solutions to
a targeted problem can be created. Additionally, the AI can be directed to specific
TRIZ principles, if they seem to be better suitable for the chosen use case. Finally,
also additional constraints can be added such as a preference for cheap to produce
solutions or solutions that use technology from a specific field, where the company
has specific experience and already a good own patent portfolio or where white spots
in the patent landscape where discovered. This allows a more targeted generation of
the most promising solutions for the specific needs of a company instead of a
generation of lists of interesting, but hard to realize solutions.
46.
46
Lessons learned withuptoIP® by ABP
The use of digital tools, especially AI tools, is an extremely valuable contribution to
improving the efficiency of the innovation process. This is freeing resources in the
R&D and IP departments of companies causing lower development costs as well as
shorter development times creating an important competitive advantages against the
competition. With the use of the patentbutler.AI tool of uptoIP® companies can not
only speed up the innovation process, but also improve the patent protectability of
the developed solutions, which reduces IP risks, the costs of developing
unprotectable solutions and helps to generate patent positions, which the company
strategically wants to occupy.
The case study serves as a best practice example how AI-assisted patent analysis can
help companies to protect their new digital business models, such as “customized
digital parking”, based on a white spot analysis and synthetic inventing. This approach
can be adopted also to other business models and showcases the importance of the
use of AI-based patent intelligence as provided by uptoIP®.
47.
47
Authors
Dr. Hannes Burger
ManagingPartner at Anwälte Burger und Partner GmbH
Dr. Hannes Burger is a long standing supporter of the MIPLM
education at the CEIPI and acted as a co-examiner in the
MIPLM since 2022. Dr. Burger has been specialized in
intellectual property rights for many years and is nationally
and internationally active in prosecution as well as litigation
regarding the field of IP. Hannes studied law at the University
of Linz and is Attorney at Law in Austria, admitted to the bar
in Germany, as well as European Patent Attorney. This double
qualification is quite rare in Europe and especially in the
German speaking countries, where only a handful of
Attorneys at Law hold the qualification before the European
Patent Office. Hannes has almost twenty years of experience
in cross national IP litigation and enforcement, and advised clients in a wide range of industries, from
mechanical engineering to medical devices, from chemicals to biotech.
Daniel Holzner
CEO at ABP Patent Network GmbH
As Managing Director of ABP Patent Network GmbH, Daniel
Holzner heads a company that has been serving
international clients in the field of patent, trademark and
design protection for over 40 years and develops innovative
software solutions for the intelligent management of
intellectual property rights. With extensive experience in
the digitalization of IP processes and the integration of
artificial intelligence into patent management, he is setting
new standards throughout the industry. Under his
leadership, the innovative IP software “uptoIP®” was
developed, which enables IP managers to efficiently
manage and monitor IP rights.