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BEST PRACTICES RESEARCH                                                                                                   ...
F r os t  S u l l i v a n ’s G l ob a l R e s e a r c h P l a t f or mFrost  Sullivan is in its 50th year in business with...
BEST PRACTICES RESEARCHEurope in the field of medium and heavy-duty commercial vehicle telematics. Globally, 100.000 units...
BEST PRACTICES RESEARCHTelematics vendors need to expand into new regions in order to reach out to new customers and attai...
BEST PRACTICES RESEARCHT h e C E O 3 6 0 D e g r e e P e r s p e c ti v e T M - V i s i on a r y P l a tf o r m f or G r o...
BEST PRACTICES RESEARCHC r i ti ca l I m p or ta n ce of T E A M R e s e a r c hFrost  Sullivan’s TEAM Research methodolog...
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Daimler FleetBoard - Award Report


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Daimler FleetBoard receives the 2012 European Medium and Heavy-duty Telematics Growth Leadership Award

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Daimler FleetBoard - Award Report

  1. 1. BEST PRACTICES RESEARCH 2012 2 0 1 2 E u r o p e a n M e d i u m a n d H e a v y - d u ty T e l e m a ti cs G r o w th L e a d e r s h i p A wa r d© 2012 Frost & Sullivan 1 “50 Years of Growth, Innovation and Leadership”
  3. 3. F r os t S u l l i v a n ’s G l ob a l R e s e a r c h P l a t f or mFrost Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultantswho monitor more than 300 industries and 250,000 companies. The company’s research philosophy originates withthe CEO’s 360 Degree Perspective™, which serves as the foundation of its TEAM Research™ methodology. Thisunique approach enables us to determine how best-in-class companies worldwide manage growth, innovation andleadership. Based on the findings of this Best Practices research, Frost Sullivan is proud to present the 2012Europe Growth Leadership Award in Medium and Heavy duty Telematics to Daimler FleetBoard GmbH.S i g n i f i ca n c e of t h e G r o wt h L e a d e r s h i p A wa r dKey Industry Challenges Addressed by Increased Growth LeadershipThe core competency of Original Equipment Manufacturers (OEMs) lies not only in transport operation, but also invehicle usage and analysis as well as intelligent logistics processes. Therefore, OEMs generally restrain themselvesfrom knowing who is driving the vehicle, how the vehicle is performing or where the vehicle is. This will limit theircompetition against the independent aftermarket telematics vendors, whose core competency is in transportoperation. Moreover, OEMs lose their customers, once they sell their vehicles. This is because they do not makeefforts to get closer to or stay in touch with the client after selling the vehicle. However, this is expected to changeonce OEMs gradually start offering Fleet management system (FMS) as a standard in their models.Offering FMS as a standard has its own challenges. When telematics systems are introduced as a standard line-fit, itis not just a serious production challenge, but also a marketing challenge. Every truck needs to make changes toaccommodate the new unit, wiring harnesses and many other design and cosmetic changes. The other challenge ischoosing countries to offer telematics as a standard. Also, countries which are traditionally conservative or withoutubiquitous network coverage is always tough to penetrate with telematics. However, offering FMS as a standardacross all markets has its own advantages, especially if the vendor is the OEM itself.The other key challenges faced by the OEMs are their inability to provide fleet performance management solutionsto all types of trucking operations, regardless of the type of fleets or vehicle segments. However, as the OEMsprovide a ‘wider product portfolio’ for all commercial vehicle segments, makes and target groups, they can easilyaddress the ongoing challenges posed by non-OEM providers.B e s t P r a ct i ce A wa r d A n a l ys i s f or F l e e t B oa r d G m b HThe Frost Sullivan Award for Growth Leadership is presented to the company that has demonstrated excellencein capturing the highest annual compound growth rate for the last 3 years (in the telematics industry?).FleetBoard’sFleetBoard’s Performance in Medium- and Heavy-duty Telematics Medium- Heavy-For over ten years, Daimler FleetBoard has been developing and marketing telematics solutions to boost profitability ofcommercial vehicle fleets, including trucks, vans and buses of all brands. Currently, FleetBoard is the market leader in© 2012 Frost Sullivan 2 “50 Years of Growth, Innovation and Leadership”
  4. 4. BEST PRACTICES RESEARCHEurope in the field of medium and heavy-duty commercial vehicle telematics. Globally, 100.000 units will be installedthis year. And with over 2,500 customers FleetBoard is in one of the leading participants in this industry.By the end of 2010, FleetBoards sales increased by 30% year on year, acquiring volumes even from its closestcompetitors home market. The success recurred in 2011. With its new strategy of offering FMS as a standard line-fitment all over Europe and its commitment to penetrate LCV market, it is likely to increase its market share further.Further growth will be realized by expanding its product portfolio and global presence. Considering the above,FleetBoard is expected to reach the installation of about half a million units, globally, by 2017. This makes FleetBoardthe undisputed leader in the MCV and HCV telematics market in Europe currently.Key Performance Drivers for FleetBoardFactor 1: FMS as a Standard Line-Fit Line-Though FleetBoard is currently one of the leading telematics providers in the European medium and heavy-dutycommercial vehicles sector, it is likely to face increasing competition from one of its major aftermarket competitors inthe coming years. The trend of market consolidation is peaking within the telematics space, especially for aftermarketvendors to remain in the competition. This increasing cooperation among companies across the value chain wouldideally create an ever-increasingly competitive scenario. However, FleetBoard’s strategy of offering one of Daimler’stop-selling trucks with FMS as a standard can increase its year-on-year installed base in the coming years and help itstay competitive in the market. FleetBoard is offering its MY2012 Actros with a standard FMS as a line-fit. This,followed by certain models that require platform change, are likely to have FMS as line-fitted. ProductFactor 2: An Expanding Product PortfolioFleetBoard has the ability to provide fleet telematics solutions to all types of trucking operations, regardless of privateor for-hire or less than truck load (LTL) or field services or any other vertical market. Overall, it currently hosts a wideproduct portfolio for all commercial vehicle segments, makes and markets. FleetBoard offers services starting fromvehicle-related to advanced back-end integration and logistics management solutions. It is also expected to offer asecurity management package in 2012, addressing the demands of high-value goods transporters. FleetBoard offersmany add-on services that not only save time and money, but also essentially pay for themselves, offering a strongerreturn-on-investment (ROI).FleetBoard, currently, has three different versions of hardware, two of which have high-end ruggedized hand-heldcomputers with built-in scanner, laser scanner and few others; while, the third one is fixed mount display. The companyalso offers logistics management integration, supporting bi-modal transportation in Germany and has plans to expandits capability to multi-modality. Though its trailer solutions are currently offered through IDEM (third party vendor), ithas plans to offer its own trailer solution in the coming months. Through 2011, the company has focused onexpanding its portfolio in terms of logistics and time management services. FleetBoard continues to expand its productportfolio to reach out to a wider customer base and expand its market presence.Factor 3: Expanding into New Regions© 2012 Frost Sullivan 3 “50 Years of Growth, Innovation and Leadership”
  5. 5. BEST PRACTICES RESEARCHTelematics vendors need to expand into new regions in order to reach out to new customers and attain growth. Themedium- and heavy-duty telematics market in Europe is still fairly under-penetrated with about 13 percent penetration,leaving each vendor to expand geographically to stay in competition. Currently, FleetBoard leverages Mercedes-Benz’large sales network to offer telematics ‘across’ Europe. It is also actively penetrating markets outside Germany toincrease its market share and acquire new customers, not just within Europe, but also outside Europe in countries suchas Brazil, South Africa and the Middle East.FleetBoard has plans to expand in a phased manner in largely under-penetrated countries, like Turkey, Russia and otherparts of Eastern Europe. It also has plans to target countries, such as North America, China and other parts of theworld, to gain a global presence.Factor 4: Expanding Growing PartnershipsEvery vendor needs several long-lasting partnerships, either with hardware or software suppliers, in order to growergonomically. FleetBoard has formed many established partnerships in this market, which has helped it in offeringsolutions with improved features and quality. FleetBoard has a wide service network, with over 140 certified servicepartners in Europe. Apart from external partnerships, Daimler’s internal partners also helped in developing most of thecurrent special features for its trucks.In collaboration with Mercedes-Benz, it provides truck service management, which helps it in reducing the vehicle wearand tear decisively. Daimler’s collaboration with Zauner Partner is just another example of a strategic move byFleetBoard to offer enhanced value-added time management services to its customers. FleetBoard also partners withIDEM to offer a dedicated trailer solution to its customers. It is through the formation of strategic partnerships thatFleetBoard can address the diverse customer needs and enjoy a competitive edge in the market, even in the years tocome.C o n cl u s i o nFleetBoard’s modular service portfolio, providing telematics services to all commercial vehicle segments, all makes,and all markets, can only help the company achieve increased market growth in the coming years. Its vastexperience, proximity to truck development and access to vehicle brands, provides a strong basis for its growth inthe coming years. Thus, FleetBoard is committed to strengthening its position as one of the key telematics vendorsin Europe.© 2012 Frost Sullivan 4 “50 Years of Growth, Innovation and Leadership”
  6. 6. BEST PRACTICES RESEARCHT h e C E O 3 6 0 D e g r e e P e r s p e c ti v e T M - V i s i on a r y P l a tf o r m f or G r o w t hS t r a te g i e sThe CEO 360 Degree Perspective™ model provides a clear illustration of the complex business universe in whichCEOs and their management teams live today. It represents the foundation of Frost Sullivans global researchorganization and provides the basis on which companies can gain a visionary and strategic understanding of themarket. The CEO 360 Degree Perspective™ is also a “must-have” requirement for the identification and analysis ofbest-practice performance by industry leaders.The CEO 360 Degree Perspective™ model enables our clients to gain a comprehensive, action-orientedunderstanding of market evolution and its implications for their companies’ growth strategies. As illustrated in theChart below, the following six-step process outlines how our researchers and consultants embed the CEO 360Degree Perspective™ into their analyses and recommendations. 360 Degree Perspective™ Model© 2012 Frost Sullivan 5 “50 Years of Growth, Innovation and Leadership”
  7. 7. BEST PRACTICES RESEARCHC r i ti ca l I m p or ta n ce of T E A M R e s e a r c hFrost Sullivan’s TEAM Research methodology represents the analytical rigor of our research process. It offers a360 degree view of industry challenges, trends, and issues by integrating all seven of Frost Sullivans researchmethodologies. Our experience has shown over the years that companies too often make important growthdecisions based on a narrow understanding of their environment, leading to errors of both omission andcommission. Frost Sullivan contends that successful growth strategies are founded on a thorough understanding ofmarket, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T,E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. Theintegration of these research disciplines into the TEAM Research methodology provides an evaluation platform forbenchmarking industry players and for creating high-potential growth strategies for our clients. Benchmarking Performance with TEAM ResearchI m p a c t of G r o wt h L e a d e r s h i p A wa r d o n K e y S ta k e h ol d e r sThe Growth Leadership Award is a prestigious recognition of FleetBoard’s accomplishments in medium- and heavy-duty telematics. An unbiased, third-party recognition can provide a profound impact in enhancing the brand valueand accelerating FleetBoard’s growth. As provided in the Chart below, by researching, ranking, and recognizingthose who deliver excellence and best practices in their respective endeavors, Frost Sullivan hopes to inspire,influence, and impact three specific constituencies: • Investo Invest o rs Investors and shareholders always welcome unbiased and impartial third-party recognition. Similarly, prospective investors and shareholders are drawn to companies with a well-established reputation for excellence. Unbiased validation is the best and the most credible way to showcase an organization worthy of investment. • Customers Third-party industry recognition has been proven to be the most effective way to assure customers that they are partnering with an organization that is leading in its field.© 2012 Frost Sullivan 6 “50 Years of Growth, Innovation and Leadership”
  8. 8. BEST PRACTICES RESEARCH • Employees This Award represents the creativity and dedication of FleetBoard’s executive team and employees. Such public recognition can boost the morale and inspire the team to continue its best-in-class pursuit of strong growth strategy for FleetBoard. Best Practices Leverage for Growth AccelerationA b o u t F l e e tB oa r dFleetBoard is a wholly-owned Daimler subsidiary, offering telematics-based Internet services for modern vehicle andtransport management. Daimler FleetBoard has successfully positioned itself in the telematics market as one of theleading market participants over the past ten years. FleetBoard, currently, serves the markets of Europe, Brazil, SouthAfrica, and the Middle East. Since its market launch in 2000, FleetBoard has continued to expand and enhance itsproduct and service portfolio. FleetBoard’s systems and services are specifically designed for fleet managers andtruck drivers of all industries and sizes. FleetBoard has been established for many years as a fleet managementsystem that provides greater efficiency and transparency.About Frost SullivanFrost Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-classpositions in growth, innovation and leadership. The companys Growth Partnership Service provides the CEO andthe CEOs Growth Team with disciplined research and best-practice models to drive the generation, evaluation andimplementation of powerful growth strategies. Frost Sullivan leverages 50 years of experience in partnering withGlobal 1000 companies, emerging businesses and the investment community from more than 40 offices on sixcontinents.© 2012 Frost Sullivan 7 “50 Years of Growth, Innovation and Leadership”