Terrion Inc. - GPS Asset Management Service

The Internet of things (IoT) concept was introduced many years ago, and Time Magazine listed the idea as one of the best innovations of 2008. IoT can cover four big areas; smart Home, smart mobile, smart city, and smart grid. Under the big umbrella of IoT, automotive telematics market plays an important role of colleting, exchanging, and managing the data from the moving objects on the road. There are many reports and articles stated that the IoT technology will be widely used in the next decade. Research from Research&Market has also supported this growth trend and has forecasted the Global Fleet Management System market to grow at a CAGR of 26.23 percent over the period 2014-2019, and this is only for commercial vehicles only. Therefore, there is a high potential in telematics related services for both consumer and commercial vehicle owners. Meanwhile, the telematics technology can be used for advertising industry to achieve higher rate on return on investment. In this business plan, we have stated the strategies needed to start an automotive and advertising telematics business. We have explored the status of the telematics industry worldwide, and the estimated total available market in Taiwan using government statistics numbers and survey results. Through the studies we have done competitor and five forces analysis on the competitors, and then defined our target market segment and communication strategies in order to deliver our values to our customers effectively. Furthermore, we have used the Business CONVAS Model to systematically roll out the business blocks, identify the business components, and the activities needed. We have created a five-year financial forecast and analyzed into four scenarios for the telematics and advertisement business. The best-case and 2nd best scenario assumes a 40% growth rate by year 5, and the worst-case scenario assumes a decline of market by 40%. Different yearly churn rates were applied to the four forecast scenarios, and this is to make the forecast more realistic. 5 year projected income statement, balance sheet, and cash flow statement are also provided in the research. The forecast analysis indicates that the company should focus on expanding business in pure telematics services in order to maximize company’s profit.