Nghiên cứu và đề xuất mô hình kinh doanh dịch vụ iot giám sát định vị và trống trộm xe máy smart motor tại viettel

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - HOÀNG HÀ ANH RESEARCHING AND PROPOSING BUSINESS MODEL FOR IOT SERVICE - MONITORING THE POSITION AND THEFT PREVENTION OF MOTORBIKES - SMART MOTOR IN VIETTEL NGHIÊN CỨU VÀ ĐỀ XUẤT MƠ HÌNH KINH DOANH DỊCH VỤ IOT - GIÁM SÁT ĐỊNH VỊ VÀ TRỐNG TRỘM XE MÁY - SMART MOTOR TẠI VIETTEL LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH HÀ NỘI - 2020 ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH - HOÀNG HÀ ANH RESEARCHING AND PROPOSING BUSINESS MODEL FOR IOT SERVICE - MONITORING THE POSITION AND THEFT PREVENTION OF MOTORBIKES - SMART MOTOR IN VIETTEL NGHIÊN CỨU VÀ ĐỀ XUẤT MƠ HÌNH KINH DOANH DỊCH VỤ IOT - GIÁM SÁT ĐỊNH VỊ VÀ TRỐNG TRỘM XE MÁY - SMART MOTOR TẠI VIETTEL Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG HÀ NỘI - 2020 DECLARATION The author confirms that the research outcome in the thesis is the result of author‘s independent work during study and research period and it is not yet published in other‘s research and article The other‘s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration i ACKNOWLEDGEMENT To complete this master's thesis with the best results, besides my own efforts, I have received advices and support from many people: Firstly and foremost, I would like to send my deep thanks to Dr Tran Huy Phuong, for his dedication and direction to this thesis At the same time, I would like to thank my colleagues at Viettel Group for helping me with the process of gathering materials, data and sharing practical experiences in the analysis process In addition, I would like to thank Hanoi School of Business and Management, Hanoi National University for the best learning environment for me to get more knowledge and improve professional skills Finally, I would like to express my sincere thanks to my family, friends and teachers for their support and encouragement in my learning, work and life to complete my thesis ii TABLE OF CONTENTS DECLARATION ACKNOWLEDGEMENT ii LIST OF ABBREVIATIONS v LIST OF TABLES vi LIST OF FIGURES vii PREFACE CHAPTER LITERATURE REVIEW 10 1.1 Some basic concepts 10 1.1.1 Internet of Things 10 1.1.2 IoT theft preventation definition 12 1.1.2 Business model 12 1.2 Components of Business Model Canvas 15 1.2.1 Product pillar 17 1.2.2 Customer interface pillar 18 1.2.3 Infrastructure management pillar 19 1.2.4 Financial aspects pillar 20 CHAPTER RESEARCH METHODS AND THESIS DESIGN 22 2.1 Desk Review (Secondary data) 22 2.2 Primary data 22 2.3 Expert Interview 24 2.4 Focus Group 24 2.5 Location and time of study 25 CHAPTER ANALYSIS OF MONITORING POSITIONING AND THEFT PREVENTION SYSTEM FOR MOTORBIKE IN VIETNAM 26 3.1 Overview of Viettel Group 26 3.1.1 Brief introduction of Viettel Group 26 iii 3.1.2 Viettel‘s objectives and Orientation 28 3.1.3 Viewpoint and orientation on product 29 3.2 Overview about IoT Motorcycle Products 31 3.3 Build Canvas Model for IoT Monitoring positioning and theft prevention system for motorbike 33 3.3.1 Overview about positioning and theft prevention system for motorbike 33 3.3.2 Canvas Model for IoT Monitoring positioning and theft prevention system for motorbike 38 3.3.3 Smart Motor analysis of financial and business performance 53 CHAPTER IV RECOMMENDATIONS 56 4.1 Enhance customer proposition 56 4.2 Improve customer segmentation, especially to provincal cities and towns 56 4.3 Promote multi channel product distribution 57 4.4 Strengthen customer relationship 58 4.5 Training a coordinated, cross-functional Team Department which is the most important resource of Smart Motor 58 4.6 Implement retail marketing strategy to attract new customers, develop and expand Smart Motor 59 4.7 Promote Partnership and Cooperation 61 4.8 Define a proper revenue stream 62 4.9 Establish an adequate cost structure 62 4.10 Improve the quality of IoT Platform of Viettel to improve the quality of Smart Motor 63 4.10.1 Develop IoT Platform 63 4.10.2 Improve IoT Connect and infrastructure Technology 63 CONCLUSION 64 REFERENCES 65 iv LIST OF ABBREVIATIONS AEP Application Enablement Platform ARPU Average Revenue Per User BDA Big Data Analytics BI Business Intelligence BML Build – Measure - Learn BSS Bussiness Support Systems CMP Connectivity Management Platform IoE Internet of Energy IoT Internet of things IoV Internet of Vehicles KOLs Key opinion leaders MVP Minimum Viable Product RFID Radio frequency identification RS Revenue Stream SIMs Subscriber Identity Modules VoIP Voice services using IP technology v LIST OF TABLES Table 1.1: Business model canvas elements and descriptions 15 Table 2.1: Interview description 24 Table 3.1: Revenue and profit of Viettel from 2014-2018 28 Table 3.2: Numbers of Motorbike in Vietnam 39 Table 3.3: Viettel‘s price policy for Smart Motor 46 Table 3.4: Total cost of the package 50 Table 3.5: Total cost of solely equipment 50 Table 3.6: Total cost of device including charge package 51 Table 3.7: Expected profit of device with charge package 53 Table 3.8: Expected profit of solely device 54 Table 3.9: Expected profit of the package 54 Table 3.10: Expected financial performance 55 vi LIST OF FIGURES Figure 1.1 Business Model Canvas (Osterwalder and Pigneur, 2010) 14 Figure 3.1: Smart motor Services 34 Figure 3.2: Smart Motor Operation 35 Figure 3.3: IoT value chain .37 Figure 3.4: IoT Vertical Platform 38 vii PREFACE The rationale of the study The stealing of vehicles is a serious social problem for most countries, and Vietnam is also one of the countries with high amount of vehicle theft annually Due to the infrastructure and roads characteristics, as well as the income level, most Vietnamese people use motorcycles as their main means of transportation Therefore, positioning and theft prevention system for motorbike is a total security and fleet management solution for anti-theft It is the application of Internet of Things (IoT) - a system of connected digital devices, each being indentifiable from the others, within a network that can communicate independently without the need for human interaction This technology used to determine the location of a motorbike and alert if there is any suspicision of motorbike theft, which becomes increasingly popular among owners of vehicles as they are able to monitor their motorbike continuously Besides, the demand for positioning and theft prevention system for motorbike is obvious, however, launching a new enterprise—whether it is a tech start-up, a small business, or an initiative within a large telecommunication corporation like Viettel—has always been a hit-or-miss proposition According to Zott and Amit (2010) designing a business model is a key activity for all individuals who have a thought about starting up a business Business model is a starting point for any business to be able to make strategic decisions in the belief that there is an opportunity to create profitable To succeed, it is important that the business model assume to satisfy potential customers needs (Teece, 2010) A lot of research has already been done in this field when looking at single companies but business model in the cluster perspective is a relatively unexplored area of research (Zott & point of receipt of warranty service In order to promote this distribution channel, Viettel needs to develop and calculate a discount policy directly on the purchase price of the device and the SIM appropriately, and pay commissions when indirectly introducing customers from channels: online sales, telesale, direct stores In addition, Viettel also needs regular training on products and services policies to promote and train the ability to approach customer and customer care of this distribution channel 4.4 Strengthen customer relationship Strengthening customer relationship is believed to be the key to gain market share of Smart Motor and create the competitive advantages Enhancing customer relationship of Viettel should focus on two forms: - Personal support: Support in the form of interaction between employees and customers Viettel should focus on improving the attitude and service attitude of employees with customers in order to enhance customer satisfaction with Viettel's services - Professional personal support: professional person are the manager of Viettel's sales agents and sales representatives appointed to handle all needs and questions of the a special customer group Ensuring these individuals perform their duties well will help improve and strengthen relationships with customers In addition, Viettel needs to formalize the customer satisfaction surveys of Smart Motor products in order to understand customers' attitudes, expectations and taste, thereby taking appropriate measures to improve Smart Motor 4.5 Training a coordinated, cross-functional Team Department which is the most important resource of Smart Motor Cross-functional collaboration is a success factor for developing Smart Motor and we should understand that human force is a key element that 58 makes a service competitive in comparision with others The collaboration improves through sharing information that focuses on the organization‘s common goals, sharing resources, improving communication, creating knowledge, trusting and making joint decisions and it is dependent upon technology and organized processes Cross-functional teams reflect the core values of the Group To facilitate collaboration, the development team needs well-defined roles and functions of each department and support the others when needed Besides, Viettel should continue to promote the key components of the Group to participate in the project Building investment projects to develop smart motor service phase at scale of investment scale from 50,000 to 100,000 units in three years using the Group's development investment capital to invest in the service business Coordinating with Viettel software centers to invest in mobile-based application helps improve customer experience in using the service for monitoring management Coordinate sales branches to promote sales communication for sales staff to promote products into sales on the internal system and agents 4.6 Implement retail marketing strategy to attract new customers, develop and expand Smart Motor - Innovating product images and goods on display at the store: + Viettel needs to spend time to research, assess the needs of customers who have used the product and calculate the retention rate Then come up with appropriate marketing strategies that highlight the features of Smart Motor + Rearranging and re-displaying goods area: it is necessary to identify the focal areas of the store to attract customers and generate the most revenue + Using television screens to display product ads and promotions In the central area of Smart Motor showrooms, stores place a television screen to 59 display ads of Smart Motor products, according to the study, 90% of customers when entering a store are tend to look or turn to the right, so Smart Motor products should be placed to the right of Viettel retail counters + Design banners introducing Smart Motor, promotions, incentives for customers and hanging them in the store windows, doors or placing them where customers can easily see them - Improve the service attitude of sales staff and customer care: each employee can be the best marketer for Smart Motor Therefore, Viettel needs to train its employees so that they fully understand and consult the needs of customers, on the other hand, have appropriate welfare policies to motivate employees - Implement retail marketing strategy through marketing cooperation: When it comes to retail marketing, it is impossible to ignore the form of marketing cooperation among businesses or with organizations and facilities in the same area This approach will help bring Viettel's brand to more potential customers This marketing cooperation helps businesses to promote each other and increase their ability to get more customers to use Viettel's services / products Viettel can promote cooperation with corporations such as Vingroup, to promote images and Smart Motor products - Enhance email marketing campaigns: Email marketing has always been one of the most effective marketing channels According to statistics, 93% of online customers interact with the brand via email more than any other platform Segmenting Email Marketing lists can improve mail opening rates and click on attached links According to statistics from MailChimp - one of the Email Marketing service providers, the Email Marketing campaigns using customer segmentation strategy have an increase in mail open rate of 14.64% and click through rate of 59.99% increase 60 Therefore, Viettel can apply segmentation based on the level of interaction By categorizing active and non-active users For example, people who did not open your email within months Create a strategy specific to those people Find the best way to pull them back in your overall Email Marketing campaign - Retail marketing strategy through key opinion leaders: Today, a nod or endorsement from an influencer carries more weight than a traditional advertisement Why? Because people tend to follow the recommendations of people they know, love and trust This is why so many businesses pay to work with influencers to send brand messages to the market To promote the power of KOLs, choosing the right people is the first and foremost factor in the success of a marketing campaign - Run word-of-mouth marketing campaigns: Word of mouth marketing is no longer a strange concept Although there are many variations, its core idea is to provide quality products, to satisfy its customers From there, make customers voluntarily share and recommend your services and products to their friends This marketing campaign can be considered as a long-term retail marketing strategy that Viettel applies 4.7 Promote Partnership and Cooperation Viettel needs to strengthen cooperation with businesses in the field of manufacturing and selling motorcycles, as well as businesses and shops repairing and maintaining motorbike equipment At the same time, maintaining relationships with large corporations also creates opportunities for Viettel in expanding the market for Smart Motor In addition, Viettel should also consider expanding cooperation with media corporations to combine image promotion of products 61 4.8 Define a proper revenue stream In terms of equipment sales, there is a certain level of competition with the market, but in the near future, this is a product with a large market and fierce competition, so other suppliers will continue to decline price to compete Therefore, in the current price strategy of VND 980,000 / unit, it is necessary to have a discount strategy corresponding to the reduced input price to continue improving the product competitiveness of the product Regarding the packages, this is an advantage of Viettel network, so in the package generates attractive price packages, which only serve data transfer data, it is possible to further reduce the subscription fee for customers Thereby continuing to bundle bundles with devices to create network advantages when selling devices with telecommunications sim 4.9 Establish an adequate cost structure In product cost lines, the cost of procuring equipment is the cost that can continue to be optimized Currently, the cost of equipment is VND 504,336 / device This is the unit price when making a purchase with a small batch of 1000 devices To reach the best of products, there may be the following strategies Order in large lots, with an order of 10,000 devices, and in the contract will make a purchase and take the goods This is a strategy of bidding to buy inputs effectively, helping to reduce prices from 5-10% on the order price and still achieve the product target Optimize product features, remove unnecessary product features such as warning out of gas help reduce product costs In the selling price, the commission cost for agents is important, currently in this cost strategy is to be a flat fee strategy without stimulation when sellers sell more goods, In the coming time, it is necessary to analyze more factors to formulate a ladder price strategy which means that the discount increases gradually when more goods are sold at different levels 62 4.10 Improve the quality of IoT Platform of Viettel to improve the quality of Smart Motor 4.10.1 Develop IoT Platform - CMP Platform:  Manage and control connection of IoT services provided by Viettel  Provide businesses with M2M Viettel to manage the service of enterprises  Manage international subscribers and participate in international alliances on global IoT connectivity - AEP Platform:  Platform for IoT applications provided by Viettel: Smart City, Consumer IoT, Industrial IoT  Public cloud for IT businesses and startups  Platform for Smart Cities - Vertical Platform: Promote application development in specific domains of the potential field (eg, personal vehicle connectivity platform, plant energy management platform, personal health management platform) 4.10.2 Improve IoT Connect and infrastructure Technology - Focus on LPWAN (Low Power WAN) technology, which prioritizes NBIoT technology Other connection technologies are implemented according to actual market demand - Implementation of NB-IoT infrastructure in key provinces: Hanoi, Ho Chi Minh, Da Nang (2019), Dien Bien, Bac Giang, Hai Phong, Bac Ninh (May 2019) and proceed to cover the remaining provinces as required - Officially launched IoT service in 2019 - Plan to 2020 to deploy IoT infrastructure for the investment market Viettel 63 CONCLUSION The content of this research project reflects the overall business strategies of Viettel in lauching Smart Motor using the Business model Canvas Based on that, Viettel will select the right strategy to develop Smart Motor to make it occupy the greatest marketshare on Vietnamese positioning and theft prevention system for nmotorbike market This thesis results will be valid recommendation for Viettel Group when they officially enter to positioning and theft prevention system for motorbike market with big competitors This thesis has analyzed nine elements of Canvas Business Model Hence, the authors has already suggested some feasibles competitive strategies that Viettel refers to running the bussiness officially In the course of this thesis, I encountered some limitation due to the time and resources required to carry out further analysis I would like to receive advice and recommendations from teachers and my readers to make my thesis more fluent and proper 64 REFERENCES  Andy 2011 Steve Blank Founder LY Referred 28.10.2015 http://www.founderly.com/2011/04/steve-blank-part-1-of-5/  Ash, M (2012): Running Lean: Iterate from Plan A to a Plan That Works  Blank, S., 2013 The Four Steps to the Epiphany: Successful Strategies for Products That Win E-book Referred 19.9.2015  Blank, S., 2013 Why the Lean Startup Changes Everything The Harvard Business Review, [e-journal] Referred 9.10.2015 https://hbr.org/2013/05/why-the-lean-startup-changes-everything  Brant, C 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A Yes B No Does your organization find it difficult to find potential customers? A If Yes, what are the reasons? …………………………………………………………………… …………………………………………………………………… B If No, …………………………………………………………………… …………………………………………………………………… Does positioning and theft preventation service for motorcycle is a useful channel for screening and selecting potential clients for your business? A Yes B No Do you think that positioning and theft preventation service for motorcycle are necessary for you to keep your vehicle safe? If so, how are you willing to pay for that system? A Less than 50,000 VND/ month B From 50,000 – 100,000 VND/month C More than 100,000 VND/month What features you need in the positioning and theft preventation service for motorcycle? A Fast and user friendly B Accurate tracking C Customer support service D All of the above E None of the above Do you think the positioning and theft preventation service for motorcycle is a good base product to develop other services for A Yes B If No, What you think a good source? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… Do you think that cultivating knowledge about theft preventation for motorcycle is neccesary? A Yes B No Where you usually find out about information about motorcyle relating information? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… Do you think that a software that integrates both the assessment of the vehicle and the positioning and theft prevention services will be helpful for you? A Yes B If No, what is the criteria for a software in your opinion? 10.In your opinion, which media channels will help promote sales of locating and anti-theft services? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… 11.What are you most interested in using a positioning and alert service? ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… APPENDIX B LIST OF RELATED WORKS No Author Research title Year of publication Steve Blank The Four Steps to the Epiphany 2013 Eric Ries The Lean Startup: How Constant Innovation Creates Radically Successful Businesses, Penguin Group, London 2011 Nathan Furr & Paul Nail It then Scale It: The Entrepreneur's Guide to Creating and Managing Breakthrough 2011 Ahlstrom Innovation: The lean startup book to help entrepreneurs launch a high-growth business Brant Cooper, Patrick Vlaskovits, The Entrepreneur's Guide to Customer Development: A cheat sheet to The Four Steps to the Epiphany 2010 Running Lean: Iterate from Plan A to a Plan 2012 Steven Blank (Foreword) Ash Maurya That Works Phan Anh, Bui Lean Startup research and application in Schlumberger Vietnam 2012 Nguyen Thanh Minh Lean production and application to Vietnamese enterprises 2013 Ngo My Application of management tools to enhance 2016 Tran & Vo Minh Tri efficient efficiency in Universities of Can Tho ... CỨU VÀ ĐỀ XUẤT MƠ HÌNH KINH DOANH DỊCH VỤ IOT - GIÁM SÁT ĐỊNH VỊ VÀ TRỐNG TRỘM XE MÁY - SMART MOTOR TẠI VIETTEL Chuyên ngành: Quản trị kinh doanh Mã số: 60 34 01 02 LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH. .. TRỊ VÀ KINH DOANH - HOÀNG HÀ ANH RESEARCHING AND PROPOSING BUSINESS MODEL FOR IOT SERVICE - MONITORING THE POSITION AND THEFT PREVENTION OF MOTORBIKES - SMART MOTOR IN VIETTEL NGHIÊN CỨU... 62 4.10 Improve the quality of IoT Platform of Viettel to improve the quality of Smart Motor 63 4.10.1 Develop IoT Platform 63 4.10.2 Improve IoT Connect and infrastructure