USE CASE Servitization + Digital Wallet for Connected Things

DOMAIN Manufacturing Industry (Automobile)

PROBLEM STATEMENT

Servitizing cars to create a more consistent source of revenue for manufacturing companies, while also keeping in mind the importance of customer satisfaction by providing automated in-car payments through digital wallet.

This is a framework we have created for a car for ease of understanding. It can be applied to any automobile.

* In its simplest terms, servitization refers to industries using their products to sell “outcome as a service” rather than a one-off sale.

INTRODUCTION

• Customer loyalty is not ensured
• No revenue after sale
• No way to track car’s performance after sales

• Customer loyalty is ensured
• High potential earning after sale
• Real time car’s performance tracking

BUSINESS NEED

UNMET NEED

NEEDS SATISFIED

MANUFACTURER’S POV

CUSTOMER’S POV

SERVICING PROCESS AND COMMUNICATING WITH MANUFACTURER BECOMES TEDIOUS

CAR MADE ACCESSIBLE TO EVERYBODY

CONTINUOUSLY MONITORED AND SERVICE IS PROVIDED

There is an evident dip in the automobile industry because of the lack of customer interest in buying a new vehicle. Our model of servitization capitalizes this new trend.

TARGET SEGMENT/MARKET SIZE

We look at this as a complete Win-Win situation for both manufacturer and customer.

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New generation of customers: Owning a car << Using a car.

Customers want to enjoy individual mobility, without the downsides of vehicle ownership like insurance, maintenance, etc.

We can expect to see a shift in both,

the number of people going in for rental cars and the people purchasing their own cars, moving towards companies that adopt our model.

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Cab providers

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individual

users

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Car rental providers

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TARGET CUSTOMERS

SIMILAR TARGET SEGMENTS:

• 2 Wheelers
• Heavy Vehicles

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SERVICES PROVIDED

GENERAL SERVICE

INSURANCE

WARRANTY

Periodic service is provided to the customer at either 10,000 kms or 6 months, whichever earlier.Components changed during every service are engine oil and engine filter, whose costs are included in the subscription fee.

Warranty for the battery and the engine is provided to the customer at the very beginning. Since the customer will anyway have his car serviced regularly as per our model, the car will be in good shape.

DIGITAL WALLET

Car details like coolant temp., dist. covered, fuel level etc will be consistently monitored by the manufacturer. Incase of any deviations from the ideal range, the customer will be notified and the car will be brought in for servicing.

MAINTENANCE

The initial amount taken serves as insurance. After the lock-in period, if car is returned in good condition, the money is returned. Else, money will be reduced accordingly.

The manufacturing company provides a digital wallet that allows the customer to make payments autonomously at places like petrol bunks, toll gates and drive through restaurants.

EMI vs Servitization

What profit does the customer earn by opting a servitization model over an EMI plan?

Let us look at an example.

CAR COST: Rs 10,00,000

Car Tenure: 4 years

SERVITIZATION

Interest Rate: 9.25%

Interest: Rs 2L

Monthly:Rs 25Kx48=Rs12L

Total EMI+Int.=Rs14L

Servicing: Rs 25K

Acci. Insurance: Rs 80K

EMI PAYMENT

OVERALL:15.5L

Interest: Rs 0

Initial payment: Rs1.66L(1/6th)

Monthly fee: Rs.25L

Customer leaves with: Rs.2L

Manufacturer makes: Rs 11.66L

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TOTAL SUBSCRIPTION

COST: Rs.12L

EMI

AT THE END OF 4 YEARS:

• Profit earned by bank in the case of EMI goes directly to customer and manufacturer if car is servitized
• Profit for Manufacturer:1.66L
• Customer gets back 2L at the end
• Customers are free to move to new products during the 4 years after their initial lock-in period is over in the case of servitization (unlike car loans)

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OEM

Control panel

Access panel

MOBILE APPLICATION

VEHICLE INFORMATION

DIGITAL WALLET

CAR UNIT

RFID READER

RASPBERRY PI

OBD II PORT

LTE / 5G

GPIO

USB

ELM 32

OBD II PORT

FUNCTIONAL DESCRIPTION ARCHITECTURE

CAMERA

TECHNICAL STACK

APP

LANGUAGE

APIs

HARDWARE

CLOUD

RFID Reader

Facial Recognition Camera

OBD II Port

ELM 32

pyOBD-II

OEM

Application Layer

IOT Layer

Raspberry PI

ELM 32

OBD II PORT

Camera

RFID Reader

LTE / 5G

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Cloud Layer

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REFERENCE ARCHITECTURE

Dataflow

Consumer App

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OEM

Payment Service

DATABASE

ANALYTICS

Control panel

Access panel

Real Time Data

Car Info

Wallet

PROTOTYPE

Digital wallet using IOT is made functional using Raspberry Pie. To make the car details more accessible to the customers, we have also included a mobile app.

BUSINESS IMPACT

Customer

BUSINESS IMPACT

Manufacturer

Higher Revenue

Car Monitoring

Stronger Customer Retention Rate

Finance Sector

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• More consistent flow of revenue
• Get to keep the car after the lock-in period and scrap can be recycled

• Helps company get valuable insights to optimize their products and services to increase their profits

• Customer staying with the company for a longer period of time due to lock-in period.
• Locking the customer in our ecosystem.

• Digital wallet service helps automobile industry to enter the finance sector.

The Team

Harish : 1303harish@gmail.com�Neya Babu: callmeneya@gmail.com �Rishapp R : rishappdeepak@gmail.com �Rithika Gopikrishna: rithikalalith@gmail.com�Sanjay B: bsanjay1708@gmail.com�

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We look forward to working with you.

THANK YOU