Technology Enabled Business Transformation Plan W.P. Carey School of Business Arizona State...

Technology Enabled Business Transformation PlanW.P. Carey School of Business

Arizona State UniversityMaster Science Information Management

Yoshi Budiyanto, Eric Mason, Brian Rich, Fiona Rivard

Introduction

Roadside Assist industry overview

AAA company overview

Technology enabled business transformation plan

Implementation plan

Cost benefit analysis

Establishing a sustainable competitive advantage

Industry Analysis

Roadside Assist Models

Free plans Stand alone providers New vehicle Credit Card

Add-on plans Cell Phones Insurance

Substitutes Friends & Family Highway Patrol Smart Phone Apps OnStar

AAA Company Analysis

51 million members

51 individually operated clubs

Value chains Membership (Brand) Insurance (revenue generator) Travel

SWOT

Transformation Plan

Goals and Objectives

Recommendation

Future BI Roadmap

Increase AAA market share Increase switching costs

Increase product relevance Improve the accuracy of event dispatch

Reduce operating expenses

Develop Business Intelligence Membership Data for Future Strategic Efficiency Process Improvements.

Technology Solution

$44

$65OBD Knowledge DB

D2000 Dispatch Application

D2000 Database

Pilot Plan

Advanced Go – Projected Incremental Contribution To Margin

Membership Type

Conservative Moderate Aggressive

Classic 1% 2% 4%

Plus 3% 6% 12%

Premier 5% 10% 20%

Net Profit $879 K $1,759 K $3, 580K

Cost of Membership $ 125

•A free OBD device •A smart phone application •Improved problem resolution

Establishing A Sustainable Competitive Advantage

Competitors will find it hard to imitate

•Vertical integration

Control of process end to end

Contact Centers – Tow and light service – Repair shops

•Increased switching costs

Increased value and relevance of membership

•Complex project that crosses lines of business

•Internally developed technical solution

Questions and Answers