Challenge
With a growing number of data streams available from on-road vehicles, new forays into the commercial vehicle telematics industry must be well-planned, precise, and demonstrably effective. Successful monetization of digital services requires deep understanding of value to the end customer across different market segments. Ricardo evaluated monetary benefits of a suite of connected services and identified high value products and most impactful markets for a technology company.
Approach
- Identified key segments and applications in Light, Medium and Heavy-Duty commercial vehicles
- Surveyed several major commercial fleet operators to understand key operational cost drivers, repair issues, financial impact of downtime and potential benefits of connected telematics features
- Developed detailed Total Cost of Ownership models from commercial fleet perspective including key operational cost factors such as fuel, preventive maintenance, repairs and downtime, insurance and registration
- Evaluated TCO benefits of adopting client’s suite of digital products for commercial fleets across different market segments
Recommendation
- Value of suite of connected offerings in different market segments
- Identified high value features to enable prioritization
- Identified the most conducive markets
- Adaptable tool-set to support assessment of future offerings and markets
Results
- TCO analysis and quantification of key cost drivers in different commercial vehicle applications
- Identified key operational concerns, financial impact of downtime and desirable telematics features for different commercial fleets
- Assessed monetary benefits of each connected offering / feature and overall package to different commercial fleets including sensitivity
- Economic tool-set (TCO Model) for assessment of future offerings and markets