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Smartphone-Based Measurement Systems for Road Vehicle Traffic

Monitoring and Usage-Based Insurance

Article in IEEE Systems Journal · December 2014

DOI: 10.1109/JSYST.2013.2292721

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1238 IEEE SYSTEMS JOURNAL, VOL. 8, NO. 4, DECEMBER 2014

Smartphone-Based Measurement Systems

for Road Vehicle Traffic Monitoring
and Usage-Based Insurance
Peter Händel, Senior Member, IEEE, Jens Ohlsson, Martin Ohlsson,
Isaac Skog, Member, IEEE, and Elin Nygren

Abstract—A framework is presented to deploy a smart- I. I NTRODUCTION

phone-based measurement system for road vehicle traffic mon-
itoring and usage-based insurance (UBI). Through the aid of a
hierarchical model to modularize the description, the functionality
is described as spanning from sensor-level functionality and tech-
T HE NUMBER of cellular phones in the world steadily
grows each year, with almost seven billion mobile sub-
scriptions at the end of 2012, corresponding to some 96% of
nical specification to the topmost business model. The designer of a the world population [1]. Cellular phones are often referred to
complex measurement system has to consider the full picture from
low-level sensing, actuating, and wireless data transfer to the top- as feature phones and smartphones, where the former provide
most level, including enticements for the individual smartphone basic telephony, and the latter provide flexibility by the use of
owners, i.e., the end users who are the actual measurement probes. software applications known as “apps.” The smartphone has
The measurement system provides two data streams: a primary become more and more popular, corresponding to one third of
stream to support road vehicle traffic monitoring and a secondary the cellular phones shipped out, or in absolute measures, some
stream to support the UBI program. The former activity has a
clear value for a society and its inhabitants, as it may reduce 700 million units annually.
congestion and environmental impacts. The latter data stream From an instrumentation and measurement point of view,
drives the business model and parts of the revenue streams, which we can foresee a revolution in the collection of data since the
ensure the funding of the total measurement system and create smartphone is a ubiquitous device deployed on a large scale.
value for the end users, the service provider, and the insurance The smartphone is factory equipped with a plurality of means
company. In addition to the presented framework, outcome from
a measurement campaign is presented, including road vehicle for sensing and sounding out the environment, such as radio
traffic monitoring (primary data stream) and a commercial pilot receivers for a multitude of wireless cellular standards spanning
of UBI based on the driver profiles (secondary data stream). from the second generation Global System for Mobile Commu-
The measurement system is believed to be sustainable due to nications to the fourth generation long term evolution, wireless
the incitements offered to the individual end users, in terms of local area network based on IEEE 802.11 standards, personal
favorable pricing for the insurance premium. The measurement
campaign itself is believed to have an interest in its own right, as area networks such as Bluetooth, satellite positioning systems
it includes smartphone probing of road traffic with a number of such as the Global Positioning System (GPS) and Globalnaya
probes in the vicinity of the current state of the art, given by the Navigatsionnaya Sputnikovaya Sistema (GLONASS), inertial
Berkeley Mobile Millennium Project. During the ten-month run of measurement sensors such as accelerometers and gyroscopes,
the project, some 4500 driving h/250 000 km of road vehicle traffic electronic compasses or magnetometers, and audiovisual sen-
data were collected.
sors such as cameras and microphones. Accordingly, the smart-
Index Terms—Complex measurement systems, insurance tele- phone provides a versatile probing device deployed on a large
matics, Mobile Millennium, MOving VEhicle LOgger (MOVELO) scale, enabling massive time- or location-based measurement
campaign, pay as you drive, pay how you drive, smartphone-based
measurements, usage-based insurance (UBI). campaigns.

A. Road Traffic Monitoring

Road traffic monitoring is an example of a complex
Manuscript received February 15, 2013; revised November 14, 2013;
smartphone-based measurement system, as illustrated in Fig. 1.
accepted November 17, 2013. Date of publication December 18, 2013; date State-of-the art research projects such as Mobile Millennium
of current version November 20, 2014. in the U.S. provided a pilot traffic monitoring system that used
P. Händel, M. Ohlsson, and I. Skog are with the Department of Signal
Processing, ACCESS Linnaeus Centre, KTH Royal Institute of Technology,
the GPS in cellular phones to gather traffic information, process
100 44 Stockholm, Sweden, and also with Movelo AB, 111 34 Stockholm, it, and distribute it back to the phones in real time. Already in
Sweden (e-mail: [email protected]). 2008, a traffic probing field campaign (known as the Mobile
J. Ohlsson is with the Department of Computer and System Sciences,
Stockholm University, 164 40 Kista, Sweden, and also with Movelo AB, 111 Century field experiment) was carried out, which involved 100
34 Stockholm, Sweden. private cars carrying GPS-enabled Nokia N95 phones [2], [3].
E. Nygren is with Movelo AB, 111 34 Stockholm, Sweden. For the work reported in [2], real-time measurements were
Color versions of one or more of the figures in this paper are available online
at http://ieeexplore.ieee.org. collected every third second while the vehicles repeatedly
Digital Object Identifier 10.1109/JSYST.2013.2292721 drove loops of 6–10 mi in length continuously for 8 h on
1932-8184 © 2013 IEEE. Personal use is permitted, but republication/redistribution requires IEEE permission.
See http://www.ieee.org/publications_standards/publications/rights/index.html for more information.
HÄNDEL et al.: SMARTPHONE-BASED MEASUREMENT SYSTEMS 1239

Fig. 2. Examples of measurement probes for insurance telematics.

(Left) Progressive Insurance snapshot probe for onboard diagnostic outlet.
Fig. 1. Screenshot of aggregated road traffic data (that is, an example of (Middle) Probe for the cigarette lighter outlet. (Right) Smartphone with UBI
primary data) during the prelaunch of the reported MOVELO campaign in software.
March 2013. A part of the Greater Stockholm area is zoomed in. The figure
illustrates the geographical concentration to the main roads of the gathered road The information collected by the measurement probe can be
traffic information.
used by the insurers, to approve their risk assessment; thus,
through the use of these data, a particular driver’s behavior
freeway I-880 near Union City in the San Francisco Bay Area, can be assessed. As insurers can gain access to actual driving
California. The successor, i.e., the Mobile Millennium project, behavior data via the probe, the premium can be adjusted to
was launched in late 2008 and remained operational until the reflect the driving habits of a driver and their related risk—
summer of 2010, with more than 2000 registered users. The so-called usage-based insurance (UBI). As a result, the insur-
project demonstrated that the concept of infrastructure-free ance premium can individually be adjusted according to the
road traffic data collection is feasible [4]. In the perspective of a driving behavior, and the likelihood of a claim related to that
large-scale smartphone-based measurement system, the Mobile particular driver can be predicted. Insurers have long relied on
Millennium project highlighted some challenges, which will factors such as the age of the driver and the place of residence
need to be addressed before launching this kind of system, in- to calculate premiums. Insurance telematics has helped the
cluding a shift from procuring information rather than measure- insurers to use other variables in their risk calculation. By using
ment probes and the definition of the roles and business models telematics technology, the insurers can improve the pricing
for involved measurement collecting actors—challenges that accuracy and sophistication, as well as attract favorable risks.
are addressed in this paper. As a result, the claims costs will be reduced, which, in turn, will
Other relevant road traffic monitoring projects include enable lower premiums. The technology will help the insurers
Nericell by Microsoft, India [5]. However, the work in [5] to increase their overall profitability.
does not address issues such as how to provide incentives For policy holders, there are numerous benefits related to a
for the participants. In general, the use of the sensors and UBI program. UBI will lead to premium discounts for the low-
processing capabilities of smartphones for vehicle applications risk end users, and they can enjoy value-added services such
is an emerging area with several recent publications [6]–[9]. as teen-driver monitoring, emergency services, navigation and
The case study presented in this paper includes a smartphone infotainment, stolen vehicle recovery, and vehicle diagnostics.
probing of road traffic with a number of probes in the vicinity In case of an accident, drivers can also use their profile of
of the Berkeley Mobile Millennium Project, CA, USA, which driving behavior to prove safe driving behavior to the insurer.
is believed to have an interest in its own right. In this paper, findings are presented from the first ever trial of a
smartphone-based UBI, where the smartphone is used as an ad-
B. Smartphone-Driven UBI vanced measurement probe in a complex measurement system.

Insurance telematics refers to the technology of sending,

C. Sustainable Large-Scale Smartphone-Based
receiving, and storing information from and to road vehicles
Measurement Systems
for insurances purposes [10]–[12]. The market is expected
to take off in some regions, leading to a penetration of up The problem at hand is how to conceive, design, implement,
to some 40% share of total policies in 2020 [11]. Currently, and operate a complex measurement system as the one dis-
the market penetration is low, with the Progressive Casualty cussed, which performs reliably, efficiently, and predictably and
Insurance Company in the U.S. as the market leader with is manageable, controllable, and upgradable. It must have a
some 1.4 million customers in their program [12] and strong framework for a wide set of tasks, including, but not limited
intellectual properties [13]. The measurement probe may be a to, computer power and wireless transmission resource allo-
fixed installation in the vehicle, a semifixed installation using cation, software revision handling, incentive strategies for the
the power and data outlets, or a smartphone, as illustrated in voluntary end users, and a business model that secures that
Fig. 2. The probe monitors and transmits risk-related informa- the effort is profitable for the commercial actor. A rationale
tion to the insurers such as the speeding, cornering, braking, and for this paper is that the system designer has to consider the
accelerating habits; the time and date; and the road conditions. full picture from smartphone low-level sensing, actuating, and
1240 IEEE SYSTEMS JOURNAL, VOL. 8, NO. 4, DECEMBER 2014

Then, design, implementation, and operating aspects of a

sustainable large-scale measurement system are studied in
Section III, which presents a road traffic probing activity de-
noted as the MOving VEhicle LOgger (MOVELO) campaign,
including a pilot launch of a commercial private line UBI
program. The contributions here include addressing the chal-
lenges identified during the Mobile Millennium project, that is,
the shift from procuring information instead of measurement
probes and the definition of a profitable business model.
The findings and outcomes of the MOVELO campaign are
further discussed in Section IV. Opposite to tailored measure-
ment platforms, as shown in Fig. 2, the smartphone is primarily
aimed for voice and data traffic, not to be a high-end mea-
surement probe for events and data originating from a vehicle
during high-dynamic movements. A contribution in Section IV
is an in-depth discussion on data quality from a digital signal
processing point of view. Furthermore, the deployment, end
Fig. 3. Triple helix providing the foundation for a sustainable large-scale users’ experience, and issues such as privacy are considered.
measurement system based on a large number of smartphones as measurement Finally, Section V concludes this paper.
probes. In this paper, the primary data are data for road traffic monitoring of
societal value. The secondary data include the driving behavior parameters, or
the risk profile, of the individual end users, of commercial value for the insurer
running a UBI program. The individual car owners or end users are offered II. S USTAINABLE L ARGE -S CALE S MARTPHONE -BASED
incentives such as discounts on the insurance premium. M EASUREMENT S YSTEMS
Hypothetic today, but a reality in the future, are large-
wireless data transfer to the topmost level, including incentives scale measurement systems with millions or even billions of
for the individual smartphone owners, as well as provide an probes in terms of smartphones, or their future counterpart.
attractive business model. In particular, we will consider smartphone-based measurement
Simply providing a downloadable software measurement systems that are independent of the telecommunication oper-
application (that is, an “app”) for individuals to download is not ators running the cellular networks; that is, they will not re-
sufficient to build a large-scale smartphone-based measurement quire any modifications to the existing cellular networks. With
system. Incentives have to be provided to the signed-up smart- an operator-independent system, the measurement campaigns
phone owners, that is, the “end users” in Fig. 3. The cost for the will have maximum flexibility and the possibility to cover
collection of measured information scales with the number of a particular geographical area or time period utilizing data
probing platforms, and by a large-scale measurement system, traffic in all available cellular networks. In other terms, the
we denote a data collecting system where the total cost for the coverage of active measurement probes, aka the success of the
target data (denoted as the “primary data” in Fig. 3) is (much) measurement campaign, will only be restricted by the tentative
higher than what the “data collector” can afford. Accordingly, number of available smartphone owners residing in the desired
our approach assumes that the direct costs for the measurement time period or geographical location. The area of the work
probes (the smartphone and the corresponding subscription for with independent end users taking a role in the measurement
wireless data transfer) are taken by the individual end users. To campaign is sometimes referred to as participatory sensing [14].
motivate the end users, sufficient incentives have to be provided Accordingly, by a sustainable large-scale measurement
by a commercial party. Our approach to construct a sustain- system, we mean a complex measurement system where the
able large-scale measurement system includes the involvement incentives for the individual end users are supported by a cam-
of a “campaign sponsor,” which supports the measurement paign sponsor, who is motivated to provide the means for the
campaign on a commercial basis, subject to access to some end users and support for the required infrastructure based on
“secondary data,” where the secondary data are a catalyst for the secondary data collected during the measurement campaign.
novel revenue streams to the campaign sponsor. In other words, the campaign sponsor acts as a catalyst for
a win-win situation, in which the end users obtain benefits
due to their measurement efforts; the data collector gathers
D. Contributions and Paper Outline
measurement data for their own purposes supported by the
A first contribution is a framework to conceive and design a campaign sponsor, and the campaign sponsor is provided with
sustainable smartphone-based large-scale measurement system, information in terms of secondary data that enables commercial
which is presented in Section II. In particular, in Section II, a benefits. With the large diversity of available sensors that can be
hierarchical model is introduced as a framework to modularize embedded in a smartphone, the primary data may differ from
the system, spanning from functionality and technical specifica- the secondary data.
tions of the smartphone up to the topmost business model. The We highlight that our definition of a large-scale measurement
model modularizes the description of the measurement system system differs from the definition used in [15], where a remote
and enables top-down and bottom-up design strategies. system with a large number of probing devices is considered,
HÄNDEL et al.: SMARTPHONE-BASED MEASUREMENT SYSTEMS 1241

and service performed by the sensor and actuator layer is the

establishment and termination of a connection to a sensor or an
actuator. These are signals operating over the physical cabling
within the smartphone. Analog or digital means for direct
cleaning of the sensor data are typically associated to this layer,
for example, noise reduction of a microphone signal.

C. Layer 2: Smartphone Local Processing Layer

The rationale for Layer 2 is the big data paradigm (cf. [18])
with the role to structure and compress the voluminous amount
of possible raw sensor data.
The major function and service performed by Layer 2 is the
Fig. 4. Seven-layer smartphone measurement system model employed for
estimation of parameters related to the information gathered in
the process of conceiving and designing a sustainable large-scale smartphone- the raw (or enhanced) measurements, which is the compression
based measurement system for road vehicle traffic monitoring (primary data) of information into a set of figure of merits (FoMs), operating
and UBI (secondary data).
over the physical cabling within the smartphone. The local
but the cost is affordable because of the low cost for the processing layer defines the digital processing of the sensor data
hardware and data transfer. The methodology proposed for from Layer 1 in combination with global information provided
managing such systems from a metrological point of view as through Layer 3, such as information from neighboring mea-
proposed in [15] is, however, clearly applicable. surement probes or centrally stored databases.

A. Smartphone Measurement System Model D. Layer 3: Wireless Transport Layer

Here, the smartphone measurement system model is intro- The functionality of Layer 3 is the wireless transport in
duced and defined (see Fig. 4). With the proposed model, the up- and downlink of information between the smartphone
the process of conceiving and designing a sustainable large- and the backbone infrastructure. The popularity of smartphones
scale smartphone-based measurement system can coherently be has created a demand for reasonably priced mobile Internet
described. One may note that the lower levels of the model connections because a handset without Internet connection
have several similarities with the participatory-sensing structure has no real use for most users. Accordingly, the end users
reported in [16] and the G-sense architecture in [17]. typically have a fixed-priced connectivity up to some limit on
The model consists of seven layers, spanning from the physi- the transmitted data size. This means that the smartphones are
cal smartphones and servers to the overall business model at the mostly connected to the Internet 24/7 and provide the means for
top layer, as follows: data transportation.
Physical layers For the design of a large-scale smartphone-based measure-
1) smartphone sensor and actuator layer; ment system, it is important to consider that the network is not
2) smartphone local processing layer; always accessible and that the instantaneous data rate may vary.
3) wireless transport layer; The consequence is that real-time information is not always
4) central storage and data aggregation layer; possible to send and that the protocols used must manage la-
Software lifecycle management tency. In addition, a solution must not use too much of the users
5) implementation layer; paid bandwidth, which has to be considered both in the design
Management layers of the measurement functionality, including information coding
6) end user incentive layer; and preprocessing, and for the design of protocols. Standard
7) business model layer. Internet Protocol (IP) layers are available in the smartphones
The seven layers are described in some detail next. After- and servers connected to the Internet. The application protocol
ward, in Section III, the layers are discussed in some detail can be chosen from existing protocols such as file transfer
regarding road vehicle traffic probing and UBI. protocol or hypertext transfer protocol (HTTP) to use existing
client/server software libraries, but better adapted protocols
B. Layer 1: Smartphone Sensor and Actuator Layer may be considered as well [19].
The sensor and actuator layer, i.e., Layer 1, defines the digital
E. Layer 4: Central Storage and Data Aggregation Layer
data transmission from the sensors, for example, (1) position es-
timates at 1 Hz by the National Marine Electronics Association The major function and service performed by Layer 4 is the
protocol provided by the GPS receiver or (2) accelerometer or central storage and data aggregation. This layer defines the
gyroscope readings at 100 Hz provided by the inbuilt inertial central storage and data aggregation. The aggregated data can
sensors. Actuators in current smartphones include internal ac- be divided into primary and secondary data, but also, for
tuators such as the buzzer and loudspeaker, but also end user example, feedback data streams (broadcasted to all end users or
feedback via the display, and external actions that can be set transmitted to an individual one) are included. These are signals
up by a wireless or a wired connection. The major function operating on the physical cabling of the cloud.
1242 IEEE SYSTEMS JOURNAL, VOL. 8, NO. 4, DECEMBER 2014

TABLE I
E XEMPLARY D EPLOYMENT P ROCESS (L AYER 6)

Fig. 5. Business model ontology by Osterwalder.

TABLE II buzzer-equipped mobile phone battery charger for

E XEMPLARY C ATEGORIZATION OF E ND U SERS (L AYER 6) the vehicle’s cigarette lighter outlet, eventually, with the
functionality that it automatically triggers the start of the
application [20]. In a low-cost configuration, the battery
charger only reminds the car’s driver to activate the
measurement application once the ignition is turned on
F. Layer 5: Implementation Layer and the engine has started. In addition, it will remind this
category of individuals to charge their cellular phones,
This layer handles the software lifecycle management, in- which has a clear added value. A combination of a sensor-
cluding technical specifications, software revisions, and version equipped mobile phone battery charger and a smart-
distribution. Many theoretical and/or practical methods exist for phone is another approach to enhance the measurement
the lifecycle management of software and system development. activities of the forgetful end users (see Fig. 2). Other
The iterative agile methods usually suit the type of development means from the MOVELO campaign include the use of
used for the kind of systems where the requirements are not automatic enabling of the measurement application by
fully understood at the beginning, or they change over time as near-field communication tags mounted on a phone cradle
more is learned about the utilization of the system. Combined or directly on the panel of the vehicle.
with methods and systems for configuration management and 3) Finally, “the fraudulent” is harder to handle and is typi-
distribution, a quality-assured lifecycle is maintained. cally not a demanded customer segment for a campaign.

G. Layer 6: End User Incentive Layer H. Layer 7: Business Model Layer

The major function and service performed by Layer 6 is For a cross-disciplinary project, an easy-to-understand busi-
the description of the incentive-driven deployment process, that ness model ontology is required. The Osterwalders business
is, the enabler for a successful large-scale distribution of the model ontology was evaluated against other business model
software to the individual end users. An example process is ontologies and was chosen because of its contemporary charac-
summarized in Table I, where a multistep strategy is employed. teristics such as its capabilities and suitability for information
In the first phase, the end users get a first remuneration; that and communication technology dominant business models and
period is configurable in terms of length and time period. After because of its communicative capabilities. The business model
a predetermined qualification period, the end user can request a ontology defines nine building blocks for business models, as
quotation for a reward during a policy period. summarized in Fig. 5 [21], [22].
A key issue is the motivation of the individual end users to ac- The first building block is the value proposition, which is
cept the role of being the host for a mobile measurement probe. defined as an overall view of a campaign sponsor’s bundle of
The remuneration for the end users has to gain more value for products and services that are of value to the customer, that is,
them than the effort it takes to host and take responsibility for the end users. The second building block is the target customer,
the required actions during a measurement campaign. which is defined as a segment of customers a company wants to
Depending on the actual scenario, categorization of the end offer value to, for example, the low-risk and safe driver for an
users may enable more focused incentive programs, for exam- insurance company. The third building block is the distribution
ple, a classification according to Table II, where the following channel, which is defined as the means of getting in touch
holds. with the customer. The fourth building block is the customer
1) “The dedicated” is the most attractive category of end relationship, which is defined as the description of the kind of
users to enable a successful launch of a measurement link a company establishes between itself and the customer.
campaign. The fifth building block is the value configuration, or key
2) “The forgetful” category is dedicated but has a habit to activities, which are defined as the arrangement of activities and
forget to activate the probing software application. Typi- resources that are necessary to create value for the customer.
cally, their performance can be significantly improved by The sixth building block is capabilities, which can be defined
simple means, for example, by providing them with addi- as the ability to execute a repeatable pattern of actions that are
tional (low-cost) gadgets. An example, which is adopted necessary in order to create value for the customer. The seventh
from the MOVELO campaign reported in Section III, is building block is partnership, which can be defined as a vol-
to equip this category with such a simple gadget as a untarily initiated cooperative agreement between two or more
HÄNDEL et al.: SMARTPHONE-BASED MEASUREMENT SYSTEMS 1243

companies in order to create value for the customer. Finally, costs are server costs and administration of the servers and
the last two building blocks relate to the financial aspects of a applications. The revenue model that would finance these costs
firm: the cost structure, which is defined as the representation is revenue shared with the campaign sponsor. For the insurance
in money for all the means employed in the business model, company, the benefits would be lowering risks and obtaining
and the revenue model, which is defined as the way a company more information on driving behavior and statistics. An added
makes money through a variety of revenue flows. benefit for the insurance company is them getting a new cus-
tomer channel and improved customer relations via the smart-
III. MOVELO phone (see building blocks 3 and 4 in Fig. 5), with possibilities
to communicate to their customers via smartphones, for exam-
The MOVELO campaign was initiated to deploy a sus-
ple, to inform customers about dangerous road segments and
tainable large-scale smartphone-based measurement system for
traffic conditions that can affect their safety. By collecting in-
road traffic probing, independent of any kind of fixed road traf-
formation on driving behavior, customer segmentation will also
fic monitoring infrastructure. Stockholm, the capital of Sweden,
be improved; for example, identifying “the dedicated” ones.
has been identified as the fifth most congested city in Western
Another example could be forecasts of traffic flow and con-
Europe [23]. Currently, some 1500 taxi mounted probes are
gestion. The insurance company also gains new possibilities
collecting traffic data, known as the Mobile Millennium Stock-
to innovate their business model to cooperate with new key
holm project [23], which, clearly, is insufficient to provide
partners; examples of such companies are companies with
high-resolution traffic monitoring to reduce congestion, envi-
customers who are car bound, for example, gas retailers.
ronmental impact, accidents, and costs. With a required 2%–3%
penetration of probes [2]–[4] on occupied roads, the implication
B. Layer 6: UBI
is that a large number of active probes have to be available
to cover a major metropolitan area. More specifically, a large Since the value proposition is focal in a business model, a
number of probes is required to obtain fine resolution in time relevant value proposition has to be designed. The appropriate
and space at less trafficked road segments. value proposition designed was a combination of pay as you
This paper includes a ten-month (October—August) case drive and pay how you drive [24], [25]. In short, the value
study of implemented traffic probing based on the methodology proposition designed is based on giving incentives to selected
presented herein. The MOVELO campaign was initiated in customer segments (see building block 2 in Fig. 5). In practice,
early 2012. After development efforts and initial tests and the incentives and value proposition to the motor insurance
verifications, the first end users were activated in mid-October customer consist of giving discounts on their premiums. If
2012. The campaign was combined with a commercial UBI the customer drives safer and in a more economic manner, he
pilot to make it sustainable. Exemplary data are illustrated will receive discounts on his insurance premium, which, in the
in Fig. 1. In the figure, geographical coverage is shown for considered campaign, were in the interval of 0%–30%.
downtown Stockholm, Sweden, during a ten-day period in In the MOVELO campaign, the value proposition is a two-
March 2013, based on some 500 individual vehicle trajectories stage proposition, as summarized in Table 1. In the first phase,
(prelaunch tests). the end users qualify during a period of typically two weeks for
Next, we take a top-down approach and describe the imple- a discounted insurance premium based on an achieved “safety
mentation of the campaign in some detail starting from Layer 7. score” (that is, the most important part of the secondary data).
The obtained discount is valid up to a period of one year.
A. Layer 7: Innovative Business Models in Practice This first phase is configurable in terms of length and time
period. During this period, the end user uses the smartphone
To facilitate the triple helix in Fig. 3, a legal entity was
as much as possible to gain the maximum discount on the
founded outside of academia (that is, Movelo AB) to take
premium. The length of the drive is compared with the initial
the role of data collector. A starting point was to design an
and final readings of the mileage from the odometer [26]. After
innovative business model based on an ideal design of the
the qualification period, the end users can request a quotation.
theoretical framework presented above (see also Fig. 5). The
During the following policy period, activation of the “app” is
first step was to identify a suitable campaign sponsor, which
encouraged by added valued services.
had commercial benefits out of the campaign via the secondary
data and had resources to market and distribute the mobile
C. Layer 5: Implementation Layer
application to their current and potential customers and make
them use the application on a regular basis. The ideal case For the MOVELO campaign, we followed a pragmatic life-
would be if the end users benefited from using the application cycle where internal and external requirements were continu-
every time they drove their car, thus creating a clear value ously collected by all the people involved and then collected by
proposition to the firm’s customers. After some investigation, a the project manager and broken down to verticals, that is, dis-
company in the insurance industry (If Skadeförsäkring AB) was tributed tasks for the development team. Time estimates for the
proven to be the most relevant campaign sponsor, the market different actions are instrumental for the project steering, where
leader in the Nordic Countries with some 3.6 million customers. “go” or “no-go” decisions are taken by the project management.
With reference to Fig. 5, from a financial perspective, there The verticals with their tasks are scheduled in one to two week
are some costs related to building block 5, i.e., key activities, sprints. All source code and configuration are stored using
and building block 6, i.e., key resources. Examples of these Apache Subversion (SVN) with a configuration management
1244 IEEE SYSTEMS JOURNAL, VOL. 8, NO. 4, DECEMBER 2014

system based on tags. Before the release, the critical code is that many of the FoMs can be more accurately calculated using
peer reviewed; subsystems go through automated regression batch processing, such as the map matching used to check if the
testing, and final release candidates are tested by internal and driver has been speeding or not.
external test groups. The applications are written in Objective C
for the iOS and Java for Android. F. Layer 2: FoMs Processing
Distribution of the tested subsystems depends on the plat-
Locally processed FoMs include metrics for acceleration,
form. The MOVELO campaign uses Amazon [Amazon Web
braking, smoothness, cornering, swerving, and speeding. De-
Services (AWS)] for all server systems because of the flexibility
tection of speeding where the comparison between the actual
of configurations and easy upgrade/downgrade of hardware to
speed of the vehicle and the speed limit is monitored is often
suit the specific needs on a day-by-day basis, with Ubuntu 12.04
denoted as intelligent speed adaptation (ISA) [28]. For ISA,
LTS as the server operative system. The number of devices that
NAVTEQ maps, OpenStreetMap [29], and the Swedish Na-
can be handled depends on the AWS server, e.g., m1.small can
tional road database (NVDB) by the Swedish Transport Agency
handle about eight requests per second, and m1.xlarge instance
[30] were all tried out. NAVTEQ maps were finally selected for
can handle about 70 requests per second over hypertext transfer
the considered campaign due to a favorable price/performance
protocol secure.
metric. In addition, an eco-driving score [31] is monitored, as
For commercial use, the probing apps are distributed through
well as basic data such as location, time, and traveled distance.
the regular channels for each platform and sideloaded for test
One may note that for eco-driving-related FoMs, the gear shift
purposes using iPhone authorized internal distribution and An-
may be detected by the sensor data [6]. Every calculated FoM
droid sideloaded from external sources. For these distribution
is continuously compared against a configurable threshold to
methods, the measurement system, which is denoted as the
detect events that are considered dangerous driving behavior
Real-time UBI software suit (RUBI), uses an in-house system
and a threshold used to warn the driver (see Fig. 7 for exemplary
that e-mails the users’ links to new versions. Old versions
driver feedback).
can be remotely invalidated through the user authentication
There are several challenges involved in using smartphones
methods implemented in the system.
for detection of rapid events, such as heavy braking, because
of the low data sample rate, the high occurrence of outlier
D. Layer 4: Central Storage and Data Aggregation Layer
data, and the loss of data, for example, due to nonline of
We process and store data according to the business use sight, toward the GPS satellites. During a road test (a 1 h
(secondary data) and the traffic monitoring use (primary data), and 15 min run) using seven different smartphones mounted
but some fine-resolution data (raw data) storage is, on occasion, in the windshield of a vehicle, the satellite-based positioning
also possible for future use. For traffic monitoring, data are reported a coverage in the interval of 60%–99.7% for the
stored in relational databases transferred from file storage when individual smartphones. Using a reference system connected to
server processing load is low. The primary and secondary data the vehicle’s onboard diagnosis outlet, six heavy braking events
are first locally processed in the smartphones (that is, Layers 1 were detected during the run. Without any preprocessing of
and 2) to enhance quality and reduce the amount of redundant the smartphone data, the number of heavy braking detections
information and further processed centrally at storage time and by the individual smartphones varied between 28 and 58,
managed in a relational database. This approach enables fast which is clearly different from the number of actual events.
access to relevant information used for business. Employing a To combat the imperfections in the detection, model-based data
relational model provides easy access to data utilizing different enhancement and outlier rejection were included in Layer 1,
predefined criteria but still gives the possibility to access it in which improved the detection significantly. Calculated over the
sets that have not been predefined. Recording and storage of individual smartphones, the mean number of heavy braking
raw sensor data can centrally be turned on and off at a device- detections was 6.6, with a standard deviation of 1.7, yielding
by-device level. Raw data are stored in a file system that enables detector performance sufficient enough for insurance telematics
it to be batch processed. applications. More details can be found in [32].

E. Layer 3: Wireless Transport G. Layer 1: Sensor Data Enhancement and Driver Feedback
The measurement system is based on the standard IP using For the MOVELO campaign, the main source of sensor
HTTP as the application layer. On top of that, XML-RPC information is the location information provided by the GPS
is used for low-rate transmissions because of its availability or the GLONASS receiver, although some FoMs rely on sensor
on most platforms [27]. For higher rate communications, the fusion incorporating accelerometer or gyroscope data, as well
probing application uses HTTP PUT/GET file transfers of as information from digital road maps.
compressed files in a proprietary format. To monitor the quality of the GPS/GLONASS position and
In general, the primary data (traffic flow data) are uploaded velocity, the data are (recursively) fitted to a model of typical
in real time subject to the availability of a wireless connec- vehicle dynamics. If the discrepancy (on sample level) between
tion, whereas the secondary data (insurance-telematics-related the measured data and values predicted by the vehicle dynam-
FoMs) are uploaded at the end of each drive. A rationale for ics model deviates too much, the data are rejected. Because
uploading the secondary data at the end of the drive is not of the significant clock jitter of position and speed readings
only an increased robustness against link failures but also so provided by contemporary smartphones, data are, in practice,
HÄNDEL et al.: SMARTPHONE-BASED MEASUREMENT SYSTEMS 1245

Fig. 6. Example of the clock jitter in the sampling of the GPS receiver data in
an Iphone 4.

nonuniformly sampled, which has to be handled by the digital

signal processing, typically leading to the use of time-variant
digital filters. Rejected samples are straightforwardly handled
in such a framework. See Fig. 6 for an example of the clock
jitter in the GPS data of an Iphone 4.
The experience from the MOVELO campaign is that the
quality of the GPS/GLONASS data varies quite significantly
Fig. 7. Smartphone used as an extension of the vehicle’s dashboard for real-
between smartphone makes and models, and in the produc- time driver feedback. The real-time feedback includes measures of acceleration,
tion of the secondary data for the campaign sponsor (i.e., smoothness, braking, cornering, speeding (with respect to the actual speed
the insurance company), some percentage of the data have limit), and swerving. In addition, a measure of the eco-ness of the drive and
the elapsed distance are also shown.
to be rejected. By combining the GPS/GLONASS data with
the accelerometer and gyroscope data into a so-called GPS- scale. These navigation aids (that is, “black box”) are designed
aided inertial navigation system [33], the amount of data that to support the driver by showing the vehicle’s current location
is rejected due to low quality could be further reduced. on a map and by giving both visual and audio information on
Feedback to the driver may be provided by the smartphone. how to efficiently get from one location to another, fleet man-
Variations of touch and feel were studied, spanning from no agement, UBI, etc. Road vehicle positioning and navigation
real-time feedback (as used in the launched campaign later on) technologies based on stand-alone GPS receivers are vulnerable
to the extended dashboard appearance displayed in Fig. 7. It is because of the low signal levels and requirement of line of
worth observing that the processing of real-time driver feedback sight and, thus, have to be supported by additional information
typically differs compared with the risk calculations performed sources to obtain the desired accuracy, integrity, availability,
after a trip. The latter typically includes offline calculations con- and continuity of service [33], [34].
sidering the data from the full trip to improve the risk scoring. Using the smartphone as a measurement probe increases the
complexity of data quality assurance because the smartphone is
IV. D ISCUSSION mainly designed to be used as a handheld terminal for voice and
Sustainable large-scale smartphone-based measurement sys- data traffic. Accordingly, the performance as a measurement
tems have numerous application areas, both future and present probe is expected to be inferior compared with a tailored black
ones. Road vehicle traffic probing in larger metropolitan areas box due to consideration during the design of the radio receivers
driven by UBI programs is merely one out of many tentative and transmitters, antennas, etc. Furthermore, the mounting or
applications, where the purpose (sensed by the primary data) is location of the smartphone within the vehicle is not predeter-
to model, predict, and control the traffic flow and where the mined and may vary significantly between different users and
commercial value is provided by a UBI program (driven by between different trips. As reported in Section III-F, during a
the secondary data). Here, the smartphone owner allows data trial with seven smartphones mounted in the windshield, the
collection by monitoring the vehicle status, for example, the GPS coverage spanned 60%–99.7% for an exemplary run. On
time of the day, the speed, and the location. The smartphone the other hand, the smartphone is a main driver for the sensor
owners get an incentive to collect data by way of a reduced industry; thus, every new smartphone generation is equipped
vehicle insurance premium, where the rebate can be substantial. both with additional sensors and with sensors of higher quality
Some further issues are discussed below. than the replaced generation.
The quality of sensor (QoS) output is illustrated in Fig. 8.
The more or less continuous improvement of the smartphone
A. Data Quality
platforms results in the fact that the smartphone as a mea-
In-car positioning and navigation have been killer appli- surement probe over time outperforms the black box, which
cations for GPS receivers, and a variety of electronics for has a significantly longer expected time of operation, despite
consumers and professionals have been launched on a large the fact that the smartphone’s performance is limited by the
1246 IEEE SYSTEMS JOURNAL, VOL. 8, NO. 4, DECEMBER 2014

Fig. 8. Illustration of the obtainable performance using sensor fusion to im-

prove accessible sensor data. The performance of (solid line) three generations
of black boxes (1–3), (dashed line) unfiltered smartphone data, and (dashed-
dotted line) smartphone data after sensor fusion are shown.
Fig. 9. Cumulative covered distance and hours of recorded data for road traffic
aforementioned design constraints and possibly unfavorable monitoring.
location during vehicle trips.
Sensor fusion is a key tool to enhance data quality [35]. By and the campaign went public with a press release and aware-
looking at the vehicle probing problem from an information ness through the Internet and social media. The actual number
source perspective, we find basically four different sources of of recorded data is reported in Fig. 9. At the end of the project,
information available: 1) GPS-based and other radio-frequency- some ten months after the first probe was activated, some
based navigation systems; 2) sensors observing vehicle dynam- 4500 h of traffic data covering a total distance of 250 000 km
ics such as gyroscopes and accelerometers; 3) road maps; and had been collected. As indicated in Fig. 9, the effects of new
4) mathematical models of vehicle motion [33], [34]. The GPS end users invited in the first to the third CFPs are clearly visible
receiver and vehicle motion sensors provide observations to in the slope of the reported data. Christmas break between the
estimate the state of the vehicle. The vehicle model and road first and the second CFPs led to a reduced activity and less data
map put constraints on the dynamics of the system and allow coverage. The effect of the public launch is clearly visible, and
past information to be projected forward in time and to be the public relation activities were more or less concentrated
combined with current observation information [36]. Therefore, to the time period of the launch. The campaign was officially
in practice, the available sensor output can be improved by closed for new end users in August 2013.
sensor fusion technology resulting in performance close to the To ensure a high level of privacy, the interested end users
ideal performance given by full access to raw sensor outputs. were only required to provide an (possibly anonymous) e-mail
This quality improvement by means of software is illustrated address to enter the campaign. In such a way, a foundation
in Fig. 8. for general statistics was provided. To enter the qualification
period, the end users actively agreed that monitored data were
used to calculate a (strictly positive) discount on the insurance
B. End User’s Experience, Penetration, and Privacy premium and for no other use. Processing of personal data was
After initial development and testing, the deployment of the handled according to the Swedish Personal Data Act, which is
measurement system started on a small scale in a first, second, based on common rules decided within the European Union.
and third Call for Probing End Users (CFPs). These calls
invited some 200 end users in total, out of which some 64%
V. C ONCLUSION
downloaded the application. In addition to general testing of the
application, the end users had the possibility to run a two-week The smartphone has entered the scene as a versatile probe for
and 200-km qualification period to earn an insurance premium large-scale measurement campaigns with a substantial number
discount, where the discount was based on a combination of of probing devices. In this work, we have provided a cross-
driving behavior and actual usage of the smartphone during the disciplinary multilayer model to conceive and design a sustain-
qualification period [37]. By questionnaires, it was found out able large-scale measurement system. The model has been a
that a large majority of the drivers who used the application fundamental tool in the development of the reported MOVELO
were positive or very positive about the concept. The results campaign. Designing, implementing, and deploying a sustain-
analyzing the initial CFPs indicate that sufficient enticements able large-scale smartphone-based measurement system for
need to be provided to ensure a sustainable measurement sys- road traffic monitoring and UBI is a reality due to the mobil-
tem. Consequently, a larger number of end users were invited, ity and connectivity of the measurement probes, cloud-based
HÄNDEL et al.: SMARTPHONE-BASED MEASUREMENT SYSTEMS 1247

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1248 IEEE SYSTEMS JOURNAL, VOL. 8, NO. 4, DECEMBER 2014

Peter Händel (S’88–M’94–SM’98) received the Isaac Skog (S’09–M’10) received the B.Sc. de-
Ph.D. degree from Uppsala University, Uppsala, gree in electrical engineering, the M.Sc. degree in
Sweden, in 1993. wireless systems, and the Ph.D. degree in signal
From 1987 to 1993, he was with Uppsala Uni- processing, with a thesis on low-cost navigation
versity. From 1993 to 1997, he was with Ericsson systems, from KTH Royal Institute of Technology,
AB, Kista, Sweden. From 1996 to 1997, he was a Stockholm, Sweden, in 2003, 2005, and 2010,
Visiting Scholar with Tampere University of Tech- respectively.
nology, Tampere, Finland. Since 1997, he has been In 2009, he was a Visiting Researcher with the
with KTH Royal Institute of Technology, Stockholm, Mobile Multi-Sensor System Research Team, Uni-
Sweden, where he is currently a Professor of signal versity of Calgary, Calgary, AB, Canada, for five
processing and the Head of the Department of Signal months. In 2011, he was a Visiting Scholar with the
Processing. From 2000 to 2006, he held an adjunct position with the Swedish Indian Institute of Science, Bangalore, India, for four months. He is currently a
Defence Research Agency. He was a Guest Professor with the Indian Institute Researcher with KTH Royal Institute of Technology, where he coordinates the
of Science, Bangalore, India, and the University of Gävle, Gävle, Sweden. He KTH Insurance Telematics Laboratory.
is a cofounder of Movelo AB.
Dr. Händel has served as an Associate Editor of the IEEE TRANSACTIONS
ON S IGNAL P ROCESSING .

Jens Ohlsson received the M.Sc. degree in computer

and systems sciences from Stockholm University, Elin Nygren received the M.Sc. degree in busi-
Stockholm, Sweden, in 1999, where he received the ness and economics from Stockholm University,
additional B.Sc. degree in communications pedagog- Stockholm, Sweden, in 2012.
ics, in 2004. Since 2012, she has been with Movelo AB,
Between 1999 and 2011, he worked with business Stockholm, where she is currently a Marketing
development at companies such as SAP, Aptus Con- Coordinator.
sulting, and IDS Scheer. In March 2011, he joined
Movelo AB, Stockholm, where he is currently the
Chief Executive Officer. Since 2011, he has also
been with the Department of Computer and System
Sciences, Stockholm University.

Martin Ohlsson received the M.Sc. degree in com-

puter science from KTH Royal Institute of Technol-
ogy, Stockholm, Sweden.
He has been active in the information and commu-
nications technology area for about 20 years as an
entrepreneur and a systems architect. His projects in-
clude the augmented reality game Ghostwire, which
was awarded the first prize in Nokia’s N-Gage
Mobile Games Innovation Challenge 2008 and the
Swedish award Guldmobilen within the category
Entertainment Service of the Year in 2009. In 2009,
he coinitiated the project that later became Movelo AB, Stockholm, where he
is currently the Chief Technology Officer.

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