mautomotive aftermarket d eploying aftermarket solutions challenges and opportunities presented by:...
TRANSCRIPT
mAutomotive Aftermarket
DEPLOYING AFTERMARKET SOLUTIONS Challenges and Opportunities
Presented by: Zaim AzrakCEO, Location Solutions
Date: 20 November 2013
©2013, Location Solutions Your World Within Reach!
2
Agenda
© 2013 Location Solutions Your World Within Reach!
• Who is “Location Solutions” (LS)?• Being a “mAutomotive Aftermarket” player• The Challenges in the Middle East• The Opportunities in the Middle East• The Stakeholders of an Emerging Eco-System
of Services in the Middle East.
Your World Within Reach! 3
LS in brief
© 2013 Location Solutions
History
Since 2004
Specialty & Expertise
Aftermarket Provider of:
• Fleet Management Solutions
• AVL - Vehicle Tracking Solutions
• Telematics & M2M Services
Regional & International
Presence
• Regional HQ: Dubai
• Development HQ: Rotterdam
• Regional Offices: Abu Dhabi, Riyadh, Jeddah, Doha, Cairo, and Beirut
• US Office: Detroit
Industries we serve
• Automotive• Transportation• Logistics• Construction• Oil & Gas
Market Position
• One of the leading and fastest growing Telematics Service Providers in the GCC
Your World Within Reach! 4© 2013 Location Solutions
Tran
spor
t Ind
ustr
y (P
asse
nger
/ G
ener
al)
Refr
iger
ated
Car
go
Indu
stry
Cons
truc
tion
&
Cont
racti
ng In
dust
ry
Oil
& G
as(R
oad
Safe
ty &
Driv
ing
Beha
vior
)
Cont
aine
r Tra
ckin
g
Car L
ease
& R
enta
l in
dust
ry
Stud
ent T
rack
ing
ATM
Tra
ckin
g
Verticals We Serve
And every vertical has its own Pain points, Technical Requirements, and Business Needs
Your World Within Reach! 5
Being A mAutomotive Aftermarket Player
© 2013 Location Solutions
Our Business Model
WHITE LABELED
Telematics Device
1. We are not a device manufacturer.
2. We procure the best of what OEMs have to offer.
3. Each model undergoes a solid QA assessment.
4. Hardware is a commodity.
OUR OWN ACCOUNT
Connectivity
1. We are not a Connectivity Provider - Connectivity is Provided by MNOs.
2. We procure Bulk SIM Cards from Local, Regional, and International MNOs.
Data Centers
Provisioning Tool
SIM Management Tool
Front End
Back End
Billing System
Account & CRM Management
System
+ Accommodate Several Hardware into a single platform
+ Ability to Customize The Solution
DEVELOPED OUR OWN IN-HOUSE
Sale
s,
Mar
ketin
g &
BD
Inst
alla
tion
Team
Tech
nica
l &
Sup
port
Deve
lope
rs
& S
oluti
on
Engi
neer
s
Solution is offered in Several Packages of Subscription-based Service to the client! All Under One Roof from a Single Supplier
Man
agem
ent,
Adm
in, A
ccou
nting
and
Colle
ction
SOLI
D P
ROCE
SSES
, DEF
INED
O
PERA
TIO
NAL
WO
RKFL
OW
, AN
D
VALU
E CH
AIN
Regulatory
Prices, Absence of M2M Platform, Detailed Billing….
Challenge?
Challenge?
Your World Within Reach! 6
Being A mAutomotive Aftermarket Player
© 2013 Location Solutions
AUTOMAKERS MNOS
Promoter?Early Adopter?Niche Player? Catalyst
CONNECTED VEHICLES / TELEMATICS / MOBILE
AUTOMOTIVEProvisioning of SIM…
Regulatory Issues…Privacy Policies…
What is the Best Business Model?
Service Delivery is still challenged!
In Fact• We consider ourselves as Industry Leaders• It is NOT important to manufacture telematics devices, equip the vehicle with
telemetry devices, or just offer connectivity it is mostly important to understand what your end-customer needs are and to adapt your services and solutions rapidly.
Third Party Player - Aftermarket Annoyance
Or maybe as:“Warranty Breachers?”
Just another Connectivity Client
“A potentially Future Competitor?”
How are we seen? How are we seen?
mAutomotiveAftermarket
Solution & Service Provider
Your World Within Reach! 7
Challenges for Being An Aftermarket in ME:Several Factors to Take Into Consideration
© 2013 Location Solutions
RegulatorsMNOs
Car Dealerships
Installation Management
Socio-Economical
Factors of each GCC country
Low-Quality Competition
Challenge Factors
Internal FactorsExternal Factors
Beyond Control
Time consuming
Can impact our business
Controllable
Easy to overcome
Require Proper Management
1. Client requirements differ (sometimes drastically)
2. Pricing3. Penetration Rate of
new Emerging Technologies varies
We try to adapt and turn some of these challenges into opportunities:• Innovative Solutions / Additional Features
• Customization• Integration of new Accessories
• Pricing Packages & Payment Methods• …and more
Self-contained, Geographically Dispatched “Smart installation Teams”
Your World Within Reach! 8
Challenges – MNOs: Service Limitations, Prices, and Relationship.
© 2013 Location Solutions
RegulatorsMNOs
Car Dealerships
Socio- Economical
Factors of each GCC country
Low-Quality Competition
Absence of Unified
Roaming Rates
No M2M Platform
Expensive Connectivity
Rates
Not in Control of SIM Card
Services
Intermittent Billing
Problems
No Data log per SIM
SIM billing starts from day
1 of delivery
Not seen as Technology Partners yet
Replenishment of SIM is a
slow process
Intermittent Technical
Glitches that harmed our
image
Your World Within Reach! 9
Challenges – Regulators: Privacy Policies, GCC-wide Standardization…
© 2013 Location Solutions
RegulatorsMNOs
Car Dealerships
Socio- Economical
Factors of each GCC country
Low-Quality Competition
Regulatory Policies and
mandates can vary drastically
Absence of Unified
Approval Process across
GCC
Cumbersome Submission
Process sometimes
Privacy Policies are of high concern in
some countries
High Approval fees in some
countries
Lack of Trust in Private
Telematics Service Providers
Should Play a significant role
in unifying roaming rates
in GCC
Better Control on illegal and unregistered competitors
Your World Within Reach! 10
Challenges - Relationship withCar Dealerships
© 2013 Location Solutions
RegulatorsMNOs
Car Dealerships
Socio- Economical
Factors of each GCC country
Low-Quality Competition
Cannot adopt any solution without his
manufacturer approval
Too much worried about
Warranty Breach even for OBD
devices
Fleet Sales Managers do not
see the value proposition yet to promote it
Dealers are conservative
with aftermarket products: Tint Film and that’s
it!
They come back to us only when
a corporate client requires
the solution
Some dealers lack the proper
technical knowledge
about Telematics
They should be an active
stakeholder in this ecosystem
Your World Within Reach! 11
Challenges - FacingLow-Quality Competition
© 2013 Location Solutions
RegulatorsMNOs
Car Dealerships
Socio- Economical
Factors of each GCC country
Low-Quality Competition
Market flooded with low-quality
cheap devices
Hardware that may affect the car electronics
Low prices with barely no
margins to sustain their
business
Very limited or zero after-sales
support
Outsourced installers –
Higher Risk & Liability
Usually a one or two-man-show
company
Import devices without Telecom
Regulatory approvals
They sell IT Solutions and
not focused on Telematics
Your World Within Reach! 12
Challenges - Different Socio-Economical Factors among GCC countries
© 2013 Location Solutions
RegulatorsMNOs
Car Dealerships
Socio- Economical
Factors of each GCC country
Low-Quality Competition
Solution Requirement differs from country to
another
Detecting of Idling in UAE is a prime feature, in
KSA it is not!
Diesel monitoring is
not looked after in KSA, while in
UAE it is.
Web User-Interface must
support multiple-languages
Pricing of Subscription Packages differ from country to another due to MNO Rates, Competition, and Internal Expenses
Connectivity Coverage is
limited still in some rural areas
Some fleet managers are
conservative and do NOT believe in
technology whatsoever
Your World Within Reach! 13
Opportunities for Being an Aftermarket in the ME: Sweet Spot for Emerging Technologies
© 2013 Location Solutions
The MENA region and the GCC in particular are considered to be a Sweet Spot for the Emerging Technologies
3G/4G (LTE) and widely spread GPRS connectivity
Internet / Smartphones and Tablets high
Penetration
A solid road transportation infrastructure
Sustainable Economy and transformation from Oil-dependant economy to knowledge-based economy. Modern Trade &
Logistics hub
Backbone of Wireless
TechnologiesHigh Demand
Buying P
ower
Promising Market for Automotive Telematics
Solutions
Your World Within Reach! 14
Opportunities are increasing due to several factors
© 2013 Location Solutions
Technology
High Dependence on Vehicles for Land Transport
Government Support for New
initiatives
Environment
2G/3G Availability, Devices: OTA, New Features, Wide Selection of Sensors, OBD-based Devices, Faster Chipsets and GPS/GSM Components, Availability of APIs or Real-time OS inside device
FLEET OPTIMIZATION, MANAGEMENT, UTILIZATION, SAFETY, SECURITY, VISIBILITY, DATA, REDUCTION IN
RUNNING COSTS
Harsh Climate Condition, Vast Distances, Absence of Road Landmarks, Heat
Local Authorities are rapidly adopting Telematics solutions to enhance road safety, limit accidents, increase public
safety, promote sustainable transport, and optimize traffic
Your World Within Reach! 15
Opportunities are increasing due to several factors
© 2013 Location Solutions
Construction & Contracting
Transition towards a knowledge-based
economy
Multicultural Society
The Oil & Gas Sector
Huge increase in the number of commercial vehicles and heavy equipment in the GCC. Requirement for electronic solution that can solve the pain points of plant hire and workshop managers.
GCC countries are promoting knowledge-base economy; Service, Manufacturing, Trade, Science/R&D firms are establishing
themselves in the region.
Highly depended on Land Transportation. Road Safety is the PRIME concern for the QHSE department in government-owned
Oil & Gas operators and regulators.
More then 8 languages are widely spoken in the GCC region.Uneducated drivers form the largest portion of the drivers in GCC: Lack
of proper driving ethics and skills.Blame Culture
Your World Within Reach! 16
The Stakeholders of an Emerging Eco-Systemof Services in the Middle East - The M2M
© 2013 Location Solutions
Telematics Solution/Service
ProviderMNOs
TelematicsHardware Vendors
The Cloud / Repository
Automakers & Dealerships
Fleet Owners (Corporate End-
Customers)
Consumer
The Beneficiaries
Banking & Finance
InsuranceVehicle
Recovery Service
Car Lease & Rental Firms
The Technology Providers
Government
Your World Within Reach! 17
• What is the Future holding?o Connected Livingo Smart Citieso Internet of Thingso Big Data
© 2013 Location Solutions
Thank You