Ricardo supported a technology company in identifying high value connected services and conducive market segments to enable swift market entry

Ricardo supported a technology company in identifying high value connected services and conducive market segments to enable swift market entry

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