透視駕駛 - 通過擴增實境技術來消除盲點 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University 碩士論文. Master’s Thesis. 學. ‧ 國. 立. 政治大. ‧ y. Nat. er. io. sit. 透視駕駛 - 通過擴增實境技術來消除盲點 n. Driving Lens –a lEliminate Blind Spot i v by Augmented. Ch. n U e nReality gchi. Student: Lin, Chin-Wei Advisor: Professor Shang, Shiaw-Chun. 中華民國 106 年 7 月 July 2017.

(2) 透視駕駛 - 通過擴增實境技術來消除盲點 Driving Lens – Eliminate Blind Spot by Augmented Reality. 研究生：林進瑋. Student: Lin, Chin-Wei. 指導教授：尙孝純. 立. Advisor: Shang, Shiaw-Chun. 政治大國立政治大學. ‧ 國. 碩士論文. 學. 商學院國際經營管理英語碩士學位學程. y. ‧. io. sit. Nat. A Thesis. er. Submitted to International MBA Program. n. aNational iv l C Chengchi University n h e n g cofhthe i U in partial fulfillment Requirements for the degree of Master in Business Administration. 中華民國 106 年 7 月 July 2017.

(3) Acknowledgements At first, I would like to express my sincere gratitude to my advisor Prof. Shiaw-Chun Shang, who kindly supported me to finish this business plan with her patience and broad knowledge. Her guidance helped me to select the appropriate topic and complete the whole business plan on time. I could not have imagined that there was any better advisor like her. Besides my advisor, I would like to appreciate the IMBA faculty members for their kind. 治政 assistance and enthusiasm which builds IMBA program more 大 interesting and meaningful. 立 Especially, I want to thank the department staff, Ms. Lichi Ho, who takes cares of all our ‧ 國. 學. administrative demands in university.. ‧. My sincere thanks also go to Prof. Minder Chen and Prof. Wei-Chieh Su, who provide me with insightful comments and encourage me to enhance my business plan from. y. Nat. er. io. sit. different perspectives.. I also thank my classmates for this program. With many sleepless nights, we were. n. al. Ch. i n U. v. discussing and working together before deadline, and having so much fun in the last two years.. engchi. Last but not the least, I would like to thank to all my family members. The most important member is my wife, Pei-Ling Chen. Without her love and support, I could not make this achievement.. Lin Chin-Wei (Wallace). i.

(4) Abstract Driving safety is the major issue not only for the drivers, but also for the government. The happening rate of traffic accidents is the critical benchmark of traffic improvement for the Ministry of Communications. Even the government officials constantly urge the drivers not to drunk driving, or over speed driving, the happening rate still cannot be decreased largely. Most of accidents are made by the careless or ignorant driving habits. With the evolution of driving safety technology, the driving assistance system helps. 治政 drivers to avoid the collision and lower the happening大 rate of accidents. Among these 立 driving safety technologies, collision detection system is well-known one. It can detect ‧ 國. 學. not only any object around the vehicle, but also notify the drivers to stop passively or stop. ‧. the vehicle actively. One major function of the collision detection system is used to eliminate the blind spots for the drivers. Some blind spots are generated by the rigid. y. Nat. n. al. er. io. change.. sit. structure of vehicle which is designed to protect the inside passengers and not allowed to. Ch. i n U. v. Fortunately, with the evolution of Augmented Reality and the lower manufacturing cost. engchi. of video equipment, Driving Lens is targeted to eliminate the blind spots for the drivers. Currently, there are still some limitations about the existing products such as the around view monitor or rear view monitor. In order to improve the driving safety and enhance the driving experience, Driving Lens will offer different customized solutions for the driver such as 180 degree front view without the blind spots behind the pillars, and these solutions won’t be limited by the specific auto brand or vehicle model. Keywords: Driving assistance system, Augmented Reality, Blind spot, Accident. ii.

(5) Table of Contents 1. Introduction ................................................................................................................ 1 2. Market Opportunity .................................................................................................... 4 2.1 Limitations .......................................................................................................... 4 2.2 Opportunities ...................................................................................................... 6 3. Driving Lens ............................................................................................................. 10 3.1 Invisible Pillars ................................................................................................. 10. 政治大. 3.2 Invisible Hood .................................................................................................. 11. 立. 3.3 Transparent Front View .................................................................................... 11. ‧ 國. 學. 3.4 Content Creation ............................................................................................... 12 4. Marketing Strategy ................................................................................................... 13. ‧. 4.1 Consumer.......................................................................................................... 13. Nat. sit. y. 4.2 Cost ................................................................................................................... 14. n. al. er. io. 4.3 Convenience ..................................................................................................... 15. i n U. v. 4.4 Communication ................................................................................................ 16. Ch. engchi. 5 Operations ................................................................................................................. 18 5.1. Statistics ...................................................................................................... 18. 5.2. Structure ..................................................................................................... 20. 5.3. Operational Process .................................................................................... 24. 5.4. Pricing Process ........................................................................................... 26. 6 SWOT Analysis ........................................................................................................ 27 6.2. Strengths ..................................................................................................... 27. 6.3. Weaknesses ................................................................................................. 27. 6.4. Opportunities .............................................................................................. 28 iii.

(6) 6.5. Threats ........................................................................................................ 29. 7. Porter’s Five Force Analysis ..................................................................................... 30 7.1. Threat of New Entrants............................................................................... 30. 7.2. Threat of Substitute Products ..................................................................... 31. 7.3. Bargaining Power of Customers ................................................................. 31. 7.4. Bargaining Power of Suppliers ................................................................... 32. 7.5. Industry Rivalry .......................................................................................... 32. 政治大. 8. Business Partners ...................................................................................................... 34. 立. IC Supplier .................................................................................................. 34. 8.2. Display Supplier ......................................................................................... 34. 8.3. Camera Supplier ......................................................................................... 34. 8.4. Vehicle Dealers ........................................................................................... 35. ‧. ‧ 國. 學. 8.1. Nat. sit. y. 9. Project Timeline ........................................................................................................ 36. n. al. er. io. 10. Financials .................................................................................................................. 38. i n U. v. 10.1. Fixed Cost ................................................................................................... 38. 10.2. Variable Cost .............................................................................................. 39. 10.3. Cash Flow Statement .................................................................................. 40. 10.4. Pro-forma Income Statement ...................................................................... 41. Ch. engchi. 11. Risk Analysis ............................................................................................................ 43 12. Future Road Map ...................................................................................................... 44 12.1. Enter Domestic Market ............................................................................... 44. 12.2. Develop Foreign Market ............................................................................. 45. 12.3. Expand Business Globally .......................................................................... 46. 13. Conclusion ................................................................................................................ 48 iv.

(7) 14. Reference .................................................................................................................. 50. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. v. i n U. v.

(8) List of Figures and Tables Figure 1-A, B, C Pillars of Vehicle ................................................................................... 2 Figure 2-Around View Monitor & Rear View Monitor.................................................... 5 Figure 3-Display the view behind pillars. ........................................................................ 7 Figure 4-Display pavement state below hood .................................................................. 8 Figure 5-Display the view of the front Road .................................................................... 9 Figure 6-Organization Structure ..................................................................................... 21. 政治大. Figure 7-Timeline of launching first product ................................................................. 36. 立. Figure 8-Business Model Canvas ................................................................................... 48. ‧ 國. 學. Table 1-The statistic of road accidents and casualties .................................................... 19. ‧. Table 2-Top 10 best-selling vehicles in 2016 ................................................................. 20. Nat. sit. y. Table 3-The ranking of best-selling auto accessories ..................................................... 20. n. al. er. io. Table 4-Fixed Cost.......................................................................................................... 38. i n U. v. Table 5-Annual Variable Cost......................................................................................... 40. Ch. engchi. Table 6-Cash Flow Analysis ........................................................................................... 41 Table 7-Income Statement .............................................................................................. 42 Table 8–Risk Factor Analysis ......................................................................................... 43. vi.

(9) 1. Introduction According to the Ministry of Interior road crash statistics[1], this statistics summarized the happening causes of A1 road crash, almost 80 percent of road crash was because the vehicle drivers didn’t pay attention to the nearby pedestrians, bicycles and motorcycles. Examples of vehicle accidents are listed as below. •. When turning direction, drivers didn’t notice whether there is any vehicle, bicycle and pedestrian around.. 立. When driving through the crossroads, drivers didn’t observe that there is a fast-. 學. ‧ 國. •. 政治大. approaching vehicle to crossroads.. When switching lane, drivers didn’t keep enough distance to front vehicle.. •. When overtaking, drivers didn’t discover that there is a vehicle on oncoming lane.. ‧. •. y. Nat. sit. Based on the above examples, these accidents not only make the loss to the vehicle owner,. n. al. er. io. but also hurt other related people. Some root causes of these vehicle accidents are made. i n U. v. by dangerous driving, but some of them are affected by blind spots. Drivers don’t see the. Ch. engchi. people behind the rigid structure of the vehicle, so they prefer to judge whether there is any person by their experience. Somehow, this experience would mislead to an incorrect decision, and then vehicle accidents are inevitable happened.. 1. Ministry of Interior road crash statistics. Retrieved from. http://www.moi.gov.tw/files/news_file/week10016.doc 1.

(10) Figure 1-A, B, C Pillars of Vehicle[2]. 治政大 blind spots to drivers. Here By referring Figure 1, these are A, B, C pillars which generate 立 are the instances when blind spot mislead drivers to make wrong decisions. ‧ 國. 學. Blind spot behind A pillar. ‧. When driving through cross road, because of blind spots behind A pillar, drivers might not be able to notice vehicles and pedestrians behind A pillar. Therefore, drivers used to. y. Nat. the speed and let pedestrians pass through first.. n. al. Blind spot behind B pillar. Ch. engchi. er. io. sit. turn direction immediately without slowing speed. Actually, drivers should slow down. i n U. v. When drivers try to switch lane, they could not observe that neighbor vehicle is at the blind spot behind B pillar. Once switching lane, accidental collision is inevitable happened.. Blind spot behind C pillar When reversing vehicles, pedestrians might walk into the blind spot behind C pillar. If the drivers still reversed without stopping, vehicles would unavoidably collide with. 2. Blind Spots behind the pillar. Retrieved from http://www.drivingtesttips.biz/driving-test-tutorials/a-. pillar-blind-spots.html 2.

(11) pedestrians.. Blind spot below hood When driving on a rugged or narrow road, the field of view is restricted by the hood, so it is impossible to correctly determine the lane boundary or road condition, which causes the vehicle to fall into the ditch or not even dodge the pit, causing damage to the vehicle and making an accident happen.. Blind spot of rear vehicles. 政治大. When the distance between the front vehicle and the rear vehicle is too close, the rear. 立. vehicle driver can't see the view of front road. Therefore, it is hard for him to distinguish. ‧ 國. 學. whether there is any vehicle on the adjacent lane, or there is any car on the oncoming traffic lane.. ‧. The above problems are caused by blind spots. When drivers can’t see the view behind. y. Nat. sit. the obstacles, they prefer to follow their experience or intuition. Actually, such experience. n. al. er. io. or intuition could mislead drivers, and make traffic accident happen. Unless decreasing. i n U. v. the area of blind spot, driver can’t have clear view to make right decisions. If the blind. Ch. engchi. spots are eliminated, it is possible to lower the happening rate of traffic accidents.. 3.

(12) 2. Market Opportunity In order to avoid road crash happening, automobile and auto parts manufacturers offer different products to prevent drivers from the road crash. For example, collision detection system, around view camera and rear view camera, these products provide the information behind the rigid structure of vehicles, but there are some existing limitations for these products.. 政治大 With the development of video technology, we can install the lens outside the car and 立 2.1 Limitations. ‧ 國. 學. install the monitor inside the car. After that, internal monitor can display the images which belongs the driver’s blind spot, e.g. around view monitor, rear view monitor etc. However,. ‧. there are some limitations about these devices.. n. er. io. sit. y. Nat. al. Ch. engchi. 4. i n U. v.

(13) 立. 政治大. ‧ 國. 學. Figure 2-Around View Monitor & Rear View Monitor[3]. ‧. 2.1.1 Fixed Lens Angles. sit. y. Nat. For the first limitation, the angle is fixed. The lens angle is mainly to observe the corners. io. er. around the vehicle, so it is overlooking the vehicle to check whether there is any obstacle,. al. not in accordance with driver’s perspective to adjust the angle automatically. Therefore,. n. v i n C h spots behind pillars. these devices still can’t resolve the blind e n g c h i U Especially when the driver observes that there is an approaching pedestrian on the monitor, the distance between the pedestrians and vehicle is too close, and the driver doesn't have enough time to respond.. 2.1.2 Switching Focus Frequently About the second limitation, the driver needs to switch the focus frequently. Because the monitor displays the images about blind spots, the driver will switch eye focus from actual vision to displaying image. However, the driver should put his focus mainly on actual. 3. Around View Monitor. Retrieved from https://www.youtube.com/watch?v=kSkc9Wt35Vc 5.

(14) view, which is far more important. After all, these devices are used to assist drivers, but in fact they distract the driver’s attentions that probably result in dangerous driving. Fortunately, with the development of Augmented Reality and Display technology, Driving Lens can figure out the blind spots for the driver without the above limitations.. 2.2 Opportunities With the evolution of Augmented Reality, coupled with the reduction of manufacturing costs of video equipment, Driving Lens can display the blocked images on the objects. 政治大. which just generate the driver's blind spot. This Augmented Reality technique not only. 立. empowers the driver see through these objects, and is not necessary to change the rigid. ‧ 國. 學. structure of vehicle. In addition, there is not such above mentioned limitation. About lens angle, the camera lens will automatically adjust according to the driver’s. ‧. perspective, without the need for the additional operation of the driver to being adjusted. y. Nat. sit. the angle passively. About switching focus frequently, Augmented Reality technique will. n. al. er. io. display the view behind blind spot on the blocked object. Hence, the driver feels like. i n U. v. seeing through these blocked objects without switching focus frequently, and lowers the happening rate of accidents.. Ch. engchi. 2.2.1 Blind Spot behind Pillars According to Figure 3, when drivers switch the focus to front road, the view behind pillar will display on the surface of pillar. Furthermore, when driver starts to turn the direction or drive through the crossroads, the image behind blind spot will feedback to the driver instantly, so the driver will have enough time to avoid accident to be happened.. 6.

(15) 治政 Figure 3-Display the view behind大 pillars. 立. [4]. ‧ 國. 學. 2.2.2 Blind Spots below Hood. ‧. As shown in Figure 4, when driving on a rugged or narrow road, the front view is. sit. y. Nat. restricted by the hood. Driving Lens can display the road state and the direction of tires. io. al. n. or ditch in advance, and is able to avoid on time.. 4. Ch. engchi. er. on the front windshield. The driver can discover whether there is any obstacle, pot hole. i n U. v. Jaguar Land Rover’s “Transparent pillar” technology. Retrieved from. http://www.evo.co.uk/jaguar/14825/jaguar-land-rover-develops-invisible-pillars-and-ghost-vehicletechnology 7.

(16) 立. 政治大. Figure 4-Display pavement state below hood[5]. ‧ 國. 學. 2.2.3 Blind Spot of Rear Vehicles. ‧. As shown is Figure 5, the structure of front vehicle is so huge, that it generates the blind spot to the rear vehicle. Driving Lens can install a monitor on the back of vehicle and. y. Nat. er. io. sit. display the front view of road for the rear vehicle. This technique will largely reduce the risk when the rear vehicle tries to switch the lane, or to overtake the front vehicle. Because. n. al. Ch. i n U. v. the driver of rear vehicle can detect whether there is any car on the adjacent lane or the. engchi. oncoming traffic lane, then he can drive more safely to avoid accident collision.. 5. Land Rover’s “Transparent Hood” Technology. Retrieved from. http://www.damngeeky.com/2012/10/30/6751/a-plus-pillar-concept-gives-eyes-to-a-drivers-blindspot.html 8.

(17) 政治大. 立. Figure 5-Display the view of the front Road[6]. ‧ 國. 學. The above solutions have been disclosed for a long time, but they are only available for. ‧. the specific vehicle manufacturer or brand. If Driving Lens can offer the related devices and customized services for end-consumers, these solutions are more easily to spread and. y. Nat. n. er. io. al. sit. the cost is lowered more by scale.. 6. Ch. engchi. i n U. v. Samsung’s “Transparent Truck” Technology. Retrieved from https://www.linkedin.com/pulse/heres-. what-you-need-know-samsungs-transparent-truck-tech-booky 9.

(18) 3. Driving Lens Driving Lens mainly provides end-consumers with the auto parts of Augmented Reality which eliminates the driver’s blind spot. In addition to display the image behind the blind spot, it also highlights the possible dangers to help driver’s decision making. With the increasing of safety awareness, the willing of spending on the safety accessory is also increasing for vehicle owners. However, the main security accessories are sold as. 政治大 specific combination, and they can’t customize the auto parts with different expectations. 立 different combinations in the new car. General consumers just passively accept the. ‧ 國. 學. Therefore, Driving Lens expects to offer the accessories of Augmented Reality for the best-selling vehicle at the beginning. The vehicle owners can purchase the different auto. ‧. parts upon their budgets. With the upgrade of Driving Lens devices, it can create more. sit. y. Nat. content such as GPS Navigation, Information Integration and Danger Notification, etc.. io. er. The following section introduces how Driving Lens eliminates the driver’s blind spots.. al. n. v i n C hthe blind spots behind At first, Invisible Pillars eliminates e n g c h i U pillars, and it will notify the 3.1 Invisible Pillars. drivers when recognizing the vehicles, motorcycles, bikes and pedestrians being approached. Therefore, it requires the following devices to build up the system.. 3.1.1 System requirements  Outside Camera: Capture the images behind the pillars.  Internal Camera: Detect the driver’s head direction and track the driver's eye sight.  Display: Organic Light-Emitting Diode (OLED) or Head UP Display (HUD) are installed on the pillars, and they are used to show the scene behind the pillars.  System on Chip: It offer AR platform and software toolkit which enable other AR 10.

(19) companies to develop AR applications. For example, it offers image recognition, image scaling, image splicing, etc.. 3.2 Invisible Hood Secondly, Invisible hood eliminates the blind spots below hood, and it shows the boundary of road to keep direction, and highlights the obstacles and holes to avoid. Hence, it necessitates the following devices to establish up the system.. 3.2.1 System requirements. 政治大.  Outside Camera: Capture the road state and the front tire direction. 立.  Display: Head UP Display (HUD) are installed on the front windshield, and it is used. ‧ 國. 學. to show the road state and lane boundary behind the hood..  System on Chip: The function of image recognition will help to identify the obstacles. ‧. and the lane boundary.. y. Nat. sit. 3.3 Transparent Front View. n. al. er. io. At third, Transparent front View eliminates blind spots of rear vehicles. Furthermore, it. i n U. v. demonstrates for the rear vehicle drivers whether there is any approaching vehicle on the. Ch. engchi. opposite lane, or there is enough distance when switching adjacent lane. It makes use of following devices to show the front view of front driver for the rear drivers. 3.3.1 System requirements  Outside Camera: Capture the front view of road state  Display: Liquid-Crystal Display (LCD) is installed at the back of vehicle, and it is used to show the front view of road state.  System on Chip: The function of image recognition will help to alert the rear vehicle whether there is any vehicle on the adjacent lane or the oncoming lane.. 11.

(20) 3.4 Content Creation Except eliminating blind spots, Driving Lens also provides the consumers with the various applications of Augmented Reality. These applications enrich the content of Augmented Reality products, and attract the consumers to stick to the products of Driving Lens. For example, . GPS Navigation: HUD can display the navigation information on the front windshield.. . 政治大. Danger Notification: By using Image Recognition techniques, the system can clarify. 立. whether there is any pedestrian, child, animals appearing at the blind spots. If there. ‧ 國. 學. is, the system will alert the driver to notice carefully. . Vehicle Information Integration: Integrate the current status of vehicle such as. ‧. remaining fuel, tire pressure, and velocity, and display on front windshield.. y. Nat. Geographic Information Assistance: Based on the vehicle information, if there is any. sit. . n. al. er. io. abnormal situation, system will provide the driver with geographic information for. i n U. v. troubleshooting. For example, the remaining gas is getting low, and the system. Ch. engchi. shows the driver about the closest service station. . Fatigue Driving Detection: Because the system will supply an internal camera which is used to track the driver’s eyes, once fatigue driving is detected, it will remind the driver to park for a rest.. 12.

(21) 4. Marketing Strategy The main purpose of Driving Len’s product is improving driving safety. Because this it can eliminate the driver’s blind spots by using Augmented Reality, the driver can lower the happening rate of traffic accident. In addition, the products of Driving Lens also enhance driving experience. For Example, the driver will have 180 degree front view without blind spots that bring the driver with excellent driving experience. Likewise,. 政治大 to bring a better driving experience for consumers. However these improvements are 立. current vehicle manufacturers continually improve car interior and operation just in order. ‧ 國. 學. bound to the specific brand or type, it is a limitation for the other consumers who cannot afford the cost of these specific vehicles based on the concerns of budget or usage.. ‧. Therefore, Driving Len offers customized products for those consumers. These products. sit. y. Nat. not only serve consumers to cut down the cost of buying a new car, but also enhance the. io. er. driving safety and driving experience. Before developing the products, Driving Lens will. al. v i n C h Lens will sort the critical level of these concerns, Driving e n g c h i Upriorities of these concerns and n. make a market survey to investigate what the driver's critical concerns. Based on the. develop Invisible Pillars, Invisible Hood, and Transparent front view gradually. The below sections introduces that Driving Lens use Marketing Mix 4C’s to analyze the consumer’s interests, and think from the consumer’s viewpoints.. 4.1 Consumer With the products of Driving Lens, the consumers can have a full sight view without blind spots. There are three main kinds of target consumers whom are affected by the blind spots behind the rigid structure of vehicles as following.. 4.1.1 Car Drivers 13.

(22) Generally speaking, auto drivers are more easily affected by the blind spots of A, B, C Pillar. Therefore, they have strong demands to install Driver’s Len product, Transparent Pillar, to eliminate blind spot and improve driving experience. With the help of Transparent Pillar, they can avoid to collide with pedestrians or other vehicles for lowering the damages and deaths.. 4.1.2 Engineering Vehicle Drivers For example, Sport utility vehicles such as Jeep, and engineering vehicles such as. 政治大. caterpillar are usually operated on rugged mountain path or mud road. The driver can. 立. install Driving Len’s product, Invisible Hood, to display the road state and recognize the. ‧ 國. 學. obstacles. Furthermore, Invisible Hood can notify the driver to avoid the obstacles and fine tuning, and lower the accident rate and the damages to vehicles.. ‧. 4.1.3 Truck or Bus Drivers. y. Nat. sit. As an illustration, oversize vehicle such as bus, truck, usually generate the blind spot to. n. al. er. io. the rear vehicle. In order to avoid collision when rear vehicle is failed at overtaking,. i n U. v. oversize vehicle can install Driving Len’s product, Transparent Front View, to display the. Ch. engchi. view of front road for rear vehicles to judge.. 4.2 Cost Because Driving Len offers the customized products and services for consumers, they have to purchase the product, install the product, maintain the broken devices and upgrade the content of products. The related cost is listed as below. 4.2.1 Purchase Fee Purchase fee includes two parts. The first one is hardware equipment, which are cameras, host and monitor, and the second one is software package, which offer the default features such as blind spot elimination, danger notification. If the consumers expect more features 14.

(23) about Driving Len’s products, they can purchase other features such as GPS navigation, vehicle information integration and geographic information assistance, etc.. 4.2.2 Installation & Maintenance Fee Driving Len’s products are required the technical staff that has a basic understanding about car interior dismantling and setting up, so that the technical staff can help to install camera, monitor and host appropriately. If some parts of device are broken, the consumer also can ask the technical staff’s help to replace. 政治大. the broken ones. Based on the above services, the installation and maintenance fee. 立. are required to pay to technical staff.. ‧ 國. 學. 4.2.3 Upgrading Fee. There are two categories for system upgrade. The first one is used to fix system issues. ‧. such as crash, reboot, incorrect image recognition and image distortion, and this kind of. Nat. sit. y. system upgrade won’t charge the consumers any fee. The second one is adding new. n. al. er. io. features such as GPS navigation, vehicle information integration, etc. If the consumer. i n U. v. satisfies with the default features and has willing to upgrade the original product, this kind. Ch. engchi. of system upgrade is involved in the new hardware components and new software applications. Therefore, the consumer needs to pay the upgrade fee.. 4.3 Convenience In is important for the consumers to complete purchase, installation, maintenance and upgrade processes conveniently. Driving Lens not only offers the whole services at the dealer office, but also delivers the products or services via the different ways as below. 4.3.1 Online shopping website If there is no service store around the consumer’s location, the consumers can purchase the compatible accessories for their vehicle. These ready-to-assemble products offer the 15.

(24) manual for the consumers to install independently, or the consumers can ask the other technical mechanic’s services 4.3.2 Vehicle dealer When a new vehicle is sold, the vehicle dealer usually asks the consumer whether to install other genuine parts or aftermarket parts such as dashboard camera, GPS navigator. If the car dealer recommends Driving Len’s products to the consumer, the consumers can purchase the products from the vehicle dealers who will ask the service store of Driving. 政治大. Lens to complete the installation. It will simplify the whole flow and save the consumer’s. 立. time.. ‧ 國. 學. 4.3.3 Service Stores. Service stores will demonstrate all series of Driving Lens’ products. It is convenient for. ‧. the consumers to complete the related services from purchase, installation and upgrade.. y. Nat. sit. 4.3.4 Auto upgrade by Wi-Fi. n. al. er. io. When Driving Lens releases the patches to fix software issues, the consumer can upgrade system via Wi-Fi connection.. 4.4 Communication. Ch. engchi. i n U. v. Once the new product is launched, Driving Lens must use different communications to attract the audience’s awareness, to convert the attracted audience to the consumers, and to make the consumers stick to the products of Driving Lens. Driving Lens will use the following communications to marketing its products and establish the brand image for consumer's recognition.. 4.4.1 TV Commercial TV commercial majorly introduces the advantages of Driving Lens’ products such as eliminating blind spots, improving driving experience. There are two types of Driving 16.

(25) Lens TV commercial. The first one is advertisement, which is used to show the characteristics of the products and attract the public's attentions. Then, the public are aware of its uniqueness and existence. The second one is the product placement which is used to attract the audience to imitate and to purchase. 4.4.2 Magazines and Flyers Magazines and flyers will present more detailed info such as product specification, sales mix and service stores. This information will be elaborated on print media. The consumers. 政治大. will have further understanding about the features and the price of Driving Lens’ products. 立. and have an impression about the brand of Driving Lens.. ‧ 國. 學. 4.4.3 Dealers or Agents. Once the consumers notice these products of Driving Lens, then they have motivation to. ‧. buy. The consumers can contact the agents or the dealers, whom will discuss the. y. Nat. sit. requirements with the consumers, and complete the installation. If the consumers have. n. al. er. io. any question, the consumers also can feedback, refund and request to the sellers who the consumers purchased from.. 4.4.4 Social Network. Ch. engchi. i n U. v. Driving Lens will establish company website and fan page. The former one introduces the company, brand image, and products. The latter one offers the information sharing, user’s experience and online communication bridge.. 17.

(26) 5. Operations. 5.1 Statistics Driving security is the major concern for the consumers to purchase the products of Driving Lens. The following sections introduce three statistics about the road crash, top 10 best-selling automobiles and top selling auto accessories which help Driving Lens to specify the root causes of car accidents, the market share of automobile, and the favorite. 政治大. list for the consumers to purchase auto accessories.. 立. 5.1.1 Road Crash Statistics. ‧ 國. 學. According to Ministry of Transportation and Communication road crash statistics, there are two categories, A1 and A2. A1 category is a traffic accident that causes a person to. ‧. die on site within 24 hours, and A2 category is a traffic accident that causes an injury or. sit. y. Nat. death more than 24 hours. Among the number of accidents, over 95 percent of accidents. io. er. belongs A2 category. According to the root causes of A2 accidents, over 80 percent of. al. v i n Creduce bikes, and motorcycles. In order to happening rate, Driving Lens will h e nthegaccident chi U n. accidents are caused by human negligence that the drivers may not notice pedestrians,. help the drivers to eliminate blind spots and lower the human negligence. Year. 2012. 2013. 2014. 2015. 2016. Number of A1 Accidents. 1,964. 1,867. 1,770. 1,639. 1,555. Number of A2 Accidents. 247,501. 276,521. 306,072. 303,774. 291,215. Total Number of Accidents. 249,465. 278,388. 307,842. 305,413. 292,770. Number of deaths. 2,040. 1,928. 1,819. 1,696. 1,604. Number of injuries. 334,082. 373,568. 413,229. 410,073. 384,626. 18.

(27) Total number of casualties. 336,122. 375,496. 415,048. 411,769. 386,230. Table 1-The statistic of road accidents and casualties[7]. 5.1.2 Vehicle Sales Statistics Because the products of Driving Lens are required to customize based on the different vehicle type, it needs to survey top 10 best-selling vehicles on the market. According to U-Car’s new automobile sales statistic report, it summarized the top 10 best-selling. 政治大 market share quickly, this survey of vehicle types will lead Driving Lens to customize the 立. vehicles in 2016, which includes the catalog and sales volume. In order to occupy the. compatible products for these best-selling vehicles at first.. ‧ 國. 43370. sit. y. al. 21523. er. Toyota RAV4 Toyota Yar. n. 7. Toyota Corolla Altis. io. 3. Sales volume. ‧. 2. Catalog. Nat. 1. 學. Ranking. Top 10 best-selling vehicles in 2016. Ch. engchi U. v ni. 14726. 4. CMC Veryca. 13573. 5. Toyota Wish. 13153. 6. Nissan Tiida. 11839. 7. Mazda Mazda3. 11324. 8. Honda CR-V. 10546. 9. Nissan Livina. 9865. Ministry of Transportation and Communication road crash statistics. Retrieved from. http://stat.motc.gov.tw/mocdb/stmain.jsp?sys=100 19.

(28) 10. Nissan X-Trail. 9645. Table 2-Top 10 best-selling vehicles in 2016[8]. 5.1.3 Auto Part Ranking By referring to U-CAR besting-selling report about auto accessories as Table 3, the vehicle owners expect at most the products for improving driving safety such as dashboard camera, tire-pressure monitor system and head up display. If the products of. 政治大. Driving Lens can largely improve driving safety, the vehicle owners will have a strong motivation to purchase them.. 立. 學. Solar control glass film. 2. Dashboard camera. 3. Head up display. 4. Vehicle GPS. 5. TPMS, Tire-pressure monitoring system. 6. Steering wheel lock. er. io. sit. y. ‧. 1. Nat. ‧ 國. Ranking Best-selling auto accessories. Table 3-The ranking of best-selling auto accessories. n. al. 5.2 Structure. Ch. engchi. i n U. v. In order to face the fast-moving of consumer’s electronic marketplace, the startup organization structure should consist as flat model, which will benefit for the members to communicate and collaborate efficiently. According to Figure 6, it shows the company structure which eight departments. The departments handle most of the operations. The below section will specify the roles and responsibilities, which contains the routine work and project-based work.. 8. Top 10 best-selling vehicles in 2016. Retrieved from http://news.u-car.com.tw/article/33206 20.

(29) Business Development Information & Technology Research & Development. Human Resource CEO Legal. Finanace & Accounting. 政治大. Marketing & Sales. Figure 6-Organization Structure. 學. ‧ 國. 立. Technical Support. ‧. 5.2.1 Human Resource. sit. y. Nat. Human Resource Department is responsible for maximizing employee performance,. io. er. achieving the employer’s strategic objectives and satisfying employee with rewarding.. al. v. n. Following works are required Human Resource Department to complete. . i n C Organize appropriate staff selection h e nandgrecruitment chi U. . Provide effective staff training and development. . Construct the transparent staff assessment and promotion mechanism. . Confirm whether employees are satisfied with their job and careers. 5.2.2 Legal Legal Department is responsible for providing legal service and advice to the company, its divisions and employees. Following works are required Legal Department to complete. . Provide legal advice and guidance. . Prepare documentation and draft. . Participate and manage the litigation and adversary proceedings 21.

(30) . Process claims laid down against the company and its interests. 5.2.3 Business Development Business Development Department is responsible for planning the marketing strategies, identify the market opportunities and build relationship with business partners. Following works are required Business Development Department to complete. . Study external elements such as the clients, market, industry, macroeconomic factors and competitors. . 政治大. Study internal elements such as organization, R&D and production, and then search. 立. ways to improve its efficiency Identify new market opportunities and ways for expansion. . Build strategic relationships and alliances with other companies. . Develop policies and strategies in public/media relations, company's image. ‧. ‧ 國. 學. . Nat. sit. n. er. io. 5.2.4 Research & Development. al. y. management, brand, merchandise management, etc.. i n U. v. Research & Development Department is responsible for analyzing the requirement,. Ch. engchi. design the specification, implementing the features, verifying the quality and maintaining the products. Following works are required Research & Development Department to complete.  Improve the techniques and apply for new patents.  Discuss the requirements and define the specifications  Schedule and plan R&D projects  Implement and develop the products  Monitor the product schedule and verify the quality.  Update the research to knowledge database 22.

(31)  Create the manual to the different products.. 5.2.5 Information Technology Information Technology Department is responsible for offering technical support for employees and establish well-performance informational infrastructure. Following works are required Information Technology Department to complete. . Maintain and support the computers and peripherals. . Ensure the stability of informational infrastructure such as LAN, WAN and telephone systems. 立. 政治大. Offer the technical support for various software applications.. . Establish informational security policy such as installing, setting and maintenance. ‧ 國. 學. . of anti-malware and anti-intrusion systems.. ‧. 5.2.6 Technical Support. y. Nat. sit. Technical Support Department is responsible for providing consumers with technical. n. al. er. io. support, and collecting the external feedback to internal divisions. Following works are required Technical Support Department to complete.. Ch. engchi. i n U. v. . Provide technical support and advice. . Receive customer feedback and suggestions. . Log and document product enhancement requests. . Communicate with manufacturing divisions and developers. . Inform customers and users about updates, resolved issues and fixed bugs. 5.2.7 Finance & Accounting Finance & Accounting Department is responsible for tracking the payment, planing the budgets of future projects and auditing the financial condition of company. Following works are required Finance & Accounting Department to complete. 23.

(32) . Record the payment of invoices and expenses. . Handle income collection and salary management. . Calculate the budget of production, and forecast capital plans, and cash flow.. . Audit and report on business condition. . Give advice on pricing and costing. 5.2.8 Marketing & Sales Marketing & Sales Department is responsible for advertising, promoting, and sell. 政治大. products. Following works are required Marketing & Sales Department to complete.. . Maintain image and manage brand. . Advertise and Communicate. . Promote products and sale products.. . Handle sales planning, sales tracking, and sales reporting. ‧. ‧ 國. 學. Conduct market researches and management. sit. Nat. n. er. io. 5.3 Operational Process. al. y. 立. . i n U. v. Operational process is a sequence collaborated activities among different departments,. Ch. engchi. and this process is used to create the products for a specific group of customers. With the process is proceeding, each department will forward the result to the next one, and make sure the outcome is met to the original goal.. 5.3.1 Business Development Business development team will analyze the market research upon the different vehicle owners who are willing to pay the amount for the auto accessories, and analyze whether there is any opportunity in this marketplace. If the potential profit meets the expectation, business development will try to establish the collaborated relationship with the suppliers who can provide the critical electronic components based on the requirements of products. 24.

(33) In addition, business development members will demonstrate the strategies about how to prevent the potential competitors and how to expand the market share, and forward the customer’s demands to R&D team for design.. 5.3.2 Research & Development Based on the customer’s demand, R&D team will discuss the feasible technical specifications with the related departments, and then define the clear project schedule. During the continuous development, R&D team will set the different milestones to verify. 政治大. whether the expected features are completed. With the promotions and innovations of. 立. technologies, R&D members will update the know-how information to the knowledge. ‧ 國. 學. database in order to overcome the same problems in future. Before approaching the mass production stage, Driving Lens will set the specific standards to verify the quality of. ‧. product. Once entering mass production, R&D department will prepare the technical. Nat. sit. y. documents and user’s manuals about new product for marketing and technical support.. n. al. er. io. 5.3.3 Marketing & Sales. i n U. v. Before the products are mass manufacturing, marketing team will arrange a product. Ch. engchi. launch for downstream companies, and demonstrate the features of new product. Driving Lens will sign agreements with the distributors and retailers to promote the fresh products. Likewise, marketing team will make a commercial film with the vehicle owners who share the using experience about the product of Driving Lens. After that, the market team broadcasts this commercial film by different media, and attracts audience’s attentions. If the public have interests in the product and have purchasing motivation, sales team will define the sales plan, track the sales status, and monitor the sales report.. 5.3.4 Technical Support According to the technical documents and user manuals, technical support team will 25.

(34) provide the technical training for the downstream companies before selling. The downstream companies such as service stores will know the basic installation and maintenance. With more and more consumers using products of Driving Lens, the technical support members will constantly offer solutions to consumers and record the unresolved problems from consumer’s feedbacks. Later, they will summarize these unresolved problems back to R&D department. Till the problems are fixed, they will update the news about the fixing problems, and notify the end-users to upgrade the system.. 5.4 Pricing Process. 立. 政治大. By analyzing the market research, Driving Lens will summarize the priority list about. ‧ 國. 學. consumer’s demands and the acceptable price range. Then, Driving Lens compares the prices of the similar products and substitute products, and generates a price list as. ‧. reference. Moreover, Driving will choose market penetration price and forecast the. y. Nat. sit. volume of sale. Upon the price and sales quantity, Driving Lens can calculate the expected. n. al. er. io. revenues. Furthermore, we will sum the cost including R&D cost, marketing cost. By. i n U. v. referring the expected revenue and summed cost, Driving Lens must confirm whether the. Ch. engchi. expected revenue is enough to cover the summation cost, even generating the satisfied gross margin. If the gross margin is fulfilled with the expectation, Driving Lens will compare the other competitor’s price again and fix the practical price of product after mass production. As soon as meets the breakeven point, Driving Lens will adopt the different pricing strategy upon the sales position and the product life cycle.. 26.

(35) 6. SWOT Analysis. SWOT analysis is stand for strengths, weaknesses, opportunities and threats. A SWOT analysis assists to identify the internal and external factors that are favorable or unfavorable for an organization. Based on the strengths and weaknesses, the company funder can evaluate the company’s current position as well as upon opportunities and threats when the company moves forward. By using SWOT analysis, Driving Lens has a. 政治大. macro review about its business plan.. 立. 6.2 Strengths. Small size of company. ‧ 國. 學. . Because independent software vendor belongs technology intensive industry, not labor. Cost Advantages. sit. y. Nat. . ‧. intensive industry, the scale of company is small.. io. . Technology. . Fast Implementation. er. Driving Lens is technology intensive company, so it has the advantage about the cost.. al. n. v i n The company's core competence C lies in image processing, h e n g c h i U image recognition, and image display. Software development cycle is short, so the time to market can also be faster than other goods. By comparing to the other products, software upgrade is a more efficient way to improve the quality and features. 6.3 Weaknesses . High staff turnover. Because Driving Lens belongs intensive technology company, each member owns high irreplaceability. If replacing anyone, the cost will extremely high. 27.

(36) . Lack of scale. Driving Lens company scale is much smaller, so the cost per unit is much higher. Driving Lens cannot easily bring down the cost by the scale. . Cost structure. The cost per unit of product is much higher than the other one of substitute products; hence the cost structure of Driving Lens is relatively weaker than the other competitor’s.. 6.4 Opportunities . Innovation. 立. 政治大. If there is any innovation based on the current foundation and fulfilled with the. ‧ 國. 學. consumer’s demand, the company can manufacture new products quickly. . Emerging Product. ‧. Using Augmented Reality technique to assist driving is an emerging market, so there is. y. Nat. New Market. al. n. . Ch. engchi. er. io. accessories can occupy the market share quickly and easily.. sit. no similar product on this market. Therefore, this kind of Augmented Reality auto. i n U. v. As long as opening a market, you can leverage the experience of this occupied market, and expand to the new market faster. . International Expansion. If the products of Driving Lens can cut in the supply chain of vehicle manufacturers, Driving Lens can expand its market share internationally via the channels of vehicle manufacturers. . Government regulation. If Driving Lens can offer the statistics about the road crash rate is largely reduced after installing AR driving assisting system. The government regulation will support the auto 28.

(37) accessories which using augmented reality to assist driving, it will improve the final sales outcome of the product. . Insurance cost. Once the insurance companies sum up that the vehicle being equipped with AR driving assisting system will help to reduce the happening rate of road crash, it will encourage the customers to equip this kind of device and lower their insurance cost.. 6.5 Threats . 政治大. International competition. 立. It is difficult to contend with other international competitors, because they have. ‧ 國. 學. advantages in their local markets. . Mature industry. ‧. The automobiles industry is a mature industry, and then it is hard for Driving Lens to cut. y. Nat. sit. into the supply chain of the automaker. In addition, the automakers possibly develop this. Intense competition. al. n. . er. io. form of auto accessories to block the entrance of Driving Lens.. Ch. engchi. i n U. v. With more and more competitors enter this market, the price war will be triggered, so that it will affect the gross margin of the products. . Substitute Products. If the consumers consider the cost or not care about the limitation such as switching focus frequently, they prefer to choose the substitute products such as around view monitor.. 29.

(38) 7. Porter’s Five Force Analysis Porter’s five forces are used to analyze the competitive environment within an industry on external forces, which are the threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers and intensity of competitive rivalry. This tool offers a micro perspective of these forces against individual business.. 7.1 Threat of New Entrants. 政治大 Unless Driving Lens raises the entry barriers to block the new entrants, the profits of this 立. Since the market returns over 30% gross profits, this market will attract new entrants.. ‧ 國. 學. kind product will decrease eventually for all companies in auto parts industry. The following new entrants will threaten the products of Driving Lens.. ‧. 7.1.1 Automakers. sit. y. Nat. Unless Driving Lens increases the entry barrier of technology, otherwise automakers. io. al. n. new auto models.. er. would like to develop and design independently, and integrate software and hardware on. 7.1.2 IP Patent Owners. Ch. engchi. i n U. v. Driving Lens must sign the technology license agreement with IP patent owner. Otherwise, the patent owners might prefer to collaborate with other companies or authorize their IP patent to the other famous auto accessories companies.. 7.1.3 Brand companies Based on the customer loyalty to well-reputed brand, the consumers would choose the similar products which are manufacturing by these brand companies such as Garmin, TomTom, not Driving Lens.. 30.

(39) 7.2 Threat of Substitute Products The existence of auto accessories which is applied to eliminate the blind spots will decrease the customer’s willingness to switch to the products of Driving Lens unless Driving Lens can largely improve user’s experience and lower the switch cost. There are the existing substitute products as blow.. 7.2.1 Around View Monitor Around View Monitor can assist the driver to observe whether there is any obstacle. 政治大. around the vehicle when parking. These substitute products can eliminate the blind spot. 立. behind pillars, but there are some limitations such as switching focus frequently and fixed. ‧ 國. 學. camera angle.. 7.2.2 Collision Avoidance Radar. ‧. It uses radar to discover whether there is any imminent crash around the car. It provides. y. Nat. sit. a warning to the drivers when detection is done. However, the range of radar is not long. n. al. er. io. enough. If the speed of vehicle is too fast, there won’t be enough time for the driver to. i n U. v. respond. Furthermore, there is no image for the driver to observe, only sound warning.. Ch. engchi 7.3 Bargaining Power of Customers. The bargaining power of customers is claimed that customers have other ways to put the firms under the pressure such as changing to alternative solutions, comparing the prices of similar products, and then affect the firms to lower the price. The companies also can use opposite actions to reduce the bargaining power of customers. The below factors are affected the bargaining power of customers.. 7.3.1. The price of substitute product Even the products of Driving Len can overcome the limitations, the consumer could not spend too much to buy, because the price of substitute products limits the adding value. 31.

(40) 7.3.2. The loyal to the brand of vehicle If the consumers prefers the auto accessories which are made by the original manufacturing factory, it is hard to attract them to buy the products of Driving Lens unless Driving Lens lowers the price or adds more functions.. 7.3.3 The availability of product information No matter what price and specification of auto accessories, the consumers can easily explore the detailed information on the internet. If there is any similar product, the. 政治大. consumers have a clear thought about the comparison among these products.. 立. 7.4 Bargaining Power of Suppliers. ‧ 國. 學. Bargaining power of suppliers is majorly depending on whether there is any substitute components. If there is no, or less competitors for the suppliers, they will charge. ‧. excessively high price for unique electronic components. Here are the factors for the. y. Nat. n. al. er. io. 7.4.1 Intensive technology electronic components. sit. bargaining power of suppliers.. i n U. v. No matter what AR SoC, Camera and display devices, these electronic components are. Ch. engchi. intensive technology products. The entry barrier is so high that Driving Lens can’t develop by himself in a short time, that the bargaining power of suppliers are high.. 7.4.2 Less substitute components About the critical component such as SoC, there is no alternative solution for replacement, so suppliers can switch the cost to Driving Lens.. 7.5 Industry Rivalry Industry rivalry is determined by the intensity of competitive rivalry. Driving Lens need to concern about whether there is any the similar products or new entrants to increase the intensity of rivalry. 32.

(41) 7.5.1 Emerging products Currently, there is no such product which using Augmented Reality assist driving, so this product belongs emerging products.. 7.5.2 Reputed brand of auto accessories By comparing the economic scale of other brand companies, the scale of Driving Lens is much smaller, so that Driving Lens might not have enough budgets and channels to spread the fame of the brand.. 7.5.3 Core competencies. 立. 政治大. If Driving Lens continuous innovate and apply for IP patent, it can raise the entry barrier. ‧ 國. 學. of this industry and decrease the degree of competition.. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 33. i n U. v.

(42) 8. Business Partners Driving Lens treats the suppliers and the distributors as business partners. Without these partner’s help, Driving Lens cannot manufacture the Augmented Reality Assisting Driving System independently and distribute the products to consumers efficiently.. 8.1 IC Supplier Driving Lens required an AR IC, which provide a highly-compatible platform and toolkits. 政治大 as Camera, Display and USB etc. So far, the well-known AR IC vendors are Qualcomm, 立 to develop AR application. This SoC can support the different peripheral IO devices, such. ‧ 國. 學. NVidia, TotalImmersion. Driving Len will compare the technical specifications among these vendors and consider the supplier’s support in future. At final, Driving Len will. ‧. choose the best-fit solution and establish the collaborated relationship with the IC vendor.. sit. y. Nat. 8.2 Display Supplier. io. er. Based on three solutions of Driving Lens, the purchasing options of display devices are. al. v i n C h a flat surface. The because vehicle pillars are not usually e n g c h i U second one is laser projector n. various. The first option is OLED that the most important advantage is curve display,. which is convenient to install. However the disadvantages of the former solution are the product life and cost, then the disadvantages of the later solution are easy-interference and over-heat. Upon the different products of Driving Len, it must integrate the different display devices with the system.. 8.3 Camera Supplier The major requirements for camera are wide angle, night vision and shutter time. When the vehicles are moving, the wide angle camera supports to overview the around scene. In addition, the function of night vision helps the drivers to identify the pedestrians and 34.

(43) moving vehicle at dark. At last, if the shutter time is not short enough, it cannot capture the fast-moving objects instantly, so it will affect drivers not have enough time to respond. The above three features are the critical factors for Driving Lens to choose camera supplier.. 8.4 Vehicle Dealers When the consumer purchases a new car, the car dealer usually asks them whether to equip with other auto accessories. If the consumer has the willing to purchase some. 政治大. accessories, then the dealer can offer a recommendation list and installation service. Once. 立. and ask the cooperative partners to complete the installation.. 學. ‧ 國. the consumer decides to purchase, these dealers can receive the commission from selling. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 35. i n U. v.

(44) 9. Project Timeline From establishing the company to launching the first product, Driving Lens needs 29 weeks to complete the most of the activities. Among these activities, there are six major stages of these activities such as Admin, Business Development, Research & Development, Marketing and Sales. Some activities are the predecessor of the later activities, and some activities are able to progress in parallel to shrink the time to market.. 政治大. All the activities are planned in the Figure 7, and listed the required time.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 7-Timeline of launching first product The first stage is Admin which presents three major activities. The first activity is registering the company name and get authorized certificate. At second, Driving Lens must form a core-competence team which is consisted with the enthusiastic, entrepreneurship and requiring skill members. These members will be responsible to organize each function department. Thirdly, if core-competence team is formed, Driving Lens should recruit the full time to employees, and make sure the basic operations is 36.

(45) working. The second stage is business development which is divided into three aspects. About the first aspect, Business development members will analyze the market research to understand the customer’s demands, discuss the priority of the request with the stakeholders, identify the market opportunity, and have brainstorming about the feasible product features. Secondly, Driving Lens will coordinate the different department to build a prototype and present this prototype to the stakeholders. Then, the last aspect is used to. 政治大. make sure whether the prototype can meet the consumer’s expectation and seek the. 立. cooperated business partners such as suppliers and distributers.. ‧ 國. 學. The third stage is research and development. Among these stages, these activities are dependent. According to the product prototype, Driving Lens must determine the critical. ‧. electronic components suppliers, software development toolkits, and the target vehicle. y. Nat. sit. model. After that, Driving Lens will define the clear specifications for the requested. n. al. er. io. features and the target vehicle model. Once most of specifications are locked down, R&D. i n U. v. members will introduce three cycles, Engineering Verification Test, Design Verification. Ch. engchi. Test, and Production Verification Test, for developing and testing, and examine whether the mass product meets all requirements from the specifications. At the last three stages, marketing, technical support, and sales, the activities of these three stages can be progressing in parallel for efficiency. Technical support members offer the training and suggestion to the collaborated stores such as service stores. Marketing members will arrange new product launch meeting via different media to attract the public’s attentions. Sales will sign the sales contract with distributors, track the shipping status, and check that the new product is ready to sell.. 37.

(46) 10. Financials 10.1. Fixed Cost. From getting legal business certificate to launching first product, Driving Lens must estimate the minimal fixed cost which includes the below items. . License and permits fee includes registering enterprise and getting legal certificate.. . Office space setup includes setting up the office cubicles, meeting room and internal. 政治大 I.T infrastructure Setup includes laptop, projectors, local area network, printers and 立 infrastructure cost.. . ‧ 國. . 學. telephone system.. Equipment expense includes hardware instruments, and software toolkits. These. ‧. devices and tools are helping R&D members to integrate the critical components as. y. sit. io. License and Permits Fee. Cost. n. al. Office Space Setup IT infra Setup. Remarks. $200,000. er. Item. Nat. a prototype.. Business registration and Legal. v i n Ch i U e n g c$200,000 h $400,000 NB/Server/Projector etc certificate.. Equipment Expense Hardware Instruments. $300,000. Oscilloscope, Multimeters, etc.. Software toolkits. $200,000. SDK, JTAG32 debugger, etc.. Total Depreciation Period Variance. $1,300,000. Unit: NT Dollar. 5 Years +/-100%Variance. Table 4-Fixed Cost As seen in the Table 4, the total amount of fixed cost will be 2,300,000 NT dollars, and depreciation method is five years straight line deprecation method 38.

(47) 10.2. Variable Cost. As shown in Table 5, the annual variable cost is summarized the detailed info as the following items. . Rent of office space. . Full time employee’s salary and increasing rate is 10% per year.. . Utility fee such as electricity, water, and the fee increases 10% per year.. . Misc. cost such as stationery, shipping expense, etc. The increasing rate is 10% per. 政治大. year.. 立. Travel budget is only spent when employees have to discuss face-to-face, or to figure. 學. ‧ 國. . out the problem on-site. The budget increases 10% per year. . Research and Development budgets are planned to purchase the new IC, generic. ‧. board, camera, target vehicle models and other electronic components. R&D team. y. Nat. sit. will integrate these components to generate the prototypes of new products. The. al. n. . er. io. budget increase 20% per year.. i n U. v. Marketing & Promotion budgets are used to hold a new product launch event, to. Ch. engchi. make commercial film, pay the list fee to the distributers, etc. Its increasing rate is 20%. . Business development expense is paid for the social activities and gifts when visiting the business partners.. . Technical support fee for the electronic component suppliers who provide consulting and troubleshoot services for the products of Driving Lens. The increasing rate is 10% per year.. 39.

(48) Item. Cost. Remarks. Office Rent. $240,000. Employee Expense CEO. $840,000. Department head - 8 Employees. $5,760,000. Engineers - 6 Employees. $3,600,000. Hardware, firmware and software engineers. Operating Expense Utility. $120,000. Misc.. $60,000. Travel. 立. Research & Development Marketing & Promotion. Electricity, Water bills etc.. 政治大 $240,000. $2,000,000. $600,000. Hotels & Tickets Generic board, camera, display, vehicle. Listing Fee, New Product Launch,. ‧ 國. 學. Commerical film, flier $240,000. Networking, business entertainment. Technical Support - Supplier. $360,000. Supporting fee for IC/Camera/Display. Per Year +/-50%Variance. y. aTable l C 5-Annual Variable Costn i v hengchi U. n. 10.3. sit. io. Variance. $13,460,000. er. Unit. Nat. Total. suppliers. ‧. Business Development. Cash Flow Statement. The consumers have to pay for customized services and products, but the major income for Driving Lens is the sales of products. The service stores will charge the consumers the fee for customized services. Driving Lens sets the margin to 40%, which is a little higher than the average margin of auto accessories, 30%[9]. In addition, the selling number of new car is around 440,000 in 2016, and the average growing rate of selling car is 4%. 9. Ministry of Finance Business Income statistics. Retrieved from. https://www.ntbsa.gov.tw/etwmain/download?sid=13abfb223cc000009298cf0c2e05771d 40.

(49) per year. Based on this assumption, we forecast the selling number to increase to 476,000 in 2018, the margin to be 40%, and target market share to be 3%. Then, Driving Lens estimates the gross profit will be 475,000 (Total selling cars) * 3% (Target market share) * 10000 (Price) * 40% (Margin), and the revenue will be $57 million NT dollars. According Table 6, the detailed items are listed as below. . Price of Driving Lens products is $10,000 and the increasing rate is 10%. . Margin of Driving Lens products is 40 percent because the cost of manufacturing is about 60%.. 立. 政治大. The targeted market share is 3% at the first year, and continuous grow 5% per year.. . According the record of selling cars in 2016, the number is close to 440,000, and the. ‧ 國. 學. . number of total selling cars usually increase 4% per year. Therefore, Driving Lens. ‧. set the total number of selling cars is 475,000 in 2018, and the increasing rate is 4%.. Nat. Forecast Volume is based on the targeted market share times total selling cars.. . Gross Profits is calculating result from price, margin, and forecast volume.. al. n. Price. Margin. Market. i vForecast n U Volume. Total selling cars. CShare hengchi 3% 475904. 2018. $10,000. 40%. 2019. $11,000. 40%. 8%. 2020. $12,100. 40%. 2021. $13,310. 2022. $14,641. er. io. Year. sit. y. . Gross Profits. 13200. $57,108,480. 494940. 39595. $174,218,936. 13%. 514738. 66916. $323,873,003. 40%. 18%. 535327. 96359. $513,014,836. 40%. 23%. 556740. 128050. $749,913,687. Table 6-Cash Flow Analysis. 10.4. Pro-forma Income Statement. Based on the above projection, Driving Lens uses pro-forma income statement to reports 41.

(50) the financial performance over next 5 years. As shown in Table 7, it includes the revenue, expenses which included the fixed cost and variable cost per year. As seeing the result of net income, positive NPV shows that this business model is profitable. Selling Augmented Reality assistance system is not only workable to B2C business model in automobile industry, but also able to extend to B2B business model in automobile industry, even expanding to the other industries. Category. Year. Revenue. Gross Profit. Expense. Wage. 2018. 2020. 政治大. 2021. 2022. $174,218,936. $323,873,003. $513,014,836. $749,913,687. -$10,200,000. -$11,220,000. -$12,342,000. -$13,576,200. -$14,933,820. -$420,000. -$462,000. -$508,200. -$559,020. -$614,922. -$360,000. -$396,000. -$435,600. -$479,160. -$527,076. -$240,000. -$264,000. -$290,400. -$319,440. -$351,384. -$2,000,000. -$2,400,000. -$2,880,000. -$600,000. -$720,000. -$864,000. support Travel. Research &. ‧. ‧ 國. Technical. 學. $57,108,480. 立. Operating. 2019. -$3,456,000. -$4,147,200. Development Depreciation Profit. -$288,000 -$345,600 a-$240,000 iv l C n h g c h i U-$100,000 -$100,000 e n-$100,000. n. Business. io. Promotion. y. -$1,036,800. -$1,244,160. -$414,720. -$497,664. -$100,000. -$100,000. sit. Marketing &. er. Nat. Development. EBIT. $42,948,480. $158,368,936. $306,107,203. $493,073,496. $727,497,461. Income. -$7,301,242. -$26,922,719. -$52,038,224. -$83,822,494. -$123,674,568. $35,647,238. $131,446,217. $254,068,978. $409,251,002. $603,822,893. Tax(17%) Net income. Table 7-Income Statement. 42.

(51) 11. Risk Analysis In order to make the business successful, Driving Lens must identify the potential risks which it could face in future. After predicting, the company must analyze the criticality and probability of these risks. With more and more definite information about these risks, Driving Lens will have enough time to plan, prepared and mitigate them. Table 8 shows the possible risks which damage the business model, and the mitigation steps how Driving. 政治大. Lens will decrease the impact of these risks.. 立. Risk. High. Offer technical support and upgrade the. Low. Prepare the alternative candidates for critical. High. Low. ‧. component. Change with alternative solution, or shift the. High. Low. Seek the collaborated opportunities, and become one of their suppliers.. al. n. Income cash flow can’t meet the. High. Ch. Medium. er. io. sit. y. Nat. cost to consumers.. Vehicle Manufacture develop this. forecast number. Medium. High. Supplier raise the prices of material. product by themselves. Mitigation Steps. software quality periodically.. Critical supplier can’t offer enough material. Probability. 學. quality. ‧ 國. Consumer doesn’t satisfy with the. Criticality. v. 1.Offer the other accessories or packages to. i n U. generate profits. e n g c h i 2. Analyze the sales report to clarify the problems. 3. Increase marketing and promotion. Table 8–Risk Factor Analysis. 43.

(52) 12. Future Road Map After Driving Lens launches the first product with s stable income cash flow, Driving Lens sets the below milestones for the greater achievements. Each milestone is focused on enlarging the market share, improving the products with new innovations and increasing the core-competence ability. Once reaching more and more milestones, the scale of the company not only becomes bigger, but also the business model will become. 政治大 Enter Domestic 立Market. more stable.. 12.1. milestones to accomplish.. 12.1.1 Sell products for top 10 best-selling vehicles. ‧. ‧ 國. 學. When entering domestic market of auto accessories, Driving Lens set the below three. sit. y. Nat. Currently, there is not any auto accessory with Augmented Reality function. If Driving. io. er. Lens launches this kind of product to the auto accessories market, it will become the. al. v i n offer the customized products forCthe htop e n10gbest-selling c h i Ucar models. This milestone will n. pioneer. In order to attract more consumers to adopt the products of Driving Lens, it will. attract the public’s awareness, and convert the visitors to consumers. Besides, the quantity of these best-selling cars is large enough to generate the profits for Driving Lens, and meet the breakeven point as soon as possible.. 12.1.2 Occupy the biggest market share Since Driving Lens manufactures the compatible accessories for the best-selling vehicles, it will increase the occupied market share by continuous innovations and driving experience improvements. Until the similar product is launching or the other potential competitors enter this market, Driving Lens possibly earns the 44.