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Executive Summary

Anti-theft and key reminder preventive feature through Call alerts, ON/OFF
Engagement capability, GPS tracking etc. Key reminder alerts after 10 mins of incumbent key
in motorcycle.

Functionality Fuel theft and leakage sensors that notifies owner through mobile alerts.

Genuine bike conditions data which can be bought online at the time of resell
or valuation at a fixed price to benefit both sides.

Rural/Sub urban geography data collected through GPS sensor can be used for
Monetisation map creation. This data can be monetised by selling it to government/private
companies.

Information gathered such as traffic patterns, pedestrian data and road


conditions can be sold to government and Infrastructure companies.
- SMART BIKE
Anti-theft and key reminder preventive feature through Call alerts, ON/OFF
capability, GPS tracking etc. Key reminder alerts after 10 mins of incumbent key in
motorcycle.

ENGAGEMENT

3
Engagement Functionality Monetisation

- SMART BIKE
 Accelerometer  Key input and the accelerometer are connected to the microcontroller
Hero Accessory  If the bike is not moving and the key input is high, after a timer of 10 minutes the biker will
 Microcontroller Unit receive an alert on his/her mobile phone using the GSM module, which is a part of the hero
 GSM Module accessory unit and is also connected to the microcontroller

Key Input Implementation Logic


Key
Action to remind driver about keys
Microcontroller GSM Module
The GSM Module alerts the driver about the key that is forgotten
in the bike. The timer of the alert can be calibrated. The
Accelerometer microcontroller output can also be attached to the horn.

 Hero Android Application: Using the Accessory Code, the user can access the
Biker
RiderArrives
parks at
histhe
bike
Parking
and leaves
station information on the application and monitor data like speed and braking pattern,
location tracking, any movement that is detected on the bike.
But, he forgets to remove the keys   Hero Mobile Website/ Desktop Website: Using the Accessory Code, the user can
access all the above mentioned feature
 The user will also be informed about any unknown activity on their vehicle through
Nothing to worry about!! SMS
4
 The Accessory can be plugged into the bike as per the customer’s choice
Engagement Functionality Monetisation

- SMART BIKE Location Tracking Ignition Detection


Implementation Logic

Engine On /Off SMS on


via Phone Vehicle Alert

Hero Accessory unit Attach to the Bike Hero Bike with features

Value Proposition Competitive Advantage Speed and Braking Movement Detection

 If these features are able to extend the life  First mover to provide features and
expectancy of a bike (costing Rs.50,000 with functionalities demanded by current
an expected life of 10 years) even a single generation users
year, customer perceives it as a saving of Rs.  Positive Image of Hero in terms of Safety in
5000 per annum 5
addition to Quality
Engagement Functionality Monetisation

Business Model Risks and Challenges


KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
PROPOSITIONS RELATIONSHIP SEGMENTS  Training and Development of the
• Accessory • Accessory • Key Reminder • dealer network as the process will be
• Buying side Potential of
Unit Supplier Plug-In and Alerts involve more of consultative selling
Relationship approx. 29
(Bosch, Super Setup • Anti-theft system billions INR
• Partner 
Safe, etc.) with multiple Telecom network unavailability can
relationship delay on time message delivery to the
• IT partners features like • Assuming
• Website and location tracking, customer
conversion of
mobile app ignition 1% initially
• KEY RESOURCES detection, CHANNELS  Integration of the device performance
Developers
• Telecom speeding • Tier 1 and 2 with the existing IT system to create an
• Dealer resource • Hero Dealers
Operators breaking and entire ecosystem for the customer
utilization • Website customers will
• Report portal movement alert • Mobile App be targeted
• On Mobile alert  Imitation by competitors
online mainly
• IT partners using SMS or
• App/Online
Accessory Unit
Use Cases

COST STRUCTURE REVENUE STREAM Monitor data & access your vehicle in case
• Accessory Unit cost • Target revenue INR 29 crore of Theft attempt ; Friend borrows your
• IT setup cost • Revenue can vary as per the vehicle ; People tampering with the parked
• Telecom setup Cost price of the accessory charged Revenue Stream vehicle, etc.
Costing
- Fuel Safe
Fuel theft and leakage sensor that notifies owner through mobile alerts.

FUNCTIONALITY

7
Engagement Functionality Monetisation

Overview
- Fuel Safe
Primary Research
Fuel theft/ Leakage
 Hero Fuel Safe serves the purpose of informing the
user about the reduction in fuel level over a specific
USER CONCERNS
73
time which can be either due to leakage or theft
Timely Notification Performance
 It makes use of the GSM technology to inform the 61
39
user on their mobile

 The time over which the fuel level reduction is


measured can be calibrated 67
91
 User can take the action on time thereby reducing
the loss incurred Key Loss Bike Safety

 The output to the microcontroller can also be


 Our primary research says, 73% of the bikers
attached to the horn for raising an alarm
have fuel theft or leakage as one of the major
concerns
 Video Tutorials will also be available for the user in
the Hero App/website to provide temporary
 Thus, a solution to know reduction in fuel
solutions for the leakage issues
level in specific time was required
8
Engagement Functionality Monetisation

- Fuel Safe
Implementation Logic

The Logic behind the working of Hero Fuel Safe is simple


The same logic can be applied
for detection of leakage
 Tank fuel level is monitored during vehicle stand still. Vehicle stand still can be
identified through information from the accelerometer
 Input from the level sensor
is monitored for a longer
 Input from the tank level sensor shows sudden dip in the fuel level within a duration Alert !!
duration say 1 hour during
of 5 minutes Fuel Leakage
stand still
 After combining and processing information from accelerometer and tank level
 If there is a dip in level
sensor, microcontroller sends the signal to GSM Module
beyond a tolerance limit,
leakage is identified and
 The driver is informed for possibility of fuel theft through GSM on his mobile and
the driver is informed
requested to take appropriate action

Fuel Level Sensor


Alert send on phone to
Microcontroller GSM take appropriate action
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Process getting Initiated Accelerometer
Business Model Value Proposition

KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER 73% of the users are worried about fuel
PROPOSITIONS RELATIONSHIP SEGMENTS theft/leakage back of their mind. Timely alert
to such a problem provides them relief from
• GSM Module • Module Plug- • Fuel Theft alert their worries and thus adds value to the Hero
• Buying side • Assuming
(Bosch, Super In and Setup and fuel leakage experience
Relationship conversion of
Safe, etc.) alert
• Partner 2% initially
• IT partners relationship Competitive Advantage
• Website and • Tier 1 and 2
mobile app customers will  First Mover to provide such a solution to
• Developers KEY RESOURCES CHANNELS be targeted
its customers
• Telecom mainly 
• Dealer resource • Hero Dealers Positive Image of Hero in terms of Safety
Operators in addition to Quality
utilization • Website
• Online portal • Mobile App
• IT partners Risks and Challenges
• GSM Module
 Telecom network unavailability can delay
on time message delivery to the customer
COST STRUCTURE REVENUE STREAM and thus, hamper the entire reason for
having such a device installed
• GSM Module cost • Revenue can vary as per the price  Integration into the existing IT system to
• IT setup cost of the add-on functionality notify the user on time
• Telecom setup Cost • Target revenue INR 13 crore Revenue Stream
Costing  Imitation by competitors
Pre-own
Genuine bike conditions data which can be bought online at the time of resell or
valuation at a fixed price to benefit both sides.

MONETISATION
Engagement Functionality Monetisation

Used Two Wheeler Market Expected to


Grow over 20% in the Coming Years: Used Bike Customer concern
Ken Research
*Source: Ken Research Factors Biggest concern Least concern
1 Transparency in pricing 28% 14%
Used Bike Market Size
2 Post purchase services 16% 22%
25 3 Trust in delivery or Quality 24% 16%
(in millions)

20 4 Ease of buying used bikes 20% 18%


5 Insurance coverage 12% 15%
15
*Primary research conducted by our Team among 50 bike users
10

5
Creating credible ECOSYSTEM
0
2015 2016 2017 2018 2019 2020
1. Verified bike and documentation a necessity to list the vehicle
2. Review report on each bike available on HERO PORTAL
At 10.3 million units, India's pre-owned two-wheeler market is bigger than the
3. Warranty period based on HERO review on the bike
entire African continent's new two-wheeler industry
Vehicle documentation and legal aspect verification
Competitive Landscape
Hero Expert valuation of used vehicle on credible scorecard

Extended warranty period based on vehicle conditions

Addition services like loan felicitation via Hero FinCorp


Engagement Functionality Monetisation

Bike Sell Side Bike Buy Side KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
Charge High Charge Low
• Low charge as to • Hero • Performance PROPOSITIONS RELATIONSHIP SEGMENTS
M
engage more Dealership review and • Verified bike
• Hero Brand O • Buy side • Market
buyers • IT partners Data point and
credibility N relationship potential for
• Additional • Website and analysis documentation. •
• Platform for E Sell side used bike are
services includes mobile app • Platform for • Review report
interaction TI relationship 10.3 millions
• Bike PM • developers Used Bikes on each bike
• Right valuation S • Partner units in year
• Financial available on relationship
• Online database A 2017
TI Aids HERO PORTAL. • Valuation of
• Customer KEY RESOURCES • Warranty CHANNELS
O market is 10-12
N engaged by period based
• Dealer resource • Hero Dealers billion dollars
credible on HERO review •
utilization Website • Growth rate is
ecosystem .
• Report portal • Mobile App around 20% :
Credibility ScoreCard • Financial facility Ken research
online
Sr.no. Analysis of HERO Expert’s Review through HERO • Tier 2 and 3 will
• IT partners
1 Performance 22% FinCorp. be targeted
2 Interior 11%
3 Critic’s Opinion 11% COST STRUCTURE REVENUE STREAM
Sr.no. Analysis of Data Points • Dealer space • Selling charges
1 Safety 19% cost • Buying charges
Cost Structure Revenue Stream
• IT setup cost • Addition services
2 Reliability 17% Calculation
• Per report cost • Target revenue INR 69
3 Total cost of ownership 20% around INR 450 crore
Engagement Functionality Monetisation

One Click Solution to Pre Owned Bikes

Features Competitive Advantage Risk and Challenges


• Annual subscription model for the portal • Robust distribution network all • Establishing independent business
[ INR 1000/- ] across the geography can be unit from start
• Access to all credible reports of available capitalized • Marketing expense required for
bikes near by • High perceived resell value of used creating awareness in the market
• Transparent valuation and pricing Hero bikes [Resell value] • High initial investment required
• One stop solution to all legal and financial • Capturing unorganized market for • Aggregation of biker seller to kick
aids pre owned bikes start the business
• May cannibalize new bike sales
- GIS
Rural/Sub urban geography data collected through GPS sensor can be used for map
creation. This data can be monetised by selling it to government/private companies

MONETISATION
Engagement Functionality Monetisation

Roads/ Bridges Infrastructure value in India (US$ Creating Map from GPS Data Outlay of roads under respective union budgets
billions) Geo-informatics changes the face of rural road (US$ Billions)
16
development in Rajasthan
14.5 16 14.5 14.67
14 CAGR 13.6% 14
Optimized the The GIS database
12 The development developed also 12
10
cost of road of Web GIS has enabled other 10
8 7.8 construction by allowed complete 8 7.8
8 6.6 6.5 7.1 providing basic government 8 6.6 6.5 7.1
6 transparency in departments i.e. 6
connectivity system officials to
4 2.8 3.5 3.2 police, transport, 4 2.8 3.5 3.2
using GIS know the updated
2 analysis education, 2
0
status administration etc. 0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Information Gaps for various projects Information Utility


 Smart Cities Mission is an urban renewal and retrofitting program to develop  GIS enables faster workflow.
100 cities  Maintenance and data costs
Funding : 98,000 Crore decreased.
 PMGSY is a nationwide plan in India to provide good all-weather road  GIS maintains the accuracy and
connectivity to unconnected villages accessibility of the digital database.
Funding : 19,000 Crore [ 2017-18 ]  Oversight of land development and
 Delhi-Mumbai Industrial Corridor Project is a planned industrial development environmental impact is aided by GIS.
project between India's capital, Delhi and its financial hub, Mumbai  The compatibility of data aids
Funding : 17,500 Crore cooperation between agencies
GPS enabled
Engagement Functionality Monetisation

Sensor collecting KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER


geographical data • GIS data PROPOSITIONS RELATIONSHIP SEGMENTS
• IT Partners
• GIS Partners collection into • To make existing • Dedicated • Government
• Data Analytics the server maps more direct sales agency
partners • Creating Real quickly force • Road
time maps for • To facilitate map • B2B Sales construction
various making and representatives companies
services updating in digital • Transportation
Spatial Mapping using form agency
different design tools KEY RESOURCES • Analysis of the CHANNELS • Google maps
• GPS sensors data that demand • Uber
interaction • Online
• Center of • Ola
• To create maps Analytics
gravity sensors
that is difficult to business
• Lambda
make by hands group
sensors
e.g. 3D maps or • Direct sales
• IT servers
stereoscopic map channel
Creating a repository of
map products for selling
COST STRUCTURE REVENUE STREAM
• Sensor cost • Road bridge development company
• IT server cost • Infrastructure companies
• Data analytics cost Cost Revenue • Online transportation network
• Sales force cost Stream companies
Engagement Functionality Monetisation

Kick Start Campaign


City-wise campaigns
Revenue sharing model One Free Service
For all customer associating with the event

Collect real time


• Partnering with GIS analytics firms data
• Providing service on CONTRACTUAL Basis Central bidding / assisting city
• Aggregation of vehicle enabled with GPS planners / Construction firms
Install GPS
feature in Un-install GPS
aggregated parts
City-wise campaigns vehicles

Features Competitive Advantage Risk and Challenges

1. Developing existing maps 1. Dealership and Franchise all 1. B2B sales force dedicated
more quickly in digital format across the geography for for the department will be
2. Facilitate map making and accessibility required
updating in digital form 2. Huge customer segments in 2. Service quality and worth
3. Analysis of the data that two wheelers has to be made in the
demand interaction 3. Customer segments hugely market
4. To create maps that is difficult covers in rural and remote 3. Aggregation of customer
to make by hands e.g. 3D area where it is needed most will qualify for the
maps or stereoscopic map operating profit
- CITY Analytics
Information gathered such as traffic patterns, pedestrian data and road conditions
can be sold to government and Infrastructure companies

MONETISATION
Engagement Functionality Monetisation

City Analytics

Authority :Union Ministry of Urban


Development
Funding : INR 98,000 crore (US$15 billion)
Scope : Smart Transportation
Smart Waste Management
E – Governance
Infrastructure

Track Your Travelers Tactical fixes for city jams Get a complete overview
• When people are travelling • Variable speed limits • The number of riders in city metro system going
• Where they’re travelling to and from • Adaptive speed limits south
• Where they’re changing A reduction in delay of up to 40 % and • The traffic density on city main bridges, flyovers
• How long it takes increased throughput of up to 60 % etc.
• The occupancy rate of on-street parking spaces
downtown.

Value Propositions
Engagement Functionality Monetisation

KEY PARTNERS KEY ACTIVITIES VALUE PROPOSITIONS CUSTOMER RELATIONSHIP CUSTOMER SEGMENTS
• Data collection into the • Track your travelers • Infrastructure and
• Dedicated direct
• Third party server • Tactical fixes for city sales force civic authorities
Technology • Creating insights using data Jams • B2B Sales
vendors IT • Third party
analytics • Overview of the city • Chief City Planners
representatives
partners- • Monetizing
Technology to key
vendors • Real time traffic
Database stakeholders
providers (IBM,
• Data analytics monitoring CHANNELS • Mobility Provider
• Real time parking
Oracle) company
KEY RESOURCES
monitoring for dynamic • Online Analytics business • Government
• Data analytics • GPS sensors pricing group Institutions
parties ( IBM, EXL • Center of gravity sensors • Better planning of city • Direct sales channel
etc) • Lambda sensors with complete • Business Meetings • Local urban
• IT servers and tools overview • Events development
• Analytics tool • Tenders Authority, MOUD
COST STRUCTURE REVENUE STREAM
• State Traffic
Departments
• One time Sensor Cost 3 Models for Revenue Generation
• • Pay Per Use • City Management
Data Server Cost
• • Subscription Based Centers
Data Analytics Cost
• • One time Pay
Sales force
• Other Administrative cost
City Analytics • State Police
Generating 25 Crore revenue from 1 City Cost_Revenue Sheet departments
Phase 1 – Target group - 20 Smart cities
Note: Sources and detailed costing in Excel
Engagement Functionality Monetisation

Kick Start Campaign


City-wise campaigns
Revenue sharing model One Free Service
For all customer associating with the event

Collect real time


• Partnering with GIS analytics firms data
• Providing service on CONTRACTUAL Basis Central bidding / assisting city
• Aggregation of vehicle enabled with GPS planners / Construction firms
Install GPS
feature in Un-install GPS
aggregated parts
City-wise campaigns vehicles

Competitive Advantage Risk Challenges


1. Largest market of two wheeler 1. Security Risk -Cybersecurity is
1. Customer approval to use their
hence intensity of data the major risk wherein hackers
data and creating ownership of
generated more can misuse the data.
data. Follow Proactive approach
2. Can form Strategic alliance with 2. Regulatory risk with different
2. Having an IT infrastructure
data analytics company and kinds of data.
installation can be a tedious
leverage their existing 3. Contractual sources of risk
task-  Consider forming a
connections which will reduce related to data monetization
separate company or division,
risk due to joint venture which requires careful and
apart from the core business, to
3. Identifying new innovative strict process to be adhered
focus on data monetization
services
Thank You

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