mAutomotive Aftermarket
DEPLOYING AFTERMARKET SOLUTIONS
Challenges and Opportunities
Presented by: Zaim Azrak
CEO, Location Solutions
Date:
20 November 2013
©2013, Location Solutions
Your World Within Reach!
Agenda
•
•
•
•
•
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.
© 2013 Location Solutions
Your World Within Reach!
2
LS in brief
History
Since 2004
Specialty &
Expertise
Regional &
International
Presence
• Regional HQ:
Dubai
• Development HQ:
Rotterdam
• Fleet
• Regional Offices:
Management
Abu Dhabi,
Solutions
Riyadh, Jeddah,
• AVL - Vehicle
Doha, Cairo, and
Tracking Solutions
Beirut
• Telematics &
• US Office: Detroit
M2M Services
Aftermarket
Provider of:
© 2013 Location Solutions
Your World Within Reach!
Industries
we serve
•
•
•
•
•
Market
Position
Automotive
• One of the
Transportation
leading and
Logistics
fastest growing
Construction
Telematics
Oil & Gas
Service
Providers in the
GCC
3
© 2013 Location Solutions
Your World Within Reach!
ATM Tracking
Student Tracking
Car Lease & Rental
industry
Container Tracking
(Road Safety & Driving
Behavior)
Oil & Gas
Construction &
Contracting Industry
Refrigerated Cargo
Industry
(Passenger / General)
Transport Industry
Verticals We Serve
And every vertical has its own Pain points, Technical Requirements, and Business Needs
4
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.
1. We are not a
Connectivity
Provider Connectivity is
Provided by
MNOs.
Challenge?
2. We procure Bulk
SIM Cards from
Local,
Prices,Regional,
Absence of
and
International
M2M Platform,
MNOs.
Detailed Billing….
Provisioning Tool
Billing System
SIM Management
Tool
Account & CRM
Management
System
Back
End
Data
Centers
Front
End
+ Accommodate Several Hardware
into a single platform
+ Ability to Customize The Solution
Solution is offered in Several Packages of Subscription-based
Service to the client! All Under One Roof from a Single Supplier
© 2013 Location Solutions
Your World Within Reach!
Sales,
Marketing
& BD
Connectivity
Installation
Team
Telematics
Device
DEVELOPED OUR OWN IN-HOUSE
Technical
& Support
OUR OWN ACCOUNT
SOLID PROCESSES, DEFINED OPERATIONAL
WORKFLOW, AND VALUE CHAIN
WHITE LABELED
Management,
Admin, Accounting
and Collection
Our Business Model
Developers
& Solution
Engineers
Being A mAutomotive Challenge?
Aftermarket Player Regulatory
5
Being A mAutomotive
Aftermarket Player
AUTOMAKERS
CONNECTED VEHICLES / TELEMATICS /
Service Delivery is still
MOBILE AUTOMOTIVE
challenged!
mAutomotive
Provisioning of SIM…
Aftermarket
Regulatory Issues…
Solution
& Service
Provider
Privacy
Policies…
MNOS
What is the Best Business Model?
How are we seen?
Third Party Player Aftermarket Annoyance
Or maybe as:
“Warranty Breachers?”
How are we seen?
Promoter?
Early Adopter?
Niche Player?
 Catalyst 
Just another
Connectivity Client
“A potentially Future
Competitor?”
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.
© 2013 Location Solutions
Your World Within Reach!
6
Challenges for Being An Aftermarket in ME:
Several Factors to Take Into Consideration
Challenge Factors
External Factors
MNOs
Internal Factors
Regulators
 Beyond Control
Self-contained,
Geographically Dispatched
“Smart installation Teams”
Controllable 
Easy to overcome 
 TimeCar
consuming Installation
Dealerships Management
 Can impact our
business
Require Proper 
Management
1. Client requirements
differ (sometimes
Sociodrastically)
Economical
2. Pricing
Factors
of each
3. Penetration
Rate of
new Emerging
GCC country
Technologies varies
Low-Quality
Competition
© 2013 Location Solutions
Your World Within Reach!
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
7
Challenges – MNOs: Service Limitations,
Prices, and Relationship.
MNOs
Expensive
Regulators
Connectivity
Rates
Car
Dealerships
Low-Quality
Competition
No M2M
Platform
SocioEconomical
Factors of each
GCC country
© 2013 Location Solutions
Absence of
Unified
Roaming Rates
Intermittent
Technical
Glitches that
harmed our
image
No Data log
per SIM
Not in Control
of SIM Card
Services
Your World Within Reach!
Not seen as
Technology
Partners yet
SIM billing
starts from day
1 of delivery
Intermittent
Billing
Problems
Replenishment
of SIM is a
slow process
8
Challenges – Regulators: Privacy
Policies, GCC-wide Standardization…
MNOs
Absence of
Unified
Approval
Regulators
Process across
GCC
Car
Dealerships
Low-Quality
Competition
SocioEconomical
Factors of each
GCC country
© 2013 Location Solutions
High Approval
fees in some
countries
Privacy Policies
are of high
concern in
some countries
Should Play a
significant role
in unifying
roaming rates
in GCC
Lack of Trust in
Private
Telematics
Service
Providers
Your World Within Reach!
Cumbersome
Submission
Process
sometimes
Better Control
on illegal and
unregistered
competitors
Regulatory
Policies and
mandates can
vary drastically
9
Challenges - Relationship with
Car Dealerships
MNOs
Too much
worried about
Regulators
Warranty Breach
even for OBD
devices
Car
Dealerships
Low-Quality
Competition
SocioEconomical
Factors of each
GCC country
© 2013 Location Solutions
Fleet Sales
Managers do not
see the value
proposition yet
to promote it
Cannot adopt
any solution
without his
manufacturer
approval
Some dealers
lack the proper
technical
knowledge
about Telematics
They come back
to us only when
a corporate
client requires
the solution
Your World Within Reach!
Dealers are
conservative
with aftermarket
products: Tint
Film and that’s
it!
They should be
an active
stakeholder in
this ecosystem
10
Challenges - Facing
Low-Quality Competition
MNOs
Market flooded
Regulators
with low-quality
cheap devices
Car
Dealerships
Low-Quality
Competition
Low prices with
barely no
margins to
sustain their
business
SocioEconomical
Factors of each
GCC country
© 2013 Location Solutions
Hardware that
may affect the
car electronics
Outsourced
installers –
Higher Risk &
Liability
Usually a one or
two-man-show
company
Import devices
without Telecom
Regulatory
approvals
Your World Within Reach!
Very limited or
zero after-sales
support
They sell IT
Solutions and
not focused on
Telematics
11
Challenges - Different Socio-Economical
Factors among GCC countries
MNOs
Solution
Requirement
differs from
Regulators
country to
another
Car
Dealerships
Low-Quality
Competition
Diesel
monitoring is
not looked after
in KSA, while in
UAE it is.
Pricing of Subscription
Packages differ from
country to another
due to MNO Rates,
Competition, and
Internal Expenses
Web UserInterface must
support
multiplelanguages
SocioEconomical
Factors of each
GCC country
© 2013 Location Solutions
Detecting of
Idling in UAE is a
prime feature, in
KSA it is not!
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!
12
Opportunities for Being an Aftermarket in the
ME: Sweet Spot for Emerging Technologies
The MENA region and the GCC in particular are considered to be a Sweet
Spot for the Emerging Technologies
Backbone of
Wireless
Technologies
3G/4G (LTE) and
widely spread
GPRS connectivity
Promising Market for
Automotive Telematics
Solutions
Internet / Smartphones
and Tablets high
Penetration
Sustainable Economy and transformation from Oil-dependant
economy to knowledge-based economy. Modern Trade &
Logistics hub
© 2013 Location Solutions
Your World Within Reach!
A solid road transportation
infrastructure
13
Opportunities are increasing due to
several factors
High Dependence
on Vehicles for
Land Transport
FLEET OPTIMIZATION, MANAGEMENT, UTILIZATION,
SAFETY, SECURITY, VISIBILITY, DATA, REDUCTION IN
RUNNING COSTS
Technology
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
Environment
Harsh Climate Condition, Vast Distances, Absence of
Road Landmarks, Heat
Government
Support for New
initiatives
Local Authorities are rapidly adopting Telematics solutions
to enhance road safety, limit accidents, increase public
safety, promote sustainable transport, and optimize traffic
© 2013 Location Solutions
Your World Within Reach!
14
Opportunities are increasing due to
several factors
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.
Construction &
Contracting
GCC countries are promoting knowledge-base economy; Service,
Manufacturing, Trade, Science/R&D firms are establishing
themselves in the region.
Transition towards a
knowledge-based
economy
Highly depended on Land Transportation. Road Safety is the
PRIME concern for the QHSE department in government-owned
Oil & Gas operators and regulators.
The Oil & Gas
Sector
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
Multicultural
Society
© 2013 Location Solutions
Your World Within Reach!
15
The Stakeholders of an Emerging Eco-System
of Services in the Middle East - The M2M
Automakers &
Dealerships
Banking &
Finance
Car Lease &
Rental Firms
Government
Consumer
Insurance
Vehicle
Recovery
Service
Fleet Owners
(Corporate EndCustomers)
The Beneficiaries
Telematics
Hardware
Vendors
MNOs
Telematics
Solution/Service
Provider
The Cloud /
Repository
The Technology Providers
© 2013 Location Solutions
Your World Within Reach!
16
• What is the Future holding?
o Connected Living
o Smart Cities
o Internet of Things
o Big Data
Thank You
© 2013 Location Solutions
Your World Within Reach!
17
Descargar

mAutomotive Aftermarket