Spot On - Process Book

RETRIEVER

Transforming the Parking Experience SERV 431 | XENIA VILADAS | NOV 16. 2017 1

TABLE OF CONTENTS

The Team

3

Blueprint

24-25

Project Description

4

Business Model: Final Version

26-27

Project Outcome

5

Updated Service Package

28

About Retriever

6

Service Iteration: Number Three

29

Cast Study: City of Savannah

7

Service Re-Brand

30

Defining Service Concept

8

Corporate Strategy

31

Target Market

9

Market Strategy

Industry Analysis 5 Forces

11-13

Market Strategy Scenarios

34

Quality Management

35 36-41

Service Analysis: Service Package

14

Updated Cost Structure

Journey Map

15

Break Even Analysis

42

Data Analytics Strategy

43 44

Survey & Interview Findings

16-17

Business Model: Version One

18

KPIs

Service Iteration: Number One

19

Dashboards

Customer Structure

2

10

32-33

20-21

Service Iteration: Number Two

22

Technology Supporting the Iteration

23

45-49

Conclusion

50

Bibliography

51

THE TEAM

MADI BURKE

KERRY ENGLISH

NICK FASOLI

TANVI JAIN

3

PROJECT DESCRIPTION

Our team of consultants were tasked to select a Red Dot Award project, Retriever and design a strategy to bring the service concept to market.

Once we chose an award winning project, we proceeded to do in-depth research.

We used several tools and methodologies to refine and develop our service concept.

We then researched new technologies that could reduce costs and better the quality of the intended service. By recognizing the scope, the market need as well as ensuring a financially viable business model we were best able to deliver the service concept to the market. To support the iterations made service concept we re-branded the company, which solidified our narrative and the experience we wanted to deliver.

4

PROJECT OUTCOME

A re-branded, financially sound, and market ready service concept.

The major iterations include: Removed individual meters for each parking spot. Market research showed emerging city trends individual meters as an unsuitable means to a sustainable approach as well as an unneeded financial investment.

P

Partnered with a meter box corporation to install and maintain the meter to produce a stable business model and cut costs without damaging user experience.

Re-branded the company to support all the iterations.

5

ABOUT RETRIEVER Design credit: Faculty Advisor: Owen Foster Designers: Jian Shi, Qing Xu, Weijing Zhao, Yunman Gu, Holly Chisholm Retriever allows people to search, find, book and pay for a parking spot at anytime from anywhere in the city.

Retriever City Parking is a conceptual smartphone app with smart parking meters. The goal is to reduce the time spent to find a parking spot. The goal of the app is to maximize the parking resources by indicating available parking spots. These indicators are displayed on both the app interface and meters.

Not only does the Retriever app benefit the everyday user but city management as well. It allows for more efficient traffic flow during peak times therefore alleviating congestion. All data is monitored in realtime so as a result the city’s traffic warden can utilize this data if they choose too.

6

CASE STUDY: THE CITY OF SAVANNAH Two Point Sensory System The parking meters are equipped with a sensor that recognizes when there is or isn’t a car. It will communicate wirelessly with the parking meters and in turn transfer the information to the database.

When considering locations for case study and implementation of our proposed parking services it was most logical to select downtown district of Savannah Ga. as it is our local market and consists of a dynamic demographic base that currently utilizes an outdated and problematic parking system. Virtually all curbside within the historic district’s core, bounded by Habersham, Liberty, Montgomery, and Bay is subjected to meters. It is our goal to develop a service that bolsters economic development, provides mobility options, and enhances the overall quality of life for Savannah’s residents, employees, and visitors.

On street parking service revenues have remained relatively even over the past five years. However, significant growth in meter revenues can be attributed to credit card usage. With the widespread use of electronic payments and mobile payment technologies, Savannah would be a promising area to facilitate our service offerings.

7

DEFINING THE SERVICE CONCEPT:

CUSTOMER PROFILE & VALUE PROPOSITION VALUE PROPOSITION

When mapping our Value Proposition, we examined the bundle of services and products that address our end user and primary customers basic needs in order to aid in the completion of emotional, functional, and social jobs. We then determined opportunities and solutions that act as pain relievers for assistance in alleviating our customers extreme issues and moderate pains. By distinguishing between essential pain relievers and those that are nice to have, we enabled our customers with solutions that assisted them in the completion of jobs. Identifying areas that produce relevant outcomes and benefits for the customer and developing gain creators can help our customers obtain either expected, required, desired, unexpected outcomes, and/or benefits.

8

CUSTOMER PROFILE

Our Customer Profile focuses on the end users perspective.

By understanding our end users perspective, we are better able to add value to our service offerings while developing pain relievers and gain creators in relation to the end users jobs, pains, and gains. This activity allows us to identify our end users job preferences, alleviate pains while mapping their levels of severity, and determine gains along with their relevancy levels.

Once mapped, our team became equipped with the innate capacity to visualize what matters to the end user relative to a sharable format. By offering a valuable service to our end users, we are creating a desirable service concept to entice and benefit our primary customer “the city� to invest in.

TARGET MARKET LOCALS

In order to best determine our target market when providing efficient parking services to the Savannah Ga. downtown area, we considered multiple factors that determined our reasoning. After analyzing our service, competition, demographics, psychographics, and current customer base, we were able to evaluate our findings and determine target markets where our services would best be beneficial.

Tourist and Locals resonated as key target market that provided a vast scope of service opportunities when considering frequency of usage and location.

Within those target markets, it was determined that seven market segments held significance.

Within the target market of Locals we recognized students, commuters, the social economically engaged, and those that actually live in local meter vicinity. The tourists segment included the culinary seekers, sightseeing, and event participants.

TOURISTS Residents

Culinary

Students

Sightseeing

Job commuters

Events

2,900,000

286,956

Revenue 3,000

8.715M Parking Revenue 2.790M Citation Revenue 11.790M Total Revenue

TOURISTS (2016)

LOCALS (2015)

PARKING METERS 9

INDUSTRY ANALYSIS DIRECT COMPETITORS Parking Lots

Online Parking Resources

Parking Garages

- Bestparking.com - Parksmartdowntown.com - parkopedia.com

Retriever City Transit - CAT Bus - CAT Bike sharing - Trolley

Private Car Companies - Uber - Lyft - Taxis

INDIRECT COMPETITORS

MARKET TRENDS

Fuel Prices

Tourist Industry

Sustainability

Cities globally are taking on a responsible and sustainable approach to reduce environmental impacts. Cities are meeting new requirements on emerging trends such as urban motility-based challenges and utilizing technology and intelligent devices.

Smart Cities On a local level factors such as airline and vehicle fuel prices affected the tourist industry in Savannah, a major source of revenue for the city.

10

Customization

5 FORCES

Bargaining power of suppliers

Bargaining power of buyers Parking Lots

Parksmartdowntown.com

parkopedia.com

Parking Bestparking.com

Online Parking Resources

Private Transportation

Vehicle Sharing Public Transportation

11

12

THREAT OF NEW ENTRANTS

THREAT OF SUBSTITUTES

To transition into the driverless car’s debut, the shortest route seems to be to switch to autonomous parking cars, that will be ready before the autopilot and that will allow the user to experience many futuristic technologies in first person.

Bosch is convinced that with its park assist system, already in production and remote controlled via smartphones, it will be able to maneuver the cars into the parking spaces independently. The sensors installed in the floor recognize whether a space is busy or not and pass information to a realtime map that can be accessed, for example, via the Internet.

This allows drivers to choose an available spot and occupy it with their car. In collaboration with Daimler, Bosch is now pushing through a real revolution in parking systems.

The driver will no longer have to worry about stopping and then finding his own car, because the car itself will head to a free parking and go back with a simple command. To achieve this goal, Bosch is developing the necessary infrastructure, including presence sensors, cameras and communication technologies.

The true alternative, even for a better quality of life, must be a new urban mobility model centered on bigger space and greater safety for bicycle or walking trips and the incentive to move with public transportation.

For those who cannot do without the car, in the last few years, shared forms of transportation have been developed in order to help limit or reduce traffic on our roads. One of these is ride sharing, which involves the use of vehicles by a “user club”. In essence, ride sharing allows customers to get a ride off a private registered driver in exchange for money. The price will be proportional to the kilometers traveled. This will allow the users to get directly to their destination without worrying about parking.

The use of ride sharing allows for a 30-50% reduction in car expenses, reduced traffic and consequent environmental and acoustic pollution, which can only improve our quality of life.

For those who do not want to use a car, instead, there’s a bike sharing service active in almost every city in the USA. This service provides the rental of a bicycle, which customers can use during the day by means of a subscription and return at the end of its use at one of the collection points in the city.

BARGAINING POWER OF SUPPLIERS

BARGAINING POWER OF USERS

The main suppliers of the SpotOn system are those companies that deliver the data and technology intelligence directly to the platform. Tom Tom is the provider of the GPS location retriever and transmitter, data storage and navigation interface, technologies that power the entire system. Even though these technologies are beneficial in order for the system to function, the market is vastly saturated with providers of these automations. When it comes to the competitive advantage of the supplier’s offering, the service provided is not differentiated enough to constitute a big enough threat. End users and These are the factors for which Tom Tom has a low bargaining power over the SpotOn. On the other hand, once the SpotOn will be up and running, having to switch service provider might constitute too high of a cost to be sustained.

Tom Tom is a large multinational corporation recording a vast number of customers all over the globe, therefore the loss of SpotOn as a client will not harm it’s business in any way. These are the factors for which Tom Tom has a high bargaining power over SpotOn. The most delicate aspect of this partnership is the forward integration of the service by the provider, meaning the possibility and desire of Tom Tom to bypass our system and create an offering of their own. This would result in an incredible loss for SpotOn, not only for the loss of the main supplier, but mainly because of the threat the latter would represent in the competitor landscape. In order to avoid this from happening, a thought out preventive strategy must be put in place. All of the IT and data must be protected through contracts with the supplier and government licenses, making it almost impossible for it to unfold.

SpotOn’s platform is designed too serve technologically avantgarde Cities and Metropolis that are willing to outsource the management of their parking services in order to make them more efficient, profitable, green and appealing in furtherance of making the residents and tourists more satisfied. The growing trend of smart cities around the world and the large spectrum of investors ready to make a move into the market allows for very positive predictions about the quantity of potential users of this service.

A large scale of customers and a scarce availability of substitute products. Long term contracts will be a strategical measure in order to make switching provider disadvantageous, if ever there was a possibility. The possibility of backward integrating this kind of service by cities does not represent a threat, because of the convenience, under many standpoints, of outsourcing such operation.

The differentiation of the offering will favor the increase in speed of adoption. Benefiting not only those who need to park, but also providing local businesses with a space to advertise their products, will give recognition to SpotOn within the city.

These arguments show why cities will have a weak power over SpotOn. The ownership of the land and the authority of being in the driver’s seat when generating the contracts, instead, represent the power that the city will exercise over SpotOn.

13

SERVICE ANALYSIS SERVICE PACKAGE

SERVICE OFFERING Parking Spots

The service package model, is described as a package or bundle of different services, tangibles and intangibles, which together form the total service concept.

The service offering is divided into three main categories: the main service, which is called the “core service” in this case facilitation parking system (e.g., Gronroos 1978, Eiglier & Langeard 1981, Lehtinen 1983, and Normann 1984) and auxiliary services or “extras,” which include enabling and enhancing services. (e.g., Eiglier & Langeard 1981, and Normann 1984) . Enhancing services do not facilitate the consumption or use of the core service, but are used to increase the value and/or to differentiate the service from the services of competitors.

In addition the augmented service offering include the service process and interactions between the organization and its customers, the service production, including the delivery process.

The augmented offering geared to the total customer perceived quality of services.

GPS Services

APP

CORE

Parking Facilitating System

ENABLING

Meter Box

Physical Payment

ENHANCING g

AUGMENTED OFFER

Customer Support Multi- Channel Payment System

Notification Alert Communication Stream

24/7 App Access Systems Updates Android & Apple Download

ACCESSIBILITY DEGREE OF PARTICIPATION

Personal Preferences

GPS Guidance Self Service Payment

QUALITY OF INTERACTION

Personal Profile

Services

Customer Service Alert to Pay Save Payment Method

Open System Location

14

Premium Pass

E-Pay

Retriever

meter experation alert

Goes shopping

Parks car

Pays meter through app

JOURNEY MAP

Exits vehicle

CURRENT STATE Coin Meter Journey Map Travel to downtown Savannah Drives around searching for available parking

Leaves down town Savannah

Returns to expired meter and recieves a parking ticket

Coin Meter

Goes shopping

Parks car

Pays meter coins

Exits vehicle

PROPOSED STATE

Retriever Journey Map

Travel to downtown Savannah Retriever locates open parking location through mobile App

Leaves down town Savannah

Recieves ďŹ fteen minute meter experation alert

Retriever

Goes shopping

Parks car

Pays meter through app

Exits vehicle

In order to understand our service interactions from the users point of view, we developed user journey maps as a visual representation that illustrates both the user's overall experience utilizing the current parking system offered within Savannah’s down town region in comparison to our proposed parking model.

When mapping the current parking model Savannah offers, we discovered three major pain points that the typical user may be experiencing. The first pain point addresses issues concerning availability and the difficulty of locating parking within the congested downtown region. The second major pain point refers to payment and time limitations when parking. Currently, meters are dependent upon manual actions that require coin currency while also being limited to timing restrictions. This then lead us to identify a cause and effect pain point involving meter violations that result in further receiving ticketed monetary penalties.

Through our proposed parking app we alleviate current pain points by offering a seamless and stress free parking experience. We will notify our users of open parking spots that are most near to their desired location. With a touch of the finger, the user may pay for parking from any location. This new payment option will contribute to alleviating dependency on coin currency and ticket penalties.

15

Coin Meter Journey Map

SURVEY & INTERVIEW FINDINGS To better develop an efficient and valuable service, we had to understand the current problems users’ experience while parking. We generated a survey to best capture their encounter and pinpoint the touchpoints which needed improvement.

Therefore, our team could ensure our service concept met those needs as well as validate the features and functions of our app service.

HOW SATISFIED ARE YOU WITH YOUR CITY’S PARKING SYSTEM?

35%

Neutral 12% 3%

(A total of 34 survey participants)

3% 47%

ON AVERAGE HOW LONG DOES IT TAKE YOU TO FIND PARKING?

DO YOU PREFER STREET PARKING OR A PARKING GARAGE?

5-10 mins

I prefer street parking

10-15 mins 16% 38%

15-20 mins 3% 3%

40%

16

I prefer a parking garage 56%

I prefer whichever is the most convenient at the time

20-25 mins 30 + mins 19%

25%

WOULD YOU DOWNLOAD AN APP TO HELP FIND AND PAY FOR A PARKING SPOT?

FEATURES USERS WOULD LIKE TO HAVE INCLUDED IN THE APP: (Number of respondents) Possibly

35% 34%

28

Search for available parking

25

Navigation to the available parking spot

27

Online app payment

31

Payment using debit/credit card

9%

57%

ETHNOGRAPHIC RESEARCH Our team conducted cultural probes in the high traffic areas of downtown Savannah and interviewed people on the streets. We talked to both Savannah locals and tourists about their parking experience and collected feedback concerning our new parking app. “ I’m a barista in downtown Savannah, and I’m constantly dealing with customers taking all meters. These meters need to be updated. Coins meters are inconvenient.”

– Savannah Local

“ When I visit my aunt in Savannah, I get lost driving around the squares and I can never find parking, between that and the foot traffic I get stressed out.”

– Savannah Tourist

“ I would go out to eat more downtown but I don’t want to deal with finding a parking spot. ” – Savannah Local

“ I think an app to help me find parking would be great.”

– Savannah Local

17

BUSINESS MODEL VERSION No. 1 Key Partners

City of Savannah government Savannah MPC Apple iTunes

Key Activities

App Development Parking Jurisdiction Awareness Campaign

Google Play

Physical Meter Production & Installation

Manufacturers

Meter Management

Value Propositions

Customer Relationships

Customer Segments

The Retriever app is an

Online customer service

Savannah locals

eďŹƒcient way for people

Residents

to park their cars without

Brick and mortar parking department

stress.

Telephone Helpline

Workers

Students

Commuters Socio-Economic engages

Government Licensing Key Resources

Tourists

Channels

Families

Mobile App Land for Parking Spots

Smart Parking Meters

Technology Infrastructure

Mobile Website

Bachelors Retired Couples Handicapped

Revenue Streams

Cost Structure

Manufacturing

Web Hosting

Infrastructure Installation

Maintenance

Citations

App Development

Day/Month Passes

Parking Fees

Our business model was generated in order to map how our service creates, delivers, and captures value. Through the nine building blocks we show how our service intends to generate revenue with the exchange of value. By utilizing resources and performing key activities we address customer needs and alleviate problems that Savannah locals and tourists experience. This culminates in the creation of an efficient way for people to park their cars without stress.

18

SERVICE ITERATION NUMBER ONE Through our business and service analysis we realized the individual meters were not needed.

We proceeded to develop our cost structure without individual meters rather meter boxes.

• Unneeded touchpoint in the service process • Replacing the old meters with new meters were not financially or environmentally viable • The City of Savannah is already replacing the individual meters new, updated meter boxes

1.

19

COST STRUCTURE revenue is the average price other parking services like ours charge the government. However, the commission itself would not be enough to pay off the employees and Retriever would go in losses. We decided to add a minimum monthly guarantee of $20,000 that the city would pay us on monthly basis for app and meter maintenance. Based on these estimations, retriever would reach break even within 1 year and make $46,000 by the end of it. After that the estimated profit is likely to be $183,600.

To build out cost structure, we divided out costs in 3 broad categories - App, Meter Boxes and employees. Our initial costs included the App development and meter productions, which would both be outsourced. Our fixed costs include app maintenance, meter maintenance and the wages of 3 employees. We estimated our revenue structure so that the city would pay us for meter installation at the start of the partnership, which we would markup by 50%. We discovered that a 10% commission on parking

1

Start up expanses

Fixed cost

Meter Boxes

App

Employees

P

1

Development $150,000

# of Meters 150

Maintenance (per year) $30,000

Cost per unit $150 1

20

Total production $22,500

Maintenance (per year) $2,000

UX/UI Team: Creative Director Project Manager Designer

$ 50,000 $ 45,000 $ 40,000

TOTAL

$135,000

REVENUE Set Up & Meter Installation: 50% ^ =

$33,750.00

Fixed Revenue: 20K/month =

$240,000/year

Estimated Commission: $13K/Month = 10% of parking revenues

$160,000

Total Yearly Revenue = $400,000

PROFIT

After 1 Year = $383,400.00 - $273,909.60 = $46,000

SCENARIO

Scenario 1: Intermediary

After Break even = $396,000 - $212,400.00 = $183,600

Scenario 2: Bad

Scenario 3: Good

$

Fixed Costs

Initial Costs YEAR 1

YEAR 2

YEAR 3

21

SERVICE ITERATION NUMBER TWO Based on cost structure analysis, we found the meter boxes were an unnecessary expanse and removed it from our service concept. We realized it was financially feasible to partner with a meter box vendor.

2.

22

TECHNOLOGY SUPPORTING THE ITERATION The GPS locator is a device that utilizes the global positioning system, which is able to locate and then discover the position of a person, car, animal or even a microspy GSM in any meteorological situation around the planet, and transmit the detected data to a predetermined interlocutor.

GPS LOCATOR -HOW THE SYSTEM IS INTERCONNECTED Each smartphone (medium thanks to which the system will know the location of each vehicle) is equipped with an integrated GPS receiver, that allows for the geo-location of the devices on a map, and a GSM transmitter that will send the coordinates of the position of the vehicle itself. This location will be used as it were the moving vehicle, until the user will separate from it, letting the system know through an interaction. In the background, the TOM TOM operating system will gather all the information deriving from both the physical environment of the streets and all the users of the service. Once this information is gathered and live, the application will generate a virtual environment, showing all the active parking spots at the moment, those that are already taken and those that are available for parking. The data regarding the position are updated every minute, in order to always possess the latest information necessary for the users to dispose of.

CUSTOMIZATION OF SYSTEM The tom-tom system allows for customizability of the entire virtual environment, letting the insiders modify the availability of given spots at given dates and times. By feeding the platform with chronological information about the city and it’s streets, the app will be able to display parking restrictions, surge pricing and more. This will enable the users to be more aware of their surroundings, of the city enforcements and affairs. These could comprehend street closures, locations under maintenance, sweep zones, events or parades.

OPTIMIZATION OF THE SYSTEM THROUGH A NAVIGATION INTERFACE In order to make the process of looking for a parking spot quicker and less confusing, the app will provide a “take me there” option. The customer will be able to select the parking spot of choice within the range of offering. Following the input, Tom-Tom will provide access to an integrated version of their navigation system. Thanks to this added feature, the user will be directed from his current position directly to the selected parking spot.

23

BLUEPRINT We used a service blueprint is an operational planning tool that provided guidance on how our service is provided, specifically the physical evidence, staff actions, and support systems / infrastructure needed to deliver our service across different channels.

PRE

Channels/ App interactions

DURING

App Maps Notification

User Actions

Backstage Digital Devices (HCI)

Support Processes*

*Location and map services: GPS Parking Platform: database Data analytics: processing information

24

Wants to go downtown

Opens SpotOn App on smart phone device

Enters destination into the app and inputs length of time downtown

Destination and meter time

• Location and map services • Parking platform

Looks at the available parking spots

Chooses an available spot and clicks

Compiles available parking spots (green), spots available in 15 mins or less (orange)

Generates directions

• Location and map services • Parking platform • Data analytics

• Location and map services

Gets into car and begins driving

Follows the map to the parking spot

• Location and map services

Receives alert spot has been taken and suggests an alternate parking spot

Decides to take the app suggested parking spot

App notification alert

Map redirects

• Location and map services • Parking platform • Data analytics

• Location and map services • Parking platform • Data analytics

Follows the directions on the app to the new parking spot

• Location and map services

Arrives at parking sp parks the

ws the tions on the to the new ng spot

n and vices

POST

Arrives at the parking spot and parks the car

Receives app notification about payment options

Clicks on payment method, inputs card information

Completes payment process

• Allotted amount of time for each meter • Total payment

Payment method: • App payment platform

• Location and map services • Parking platform

Enters maximum amount of time allowed on the meter

• E-payment

• Parking platform

Leaves car and goes to downtown destination

Receives app alert informing 15 mins left on the meter

App notification alert

• Payment processing

• Parking platform

Extends time on the meter

Confirms previous payment method

Stays downtown longer

Walks back to car and leaves spot

• Amount of time added

• Parking platform

• Payment processing

25

BUSINESS MODEL FINAL VERSION

Key Partners

K ey Activities

Savannah MPC

App D evelopme nt / Maintenance

Park E-On

Relations with City

Google Maps

Awareness Campaign

Apple iTunes

Relations with Park E-On

Google Pl

Retail Advertising Manage Personell Parking

Value Propositions

Cus tome r Segme nts

Cus tome r R el ationships

Spot on is an efficient way for people to park their cars without stress.

Spot on provides local retailers with a platform to increase awareness and sales.

City Government

Aquisition Retention Online Customer Service 24 hour Telephone Helpline

Savannah Locals

Information Aquisition

Tourists

Marketing Aquisition Local Retail

Data Collection K ey R esou rc es

Database

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Data Analytics Firms

Channels

Mobile App

Contracts with City

Smart Parking Meters

Technolog y Infrastructu re

Mobile Website

Patent / Rights

Data base Re venue S treams

Cost S tructu re

App Development

Employee Wages

App M aintenan ce

Marketing

Web Hosting

Spot On collects data & provides data analytics of the end users’ activities

Parking Fees

Retail Advertising

Premium Memberships

Data Anaylsis

Day/Month Passes

With the introduction of our new service offering we are able to expand our reachable customer segments. City Government, Savannah Locals and Tourist attain value through our parking services. Local Retail establishments are able to utilize our platform to expand their customer base and revenue streams by advertising through our app platform. Data analytic firms may mine pertinent data from our data index.

It is important to note that the distinct structure of our business model address three customer segments. This model is considered to have a multi-sided platform pattern.

Each segment has its own value proposition along with a personal revenue stream.

We have offered sales of our data analytics and implemented promotional retail revenue streams to better balance our cost structures in order to best facilitate and provide optimal service offerings.

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UPDATED SERVICE PACKAGE Retriever

SpotOn

Service Offering Map

ENABLING ENHANCING

Parking Spots

APP

CORE Meter Box Parking Facilitating System

Premium Pass

APP Parking Facilitating System

E-Pay

E-Pay GPS Services

Parking Spots

Advertising

Physical Payment

Augmented Offering Map

Customer Support Multi- Channel Payment System

Notification Alert Communication Stream

Communication Stream

Self Service Payment Systems Updates

Systems Updates

ACCESSIBILITY DEGREE OF PARTICIPATION

Android & Apple Download Save Payment Method

Open System Location Services

28

24/7 App Access

Android & Apple Download

QUALITY OF INTERACTION

Personal Preferences

GPS Guidance Self Service Payment

24/7 App Access

Personal Profile Multi- Channel Payment System

Costomer Service 15 Minute Allert to Pay Save Payment Method

Open System Location Services

SERVICE ITERATION NUMBER THREE Re-branded the company to support all the iterations made throughout the refinement and development of the service concept.

3.

29

SERVICE RE-BRAND

30

CORPORATE STRATEGY

ORGANIZATION

PERSONALITY

Tech Savvy

Transforming the parking experience

WHY: The Philosophy that defines what we do

People Striving to integrate smart parking solutions into metropolitan areas

WHO: Our Tribe

Efficient

Versatile

Social

Stress Free

Reliable

Eliminating cumbersome parking traditions WHAT: Our Approach Digital ATTRIBUTES Defining Characteristics

PROOF: The reasons to believe

Collaborative

Advanced technology

Dynamic

Adaptive

Customer Focused`

Real Time Data update

PRODUCT

Responsible

Tech Efficient Savvy evolves with Interlinks multiple `society corporations Versatile

Social

Stress Free

Reliable

GPS LOCATION E-PAYMENT ALERTS

31

MARKETING STRATEGY

When developing a go to market strategy for our SpotOn services, we focused on potential strategic opportunities that would best provide marketing awareness while also considering feasibility and the capability to reach our end users for service productivity. Creating participation incentives for our end users and third party associates allowed for promotional opportunities that benefited and enabled the marketing for SpotOn. These incentives not only initiate the utilization of the SpotOn service, they aid in the development of a user / provider relationship based on the exchanges of value.

By running a digital promotion with a first time usage and parking free incentive, we are attempting to motivate our end users to initiate downloading the SpotOn app and begin the use of our service. With this incentive we also offer benefits that are received through friend referrals with the intentions of spreading knowledge and awareness through the decontamination of information that references SpotOns existence within the market spa ce.

Retail and Hospitality services will be enticed with the ability to advertise their services through

32

our app upon the end users parking completion. In return for advertisement of their services we are requesting to display SpotOn information within the retail and hospitalities brick an mortar establishments.

This avenue of opportunity would develop customer relations for further advertisement opportunities that would lead to increased revenue for SpotOn while also providing tangible information visuals that stimulate the general publics knowledge of SpotOn services.

As the City holds the position of being our direct customer, our services will benefit their ability’s in the operations concerning urban transportation logistics and business revenues. To better attain full value from our services the City would be tasked with disseminating information that promotes awareness and the use of SpotOn. Areas that the city could consider marketing to inform our end users may be through their city website, various news platforms, physical environments, and through the use of tourist centers as information platforms. The better our services are capable of assisting the city with transport logistics, the better the city is able to deliver the experiences for both dwellers and tourists along with the function of day to day city operations.

Promotional Incentive

End User

City

Park E-On

Retail / Hospitality

Channel

How

-First park free -Refer a friend

-App

-Digital Promotion

-Parking management

-City website -News platform -Physical environment -Tourist center

-Informational page -Broadcast promo -Signage -Brochures

-Third party relations

-Meter box

-Sinage

-First ad runs free -Booking bonus

-Brick and mortar -Store front

-Signage

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MARKET STRATEGY SCENARIOS

These marketing strategy scenario maps depict a basic overview of the process and relationship that is generated through a shared exchange of value between SpotOn and both the local / tourist end users and with the retail / hospitality users. SpotOn provides incentives that facilitate the use of our services while also generating a system of value that transfers between the local / tourist end users and local retail / hospitality industry.

Retail and Hospitality receive SpotOn email offering free advertising

Hospitality and retail pay to advertise through the SpotOn parking app

Retail and Hospitality decide to advertise their service through SpotOn app RETAIL & HOSPITALITY

Hospitality and retail participants notice an increase in customer base and sales

User downloads SpotOn app

User receives a SpotOn thank you notice and three coupons for local retail services

User pays for parking through SpotOn app

User receives a welcoming free parking pass code

LOCAL / TOURIST

User parks in SpotOn parking spot

User opens SpotOn app and navigates city with GPS

SpotOn signals available parking spots

34

User travels to downtown area

Retail and Hospitality place SpotOn logo and information in their front windows

SpotOn assists users in stress free parking and provides them with local retail and Hospitality recommendations

QUALITY MANAGEMENT The overall quality is perceived through our productivity and efficiency our service provides to the user. We then can create an effective service.

PRODUCTIVITY

EFFICIENCY

• One time development:

• Real time analytics

- System is already in place

• Digitalization of an archaic

therefore updates can easily managed

parking system

EFFECTIVENESS

• Offering consistency to our customers • Using our app platform allows our user faster and more convenient parking

- Ad updates • Users manage their own profile and individual app usage

35

Customer Relations

IT Managers

2

$

14.00 $

112.00 $

2,464

PR Managers

2

$

12.00 $

96.00 $

2,112

4

$

10.00 $

80.00 $

1,760

Finance

2

$

12.00 $

96.00 $

2,112

Marketing

3

$

13.00 $

104.00 $

2,288

Data Analytics

2

$

22.00 $

176.00 $

3,872

1,264.00 $

27,808

UPDATED COST STRUCTURECustomer Service Operations

OVERALL COSTS

TOTAL Expense

$ Set up Cost

20.00 $

Fixed Monthly Costs

Wages App Development

$

Marketing

$ $

2,000.00 $

610,368.00

$

131,400.00

13,140.00 $

157,680.00

329.00

TOTAL COSTS

$

Total (1 Year) $

131,400.00

App Management

158.00

$

3,948.00

$

903,396.00

Wages will be our core expense. Spot On will start with a team of 20 Employees.

Activity the app development 1 Profile Daily #Estimatecompany Dailyto$Estimate Yearly We will outsource from Oozou, a web development create the initial app$Estimate at a feasible cost. This will be a one-time cost and after the development of the app the in-house IT team will ad viewed $ 0.50 2900 $ 1,450.00 $ 529,250.00 manage it and update it on regular basis. $ 2.00 145 $ 290.00 $ 105,850.00 ad clicked/ reacted upon https://estimatemyapp.com/paqQNYM2Rdn3PlrEvEmG960Jx7wzWve4 App Features and Cost Estimate: TOTAL

$

635,100.00

App Management costs include the web hosting and other recurring expenses of running an app which is estimated at 10% of the initial app development costs per month Estimated Clients Revenue DATA MONETIZING the only marketing expenses for Spot On in Savannah will be during the launch for the awareness campaign.

2,900,000 The onlyTotal recurring marketing cost will be Search Engine Optimization.

Spot on will partner with Population of Savannah

36

Estimated profiles after a year (30%) Raw Data Per Profile

$

870000 0.00

Data validation Per Profile Raw Data Package

$ $

0.15 870.00

10

$

8,700.00

Enriched Data Package (10,000 profiles)

$

130,500.00

1

$

130,500.00

WAGES Team

Job Title

Management

Project Director

1

$

22.00 $

176.00 $

3,872.00 $

46,464.00 $

46,464.00

Project Manager

1

$

20.00 $

160.00 $

3,520.00 $

42,240.00 $

42,240.00

Service Designer

2

$

20.00 $

160.00 $

3,520.00 $

42,240.00 $

84,480.00

Design Director

1

$

18.00 $

144.00 $

3,168.00 $

38,016.00 $

38,016.00

UX/UI Designers

2

$

17.00 $

136.00 $

2,992.00 $

35,904.00 $

71,808.00

IT Managers

2

$

14.00 $

112.00 $

2,464.00 $

29,568.00 $

59,136.00

PR Managers

2

$

12.00 $

96.00 $

2,112.00 $

25,344.00 $

50,688.00

Customer Service

4

$

10.00 $

80.00 $

1,760.00 $

21,120.00 $

84,480.00

Finance

2

$

12.00 $

96.00 $

2,112.00 $

25,344.00 $

50,688.00

Marketing

3

$

13.00 $

104.00 $

2,288.00 $

27,456.00 $

82,368.00

Data Analytics

2

$

22.00 $

176.00 $

3,872.00 $

46,464.00 $

92,928.00

1,264.00 $

27,808.00 $

IT Team

Customer Relations

Operations

Number of Employees Hourly

TOTAL Expense

MANAGEMENT

$ Set up Cost

20.00 $

Fixed Monthly Costs

$

Yearly

Total Yearly

333,696.00

$

610,368.00

Total (1 Year) $

$

158.00

Monthly

Responsible for looking at the overall management of the project

Wages

IT Development TEAM App

Daily

610,368.00

and management of the app after the app has been developed by a third 131,400.00Responsible for designing, $ updating 131,400.00

App Management

party $

13,140.00 $

157,680.00

Responsible for managing the quality of relationships with all clients and app users. at least 2 customer CUSTOMER RELATIONS $ 2,000.00 $ 329.00 $ 3,948.00

Marketing

TOTAL COSTS

FINANCE 1 Profile MARKETING ad viewed $ DATA ANALYTICS Activity

ad clicked/ reacted upon $ TOTAL

service employees will be available on chat and telephone lines 24x7 to help users with any technical, $ 903,396.00 monetary or general inquires . PR Managers will also be responsible for acquiring retailers for advertising and clients for data selling.

Responsible for managing company Yearly accounts and advertisement revenue Daily #Estimate Daily $Estimate $Estimate Responsible for content management, social media handling and advertising 0.50 2900 $ 1,450.00 $ 529,250.00 Responsible for data collection and enrichment

2.00

145

$

290.00 $

105,850.00

$

635,100.00

37

Raw Data Package Raw Data Per Profile Enriched Data Package (10,000 profiles) Data validation Per Profile PARKING REVENUE TOTAL Raw Data Package Enriched Data Package (10,000 profiles)

$ $ $ $

TOTAL PARKING COMMISSION City Revenue Street Parking

1,600,000.00

PARKING City Revenue $165,000 TouristCOMMISSION Passes Parking Street Parking 1,600,000.00 Decals/Rent/Lease $175,000

$ $

870.00 0.00 130,500.00 0.15 870.00 130,500.00 Commission %

10% 10%

$

8,700.00

1

$

130,500.00

10

$ $

139,200.00 8,700.00

1

$

130,500.00

$

139,200.00

Commission $

10% Commission 10% %

10

$

160,000.00

Commission $ $ 16,500.00 $

$

160,000.00 17,500.00

Tourist Passes $165,000 10% $ $ 16,500.00 TOTAL 194,000.00 Parking Decals/Rent/Lease $175,000 10% is based on the $ Average17,500.00 We will make a 10% commission on all parking revenue earned by the city. This estimate parking revenues PREMIUM Membership of Savannah in the recent years.

TOTAL $ 194,000.00 MEMBERSHIP Revenue Commission % Commission $ Per Premium Membership (Yearly) $500 PREMIUM Membership 300 Premium MEMBERSHIP Revenue Commission % Commission $ Memberships $150,000 50% $ 75,000.00 Per Premium Membership (Yearly) $500 300 Premium Memberships $150,000 50% $ 75,000.00

Revenue Stream

After 1 year

We will offer the users a new payment option where they can pay $500 for a year of free parking anywhere in the city. This service is aimed towards students and the employees in Savannah who need to pay for their car parking everyday for hours. Spot on expect to get 250 memParking 194000 berships in the first year. Since this a new service that city does not offer yet, spot on will be the platform that introduces it. Therefore the revenue will be shared 50-50 by the city and spot on.1Ityear is very unlikely that will membership will effect the parking profits because of the Revenue Stream After Memberships 75000 limitations to this feature. The premium membership can only be bought yearly, and very few people will be willing to spend $500 upfront Parking 194000 635100 unless they spend onAdvertising parking a lot.

Memberships Data Selling 38

Advertising

75000 139200 635100

App Management Marketing

$ $

13,140.00 $

2,000.00 $

329.00

ADVERTISING TOTAL COSTSREVENUE

Daily #Estimate

157,680.00

$

3,948.00

$

903,396.00

Activity

1 Profile

Daily $Estimate

ad viewed

$

0.50

2900

$

1,450.00 $

529,250.00

ad clicked/ reacted upon $

2.00

145

$

290.00 $

105,850.00

$

635,100.00

TOTAL

Estimated Clients

DATA MONETIZING

Yearly $Estimate

Revenue

The cost to place an ad on the app will be based on a cost structure similar to Facebook paid ads. The paid facebook ads

2,900,000 Total Population of Savannah are the main platform for small business to advertise locally. Along with that, spot on will provide them with an additional service of advertising to the people when they are in the vicinity of the business, based on their activity patterns tracked

870000 Estimated after a year by the app.profiles The retailers will not(30%) have to pay unless their ad is seen by the users. They pay a $1 every time a customer Raw Data Profile views the Per ad, $2 if the customer clicks on the ad to$visit the customer's0.00 website/promotional offer or to see the directions to their store.

$ $

Data validation Per Profile Raw Data Package

0.15 870.00

10

$

8,700.00

$

139,200.00

We are estimating that at least 0.1% of Savannah’s entire population (2900 people) will use to the app everyday, or at least open it once. ad will pop up every time they are$exiting the app or finishing a trip. It is who view 130,500.00 1 likely that 5% $ of those 130,500.00 Enriched DataAn Package (10,000 profiles) the ads (145) will either click on it or react up on it, for which we will earn $2 per person.

TOTAL

PARKING COMMISSION City Revenue Street Parking Tourist Passes Parking Decals/Rent/Lease

1,600,000.00 $165,000

Commission %

Commission $

10%

$

160,000.00

10%

$

16,500.00 39

$175,000

10%

$

17,500.00

Activity

1 Profile

Daily #Estimate

Daily $Estimate

Yearly $Estimate

DATA REVENUE$ ad MONETIZING viewed

0.50

2900

$

1,450.00 $

529,250.00

ad clicked/ reacted upon $

2.00

145

$

290.00 $

105,850.00

$

635,100.00

TOTAL

Estimated Clients

DATA MONETIZING

Revenue

2,900,000

Total Population of Savannah Estimated profiles after a year (30%) Raw Data Per Profile

$

870000 0.00

Data validation Per Profile Raw Data Package

$ $

0.15 870.00

10

$

8,700.00

Enriched Data Package (10,000 profiles)

$

130,500.00

1

$

130,500.00

$

139,200.00

TOTAL

Companies like Facebook, Yahoo and Linked earn an average revenue of $1.5 per user through data monetization. Based on these PARKING COMMISSION City Revenue Commission % Commission $

statistics, a revenue of $0.15 (1%) per customer should be attainable for us after 1 year of data validation. 1 year is a decent period of time for us to be able to enrich data for 1 client - ESRI. With the help of websites like Dawex and datacoup, attaining 10 clients Street Parking 1,600,000.00 10% $ 160,000.00 should not be a difficult goal to meet. If 30% of Savannah's population joins the app in the first year, a revenue of 95,700 can be made through data monetizing

Tourist Passes Parking Decals/Rent/Lease 40

TOTAL

$165,000

10%

$

16,500.00

$175,000

10%

$

17,500.00

$

194,000.00

TOTAL

BALANCE SHEET

PREMIUM MEMBERSHIP Per Premium Membership (Yearly) 300 Premium Memberships

Revenue Stream

$

194,000.00

After 1 year

Parking

Membership Revenue

Commission %

Memberships

$500 $150,000

194000 Commission $

Advertising Data50% Selling

635100 75,000.00 139200

$

TOTAL REVENUE

Revenue Stream

Fixed Costs

After 1 year

Parking

194000

Memberships

75000

$

1,043,300.00

$Set-Up

App Development Operation Costs

75000

131400 $1 Year Total

Advertising

635100

Wages

610368

Data Selling

139200

App Management

157680

TOTAL REVENUE

$

1,043,300.00

SEO & Marketing TOTAL COSTS

Fixed Costs App Development

3948 903396

$Set-Up 131400

1043300 - $903,396.00 = 139,904 Operation Costs

$1 Year Total

Wages 610368 According to this cost structure, Spot on will be able to make a profit of $139,904 in the first year of operation.

App Management 157680 The estimated profit is very close to the estimated Data Selling Revenue, which shows that we will break even after a year and Selling will be the additional source of income that will keep expanding with time.

SEOData & Marketing 3948 TOTAL COSTS

903396

41

BREAK EVEN ANALYSIS

Revenue $1,040,000 $900,000.00

$1,043,300 $903,396.00

$131,400

0

42

1 Year

Time

DATA ANALYTICS STRATEGY Spot On will sell both Raw and Enriched Data. It will take us at least 1 year to get a good amount of data and validate ir.There many ways in which the Data provided on spot on will segmented, each segmentation adds more value to the average data revenue earned per customer.

ESRI is a company that pioneers in Data mapping and analytics. They provide many industries with area-focused data. They will be our first client who will validate data for.

Basic Information extracted through the app and third-party platforms linked with the app: - Name - Gender - Age - Ethnicity - Car type - Occupation - Household location - Work Location - Phone number

Possible Segmentations for Spot on In Savannah: - Students - Tourists - Most frequent downtown visitors - Most frequent Mall visitors

POSSIBLE INFORMATION PATTERNS: Lifestyle: - Shopping Patterns - Preferred grocery store - Preferred restaurants, cafes, bars etc - Places visited everyday - Time spent at different locations

Banks: - Most used payment methods - Most used banks - Cost consciousness

Medical: - People who visit the hospitals on a regular basis - Which doctor/hospital/medicine shops they visit the most and how frequently - Do they use the handicapped parking spots?

- How is their activity any different than people who visit hospitals less often?

Data Bundles: - Traffic heatmaps - Area-vise Demographics of the population

43

KPI’S Present

Future

Objective

Measure

Inconsistent cash flow

Consistantly make money

Increase revenue

Total profit

Revenue Exceeds Cost

Increase Revenue Lower Cost

Revenue segments

WHAT WE’RE GETTING

Financial

Customer

Growth Profits

Net profit margin Current AR and AP

Local Marketing

Global Marketing

Increase Customer Aquisition

Spoil Customers

Conduct User Research

Increase Customer Retention

Customer satisfaction Customer retention rate Customer acquisition cost Customer retention

Number of customers

WHAT WE’RE DOING

Checks metrics

Product

Service Process

People &

Implement New Technology

Optimise Technology

Release tracker metric Check history metrics

Optimise Usabiliity Apply Latest Technology

Process

44

Research Tech Trends

Train to Standard

Adapt to Users Needs

Better Service Quality

Invest in Research

Employees Up To Date Tech

Five Year Action Plan

Employees Up To Date Transportation System

Feature vs. bug investment metric Last error Training per employee Competencies measurments Customer focus measures Revenue per employee

DASHBOARDS

45

46

47

48

49

CONCLUSION

Four senior level Service Design students were tasked with one mission; create a service consultancy for an existing Red Dot Award of their choosing. The service they chose would take them on a learning path that required many dedicated hours of hard work, critical thinking, exploration, discovery, inspiration and creativity. Through many tribulations and multiple failed attempts, the team developed SpotOn, an efficient way for people to park their cars without stress.

What was learned along this educational journey? This team of four eager designers had many findings that guided them to their service finale. Initially choosing the Red Dot award winning concept (Retriever) that was previously developed by former SCAD students allowed for dynamic iterations throughout their Service Design processes.

50

The team soon discovered that the tangible materials required for Retriever rendered unnecessary and impractical within todays market of advanced technologies. Further development of a Business Model Canvas and Cost Structure would reveal the unimaginable. The Red Dot Award winning Retriever was not feasible and could not generate a cash flow sufficient enough to provide its necessary core services. The team knew they had to make a change, a big change. This change lead to the birth of SpotOn. By re-branding, incorporating advanced technological trends, and opening the market segments through a multi-sided platform, SpotOn was developed to be feasible and effective.

BIBLIOGRAPHY Osterwalder, Alexander, and Yves Pigneur. Business Model Generation. John Wiley & Sons, Inc, 2010.

Osterwalder, Alex, et al. Value Proposition Design. John Wiley & Sons, Inc, 2014.

Wirtz, Jochen. Services Marketing. Vol. 8, World Scientific, 2016.

She, Jian. “Jian Shi Retriever.” Jian Shi design Retriever, Jian Shie, 2017, jianshidesign.com/retriever.

“Design Concept: Retriever.” Red Dot Award: Design Concept, 2017, http://www.red-dot.sg/en/retriever/.

“MANAGING THE SERVICE PRODUCT: The Augmented Service Offering.” THE MARKETING ASSOCIATION OF AUSTRALIA AND NEW ZEALAND,, “VenturePact.” LOOKING TO BUILD AN APP?, Outgrow, 2017, venturepact.com/mobile_app_price_calculator.

Crew. “HOW MUCH TO MAKE AN APP.” HOW MUCH TO MAKE AN APP, 2017, howmuchtomakeanapp.com/estimates/question/type.

Ehrenburg, Billy. “The guardian.” The guardian, 22 Apr. 2014, www.theguardian.com/news/datablog/2014/apr/22/how-much-is-personal-data-worth.

Lomas, Natasha . “Handshake Is A Personal Data Marketplace Where Users Get Paid To Sell Their Own Data.” Handshake Is A Personal Data Marketplace Where Users Get Paid To Sell Their Own Data, 2 Jan. 2013, techcrunch.com/2013/09/02/handshake/.

Williams, Ryan. “5 Steps To Estimating Monetization Value For Your Mobile App and Website Concepts.” Wonderment, 8 Feb. 2017, www.wondermentapps. com/2017/02/08/mobile-app-website-monetization-value-on-your-concept-in-5-steps/.

“Sign UpLog In How It Works - Connecting Data.” Data Coup, 2017, datacoup.com/docs#payouts.

Lewis, Triston. “How Much Is A User Worth?” Forbes, 2017, www.forbes.com/sites/tristanlouis/2013/08/31/how-much-is-a-user-worth/#47e93ab41c51.

“Arm your team with trusted company data.” Crunch base enterprises, 2017, about.crunchbase.com/m/enterprise-ops?utm_source=google&utm_ medium=paidsearch&utm_campaign=enterprise_ops&utm_content=212586349083&utm_term=kwd-300619685898&gclid=CjwKCAiAoqXQBRA8EiwAIIOWsgnnYrvInafeT6w wqMFR2XLnED3R_h_ZZ-X1aetosV7fP6RBeqduXRoCzBAQAvD_BwE. 51

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Transforming the Parking Experience