Periodic Reporting for period 1 - MUGICLOUD (PLUG AND PLAY intelligent transport system for bus and coach sector)
Reporting period: 2017-08-01 to 2018-01-31
The mugiCloud solution consists of one hardware (mugiCloud Box), firmware (mugiOS), software (mugiCloud Software) and an API (mugiCloud API):
mugiCloud box: It is a device that integrates a smart-4G WiFi router (connected to the cloud and which offers bidirectional communication (passengers-internet and driver-company) and electronic systems connected to: OBD-II, GPS and accelerometer of the vehicle. Installation is done via plug and play to the OBD-II port of the vehicle . The modem can be used with a SIM card from any mobile operator.
mugiOS: operating system (firmware) embedded in the mugiCloud box. It is based on Linux system, which adds custom software development to implement the functionality of mugiCloud box.
mugiCloud Software: a software platform for the connected-vehicle located in the cloud and responsible for storing and processing in real time all data sent from the sensors built into each mugiCloud box (OBD-II, GPS, accelerometer and data WiFi from the passenger network and mobile operator signal). All information collected in each vehicle is stored in the platform. With the vast amount of data stored in the cloud, fleet managers can develop all kinds of innovative telematics applications for vehicle and passengers.
mugiCloud API: The technology platform is scalable, open and accessible thanks to mugiCloud API (Application Program Interface). Using an API key distributed by WirelessCities, fleet managers can also access to mugiCloud data and services to develop new applications based on mugiCloud Box.
Objective: Analysis of the innovative value proposition that enables the sale of the product with enough profit margins to allow the return on investment and ensure the future sustainability.
Tasks: Three different tasks have been implemented during the project execution:
- Task 1: Market. This task analyses the market features, identifies the stakeholders involved in the value chain, describes the different market segments and thoroughly studies the market opportunity, the current competitors and the regulatory issues to be taking into account.
- Task 2: Value proposition, business model and commercialization. In this task the mugiClud product is described, the main advantages against the identified competitors is analysed (differentiation), as well, the Intellectual property aspects are checked (together with a patent search to guarantee the ""Freedom to Operate - FTO). Concerning the business model description, a lean canvas chart has been completed. For the commercialization plan the channels, risks and promotion activities are described. Internal needed resources and time to market are also checked.
- Task 3: Cost, revenues and funding scheme. This is the financial task in which apart from the forementioned points, sales projections have been estimated for three different scenarios and a cash flow analysis completed.
Deliverable: The document feasibility report which includes the analysis of the topics/tasks mentioned above.
Timetable: The work done has been executed from August 1st, 2017 until January 31st, 2018"
1. Groups functionalities in key areas: WiFi, Marketing 2.0 telematics, Routes, etc…
2. Plug & Play: Simple installation, no need of technical service, user friendly, no IT expert required.
3. B2B: easily scalable, internationally scalable, increasing functionalities
4. Integration: SaaS model advantages, Open API easily integrable, interoperable: other apps integration.
Other advantages that make mugiCloud the best available solution are: customer support, user friendly control panel, integral solution and a complete and configurable alarm system capable of sending notifications at any event previously defined: higher speed, different route, break time fulfillment, drivers swap, etc..).
Moreover, it is good to remark the importance of the plug & play feature: the future business idea is that one client will not need one solution per bus, but only one solution per bus running. The plug&play feature enables anyone to uninstall and reinstall the system in another bus easily. It is known, however, that every bus will usually be in the road, but mugiCloud enables this possibility if this is not the case.
Concerning impacts: A recent study of KPMG considers that the automobile manufacturers and IT companies are considering the vehicle as a gateway to the Internet, the connectivity in the vehicle is more than just means of entertaining, as it also increases security by allowing the vehicle to communicate with its external environment.
According to ABI research, the growth of WiFi technology together with mobile broadband Internet (new 4G-LTE networks with speeds exceeding 100Mb in mobility), will have a direct effect in the demand for broadband internet connectivity in the vehicle. A new market niche emerges called ""Connected Car"" in which many leading automotive manufacturers are already working to integrate internet connectivity in their vehicles.
The estimations of this study is that the following years 2018-2020 the applications that use Internet & WiFi in the vehicle related to entertainment (internet, games, music), navigation and telematics (M2M) will grow 120%, on top of that the number of suscriptors to OBD-II telematic solutions will rise from 15 million in 2016 to 117.8 in 2020.
Internet on board of the vehicle and the ecosystem of related applications, consolidates as an emerging market and a future need in the same way that 15 years ago we connected our homes and businesses to the network. A new business is emerging.