Researching and proposing business model for iot service monitoring the position and theft prevention of motorbikes smart motor in viettel

Understanding the breakthroughs of Business Model Canvas in the context of developing a new product at Viettel - a leading telecommunication corporation in Vietnam, along with practical

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

HOÀNG HÀ ANH

RESEARCHING AND PROPOSING BUSINESS MODEL FOR IOT SERVICE - MONITORING THE POSITION AND THEFT PREVENTION OF MOTORBIKES - SMART

MOTOR IN VIETTEL

NGHIÊN CỨU VÀ ĐỀ XUẤT MÔ HÌNH KINH DOANH DỊCH VỤ IOT - GIÁM SÁT ĐỊNH VỊ VÀ TRỐNG TRỘM XE

MÁY - SMART MOTOR TẠI VIETTEL

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

HÀ NỘI - 2020

ĐẠI HỌC QUỐC GIA HÀ NỘI KHOA QUẢN TRỊ VÀ KINH DOANH

-

HOÀNG HÀ ANH

RESEARCHING AND PROPOSING BUSINESS MODEL FOR IOT SERVICE - MONITORING THE POSITION AND THEFT PREVENTION OF MOTORBIKES - SMART

MOTOR IN VIETTEL

NGHIÊN CỨU VÀ ĐỀ XUẤT MÔ HÌNH KINH DOANH DỊCH VỤ IOT - GIÁM SÁT ĐỊNH VỊ VÀ TRỐNG TRỘM XE

MÁY - SMART MOTOR TẠI VIETTEL

Chuyên ngành: Quản trị kinh doanh

Mã số: 60 34 01 02

LUẬN VĂN THẠC SĨ QUẢN TRỊ KINH DOANH

NGƯỜI HƯỚNG DẪN KHOA HỌC: TS TRẦN HUY PHƯƠNG

HÀ NỘI - 2020

DECLARATION

The author confirms that the research outcome in the thesis is the result of author‘s independent work during study and research period and it is not yet published in other‘s research and article

The other‘s research result and documentation (extraction, table, figure, formula, and other document) used in the thesis are cited properly and the permission (if required) is given

The author is responsible in front of the Thesis Assessment Committee, Hanoi School of Business, and the laws for above-mentioned declaration

In addition, I would like to thank Hanoi School of Business and Management, Hanoi National University for the best learning environment for

me to get more knowledge and improve professional skills

Finally, I would like to express my sincere thanks to my family, friends and teachers for their support and encouragement in my learning, work and life to complete my thesis

TABLE OF CONTENTS

DECLARATION 1

ACKNOWLEDGEMENT ii

LIST OF ABBREVIATIONS v

LIST OF TABLES vi

LIST OF FIGURES vii

PREFACE 1

CHAPTER 1 LITERATURE REVIEW 10

1.1 Some basic concepts 10

1.1.1 Internet of Things 10

1.1.2 IoT theft preventation definition 12

1.1.2 Business model 12

1.2 Components of Business Model Canvas 15

1.2.1 Product pillar 17

1.2.2 Customer interface pillar 18

1.2.3 Infrastructure management pillar 19

1.2.4 Financial aspects pillar 20

CHAPTER 2 RESEARCH METHODS AND THESIS DESIGN 22

2.1 Desk Review (Secondary data) 22

2.2 Primary data 22

2.3 Expert Interview 24

2.4 Focus Group 24

2.5 Location and time of study 25

CHAPTER 3 ANALYSIS OF MONITORING POSITIONING AND THEFT PREVENTION SYSTEM FOR MOTORBIKE IN VIETNAM 26

3.1 Overview of Viettel Group 26

3.1.1 Brief introduction of Viettel Group 26

3.1.2 Viettel‘s objectives and Orientation 28

3.1.3 Viewpoint and orientation on product 29

3.2 Overview about IoT Motorcycle Products 31

3.3 Build Canvas Model for IoT Monitoring positioning and theft prevention system for motorbike 33

3.3.1 Overview about positioning and theft prevention system for motorbike 33

3.3.2 Canvas Model for IoT Monitoring positioning and theft prevention system for motorbike 38

3.3.3 Smart Motor analysis of financial and business performance 53

CHAPTER IV RECOMMENDATIONS 56

4.1 Enhance customer proposition 56

4.2 Improve customer segmentation, especially to provincal cities and towns 56

4.3 Promote multi channel product distribution 57

4.4 Strengthen customer relationship 58

4.5 Training a coordinated, cross-functional Team Department which is the most important resource of Smart Motor 58

4.6 Implement retail marketing strategy to attract new customers, develop and expand Smart Motor 59

4.7 Promote Partnership and Cooperation 61

4.8 Define a proper revenue stream 62

4.9 Establish an adequate cost structure 62

4.10 Improve the quality of IoT Platform of Viettel to improve the quality of Smart Motor 63

4.10.1 Develop IoT Platform 63

4.10.2 Improve IoT Connect and infrastructure Technology 63

CONCLUSION 64

REFERENCES 65

LIST OF ABBREVIATIONS

LIST OF TABLES

Table 1.1: Business model canvas elements and descriptions 15

Table 2.1: Interview description 24

Table 3.1: Revenue and profit of Viettel from 2014-2018 28

Table 3.2: Numbers of Motorbike in Vietnam 39

Table 3.3: Viettel‘s price policy for Smart Motor 46

Table 3.4: Total cost of the package 50

Table 3.5: Total cost of solely equipment 50

Table 3.6: Total cost of device including charge package 51

Table 3.7: Expected profit of device with charge package 53

Table 3.8: Expected profit of solely device 54

Table 3.9: Expected profit of the package 54

Table 3.10: Expected financial performance 55

LIST OF FIGURES

Figure 1.1 Business Model Canvas (Osterwalder and Pigneur, 2010) 14

Figure 3.1: Smart motor Services 34

Figure 3.2: Smart Motor Operation 35

Figure 3.3: IoT value chain 37

Figure 3.4: IoT Vertical Platform 38

PREFACE

1 The rationale of the study

The stealing of vehicles is a serious social problem for most countries, and Vietnam is also one of the countries with high amount of vehicle theft annually Due to the infrastructure and roads characteristics, as well as the income level, most Vietnamese people use motorcycles as their main means

of transportation Therefore, positioning and theft prevention system for motorbike is a total security and fleet management solution for anti-theft It is the application of Internet of Things (IoT) - a system of connected digital devices, each being indentifiable from the others, within a network that can communicate independently without the need for human interaction This technology used to determine the location of a motorbike and alert if there is any suspicision of motorbike theft, which becomes increasingly popular among owners of vehicles as they are able to monitor their motorbike continuously

Besides, the demand for positioning and theft prevention system for motorbike is obvious, however, launching a new enterprise—whether it is a tech start-up, a small business, or an initiative within a large telecommunication corporation like Viettel—has always been a hit-or-miss proposition According to Zott and Amit (2010) designing a business model is

a key activity for all individuals who have a thought about starting up a business Business model is a starting point for any business to be able to make strategic decisions in the belief that there is an opportunity to create profitable To succeed, it is important that the business model assume to satisfy potential customers needs (Teece, 2010) A lot of research has already been done in this field when looking at single companies but business model

in the cluster perspective is a relatively unexplored area of research (Zott &

Amit, 2010) Therefore we argue that the business model for the cluster is key activity to have the opportunity to jointly find new business and opportunities

The Business Model Canvas (Osterwalder and Pigneur 2010) is a visual framework fordescribing the different elements of how a business works It illustrates what the business does, for and with whom, the resources

it needs to do that and how money flows in and out of the business Osterwalder‘s and Pigneur‘s model canvas is well spread and used among practitioners and due to the fact that it is very useable and easy to follow when conducting In order to have customers at the center of the value creation process and to have customercentric value propositions, in this thesis project, the Business Model Canvas will be used

Understanding the breakthroughs of Business Model Canvas in the context of developing a new product at Viettel - a leading telecommunication corporation in Vietnam, along with practical experience in current position, the author aimed to study more about Business Model Canvas in developing IoT positioning and anti-theft system for motobike Therefore, the author

selected the topic "Build IoT Monitoring Positioning Theft Prevention System

for Motorbike after studying Business Model Canvas" as the subject of

research for thesis of master

2 Literature Review

1 Osterwalder, A & Pigneur, Y (2010): Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers Paperback

Business Model Generation is the first book to lay the groundwork for the Canvas model In this book, Osterwalde and Pigneur studied a guideline for visionaries, game changers, and challengers striving to defy outroded business models and design tomorrow's enterprises in order for a business to adapt to harsh new realities and set up business strategy

Co-created by 470 "Business Model Canvas" practitioners from 45 countries, the book features powerful strategic ideas and tools, and makes them easy to implement in your organization It explains the most common Business Model pattern as well as innovation techniques used today by leading consultants and companies worldwide, including 3M, Ericsson, Capgemini, Deloitte, and others

However, the book provides an overview of the canvas model and its pillars rather than going into a specific case study from which to build a specific business model for a given product which is based on the conditions

of the financial capacity of the business and the characteristics of each

market

2 Ries, E (2011) The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses Hardcover

In 2011 Eric Ries wrote a book called ―The Lean Startup‖ in which he documented inexorable logical and lean concepts applicable to start-up businesses The Lean Startup methodology and Business Model Canvas is now considered as a lifebouy for a startup in order to cut up wastes, make up

of its resources and build a proper financial plan

Despite making specific recommendations, suggestions and analysis on canvas models, the book does not mention the development of canvas models for specific products in specific markets

3 Blank, S (2013) The Four Steps to the Epiphany

Blank was the pioneer in the field and the one who introduced the concept customer development describing the process for how entrepreneurs should test and refine business hypotheses through customer conversations His book, ―The Four Steps to the Epiphany‖ from 2013, in which he describes the

process of customer development has become a must read for Silicon Valley entrepreneurs and is highly mentioned in the community

The book highlights the steps of a startup to succeed in launching a new product However, it is not yet associated with building a specific business model in that process

4 Ries, E (2011) The Lean Startup: How Constant Innovation Creates Radically Successful Businesses, Penguin Group, London

Ries is a former student of Blank and has popularized the concept Lean Startup in his blog and subsequent book ―The Lean Startup‖ from 2008 He has received a lot of attention with this book and it was therefore natural to include him in the framework

The book focuses on the lean start-up model and the lean start-up spirit, as well as its applications in building a business model, however, it is primarily about the theory of start-up models instead of focusing on a certain case

5 Nathan, F and Paul, A (2011) : Nail It then Scale It: The

Entrepreneur's Guide to Creating and Managing Breakthrough Innovation: The lean startup book to help entrepreneurs launch a high- growth business

Furr and Ahlstrom has gained a lot of attention in the field recently for their book ―Nail It Then Scale It‖ from 2011 They provide prescriptive and hands-on tips to the entrepreneur They are a good complement to Blank and Ries, and they are also respected in the Lean Startup Methodology community

The book mentions the reforms needed to grow a business on the basis of respect for a lean entrepreneurial spirit, but the book has not laid out a concrete process with practical steps of development to establish a startup

6 Ash, M (2012): Running Lean: Iterate from Plan A to a Plan That Works

Ash Maurya has written the book ―Running Lean‖ In this inspiring book, Ash Maurya take readers through an exacting strategy for achieving a

"product/market fit" for your fledgling venture, based on his own experience

in building a wide array of products from high-tech to no-tech Throughout,

he builds on the ideas and concepts of several innovative methodologies, including the Lean Startup, Customer Development, and bootstrapping

In Vietnam, the Lean Startup principles are not yet widely understood and very little research has been conducted on this topic

7 Van, H (2017), Operating Model Canvas

In his book, Van explains the Operating Model Canvas, and how to create

an organization that can deliver the chosen strategy He features how to define the main work processes, choose an organization structure, develop a high-level blueprint of the IT systems, decide where to locate and how to lay out floor plans, set up relationships with suppliers and design a management system and scorecard with which to run the new organization

The book contains more than 20 examples ranging from large nationals to government departments to small charities and from an operating model for a business to an operating model for a department of five people The book describes more than 15 tools, including new tools such as the value chain map, the organization model and the high-level IT blueprint Most importantly, the book contains two fully worked examples showing how the tools can be used to develop a new operating model

multi-The book is an achievement in the study of the Canvas model in Vietnam, focusing on the IT field, however, the book does not study the products of a specific business but based mainly on typical examples for suggestions and analysis

8 Phan Anh, Bui (2012), Lean Startup research and application in

Schlumberger Vietnam

Phan Anh did his research in Schulumber Vietnam, a company in oil and gas field on Lean Manufacturer to give recommendation to improve manufacturing process of Schlumberger Vietnam

This is the case study of Schlumberger Vietnam, so there is no overview of Vietnam market yet

9 Nguyen Thanh Minh (2013), Lean production and application to Vietnamese enterprises

Thanh Minh studied Lean Startup Methodology and experiences of foreign companies to give opinion and suggestion for Vietnamese enterprises

The topic analyzes the startup model of foreign enterprises operating in the territory of Vietnam, so it is different from the thesis seeking directions for Viettel, the Vietnam military telecommunications group with the characteristic of being a State-owned enterprises are affirming their foothold

in the Vietnamese market and at the same time reaching out to the international market

10 Ngo My Tran and Vo Minh Tri (2016): Application of management tools to enhance efficient efficiency in Universities of Can Tho

This research is aimed at identifying all types of wastes existed in the divisions of Can Tho University and then proposing an action plan to save costs and improve working efficiency in these divisions Expert interviews and a survery of 93 staff members were conducted The results indentified 10 types of wastes existing in these units including wastes of facilities and equipment, waste of labor, waste of not harnessing the creativity of staff members, waste of time, waste of defects, waste of transport, waste of motion, waste of information disconnection, waste of extra activity and waste of extra input Based on these results, an action plan with the application of 5S model

of lean manufacturing to tackle tangible wastes (such as facilities and equipment) was proposed to remove existing wastes in these divisions Some

solutions on personnel and training were also proposed to support the implementation of the action plan

Although the Business Model Canvas model has been studied in many scientific works, the application of this model to a startup business in the field

of positioning and theft prevention service for motorcycle in Vietnam is completely a noverty which have not been studied before Thus, based on previous studies, the thesis focuses on developing Business Model Canvas for start-ups in the field of positioning and theft prevention service for motorcycle, a new topic in the field of positioning and theft prevention service for motorcycle The theme is to develop a blueprint for the development of a new business startup based on the trend of Internet of Things

3 Research Objectives

3.1 Objective of study:

To find out a proper business model for IoT positioning and theft prevention system for Motorbike and to serve the goal of Viettel Group to be the Vietnamese market leader in the field of anti-theft tracking system

some extent when analyzing opportunities, challenges and competitive strategy solving the following questions:

- What are the key elements in Business Model Canvas for IoT positioning and theft prevention system?

- What are the detail business plan recommend for launching IoT positioning and theft prevention system?

4 Object and Scope of Study

4.1 Object of study

The business model to develop positioning and theft prevention service of Viettel

4.2 Scope of study

- Research place: Vietnam motorbike market

- Time to expedite: from 2014 to 2018 All data are collected and analyzed from 2014 to 2018

Select study subject

Study materials, theoretical frameworks related to Business

Canvas Model

Study Vietnamese motorbike market and technologies used in positioning and theft prevention system for motorbike

Build a detail business model for Positioning and theft prevention

system for motorbike

Synthesize and evaluate the results based on the analysis

Suggestions and recommendations

Conclusion

CHAPTER 1 LITERATURE REVIEW

1.1 Some basic concepts

1.1.1 Internet of Things

The IoT concept was coined by a member of the Radio Frequency Identification (RFID) development community in 1999, and it has recently become more relevant to the practical world largely because of the growth of mobile devices, embedded and ubiquitous communication, cloud computing and data analytics

Keyur K et al (2016) defined IoT as: Internet of things is a network of physical objects The internet is not only a network of computers, but it has evolved into a network of device of all type and sizes , vehicles, smart phones, home appliances, toys, cameras, medical instruments and industrial systems, animals, people, buildings, all connected ,all communicating & sharing information based on stipulated protocols in order to achieve smart reorganizations, positioning, tracing, safe & control & even personal real time online monitoring , online upgrade, process control & administration

In IoT, "all things / smart objects" will become active participants in business, information and social processes, where they are empowered to interact and communicate between them and to the environment by exchanging "sensible" data and information about the environment, while automatically responding to "physical / real world" events and influencing it

by real show processes that trigger actions and create services with or without direct human intervention

Services will be able to interact with "smart objects / objects" by using standard interfaces that provide the necessary links through the Internet, querying and changing their state, and retrieving them All related information regarding them, taking into account security and privacy issues

The Internet of Things uses sensors, actuators and data transfer technologies that connect to physical entities - from road devices to pacemakers - allowing these objects to be monitored, coordinated or controlled via a data network or the Internet There are three steps in applicants

IoT uses are: collecting data from objects (for example, as simple as location data or more complex information), gathering that information through a data network, and acting upon such information (take immediate action or collect data over time to design process improvements) Internet of thousands objects can also be used to create values in many different ways

In addition to improving productivity in current operations, IoT can enable the creation of new products, services and strategies such as remote sensors that can create customized cost price models same ability as Zipcar

The range of IoT technology extends from simple identification cards

to complex sensors and actuators Radio frequency identification (RFID) tags can be attached to most objects Sophisticated multi-sensor devices and actuators to transmit data related to location, performance, environment and states are increasingly popular With modern technologies such as microelectromechanical systems (MEMS), sophisticated sensor devices can

be placed in virtually any object (even in the human body) And due to them, devices are manufactured using the same manufacturing process as semiconductors, MEMS costs are rapidly decreasing

With the increasingly sophisticated IoT technologies becoming popular today, companies can not only monitor product flow or test tangible assets, but can also manage the performance of each equipment and systems, such as monitoring and managing an entire assembly lineparts of robots or certain machines Sensors can also be embedded in infrastructure, for example, on-

road magnetic sensors can accurately count the number of vehicles passing through, can be calibrated

Real-time real-time traffic signals Equally important are these sensors and actuators that are data communications links for transmitting this data and encryption programs, including large data analytics, making the data should make sense

Moreover, IoT applications take into account system settings contained controls for operations that can be automatically activated based on data encapsulated by a sensing device For example, in processing industries, sensor-based systems can automatically respond to input signals and adjust the flow processing processes accordingly They can change the traffic light

self-to green when a sensor in the sidewalk signals vehicles with prolonged congestion at intersections, intersections, or alert the doctor when the heartbeat of Abnormal patient display on the remote monitor screen

1.1.2 IoT theft preventation definition

Anti-theft service based on IoT technology is the service of applying IoT technology to providing information about vehicle, location as well as warning about the risk of vehicle theft

That is, with IoT, security and alerting solutions, such as Carema identification, intrusion warning, property destruction warning, journey tracking based on IoT In which, IoT solution is applied to prevent and fight motorbike theft which is being applied and implemented in Vietnam

1.1.3 Business model

Shafer et al (2005), observes that while it has become fashionable to discuss business models, there is no widely-adopted definition of the term Twelve definitions are said to have been proposed in established publications from 1998 to 2002, coming from a wide variety of perspectives including e-business, strategy, technology and information systems It is clear that no single definition of the business model will satisfy every reader but it is

equally clear that people with a wide range of backgrounds are interested in the approach Shafer et al (2005), found that the business model activities could be divided into four categories: strategic choices, the value network, creating value and capturing value They proposed the following definition:

―A business model is a representation of a firm‘s underlying core logic and strategic choices for creating and capturing value within a value network‖

Osterwalder and Pigneur (2010) in his extensive research and work on a business model ontology, concluded that there were nine main building blocks that made up the business model He proposed a slightly broader business model definition: ―A business model is a conceptual tool that contains a set of elements and their relationships and allows expressing the business logic of a specific firm It is a description of the value a company offers to one or several segments

of customers and of the architecture of the firm and its network of partners for creating, marketing, and delivering this value and relationship capital, to generate profitable and sustainable revenue streams.‖

History of Business Model Canvas

The Business Model Canvas, which was first introduced by Osterwalder and Pigneur (2010) in their well-known book ―Business Model Generation‖, is a business model innovation tool that helps organizations to understand, design and implement new business models or enha;ml,nce old business models It is a way to the rationale of how an organization creates, delivers, and captures value, and it consists of nine building blocks

The elements have their theoretical underpinnings in Osterwalder‘s (2004) doctorate thesis, in which he develops a synthesis of the previous business model research Each of the elements included in the framework has been mentioned at least by two other authors in previous literature In the business model canvas tool the elements have been developed further from Osterwalder‘s previous work, resulting in a more easily useable structure and

a changeof names in some of the elements However, the core idea of the framework remains the same

To better understand the relationships that appear between the components, Osterwalder and Pigneur (2010) presents business model with a figure 1.1, which

I present and describe bellow The business model is also represented as connection between values of the company and customers There are different customers, customer segmentation involves identification of the customers, identifying their needs, wishes and create different types of value proposition in order to satisfy different customers‘ needs The different value proposition requires different let's say relationship-building channels, which in turn various resources Key activities in order to deliver that require different partners

Business Model Canvas would be useful to understand the whole concept of business model and help to see what Start-Up Company has and what it is capable of doing

Figure 1.1 Business Model Canvas (Osterwalder and Pigneur, 2010)

In short, Canvas is a strategic management and lean start-up business model template It is presented as visual shorthand, which consists of nine

Key

partners

Costs

Key Activities

Key Resources

Valuable Proposions

Revenue

Customer Relations

Resources

Customer Segments

blocks and which helps to simplify complex organizations It is a template for developing new or updating existing business models

Canvas model is an extremely effective tool that can help businesses build the right model and business strategy However, canvas is only a tool to help businesses concretize their business strategies and operations, but to successfully run a start-up, there are many objective and subjective factors such as management, administration, and business strategies that dominate the efficiency of business operations

1.2 Components of Business Model Canvas

The nine elements of the business model canvas framework belong into four pillars – product, customer interface, infrastructure management and financial aspects

Table 1.1: Business model canvas elements and descriptions

II Customer Interface

2 Customer Segments

Segments of customers a company

wants to offer value to

Describes the link a company establishes between itself and the

to the customer, being the inputs in value-creation process and sources of capabilities

6 Key Activities

Actions a company performs to do

business and achieve its goals

7 Key Partners

Voluntarily initiated cooperative

agreements for outsourcing activities and acquiring resources outside the enterprise

IV Financial Aspects

8 Revenue Streams

Describes how a company makes money through a variety of revenue flows resulting from value propositions successfully offered to customers

9 Cost Structure

The representation in money of all the means employed in the business model elements

(Adapted from Osterwalder & Pigneur, 2010; Osterwalder, 2004)

1.2.1 Product pillar

Product pillar in essence answers to the question ―what?‖ when it comes to business model It describes in which business the company is in and defines the products and thus, value propositions it offers to the market It describes

an essential part related to overall business model innovations – product and service innovations

(1) Value propositions

After an organization has decided on which customer segment they want to serve, they must now look into how to meet the needs and how to create value for the customers in that segment This is done through value propositions Here an organization determines which products and/or service they will provide in order to create value to its customers This value can be quantitative or qualitative both these includes various types of elements It is with these elements value is created for the customers Some because they help the customers to measure differences or similarities between products and/or services Others by meeting certain needs among the customers in the chosen segment One of these elements

is price, here some organizations create value by offering the same products and/or services but to a lower price In this way they can reach out to a new customer segment that are difficult for their competitors to reach Design is another important element for an organization to create value, but it is also a difficult element to measure However a good design can help an organization´s product to stand out from similar products made

by competitors Other examples of elements can be performance or customization Performance has been a traditional way to create value and

by tailoring products and/or services the organization can reach even more customers

1.2.2 Customer interface pillar

Customer interface pillar concentrates on the question ―who‖ in the business model It tells who the company‘s target customers are, how it delivers products and services to them and how it builds strong relationships with them It defines the way how a company goes to market, reaches its customers and interacts with them

(2) Customers segments

This is the heart of any business model and also where to start in order

to create one The organization must first decide what market and which customer segment they want to serve A customer segment consist of customers with similar needs, behaviour or characteristics An organization can focus on more than one customer segment depending on how many or which types of products and/or services they offer Some examples of Customer Segments are mass market and niche market In the mass market the organization focus on a large group, while in a niche market the focus lies on a very small group that demands specific and tailored services and/or products

(3) Channels

Here the organization decides how the customers can purchase their products and/or services and in what way the organization will deliver them to the customers The channels are also used to raise more awareness among the customers and to let the customers valuate the organizations value propositio The organization can use their own channels such as sales force or own stores If the organization does not have own channels they can use partner channels such as partner store or wholesaler Using own channels give higher margins, but costs more The partner channels give low margins, but helps the organization reach more customers

(4) Customer relationships

It is important for an organization to establish customer relationships Different customer segments can demand different types of customer relationships therefore organizations often need to have a mix of them in order

to satisfy their customers One type of customer relationship is personal assistance Here the customer can communicate directly with one of the employees in the organization The opposite to this type of relationships is self-service, here the organization provides the customers with all the necessary tools and software for the customers to help themselves

1.2.3 Infrastructure management pillar

Infrastructure management pillar addresses the question ―how‖ in the business model, telling how a company creates value It tells how a company efficiently performs infrastructural and logistical issues, with whom and as what kind of network enterprise

Thus, it defines what abilities the company needs to provide its value proposition and maintain its customer interface It specifies the capabilities and resources needed in the business model and the executors of each activity

as well as their relationships with each other

(5) Key resources

An organization needs key resources in order to create value for its customers along with keeping their customer relationships and to reach their target market There are four categories of key resources:

- Physical: here are all the physical assets included such as buildings,

vehicles and machines

- Intellectual: brands, patents and copyrights are some examples of

intellectual resources

- Human: human resources is something every organization needs

However in business that are knowledge-intense or creative human resources are especially important

- Financial: financial resources, lines of credits and financial guarantees

is central in some types of business models

(6) Key activities

Like key resources there are some important activities an organization must do in order to manage the following: create value, reach markets and keep relationships to its customers For an organization to function successfully they must know what type of key activities that are important for them to meet the needs from their Customer Segments The key activities are categorized in three different categories: production, problem solving and platform/network

(7) Key partners

There are four types of different partnerships an organization that can

be included in:

 Strategic alliances between non-competitors

 Cooperation: strategic partnerships between competitors

 Joint ventures to develop new businesses

 Buyer-supplier relationships to assure reliable suppliers Which type of partnership an organization chooses depends on the motivation that lies behind the need to create the partnership It is common that competitors create strategic alliances in one part of the market segment and compete against each other in another part

1.2.4 Financial aspects pillar

Financial aspects pillar defines the company‘s revenue model and cost structure, resulting in profitability It defines the business model‘s economical sustainability as all the other elements‘ configuration results in it

(8) Revenue streams

If the heart of a business model is the customer segment, then the revenue streams are the arteries The organization must answer the question: ―For what value is each customer segment truly willing to pay?‖

By answering this question the organization can create one or more revenue streams for their customers There are a couple of different types

of revenue streams The most common type is asset sales, this means that the organization sells ownership rights to physical products This type of revenue stream also generate a onetime payment from the customer Other revenue streams may generate several payments from customers One example of this type is subscription fees Here the organization sells continuous access to a service Another example is usage fee, the more a customer use the service the more money he or she pays the organization

It is common that an organization uses a mix of different types of revenue streams

(9) Cost structure

Here an organization looks at the costs they face in order to operate according to the business model There are two different types of focus in the Cost Structure building block The organization can be either cost-driven or value-driven i.e either the organization focuses on reducing costs or the focus lies on value creation

CHAPTER 2 RESEARCH METHODS AND THESIS DESIGN 2.1 Desk Review (Secondary data)

Secondary data was collected to partly answer the question on how the Business model canvas approach is designed for IoT positioning and theft prevention service for motorcycle, and also to describe the internal development team with their respective areas of responsibility and tasks The secondary data that was collected originated from various literature, articles and news Secondary data also refer to existing data from old research, magazines, books, publications, etc It can be published by official or non-official organizations The results from the secondary data collection is

presented in chapter 3

2.2 Primary data

Primary data are the information which is collected through interview, group discussion, specialized surveys This method will cost more than gathering data from secondary source Primary data play an important role in data collection, since it is the only option when secondary data is unavailable

or unreliable Secondary data have support meaning, it is available for purposes other than solving the research problem (Kumar et al 2002, 106.)

In this thesis, both data collection methods will be used to analyse the situation of the market and the potential demand of IoT positioning and theft prevention service for motorcycle service, to validate the secondary data about the Business Model Canvas approach and the establishment of the internal systems and processes, and to collect new data about the needs of the internal development team The results from the primary data collection is presented in chapter 3

To collect primary data, qualitative interviews with the selected samples as interviewees were conducted Qualitative interviews were selected because they are suitable when it is important to understand the research

participants‘ attitudes and opinions, like in this study where the needs of the internal development team should be understood

All interviews were designed as semi-structured Semi-structured means that a list of themes and questions to be covered works as a basis for the interview, including a scope for changes

As a preparation for each interview, an interview guide with a list of themes and questions were prepared and pilot tested in a questionaire The main contents of the questionnaire were questions related to the views of interviewees on the necessity and the ability to use IoT positioning and theft prevention service for motorcycle, and the desire to cooperate with partners in the field of IoT products These can be found in Appendix B

All interviews were recorded with either the Voice Memo app on iPhone, depending on the location of the interview The interviews were later transcribed A description of how each interview was conducted can be seen

in Table 2.1

The interviewees included individuals and organizations involved in the field of IoT positioning and theft prevention service for motorcycle: potential clients who will use the services, Motorcycle manufacturer and Motorcycle sales agencies who may become a partner of Smart Motor, Sale emloyees of Viettel There were 30 interviewees The data is processing using Microsoft Excel 2010

Table 2.1: Interview description

Sale emloyees of Viettel Workplace Vietnamese Motorcycle users Workplace and private call Vietnamese Managers of Motorcycle

manufacturer

Workplace, Coffee shop and Skype

Vietnamese and English Employees of Motorcycle

manufacturer

Workplace and Coffee shop Vietnamese

Managers of Motorcycle sales

agencies

Coffee shop, workplace or Skype

Vietnamese and English Employees of Motorcycle

sales agencies

Workplace and skype Vietnamese

(Source: collected by author)

2.3 Expert Interview

In order to increase the robustness of my findings from the personal field study, I conducted an expert interview with a professor in Business Administration Dr Tran Tuan Ngoc - The director of Information Technology Centre, Viettel Group, an industry leader in the field of Business Administration Dr Tran Tuan Ngoc had previously mentioned his fascination of IoT Positioning and Theft prevention for Motorcycle service, and I did a review to figure out how his perspectives compared to my own research experience He also informed some charateristics of IoT Positioning and Theft prevention for Motorcycle service and the realities of Motorcycle Market in Vietnam, which was then described in chapter 4

2.4 Focus Group

In order to investigate the relation between initial assumptions deriving from the founders‘ vision and the feedback from the respondents, a focus

group was assembled The focus group was structured by an interview guide, with room for flexibility The flexibility dimension facilitates group dynamics between the participants, making it easier for the respondents to elaborate and give in-depth answers A recording device (iPhone) was used to record the session, leaving all the analysisto a later stage and enabling me as interview supervisor to gain full attention to the answers and dynamic in the group and probe the respondents if necessary

The respondents knew the theme on beforehand, enabling them to make up some intial thoughts and frame the discussion The interview started with a short briefing, explaining the purpose of the interview, as well as informing the respondents that the session would be recorded Next, the interview followed by some open questions to figure out the respondents‘ relation to the need of respondents in IoT Positioning and Theft prevention for Motorcycle service

The next phrase of the interview introduced my service, and was aiming to figure out if it satisfy the need of the respondents previously had been listed

The last part of the interview was about Smart Motor with its services and the the interviewees discussed about what they hope about software display, target customer, other use purposes, channels, pricing,etc

2.5 Location and time of study

- Location: Vietnamese motorcyle tracking market

- Period of study: Conduct research from 2014 to 2018

CHAPTER 3 ANALYSIS OF MONITORING POSITIONING AND THEFT PREVENTION SYSTEM FOR MOTORBIKE IN VIETNAM 3.1 Overview of Viettel Group

3.1.1 Brief introduction of Viettel Group

Viettel is the largest operator in Vietnam and one of the fastest growing telecommunications companies in the world Viettel is among the top 15 global telecommunications companies in terms of number of subscribers and Top 5 most effective telecommunications brands in ASEAN Some general information about Viettel is as follows:

- Transaction name: Military Telecom Corporation (Vietnamese) and

Viettel Group (English) The abbreviation is VIETTEL

- Date of establishment: June 1, 1989

- Head office: No 1, Tran Huu Duc, Tu Liem district, Hanoi, Vietnam

 Some milestones in the history of Viettel's establishment and development:

- June 1, 1989: SIGELCO Corporation was established, the precursor of the

Military Telecommunications Group

- 1990-1994: Constructed the largest broadband microwave (140 Mbps);

Built the highest tower antenna in Vietnam (85m high)

- 1995: was the only enterprise licensed to provide full range of

telecommunications services in Vietnam

- 1999: Completed optical fiber backbone of 2,000M North - South with

the capacity of 2.5Mbps of the highest technology in Vietnam with the successful application of optical transmitter on a single fiber

- 2000: officially entered the telecommunications market, breaking the

monopoly of VNPT The first enterprise in Vietnam to provide voice services using IP technology (VoIP) nationwide

- 2000-2005: Provided full range of telecommunications services in

Vietnam, becoming the company of largest telecommunications infrastructure in Vietnam

- 2006-2007: Invested in Laos and Cambodia Convergence of 3 services:

Fix - Mobile – Internet

- 2008: ranked in the top 100 largest telecommunication brands in the

world

- 2009: Viettel became the economic group with the largest 3G network in

Vietnam and the only network in the world covering 86% of the population right after launching

- 2010-2013: Officially provided servce in Haiti (Natcom), Mozambique

(Movitel) and East Timor (Telemor)

- 2011: Ranked no 1 in Laos in terms of revenue, subscriber base and

infrastructure; Unitel brand was voted by Terrapinn (Australia) as one of the top five excellent telecom operators in Asia (http://mic.gov.vn) Viettel's Metfone brand in Cambodia received the award: best seller in the developing market (The World Communications Awards 2011) Launched the largest data center (IDC) in Vietnam

- 2012: Officially surpassed Vinaphone and Mobifone to become the

number one network in Vietnam Successfully manufactured wireless internet access devices (USB 3G), 2G & 3G mobile phones

- 2013: Revenue from foreign investment reached $1 billion

- 2014 - 2016: Officially provided service in Peru (Bitel), Cameroon

(Nexttel), Burundi (Lumitel), Tanzania (Halotel) Acquired Beeline in Cambodia Obtained telecommunication license in Indonesia

- 2017: Officially delivered 4G services in Vietnam and Timor

Since being ranked No 1 leading telecom market in Vietnam, Viettel has gained a good growth momentum and maintained its position The average revenue growth rate is ~ 13%/year Revenue increased rapidly from 140 trillion VND in 2012 to 226 trillion VND in 2016 So far Viettel has achieved stable revenue of ~ 10.4 million USD/year

Table 3.1: Revenue and profit of Viettel from 2014-2018

Growth rate (%)

Profit (Trillion VND)

Profit (Million USD)

Source: Announcement from Ministry of Information and Communications

3.1.2 Viettel’s objectives and Orientation

Viettel's overall development strategy is to maintain its leading position

in the telecommunications market, to promote the application of information technology in every corner of life, to form a research industry to manufacture telecommunications products and equipment - Information Technology

Creating a large enough market is the key factor for success: information technology and telecommunications equipment serving Viettel's market and customers in the near future and target the universalization of telecommunications services With the development of software and IT

services, Viettel focuses on developing comprehensive, long-term and fundamental projects for state management agencies, businesses as well as people

Focusing on projects in which Viettel has a competitive advantage and

is in line with business development strategy: Viettel is a telecommunications service provider so Viettel's strength is the customer, Deployed floors include: nearly 50 million subscribers, transmission systems, data centers, number of connection points, technical and business staff present throughout the country, system Call center system supports 24/7 Viettel's development strategy is to popularize to target ordinary customers, so the price policy and target customers that Viettel targets are customers with medium and low income, from the above perspective, Viettel will focus investment on the following projects: Value-added services / terminal production (computers, phones, IoT) / IT projects with online connectivity and wide-scale deployment

Combining IT and telecommunications, and electronic (IoT) device products is the difference of Viettel, it creates a new creative space with a wider scope in all aspects of life

3.1.3 Viewpoint and orientation on product

a Viewpoint on IoT development strategy

- Viettel only participates in a leadership game, specifically about IT INFRASTRUCTURE and IoT FOUNDATION, and must do the IoT FOUNDATION In particular: (1) IoT platform for global IoT services (2) self-development and deployment of IoT platform deployed domestically and invested by Viettel

- The choice of IoT connection technology: Prioritize on the choice of

connection technology to promote the role of network operators and have the

ability to widely apply, expand the connection technology according to actual needs

- In the field of IoT products, Viettel does not develop rampant IoT products, only develops the products of the IoT Mass market can be deployed with large investment and is expected to generate annual revenue of 100 billion or more, large and important project team for the government and large enterprises

- Communicate and Cooperate well with other IoT developers in Vietnam

- Develop Infrastructure, IoT foundation in Vietnam first, then in foreign countries Viettel only deploys IoT service in foreign countries after being successful in the domestic market

- Viettel does not participate in manufacturing IoT equipment (chip, sensor, module)

- Viettel participate in and represent roles in IoT communities in Vietnam and IoT alliances around the world

b View point on developing positioning and theft prevention system for motorbike - Smart Motor

- Understand the market and competitors: to understand the market and competitors, Viettel clearly identifies potential market segments, competitors

in the market At the same time Viettel understands the needs of customers, as well as weaknesses of competitors to promote the competitive advantage of Smart Motor in the market

- Understand customer: first of all, the product development orientation is at the bottom, you have to understand what your customers want and what motivates them to buy locator and anti-theft products for motorcycles

- Select the appropriate segment: in developing product features, selecting the right niche for product development is key Breaking the market into

many small segments and focusing its strengths to develop that segment is the strategy and orientation of Viettel in bringing Smart Motor into the market

- Build your product message: Your product message not only helps customers see your prospects but also persuades them to become your customers A marketing message needs to be brief and highlighted At the same time, marketing messages must be supported by all your resources and promoted through advertising

- Build a marketing strategy: Your marketing tool is a communication tool that helps you communicate your marketing message to your customers – Choosing a proper marketing strategy is important because it helps you achieve the highest return on investment That means when you want to choose the means to convey marketing messages to your prospects at the lowest cost Some marketing tools that Viettel aims to:

 Advertising in newspapers, posters, contests, business cards, seminars

 Advertising on television, electrical panels, direct sales,

 Broadcast, billboards, trade fairs, yellow pages, articles

 Classifieds, mail, charity, online

 Banner, live phone, magazine, special event

 Letters, flyers, e-mails, movie advertisements, electric magazines death

 Post cards, spokespersons, press releases, faxes

 Referral books, on gifts, word of mouth, website

 Catalog, Propaganda, display

 Social Network: Facebook, Youtube, GoogleAds

 Communications of Viettel: Television, Website

 Cellular messaging

3.2 Overview about IoT Motorcycle Products

The rise in the use of IoT has enabled users to track the location and activities of vehicle, traffic information, and dispatching of vehicular