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BMC Report

This report attempts to outline key strategies and implementations of the DBS product to our target market. Currently there are two products that we wish to incorporate into two different markets. “Dynamic Braking system (denoted DBS hereafter) is a "plug and play" brake light system that uses inertia/momentum as an indicator. DBS displays the actual slowing down of the vehicle on a vertical LED gradient next to the main bulb of the standardized fleet vehicle brake light. This new brake light allows followers to gauge how quickly the semi truck in front them is slowing down, from down-shifting to using the "jake brake", to hitting a big puddle; the faster the vehicle slows down the more LED’s will illuminate. If the follower knows how quickly the person in front of them is slowing, it gives them a better chance to make a safe, thoughtful decision that isn't a reaction to an emergency or a reaction to person hitting the brake very lightly - it shows exactly how hard the person is braking.

“DBS b” is a licensed product that is placed underneath the brake pedal which we would have auto suppliers like MAGNA produce. We would be taking a small amount as a royalty for every one manufactured. Product “b” would not be on a gradient, but would employ the use of an inertia switch to turn the brake light on even when any reduced speed is present. Like product “a”, product ”b” would go on any time there is a reduction in speed; from downshifting, to hitting a puddle, it always comes up.

Key Partners

Our partners would have to be acquired in a logical and orderly manner. We would first need to prove our idea to governmental agencies, as well as insurance providers.

For both of the products we would like to become partners with the Canadian Automotive Industry and Transport Canada. This would enable us to have governmental backing, as well as a strategic placement in the eyes of our other key partners. We would be seen as the logical choice for brake lights and braking peripherals.

After our acquiring of governmental reinforcement, we would then target the insurance providers in Canada. When speaking to a Progressive Insurance associate, he informed us that the owners of commercial semi trucks pay anywhere from eight to ten thousand dollars per truck. The associate also told us that if there were more than 2 incidences (not even an accident), the insurance on that truck would be re-amortized with up to a 50% increase in payment. With over 700,000 trucks on Canada’s road today, owners are constantly looking for ways to lower these payments, as well as the inconvenience that goes along with an incident.

If we could be in cahoots with insurance providers and the automotive industry in Canada, our brake light would be the logical, intuitive choice, hopefully being a mandatory item on vehicles in the future. However this is no easy task, and we realize that these attempts will make or ‘brake’ our venture.

Given everything goes to plan; we would then approach MAGNA, a multinational corporation who supplies most car manufacturers in Canada. This would give us the ability to use their supply chain and resources for a small royalty.

Other partners we want to acquire would be the manufacturers of our product, such as Chinese companies like Alibaba, freight companies who deliver our product from China like Aamro Freight and Shipping Services, as well as Fedex or UPS who can get the product to us and our clients once in the country. For the national shippers like UPS, we could offer a cross promotion deal with our lights on their vehicles. This could perhaps be discounted light deal if we use them over their other competitors.

Key Activities

Most importantly, we would need to test our product in an objective manner to create empirical evidence in order to convince our key partners and customers that this item is needed on their vehicles, whether it is a family sedan, or a semi truck.

Our key activities include the finishing of our product design and getting all of our patents in order to protect ourselves while also giving our customers their intended level of quality on a product such as this. Our patents, for both “a” and “b” would need to encompass a few different designs to ensure no one can steal our idea, or our partners (like Magna) just make something better themselves, once they realize that this is a real problem that needs addressing.

Conducive to factory build – we need to create a product that is the easiest and most logical, cost effective, and universally designed in order to secure our licensing agreement for product “b”.

Key Resources

Patents and intellectual property (registered trademarks, etc) surrounding the business.

Manufacturing Facility: we’d like to take advantage of the economies of scale that China has with manufacturing products like this. (Product “a”).

Empirical research that proves feasibility of our product/concept.

Partnerships with Canadian Automotive Industry, Canada Transport, and Insurance providers, as well as manufacturers, and freight companies that will ship our product.

Value Proposition

The problem being solved at the core of our concept is the reduction of accidents from rear end collisions. However to seem most enticing to customers we are going to play on the insurance costs that are incurred by truck or fleet owners as this effects their bottom line. These costs are quite exorbitant and if we can save them a bit of money because they use our product (given insurance provider partnership), as well as the externality of reduced accidents, our customers will see the value and buy the product.

We would like to set a new safety standard within the automotive field, which in turn will increase safety for everyone on the road, and money in our pockets.

Customer Relationships

With fleet vehicle companies, we’d have to maintain a friendly, close knit relationship to foster an air of trust between us. By integrating this customer relationship plan and keeping our customers happy, our customers in turn would spread the good word about DBS, further increasing sales. In the long run maintaining these relationships can be costly, but we feel that a happy customer means a happy DBS.

Channels

Based on talking with our target market, our customers prefer a face to face demonstration on how our product works, and how it will be easily implemented into current new vehicles being produced (product b), and (for product a) installed on, as well as how the product reduces accidents, and insurance costs by providing DBS safety.

For our manufacturing taking place in China (product a), we would deliver our first years projected sales ourselves. After the first year we would employ the help of freight companies to distribute.

Product b would be taken on as a licensing agreement, and would be distributed through MAGNA’s (and the like) distribution channels.

Customer Segment

We are creating value for these three groups:

Fleet vehicle owners – they reduce their insurance costs as our light increases safety and decreases rear end collisions. This in turn leaves them more time to worry about their business rather than having to deal with insurance claims, etc that add up from accidents.

Semi-Truck drivers – these drivers will have safer vehicles for all stakeholders, also making the operator a safer driver. These drivers will be able to spend more time on the clock, making profits for the owners of these businesses.

Cost Structure and Revenue Streams

The most important cost to our business would be the multiple patents we’d need to file for in order to make sure we cannot be easily copied, are valuable, and rare, properly approaching the opportunity at large in the most economical fashion. This number runs about $30,000 a patent. Because we are filing for multiple patents, these costs could run as high as 300,000 dollars as we’d need an array of them to insure our success. This is our most costly key resource.

Our most costly key activity would be getting a final prototype for development for product b, as well as collecting evidence to prove our product works.

We have two revenue streams:

List Price (product a) – We will be selling our first product, the DBS truck light for a standard price ($49.99) based off typical prices for an item such as our in the industry we are in.

Licensing: We will be licensing our 2^nd product (b) in year 3 of our 5 year proforma to automotive suppliers for a $0.50 royalty per unit created. This is a typical royalty percentage given the price of a peripheral such as this.

Finalized BMC

Info Bits 10 - Electric Cars Becoming Mainstream

With trends turning towards "green" and "earth friendly", electric cars are more and more becoming the norm.  With the Chevy Volt (though a Hybrid, more predominantly an electric car), and others coming out with electric cars, trends are showing that more people are buying electric.  The article I found points out that those with electric cars or hybrids only go to the pumps once or twice every 2 months.  Also, by next year all the major auto companies are expected to have an electric car of sorts launched, including GM, Toyota, Ford, Nissan and VW.

My problem with electric vehicles is that the charge time for the vehicles are hours long, 6 hours for a fill up for the newer models and the distance is supercar range, or in other words terrible.  The other thing is that the batteries use more resources in the end than if you were to use a gasoline engine.  Plus, when you fill up electricity, your electric bill with go up as a result so how much money are you saving then, considering the cars cost quite a lot more than a standard car.  And how is the electricity for the vehicle being manufactured, at coal plants?  Quite possibly, unlike my other infobits, I really hope the electric car doesn't take off as I don't get the appeal at all, and a lot of the problems still exist and people just aren't smart enough to realize what they are.

Updated OPPM

Info Bits 9 - Escort Radar

In short, this product lets you know where police radar and cameras are at.  Sounds great right?  What it does is interact with other cars and networks to let you know where the cameras and radars are so you never will get a ticket again.  Personally I love a product like this and it further integrates with me as it comes with an app that lets you know where everything is, tells you your speed and information like that.  The positives of the product are obvious, but the negatives are that others need a ESCORT Live device for the network to build which gives you your information, and knowing quite a lot of people who drive, not many of these things are in circulation; and they also cost $600.

Hopefully something like this takes off as in theory it can be really helpful for anyone on the road, prevent speeding tickets which helps insurance and your license.