Submission BCS
This solution is not just a vehicle to reduce the carbon footprint of the rider but also a technology-embedded vehicle to make the ride enjoyable and seamless. Take care of your vehicle the right way.
Submission Date & Time: 2021-10-19 03:37:27
Event Name: NMO S4 Sprint One
Solution Submitted By: Komal Shripad Jangale
Assignment Taken
Prepare an annual operating plan for the Financial year 2021-22, market-entry, distribution strategy and brand building plan. USP of the vehicle and how it would generate salesCase Understanding
With the growth and awareness of the renewable energy sector, customers are now more aware of their footprint than ever. They are now demanding vehicles that will help them travel smarter and contribute to saving the environment. New initiatives taken by the Indian Government to support the industries and technology growth in this sector and act keeping the SDGs in mind, subsidies are provided to increase the acceptance of such innovative solutions. This case is regarding a scenario when a team of enthusiastic entrepreneurs with prior industry exposure and knowledge about electric vehicles want to start the production of electric vehicles. Limited cash available to put into the business, they have to find ways to optimize their solutions yet make sure that their company sells as much as they produce during a stipulated time. They have options for fundraising. Some of them are already experienced in marketing and other engineering specializations. They are to start the operations and plan for the upcoming five years.BCS Solution Summary
With the customers demanding more innovative and intelligent devices, there is a need to provide intelligent vehicles which cater to each individual's demands in a unique way. This is only possible when the customer's preferences are understood, and the offerings are changed from time to time to suit the customer's requirements. The solution should be a mobile application that connects with the rider's previous rides data and can predict the future events and performance required. This will help to cater to each rider in the best possible way using AI. The mobile application will help the rider quantify the amount of distance that can be travelled before the battery runs off. It can also track the health of the vehicle and show alerts on suspected breakdowns. For the production of electric two-wheelers, which are customizable, the components will be outsourced and fitted by skilled personnel in a company-owned warehouse. The customization will be done based on the key performance parameters like battery capacity, motor power etc. Other superficial customizations like slight alterations in the design and modifications in the two-wheeler will be done at additional costs. An extensive network of charging stations with collaboration with restaurants, malls, etc. and battery swapping kiosks at significant areas in the city where the riders travel frequently will be set up. The data collected from the mobile application will help cater to the riders better, along with the feedback collected from time to time.Solution
USP:
- Mobile application
- Check the amount of charge left in the battery; how far can you ride
- Monitor vehicle performance
- The health of components & components failure alerts
- Availability of charged batteries at kiosks
- Anti-theft and parking location
- Customizable scooters
A mobile application will help the customers keep track of their vehicle’s important parameters and help them navigate and book battery swapping or battery charging slots in advance. This ease will be preferred by busy customers in the city and will reduce their waiting time significantly. The relevant data collected by the application will provide the customers with the diagnostics, which will further help them maintain the excellent health of their vehicle. The in-built GPS will prove to be helpful for navigation and keep track of the vehicle's location, thus, anti-theft. The extensive network of battery swapping and charging stations will encourage the riders to ride for extended distances as long as they can find a switch to charge the battery or find the kiosks for battery swapping.
Different riders have different requirements. To cater to everyone’s way to ride their bike, customizable variants of the two-wheeler will be provided so that the riders can choose the key features like battery capacity, motor power, etc. according to their liking.
These above-mentioned features differentiate the offerings from the competitors’ vehicles. As the focus is more on delivering what the customers want when more than 60% of the customers are willing to switch to electric vehicles, this offer becomes lucrative for riders. Most of us have the tendency to want to know more about our belongings. And when it comes to our personal vehicles, we want to take care of them and maintain them. Integration of technology and using collected data to forecast and predict the future for the goodwill attract the customers to the offering.
Business Model:
Key partners -
- Outsourced components (mechanical & electrical)
- Will help focusing on increasing the scalability of the model, efficiency and in customizing the vehicles
- Investors
- Depending on annual targets, fundraising will be required.
- Charging stations
- Battery swapping stations and charging stations are set up in collaboration with restaurants and other commercial spaces. A small space for a kiosk will be required.
Key Activities -
- Assembly of components
- Outsourced components will be assembled into electric two-wheelers in the warehouse of the company.
- Customization
- Variants with slight changes in basic parameters like battery capacity, motor power, etc., according to the customers’ requirements.
- Variation in the design colour and other superficial customization will be provided at the service stations at additional costs.
- Management of charging/exchange kiosks
- Service of swapping the batteries at kiosks will be provided by trained personnel.
- The kiosks’ maintenance will be taken care of by the personnel
Key Resources -
- Funding
- Personal funding
- Investment from fundraising
- Warehouse for assembly
- Assemble outsourced components into electric two-wheeler
- Showrooms for display and sale
- Interaction with the customers where they can look and feel the product and purchase it
- Office space
- Other backend work which would not require interaction with the customers will take place at the office
- Suppliers for components
- Various different suppliers will be contracted
- Multiple components with slight variations will be required to be able to provide customizable offerings
Value Propositions -
- Customized electric bike
- In terms of performance features based on components like battery capacity, motor power, etc.
- In terms of outer design and colour of the vehicle with superficial customizing at additional costs
- Large network of charging/battery exchange stations
- Will help riders to ride around without worrying about the charge in the batteries as there will be charging stations available nearby.
- 5 year battery warranty
- To make sure the customer trust the battery and use the original batteries provided with the vehicle and not switch to other batteries with compromised quality which will again harm the vehicle.
- Continuous health monitoring of the bike
- With the use of the mobile application, riders can always stay connected with their vehicle. This will help them plan trips or servicing beforehand.
- Charging port
- As it is not always possible to detach the battery and charge it, the battery can be charged with the charger directly plugged to the vehicle. This feature can be very useful while charging the vehicle in commercial parking areas like restaurants, malls, etc.
- Riding modes using gyroscopic sensors (for inclinations)
- To save the battery power, gyroscopic sensors in the vehicle will alter the amount of torque produced depending on the type of ride. This will smartly gauge the inclination and make spontaneous adjustments as requires for optimized performance of the vehicle.
Customer Relationships -
- Mobile Application
- Customer Service centres
- Kiosks
- Pick-up and drop-off servicing
Channels -
- Social Media
- Distribution Outlets
- Battery recharge kiosks
Customer Segments -
- 21-45 years
- Daily users (within the city for shorter distances)
- Tier 1 and Tier 2 cities
Cost Structure -
- Engineering components and assembly
- Service
- Warranty
Revenue Streams -
- Charging stations
- Sale of bikes
- Customization of new or sold bikes
- Servicing of components
Operating Plan:
- Objectives:
- Provide customizable and technology-embedded electric two-wheeler for daily commute
- Provide accessible network of battery charging and swapping stations across the city
- Continuous monitoring of the components of the vehicle for seamless experience
- Activities
- Assembling of components
- Sales and Marketing
- Vehicle servicing
- Maintenance of charging stations
- IT Support
- Customer Care Service
- Desired Outcomes
- Sale in years:
- 1 - 7500 units
- 2 - 8250 units
- 3 - 9000 units
- 4 - 10000 units
- 5 - 11000 units
- Revenue growth
- Average price - 1.25L/unit
- ***COGS and other expenses - ***/ unit
- CAGR - 20%
- Expansion to other Tier 1 and Tier 2 cities
- Assumptions:
- Market growth - 10%
- Considering the total sale of electric two-wheelers in the industry. We expect to sell around 25 vehicles everyday. This assumption is an average for the 5-years.
- Sale in years:
- Quality Standards
- ISO 7176-1:1999
- ISO 7176-2:2001
- ISO 7176-3:2003
- ISO 7176-4:2008
- ISO 7176-5:2008
- ISO 7176-6:2001
- ISO 7176-7:1998
- ISO 7176-8:1998
- ISO 7176-9:2009
- ISO 7176-10:2008
- BS EN 12184:2009
- These are the standards made mandatory by the government
- Staffing/Resource Requirements
- 2 Mechanical Engineers
- 1 Electrical Engineer
- 2 Marketing domain (Automobile)
- 1 Computer Science Engineer
- 2 MBA
- 50 Workers in warehouse
- Security and hospitality staff - 10
- Associates - 15
- Timetables
- Monthly plans
- Production and sale of 625 units per month
- Charging stations - 30
- Mobile application software updates
- Showrooms and service centres - 1 or 2 (1.25)
- Revenue goals - ***
- Sales & Marketing - ***
- Monthly plans
- Process for monitoring progress
- Installation of kiosks
- Number of units produced and sold
- Customer satisfaction feedback
- Customer complaints
- Data collected from the mobile application
- Number of kms travelled
- Usage type
- Health of vehicle components
- Location of demand of battery swap from bookings
Conclusion
Assuming the production and sales go according to the forecasted data, the model can be expanded to more than one city in a few years. The revenue collected can also be invested in R&D to increase the battery capacity and reduce the frequency of swapping required. It is a new market and holds a lot of potential for new businesses to enter. With the growing technology, soon, we will be able to deliver customized two-wheelers across India.Attached File Details
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Article Type: Business Case Scenario, Case Study Solution Submission
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