Case Study for Telematics Technology Adoption in

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3) Prevents driver's illegal operations eliminating possible loss ... trucks tracking. Telematics Technology enables various business aspects of ... Many adoptions of Telematics Technology occur in CVT (Commercial ... Truck Drivers ... Simple map display for vehicle search in specific area available .... Know arrival time.
Case Study for Telematics Technology Adoption in Commercial Vehicles

Cho, Won-Hee SK Corporation Telematics Business Team Senior Manager

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Table of Contents

I. CVT Introduction II. CVT Biz Model III. CVT Adopted Technologies IV. SK’s Commercial Vehicle Telematics 1. BMS/BIS 2. Vehicle Tracking / Taxi Calls 3. Logistics Management 4. FMS V. Future Projections

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I. Commercial Vehicle Telematics Introduction Commercial Vehicle Telematics enables procurement/production/delivery and rest of the other critical elements of Enterprise Resource Planning, optimizing vehicle operations and management.

1) Successful CRM through real-time customer request processing & logistical controls 2) Maximum efficiency through optimal vehicle operations and increased profit through decreased logistical costs 3) Prevents driver’s illegal operations eliminating possible loss 4) New profits through value added services 5) Channel for collecting traffic information

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II. Commercial Vehicle Telematics Biz Model Telematics Technology enables various business aspects of Logistics, Public Transportation, Fleet Managements, Taxi and many others to maximize vehicle operations and reduce unnecessary costs through optimal vehicle operations (based on SK’s Case Studies) Classification Logistics

Service Model Saves any surplus logistics costs

Biz Model Cost efficient model

Prohibits any illegal vehicle usage

Taxi Company

Bus Company (Public Trans)

1) Optimized vehicle operations saved maintenance fee 2) New profit through Taxi-Call services

Minimize loss from operation cost Increased passenger

1) Optimized dispatch increases vehicle cycle 2) Efficient maintenance system increases vehicle usage

Minimize loss from operation cost Increased passenger

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Case Study

SK’s Success

1) Minimized transportation travel time & distance through traffic forecasts & logistics pattern optimization 2) Minimized delivery fee by coupling with ERP & Corporate Management Systems 3) Constant tracking lets the supplier & buyer monitor the flow of hazardous material & goods. 1) Fleet monitoring prevents vehicle theft

SK petrotank trucks center managemen t

2) CDMA+GPS technology pin-points vacant taxis to nearest passenger

SK Taxi vehicle tracking & SK NaviCall

1) Optimized Bus Schedule provides SK accurate vehicle traveling to customers Public & Express way Bus Transporta tions

II. Commercial Vehicle Telematics Biz Model (continued) Telematics Technology enables various business aspects of Logistics, Public Transportation, Fleet Managements, Taxi and many others to maximize vehicle operations and reduce unnecessary costs through optimal vehicle operations (based on SK’s Case Studies) Classification Rental Cars Company

Service Model Minimize rental car maintenance fee and operations

Biz Model Maximize vehicle operations Minimize operations costs

Fleet MGMT

Maximize sales& promotion vehicles

Maximize vehicle operations

Case Study

SK’s Success

1) Real-time vehicle monitoring & automatic dispatch provided efficient vehicle scheduling to drivers 2) Efficient operations minimized unnecessary vehicle usage 3) Traffic & speed camera alerts provided safe & on-time driving

SK Cartizen

Optimized vehicle maintenance & accurate number of vehicle procurement to enterprises

SK FMS

Provided on-time delivery & operations of construction trucks to on-sites

SK construction trucks tracking

Minimize operations costs

Commercial Trucks

Optimized vehicle operations

Maximize vehicle operations Minimize operations costs

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III. Commercial Vehicle Telematics Technology Many adoptions of Telematics Technology occur in CVT (Commercial Vehicle Telematics) industries and services

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Tracking Technology (GPS, Cell Tracking) Telecommunication Technology (CDMA, GSM, Pager) Message Delivery Functions (SMS Push) Route Planning solutions based on real-time traffic info. (RP Algorithm) Automatic vehicle dispatch Navigations (GPS + Map-matching + Route Planning) Emergency Rescue System WEB / WAP, GIS Remote Diagnosis

RP GPS

CDMA

Navigation

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Traffic Info.

IV. SK’s Commercial Vehicle Telematics Case Stuies Adoption of Telematics Technology in various enterprises from taxi, rental, commercial and public transportation industries resulted in overall optimized vehicle operations and management , cost saving business models and new profits through increase passengers

BMS/BIS

Logistics Control

Taxi Tracking/Taxi Call

FMS

(Express Bus / Public Transportation Bus)

(Commercial & Construction Trucks)

(FMS/Private Taxi Company)

(Rental)

Service Adoptions

Wireless

Service

CDMA or Pager

CDMA

CDMA or Phone

Bus Companies End Users

Logistics Companies, Truck Drivers

Taxi Companies Taxi Drivers End Users

Customers

Key Services

Vehicle Tracking & Dispatch control

Maximize Logistics Control & monitor Hazardous Material Flow

Vehicle Tracking & Dispatch Service 7

CDMA

Ordinary Firms, Marketing & Sales Force on the move,

Sales Vehicle Management

1) BIS/BMS

BIS/BMS Summary

⊙ What is “BIS/BMS” ? • •



Vehicle management system to maximize usage for Public Transportations – Bus Central control system to constantly monitor vehicle status, location and driver’s log through GPS(Global Positioning System) technology Major Functions : Vehicle Dispatch/Real-time basis vehicle tracking/monitor driver’s log/automatic bus stop & station guide

⊙ “BIS/BMS” Objectives •

Provide on-time vehicle stop services to major public transportation users and concurrently maximize profit and operations to Bus Companies through increased passengers.

① Increase passengers through optimal vehicle dispatch

② Bus Company’ Company’s Profit Maximization through increased vehicle rotation and operation

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③ Provide useful information such as remaining distance & time for incoming Bus via wireless communications to EndEnd-User’ User’s mobile handsets

④ Value added service to End Users

System Composition for BIS

1) BIS/BMS

System Composition for SK Bus Information System GPS: Track down vehicle location

SK Bus Information System Wireless Wireless Operator Operator

• Optimized dispatch system specifically designed for public transportations with GPS enabled devices. • Transmit current vehicle location & status and automatically broadcast stations & next stops

Main Main Center Center Server Server

Internet Internet Web Web

Mobile Mobile Phones Phones

Wireless Network

The The Next Next Bus Bus Stop is ★★★ Stop is ★★★

Transportatio Transportatio nn Company Company Server Server

•Transmit location & vehicle status

• Command operations

Automatic Station Announcement

Vehicle Vehicle in in front front surpassed 10 surpassed 10 min min ago ago

Automatic Operations Command: Real-time vehicle interval updates 9

1) BIS/BMS

Bus Operations System & Equipments

Vehicle Vehicle Tracking Tracking

Display Display current current location location of of the the vehicles vehicles along along with with vehicle vehicle status status

Geographic Geographic Search Search

Simple Simple map map display display for for vehicle vehicle search search in in specific specific area area available available

Service Service Notifications Notifications

System System operations, operations, management management & & maintenance maintenance updates updates to to Public Public Bus Bus Companies. Companies.

Vehicle Vehicle Information Information Management Management

Overall Overall data data management management for for optimal optimal control control of of available available vehicles vehicles

Bus Bus Stations Stations Managements Managements

Displays Displays vehicle vehicle route route & & stops stops for for all all vehicles vehicles for for interval interval controls controls and and coordination coordination Keypad

Statistical Statistical Analysis Analysis

Perform Perform statistical statistical analysis analysis for for vehicle vehicle operations operations and and management management

Main Unit

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GPS/Modem Antenna

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Volume Control Display distance between vehicles (LED) Request status between vehicles Alerts incidents & accidents Automatic self diagnosis for system check-ups

1) BIS/BMS

BIS/BMS Client & Server Side Displays

Real-time vehicle location tracking & status monitoring



Monitors vehicle position & operation status in regards to bus stops locations



Matches the traveling routes to actual map 11

1) BIS/BMS

Mobile Bus Arrival Alert Service

Access bus arrival information through mobile handsets



Currently serviced to 3 major Wireless Carriers (SKT/KTF/LGT) providing Bus information for Seoul metropolitan city area

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1) BIS/BMS

BIS/BMS Implementation Results

Public Transportation Bus Companies 1) Tremendous Benefit from Low Operations Costs - Decrease accident rates and consequently renegotiate to lower vehicle insurance - Decrease gas cost from optimal vehicle dispatch 2) Maximize Revenue - Result from increased passenger usage 3) Statistical analysis with driving patterns and behaviors (Maintain traffic laws and safety from accident preventions) 4) Instant response and management incase of accidents

Service Provider (SK) •

Profit from Vehicle Tracking Operations Management : Monthly fees



Efficient means of collecting traffic data through GPS probes installed in the vehicles



Profit from WAP Service (Mobile Bus Arrival Alert Service)

End Users – general passengers •

More frequent usage



Eliminate any time for waiting on the Bus Stop 13

2) Taxi Call

Taxi Call Service – “Navi Call”

We have commercially launched Taxi Call service system by enabling Nate Drive dynamic route guidance technology with Voice Data Center (Hybrid Voice Recognition System) with GPS/CDMA telecommunications technology Core Benefits of NaviCall Ser vice Call Call Center Center Optimization Optimization Automatics Automatics dispatch dispatch system eliminates system eliminates unnecessary unnecessary operators operators

Benefits Benefits to to Taxi Taxi Driver Driver Pin-points Pin-points actual actual Location of Location of the the passenger ensuring passenger ensuring more more customers customers

Safety Safety

Cheap Cheap Call Call Service Service

Provides Provides vehicle vehicle && Passenger Passenger info. info. to to nearest friend, family nearest friend, family && main main center center via via SMS SMS

Taxi Taxi company company does does not not have to pay extra have to pay extra money money for for Call Call Centers Centers

NaviCall Service Display

NaviCall BI

Telematics Technology adoption in Taxi Dispatch Call Services

2) Taxi Call

Unmanned automatic vehicle dispatch system for Taxi companies through Wireless Network & GPS technology to bring nearest available vehicle to customers . Customer security is assured by automatically sending customer information through friends & families via Text message

Send Send Vehicle Vehicle Request Request

Taxi Taxi

Send Send current current vehicle vehicle location location

Request Request Taxi Taxi Customer Customer

Send Send Customer Customer Information Information & & Location Location

Control Control Center Center Dispatch Dispatch nearest nearest available available Vehicle Vehicle

Direct Direct Communication Communication with with Customers Customers 15

Receive Receive Customer Customer Information Information & & Location Location

2) Taxi Call

Taxi Dispatch Call Service Implementation Results

Taxi Taxi Drivers Drivers •• Direct Direct passenger passenger access access

Taxi Taxi Company Company Owner Owner •• Minimize Minimize operation operation costs costs & &

Call Call Center Center implementations implementations •• Route Route guidance guidance service service •• Optimized Optimized vehicle vehicle management management •• Speed Speed camera camera alert alert services services

Vehicle Management & Operations Cost Savings

•• Constant Constant passenger passenger readiness readiness

provides provides new new profit profit

End -User End-User •• Eliminates Eliminates waiting waiting time time for for Taxi Taxi •• Brings Brings security security & & safety safety services services

Service Service Provider Provider •• Vehicle Vehicle Tracking Tracking Center Center

Operations Operations fee fee •• Collect Collect GPS GPS probe probe traffic traffic data data •• Collect Collect driving driving patterns patterns info info and and various various other other useful useful CRM CRM information information •• Can Can be be used used as as promotion promotion & & CRM tools for advertisements CRM tools for advertisements

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Call Service Expansion

Logistics Control Service

3) Logistics Control

Constant tracking of freight and vehicle location with driving information, minimizes idle vehicles and maximizes vehicle allocation and management. By tracking vehicles loaded with hazardous materials, it monitors/controls assigned routes, specific areas, and rapidly countermeasures incidents according to Traffic Management System

Upgrade Vehicle Management

Related Related Org Org  Increase Increase

transportations transportations Capex Capex  Minimize Minimize travel travel dist. dist.  Emergency control Emergency control  Constant Constant tracking tracking of of hazardous goods hazardous goods

Optimize Optimize Transportations Transportations

Reduce Operations Costs

Dispatch Dispatch Personnel Personnel

CRM

Client(Gas Client(Gas Stations) Stations)

Truck Truck Drivers Drivers

 Track Track vehicle vehicle location location & & status status

 Real-time Real-time vehicle vehicle

 Better Better communication communication

 Decrease Decrease communication communication

tracking tracking of of client’s client’s goods goods  Know Know arrival arrival time time  Decrease unnecessary Decrease unnecessary communication communication costs costs

 Ensures Ensures trust trust to to clients clients

costs costs  Optimize Optimize vehicle vehicle operations operations

Customer Customer Satisfaction Satisfaction

Optimized Optimized Operations Operations

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 Automatics Automatics driver driver

updates updates for for road road conditions to conditions to prevent prevent accidents accidents

Customer Customer & & emergency emergency response response

Service Sys. Architecture

3) Logistics Control Operation Flow

ERP Shipment

Creates Travel distance, time & driving logs

Vehicle/Driver Master

Dispatch ①Confirm

Automatic Vehicle Dispatch System

②Dispatch Info

Tracking Server

⑧ Vehicle status

(Client & Server) Web Tool

Arrival info

Vehicle location

③Dispatch

Dispatch data

T/T Confirm Dispatch

④shipment

Logistics (Oil Reservoir) Center

Client (Gas Station)

* Shipment Interface * Vehicle status info (Automatic Push or Pull) 18

3) Logistics Control

Vehicle statistics for each Transportation Companies

Quarterly Transportation Expense

Vehicle Operation Rate

  Vehicle Vehicle Location Location is is monitored monitored in in the the main main Center Center

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4) FMS

Fleet Management System

SK FMS (Fleet Management System) • SK Fleet Management System, will significantly resolve tedious problems involving in logistics, vehicle allocations and vehicle operations. • It incorporates the latest Telematics Service with driver’s behavior data and i-CUVS (increasing Car Usage Values Solution). Concurrently it minimizes any unnecessary fuel consumption, vehicle maintenance and management fee.

GPS Satellite Vehicle Server

Internet

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Overall effect after FMS Implementation

4) FMS

For Company N saved 3,540,000 Won per month and 42,570,000 per year

[Before FMS]

Vehicles

Operation Cost

Gas Price

[After FMS]

10 Vehicles

Vehicles

[for entire team 10 needed]

[6 for the team + Pool 2]

5,500K Won (550K\X10)

1,100K\

4,400천원 (550K\X8)

1,500K Won (150K\X10)

300K\

1,200천원 (150K\X8)

2,400 Km

Biz

Private 60%

1,440km

40%

Gas Price

960km

Decreased

3,360K Won (240ℓ X 1,400\ X 10) Internal Office Employee Usage

Decreased

8 Vehicles

0

1,748K\ Employee Usage 400K\

Monthly decreased Cost 

3,548K Won

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1,440 Km

Biz 60% 1,440km

1,612K Won(144ℓ X 1,400\ X 8)

8 in operations △400K\ (50K\X8)

Future B2B Plans with SK Commercial Vehicle Telematics

V. Future Projections

1. Associate with Insurance Business - Insurance packages based on driving logs & patterns

2. Associate with Gas Station Business - Value added services with Digital HUB Gas Stations

3. Expand Vehicle Category - Adopt Telematics in Express-mail Delivery Logistics, Cash Transportation Bank Vehicles and etc.

4. Adopt enhanced navigation functions - Automatic destination settings - Dynamic route guidance based on real-time traffic info

5. Establish Safety & Security Services - Remote vehicle diagnosis

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V. Future Projections

Taxii Traking

Bus & Logistics

FMS Navi Call

SK Commercial Vehicle Telematics Road Map

Taxi/Bus Tracking & Monitoring Service Logistics Vehicle Control

Fleet Management Services Taxi Call Services(Navi-Call) Navigation Wireless B2B Solutions

Digital Convergence Technology enabled Commercial Vehicle Telematics Services

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Thank you!!

SK Corp. Telematics Business Team http://www.entrac.com

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