Final presentation of my MBA capstone defending about "E-bike Telematics" - The integration of information and communications technology (ICT) into electric bicycles will create a new generation of connected e-bikes that offer totally new product benefits but also new business opportunities for the bicycle industry.

1. E-BIKETELEMATICS
Market potential analysis of the telematics
technology for electric bicycles in Germany
Barcelona, June 2014
Capstone Presentation by Nils Niederheide
MBA in International Marketing

2. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
KEY QUESTIONS & METHODOLOGY 2
• Are telematics suitable for e-bike?
• Is the e-bike market ready for this innovation?
• What is the potential of this technology?
Market Analysis
Product Analysis
Benchmark
Survey &
Interviews

3. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
3
E-BIKE
TELEMATICS1
E-BIKE TELEMATICS

4. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
Remote System Setup
Check, Unlock & Initiate

5. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
Efficient Drive Support
Other App Integration

6. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
Real-Performance Data
New Setup Features

7. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
Remote Lock & Locator
Theft Protection

8. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
Remote Service Support
Automatic Software Updates

9. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
SURVEY - INDUSTRY OPINION 9
E-BIKE TELEMATICS
Security, Service,
Navigation, Real-Data
Features
External devices
Hardware
Premium Segment
Potential
Outsourcing
Business
Client service
& Product mgmt.
Impact
No regulations
Concerns
Yes, next MY (55%)
Plans

10. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
CONCLUSION - PRODUCT ANALYSIS 10
• Are telematics suitable for e-bike?
YES!

11. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
11
E-BIKE
BUSINESS2
E-BIKE BUSINESS

12. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
Automobile 356.973 € 1,60 %
4,45 %
ITS 15.877 € n.a.
Industry
Market Vol.
in Mio
CAGR
Telematics
share
ITC + CE 293.800 € 1,90 %
2,21 %
SHE 6.500 € 10,00 %
Health 150.800 € -0,50 %
10,74 %
e-health 16.200 € 28,00 %
Bicycles 13.460 € 3,65 %
E-bikes 1.481 € 7,30 %
?
e-bike telematics ? ?
ECONOMIC PERFORMANCE 12
E-BIKE BUSINESS

13. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
Segmentation,
maturing and
concentration
Impact from
e-bike introduction
Innovation power
outsourced to suppliers
Segmentation,
maturing and
concentration
CURRENT MARKET SITUATION 13
EU type-approval
directive 2002/24/EC
(Nov 2012)
2.1 million e-bikes
7,3% CAGR
Growing and
new younger
user groups
Innovation power
outsourced to suppliers
Impact from
e-bike introduction
E-BIKE BUSINESS

14. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
Bike
VALUE CHAIN INTEGRATION 14
Bicycle components
Drive system
E-bike telematics
Telematics / ICT service
Data Management
E-bike
Connected
e-bike
Traditional bike service
Increasing
service orientation
Traditional bike service
Increasing
product complexity
Traditional bike service
Technology Business
E-BIKE BUSINESS

15. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
BARRIERS
VS.
DRIVERS 15
Barriers & Challenges
• Investment restraints Financial
Professional /
Social-Cultural
• Need for adaptation
• Industry IT restraints
• New service orientation
• Increasing product complexity
• Suitable IT for bicycle industry
Technical
CONCLUSION

16. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
DRIVERS VS. BARRIERS
Drivers & Benefits
16
Product
• Product advancements & efficiency
• Need for product differentiation
• Increasing trend for connected solutionsSocial-cultural
• Need for inter-related traffic mgmt.Political
• USP & competitiveness
• New business models
• Youth e-bike target group
Business
CONCLUSION

17. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
CONCLUSION - MARKET ANALYSIS 17
• Is the e-bike market ready for this innovation?
It depends!

18. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
18
CONCLUSION
3
CONCLUSION

19. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
TELEMATICS DIFFERENTIATION 19
Simple Complex
Product ServiceBusiness Orientation
External EmbeddedHardware Integration
Incremental BreakthroughType of Innovation
Low HighDisruptive Impact
Low HighBusiness Potential
CONCLUSION

20. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
THE WIDER SCOPE - “BIG PICTURE“ 20
Gesamtlösung. Sie bestimmt, welche Funktionsum-
fänge und Dienstleistungen (beispielsweise Koope-
rationen mit Sicherheitsunternehmen) eingebunden
werden können. Ebenso entscheidet sich hier, wie
offen das installierte System für Fremdherstellerkom-
ponenten ist bzw. welche Industriestandards in der
Heiminstallation unterstützt werden.
en und nicht in der An-
er einzelnen Hardware.“
Quelle: Deloitte
Control unit
Gardening
Energy
Operating
Unit
Services
Safety
Multimedia
Connected
Car
eHealth
Security
Appliances
Lighting &
Comfort
Abb. 2 – Komponenten von Smart Home
• Network of connections and interrelations
CONCLUSION

21. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
THE WIDER SCOPE - “BIG PICTURE“ 21
• Network of connections and interrelations
• E-bike ecosystems
CONCLUSION
Personal
Health
Insurance
SHE
Traffic
Mgmt.

22. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
Communication
CRUCIAL SUCCESS FACTORS 22
Leadership
Open ecosystem & new cooperations
Solutions based on consumer lifestyle and needs
Transparent pricing and distribution concepts
Data security & responsibilities
Networks
CONCLUSION

23. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
E-BIKE TELEMATICS E-BIKE BUSINESS CONCLUSION
23
• What is the potential of this technology?
Unlimited!

24. JUNE 2014 CAPSTONE PRESENTATION “E-BIKE TELEMATICS” BY NILS NIEDERHEIDE
24
!
• Are telematics suitable for e-bike?
!
• Is the e-bike market ready for this innovation?
!
• What is the potential of this technology?
Thank You!
Q&A