SIOC - Business Model - v3-021220 (Formatted)

Tender No: SMA/T/2020/11/13
BUSINESS PLAN
SARAWAK INTEGRATED OPERATION CENTRE (SIOC)
DEVELOPMENT, SUPPLY, DELIVERY, INSTALLATION, TESTING, COMMISSIONING,

OPERATION AND MAINTENANCE OF THE PLATFORM SYSTEM FOR SARAWAK
INTEGRATED OPERATION CENTRE (SIOC)
December 2020 0 / 22 555845119.docx

© 2020, Sarawak Government. All rights reserved.
TABLE OF CONTENTS
1. EXECUTIVE SUMMARY...........................................................................................2
BUSINESS MODEL..........................................................................................................3
1.1 Business Model Canvas............................................................................................3

1.1.1 Key Partners.......................................................................................................................... 5
1.1.2 Key Activities.......................................................................................................................... 7
1.1.3 Key Resources....................................................................................................................... 8
1.1.4 Value Proposition................................................................................................................... 9
1.1.5 Customer Relationship......................................................................................................... 10
1.1.6 SIOC Channels.................................................................................................................... 10
1.1.7 Customer Segments............................................................................................................. 11
1.1.8 Cost Structure...................................................................................................................... 11
1.1.9 Revenue Model.................................................................................................................... 14
SIOC SWOT Analysis....................................................................................................17
Return-On-Investment and Cost -Benefit Analysis...................................................18
1.2 Return-On-Investment.............................................................................................18
1.3 Cost-Benefit Analysis..............................................................................................18
Conclusion.....................................................................................................................19
December 2020 1 / 22 555845119.docx

1. EXECUTIVE SUMMARY
Crime incidents that have taken place around the world have changed the
government’s orientation and spending towards security measures and solutions in
Sarawak. Coupled with higher demand for security levels from society and security
measures, video surveillance is increasingly becoming a necessity in fulfilling the wish
for greater levels of safety within the community. Thus, surveillance and public safety
are among main priorities for Sarawak State in ensuring its society and the State’s
asset are well guarded.
Taking the novel objective into consideration, the establishment of Sarawak Integrated
Operation Centre (SIOC) is an important alignment to the state’s vision of driving
forward digital economy. SIOC operates on a multi-tenancy Software As A Service
(Saas) model, managed proactively by a centralised operation centre and delivering
features such as proactive video surveillance embedding on demand reporting,
Geographical Information System (GIS), Artificial Intelligence (AI) analytics and data
archiving.
SIOC enabler includes the implementation of a significant number of video

surveillance cameras in public locations in four local councils; Dewan Bandaraya
Kuching Utara, Majlis Bandaraya Kuching Selatan, Majlis Perbandaran Padawan, and
Majlis Perbandaran Kota Samarahan. This is no small task in view of cost and other
resources, amounting to millions in monetary terms to construct, operate and
maintain.
Therefore, this paper presents the business model that can be applied to ensure
SIOC is sustainable and relevant now and in the future. It is noteworthy to highlight
that the business model would be a critical implementation success factor including
for the future phases where the surveillance will be expanded to other major cities in
Sarawak to create state-wide surveillance.

BUSINESS MODEL
A business model is a blueprint created to map out services or products that the
business will sell, the identified target market, and anticipated expenses to run the
business. A business model would attract investment, recruit talents, and motivate
management and staffs. Business model is a high-level plan for profitability operating
a particular business in a specific marketplace. The primary element of a business
model is the value proposition. This is a description of the goods or services that
being offered and how does it desirable to customers and clients; ideally stated in a
way that differentiates the product or services.
1.1 Business Model Canvas
Business model canvas is a tool widely used to identify strategies and business model.
This tool can be used to plan variant of business types, from niche to mass market.
There are nine elements in business model canvas; key partners, key activities, key
resources, cost structure, value proposition, customer segments, customer
relationships, channels, and revenue streams. The said elements can be described in
table below.
Business Description
Model Element
Key Partners This element identifies the SIOC’s key partners in executing daily
operation and I delivering its values. Key partners are strategic
relationships that being established by SMA with other SIOC
stakeholders in order to achieve SIOC full potential. The strategic
partnership shall identify the key resources and key activities that
each key partner can contribute in SIOC.
Key Activities Key activities are the tasks that are integral to SIOC’s operation.
These key activities are necessary to deliver SIOC value proposition.
It is vital to identify the resources needed for these activities to
function. The key activities in SIOC are surveillance and public safety
monitoring, and managing technology infrastructure.
Key Resources Key resources are the required assets to operate and deliver SIOC’s
value proposition. It is important to determine what resources are
required for distribution channel and revenue streams to function. It is
also vital to determine which resources are needed to maintain
customer relationship as well as the quantity of human resources
needed in SIOC.
Cost Structure The cost structure list is an Identification of key costs in SIOC
operation and the impact of key activities and key resources to the
cost structure. It is also important to relation of cost structure with
revenue streams. It is also impartial to identify which cost proportion
are fixed and variable.
Value Value proposition is the core value that SIOC strive to provide to its
Proposition customers. It is the fundamental need that SIOC is trying to fulfil. This
element determines the customer’s problem that SIOC aims to solve.
In SIOC context, the problem is general public safety and
surveillance. SIOC aims to improve general public safety and
enhance public surveillance in for greater economic growth.
Customer Customer segment is to identify SIOC value proposition target
Segments audiences. It is important to identify what are their requirements and
needs as well as their response towards the services.
Customer Customer relationship is to identify the interaction type with
Relationships customers with different customer segments. Each customer
segment would have different type of interaction with different
support level as well.
Channels Channels refers to methods which being executed to deliver SIOC
services and value proposition to customers.
Revenue Revenue streams are the ways value proposition generate money for
Streams SIOC. From the revenue streams, identification of multiple methods
of generating revenues, payment channels, and payment forms is
vital to ensure revenue streams are able to sustain SIOC operations.
Table 1: Business Model Element Description
The business model elements have symbiotic relationship with each other. These
elements will form functional environment for SIOC to operate. The relationship of
these elements can be described in the figure below.

Figure 1: Business Model Canvas
The business model canvas key partners, key activities and key resources are
elements that delivers capabilities of SIOC which will create values proposition to the
customers. These three elements are the enablers which will create and deliver SIOC
outputs to customers. However, the three elements would generate cost to function
thus cost structure is derived from it. Cost structure is a part of the equation to
calculate profit and SIOC’s feasibility.
Created value propositions shall be delivered to customer through elements customer

relations and channels. These two element functions to establish customer
relationship which identified in customer segment element. Thus, revenue streams
and pricing model can be identified from market and customer segment. Revenue
streams determines how SIOC will able to generate income from its market and
customer segments.
1.1.1 Key Partners
SIOC key partners are both decisive and influential for the SIOC planning,
operation and sustainability. The identified key partners are strategic
relationships established by SMA with other SIOC stakeholders in order to
realize SIOC full potential. SIOC key partners and their respective roles are
listed below.
1. Sarawak Multimedia Authority (SMA)

The State’s authoritative body that spearhead, design and oversee the
deployment and ongoing operation of SIOC and strategise the direction
of SIOC as part of smart city initiative in Sarawak.
2. Polis Diraja Malaysia Kontinjen Sarawak (PDRM)

The force that advises the security Standard Operating Procedure and
endorses the CCTV location suitability in consideration of crime rate,
traffic condition, and safety in public interest areas. SIOC operational
Standard Operating Procedure requires the presence of assigned
police personnel for security related matters.

3. Municipals
Comprises of four local municipals namely:
 Majlis Perbandaran Padawan (MPP).
 Majlis Bandaraya Kuching Selatan (MBKS)
 Dewan Bandaraya Kuching Utara (DBKU)
 Majlis Perbandaran Kota Samarahan (MPKS)
The locations of the new CCTV infra and cameras are within the
territories of the municipals thus requiring their official consent and
approval. In addition, SIOC will be hooked to video feeds from existing
CCTV cameras in DBKU and MBKS.
4. Sarawak Energy Berhad (SEB)

SEB as the sole power provider is needed to assure that power supply
for the whole SIOC implementation is stable and to be given priority for
support and maintenance.
5. State Agencies
Land & Survey (L&S) role is to ascertain the land ownership on CCTV
locations while Jabatan Kerja Raya (JKR) role is to inform and advise
on procedures to be followed pre- and post-construction phase
6. Sarawak Department of Irrigation and Drainage (DID)

To further benefit the public and allow for fast coordinated response
between agencies, DID flood warning system is proposed to be
integrated with SIOC and included in CitizenApp development
roadmap.
1.1.2 Key Activities
Key activities are the tasks that are integral to SIOC’s operation and
necessary to deliver SIOC value proposition. It is vital to identify the
resources needed for these activities to function. The activities are as
described below:
1. Surveillance and public safety monitoring

The main SIOC establishment objective which consist of establishing a

secure environment among citizens, coordinating emergency and rescue
mission.
2. SIOC Management
SIOC consist of Platform's software and hardware portion, CitizenApp,
and outdoor equipment such as CCTV cameras, pole and speakers. The
main goal is to minimize downtime and maintain optimal operation.
3. Information dissemination
SIOC is the focal point to broadcast to the public on information such as
early warning, disaster alert, current news development via CitizenApp,
SMSes or social media channels.

1.1.3 Key Resources
Key resources are the required assets to operate and deliver the SIOC’s
value proposition. Shown below are the components of SIOC:
Figure 1: Key Resources
The key resources today go beyond a simple system of analogue cameras

and CCTVs. Digitisation of images and transmission has opened the
surveillance system to digital video recorders, networked video recorders and
IP systems on network, supported by a full range of hardware and software
solutions such as digital and IP and smart cameras, with Pan Tilt and Zoom
(PTZ) capability, time stamping, video analytics, to a range of transmission
systems over wired and wireless options in network.

1.1.4 Value Proposition
In addition to the advantages of SIOC as referenced in the SWOT Analysis,

creating and spreading public awareness on the values of SIOC are
important determinants to gain the public acceptance and willingness to pay
for service. Marketing and publicity on SIOC values as highlighted below
have to be conveyed to the masses:
i. Prevention of any potential trouble – SIOC provides assurance or safe

feeling on a street or any public area. Covert surveillance can avoid
crime such as kidnapping and snatch thief.
ii. Promotion of security – SIOC allows for reducing the fear of crime
amongst individuals.
iii. Crime detection - SIOC helps the authorities to curb crime. Also, a
video taken with crisp quality is important for identification of suspects
on investigation.
iv. Protecting public and private properties - SIOC is provided as a facility

of safety for people to gain easy assistance in an emergency.
v. Maintenance of city centres - SIOC assist local authorities in monitoring

city centres in terms of managing cleanliness and monitoring the
upkeep of surrounding areas.
vi. To be used in court of law – SIOC can record, store and retrieve
images that are admissible in court of Law as evidence.
vii. Traffic management – SIOC can aid traffic management, accident or

problems on the street and surrounding vicinity.

1.1.5 Customer Relationship
Customer relationship is to identify the interaction type with customers with

different customer segments. Each customer segment would have a different
type of interaction with different support levels as well. Customer
Relationship in SIOC can be described as below.
1. Automation where possible

a. Level 1 - Process automation to cater to all customer queries and
requests from SIOC.
b. Level 2 and Level 3 - Support would require interaction with SIOC
NOC agents
2. Analytics on demand
a. Detailed requests such as facial recognition, vehicle registration
number, and traffic congestion analysis shall be conducted
automatically.
b. Results and report are shared as requested but subject to Data
Privacy Act and approval by authorised
1.1.6 SIOC Channels
The interaction means between SIOC and external party are via:
 SIOC Call Centre
One Stop Centre with hotline number for enquiry and support
 CitizenApp
A mobile application for two-way communication between the mobile
apps user and SIOC Agent
It is important for the correct messaging to reach the masses across all
segments and levels as quick as possible, therefore the marketing and
publicity channel such as the following would be effective to achieve the
purpose:
1. Social Media – Facebook, Twitter, Instagram
2. Digital Advertising – Google ads or via Apps such as Lazada or Timogah
3. Government Media – Sarawak TV, UKAS and departmental bulletins

4. Press – News releases or featured articles such as in Borneo Post or

local newspapers
5. Events & roadshow – Booth with leaflets and standee at events or
roadshows organised by SMA ministries or agencies
1.1.7 Customer Segments
The customer segments in the video surveillance industry are diverse or

fragmented in nature – government, retail, financial, industrial, transportation
and education with significant overlapping. Each customer requires surveillance
for different use, in turn involving different systems requirements and equipment
according to the environment it operates in. The end users whom are also the
beneficiaries of the benefits of having SIOC shall be the market segment to be
targeted for revenue generation. Due to differing needs and priorities, the
market is segmented accordingly.
Government
Recreational parks and public amenities, schools and universities, prisons

and correctional facilities, government assets and buildings
Enterprises
Manufacturing plants - Communication infrastructure, utility plants,

industrial areas
Retail - Shopping malls, business centres and shops, Car park basements
Transportation - Airports, Train stations, Ports, Bus terminals
Financial - Banks, ATM machines
Public
Locals safety and ease of mind

Tourist safety and pleasant experience
Travellers safety and pleasant journey
Figure 3: Customer Segments
1.1.8 Cost Structure
The deployment of video surveillance systems in a large public space is

usually a long-term programme. Like many other countries in the world, the

establishment and implementation of a video surveillance system in public

spaces involve substantial investments and resources from the local
government authorities.
Accordingly, it is essential to take into considerations the impact and costs
that will be incurred. Usually, this also includes a considerable amount of
planning and technical consultation and considerations required before the
process of implementation Determining factors of cost on the SIOC system
are ascertained by first answering the who and what is being monitored, the
purpose and time period factor. The objective is to find the right system and
technology to suit the objectives and specific needs. Secondly, stakeholders
and key players involved. Thirdly, the direct investment requirement and the
source of fund to satisfy the first two questions.
SIOC platform cost include initial funding and ongoing maintenance which
can be divided into Capital Expenditure (Capex) and Operational Expenditure
(Opex). The high-level breakdown is as depicted below:
To have a better understanding of how
Design
cost benefit analysis can be derived, it is
Hardware
SIOC Cost Structure
Capex important to make clarification on the

Software management model for SIOC. There are
Infrastructure numerous surveillance deployment
management models that can be
Manpower
adopted by the Authority for Sarawak.
Premise
Opex The types of management
Utility models depend on the
O&M following:
Figure 4: SIOC Cost Structure • Who will fund the

provision of SIOC
platform and video surveillance system?;
• Who will procure the SIOC platform, equipment and video surveillance
system?; and
• Who will install, operate and maintain the SIOC platform, equipment and
video surveillance system?

In general, global trends show three generic types of management models in

the public video surveillance systems and services deployment:
1. Model 1 - Local Authority Funded And Operated

This model solely involves the local government authority in the whole
deployment process from acquiring, operating, managing and
maintaining the system; and
2. Model 2 – Local Authority Funded And Private Operated
Model two is often a project initiated, designed and owned by the local
government authority with a contract between the local government
authorities and the systems provider to operate and maintain the system
for an agreed time period.
3. Model 3 – Public-Private Operated Video Surveillance
Model three is often a joint-partnership between the local government
authority and an external private service provider with the alternative to
purchase or lease the camera by the local government authority.
In the context of SIOC, Model 2 is applied as Model 1 relies solely on the

capacity and capability of SMA whilst Model 3 purchase and lease option is
totally irrelevant. SMA, as the authority, is the prime owner of SIOC and the
video surveillance systems and services. This is due to the fact that the wide
deployment of video surveillance in large areas is a costly project and can
only be undertaken by the State. Thus, the design, acquisition of video
surveillance systems and equipment for SIOC will be part of the capital
expenditure. The apparent advantage is it gives the Authority greater control
over SIOC and the overall infrastructure. In short, this model entails the
surveillance equipment purchased and owned by the Authority and alongside
the responsibility for the in-house operation, management and monitoring of
the video surveillance systems.
Nevertheless, as the industry grows and technology advances, the

surveillance systems is becoming more elaborate and complex. There is a
need to engage qualified operator with technical expertise in video
surveillance systems and technology in a joint-effort with the local authorities
for operation and maintenance (O&M) of SIOC. In this case, the Authorities
shall contract a qualified operator with appropriate expertise to undertake the

development and provision of SIOC systems in terms of project

management, installation and O&M of the systems.
SIOC operating cost involving the SIOC premise space, infra, utility and the
operator’s scope of work are the only cost in contention where this business
plan is concerned as the Capex has been provisioned by the authority.
1.1.9 Revenue Model
The service offering(packages) is also the revenue source for SIOC. One
size does not fit all, which is why the packages is tailored to suit each market
segment needs. Identification of multiple methods of generating revenues,
payment channels, and payment forms is vital to ensure revenue streams are
able to subsidise or sustain SIOC operations. The table below matches the
market with the packages.
Market Packages Revenue Reasoning
Segment Model
Governme Full VSaaS Subscription • Predominantly BYOC
nt (Yearly basis) model
• Centralised management
and shared resources
lower the State’s overall
expenditure on CCTV
systems
Enterprise Limited Subscription • Strictly BYOC model
VSaaS (Yearly basis) • Shared resources and
CitizenApp managed security lower
CCTV entry cost and
reduces insurance
premium
Public Limited Subscription • Preferred BYOC model
VSaaS (Freemium) • Shared resources and
CitizenApps managed security lower
CCTV entry cost
Table 2: Revenue Model
VSaaS: Video Surveillance As a Service

BYOC: Bring Your Own Camera model allow IP-based network video
cameras to allow interoperable plug-and-play communication standards
between camera and SIOC platform.

I. Subscription services
Subscription
The Government agencies are entitled to the benefit of having the
privilege access to certain SIOC features at minimal subscription
charge. Depending on cases, request for subscription fee waiver must
be made with official letter and subject to SMA’s approval.
Enterprise customers are entitled to the benefit of having the privilege

access to certain SIOC CCTV cameras and selected SIOC features at
affordable subscription charges. BYOC integration with SIOC for
monitoring by the SIOC team will involve monthly subscription fees as
well as one off integration fee charged to the enterprise.
Freemium
Users are offered with both complementary and extra-cost services.
SIOC will provide simple and basic services for free and would also
offer advanced services or features at a premium. The freemium
services features offered to the user for free are:
a) Limited duration of CCTV lives and recorded footage from
selected CCTV at a certain location. The duration may be
limited up to 10 seconds of live footage and users may view
the past one week recorded footage for 10 seconds.
b) No access for video analysis and image processing of CCTV
footage.
Freemium premium(paid) users are entitled to monthly access of:

a) Access to unlimited footage of live and recorded duration from
selected CCTV at selected location, subject to permit.
b) A limited number of video analysis and image processing of
selected CCTV footages, subject to permit. Video analysis and
image processing are limited to 20 results per month.

II. Advertisement through Citizen App

Businesses are allowed to place advertisements through CitizenApp
for a fee. The mechanism for the advertisement will follow the google
ads as execution benchmark.

SIOC SWOT Analysis
SWOT analysis is applied to SIOC to assist SMA to have full awareness of all possible factors in making strategic and operational
decisions.
December 2020 17 / 22 555845119.docx

T
able 3: SWOT Analysis
December 2020 18 / 22 555845119.docx

Return-On-Investment and Cost -Benefit Analysis
1.2 Return-On-Investment
The operating and maintenance cost for SIOC are to be covered by the revenue
generated from the business plan revenue model. In the first two years of
implementation, rather than taking the stance on Return on Investment, it would be a
more realistic proposition to focus on Return of Investment, which are mostly intangible
such as reduction in crime rate or public safety index. Taking a conservative approach,
the subscription revenue will not be as significant in the first two years due to the public
awareness, acceptance and willingness to pay is still nurturing.
Similar to SarawakPay, CitizenApp would require some time for the masses to start
using. With Freemium, there will be a pull factor for the end user to pay for service. As
a benchmark to gauge Sarawak citizen towards state government initiative to apply
mobile app as a medium in a government-citizen relationship, one of the widely used
mobile app in Sarawak is SarawakPay. Data from Google Pay shows that Sarawak Pay
has been downloaded over 100,000 times, which indicates a healthy response.
Leveraging on SarawakID registrants and integration with SarawakPay, CitizenApp
could take advantage of cross marketing and share the same user base.
1.3 Cost-Benefit Analysis
The cost-benefit is more apparent where the utility of money as an investment is

returned through the realization of the following benefits:
Deterrence Installing surveillance cameras can discourage
potential offenders
Efficiency in security With such cameras, authorities can gauge if police
deployment assistance is required, this avoiding false alarms
incurring unnecessary police resources
Self-disciplining offenders Potential victims are reminded of the risk of crime
& victims whereas offenders are disciplined through fear of
being watched
Detection Video recordings of crimes and offences can be
used to punish, remove offenders or used as
evidence in court
December 2020 19 / 22 555845119.docx

Table 4: Cost-Benefit Analysis
Conclusion
SIOC implementation is on the right track to be successful given the widespread adoption of
technology, increasing public demand for security, applying the right marketing strategy and
the unrelenting commitment by the State to prioritise safety and security.
There also exist an ever-increasing need for safety assurance; whether retailers are
monitoring shoplifters or employee theft, police observing traffic, government or city council
keeping an eye on pedestrians, combating street crimes and terrorism or individuals
protecting their home, the benefit of an effective video surveillance system.
SIOC is poised to meet its objectives provided every stakeholder carry out their roles
responsibly and collaborate among each other for a single purpose to benefit the State and
its citizen.
December 2020 20 / 22 555845119.docx


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Tender No: SMA/T/2020/11/13

DEVELOPMENT, SUPPLY, DELIVERY, INSTALLATION, TESTING, COMMISSIONING,

Tender No: SMA/T/2020/11/13

December 2020 0 / 22 555845119.docx

1.1 Business Model Canvas............................................................................................3

SIOC SWOT Analysis....................................................................................................17

Return-On-Investment and Cost -Benefit Analysis...................................................18

1.3 Cost-Benefit Analysis..............................................................................................18

December 2020 1 / 22 555845119.docx

SIOC enabler includes the implementation of a significant number of video

© 2020, Sarawak Government. All rights reserved.

1.1 Business Model Canvas

© 2020, Sarawak Government. All rights reserved.

Figure 1: Business Model Canvas

Created value propositions shall be delivered to customer through elements customer

1.1.1 Key Partners

1. Sarawak Multimedia Authority (SMA)

2. Polis Diraja Malaysia Kontinjen Sarawak (PDRM)

© 2020, Sarawak Government. All rights reserved.

4. Sarawak Energy Berhad (SEB)

6. Sarawak Department of Irrigation and Drainage (DID)

1.1.2 Key Activities

1. Surveillance and public safety monitoring

The main SIOC establishment objective which consist of establishing a

© 2020, Sarawak Government. All rights reserved.

1.1.3 Key Resources

Figure 1: Key Resources

The key resources today go beyond a simple system of analogue cameras

© 2020, Sarawak Government. All rights reserved.

1.1.4 Value Proposition

In addition to the advantages of SIOC as referenced in the SWOT Analysis,

i. Prevention of any potential trouble – SIOC provides assurance or safe

iv. Protecting public and private properties - SIOC is provided as a facility

v. Maintenance of city centres - SIOC assist local authorities in monitoring

vii. Traffic management – SIOC can aid traffic management, accident or

© 2020, Sarawak Government. All rights reserved.

1.1.5 Customer Relationship

Customer relationship is to identify the interaction type with customers with

1. Automation where possible

1.1.6 SIOC Channels

© 2020, Sarawak Government. All rights reserved.

4. Press – News releases or featured articles such as in Borneo Post or

1.1.7 Customer Segments

The customer segments in the video surveillance industry are diverse or

Recreational parks and public amenities, schools and universities, prisons

Manufacturing plants - Communication infrastructure, utility plants,

Locals safety and ease of mind

Figure 3: Customer Segments

1.1.8 Cost Structure

The deployment of video surveillance systems in a large public space is

© 2020, Sarawak Government. All rights reserved.

establishment and implementation of a video surveillance system in public

Capex important to make clarification on the

Figure 4: SIOC Cost Structure • Who will fund the

© 2020, Sarawak Government. All rights reserved.

In general, global trends show three generic types of management models in

1. Model 1 - Local Authority Funded And Operated

In the context of SIOC, Model 2 is applied as Model 1 relies solely on the

Nevertheless, as the industry grows and technology advances, the

© 2020, Sarawak Government. All rights reserved.

development and provision of SIOC systems in terms of project

1.1.9 Revenue Model

VSaaS: Video Surveillance As a Service