business_strat_doc

National College of Ireland

Project Submission Sheet – 2015/2016

School of Computing

Student Name: Karan Chhabra

Student ID: 14111322

Programme: MSc in Cloud Computing (MSCCLOUDSEP) Year: 2014-2015

Module: Business Strategies for Cloud Computing

Lecturer: Ron Elliott, Richard Bowden, Aoife Young

Submission Due

Date:

15 May 2015

Project Title: Delhi Bus Service

Word Count: 2500

I hereby certify that the information contained in this (my submission) is information pertaining to research I

conducted for this project. All information other than my own contribution will be fully referenced and listed in the

relevant bibliography section at the rear of the project.

ALL internet material must be referenced in the bibliography section. Students are encouraged to use the Harvard

Referencing Standard supplied by the Library. To use other author's written or electronic work is illegal (plagiarism) and

may result in disciplinary action. Students may be required to undergo a viva (oral examination) if there is suspicion

about the validity of their submitted work.

Signature: Karan Chhabra

Date: 12/05/2015

PLEASE READ THE FOLLOWING INSTRUCTIONS:

1. Please attach a completed copy of this sheet to each project (including multiple copies).

2. You must ensure that you retain a HARD COPY of ALL projects, both for your own reference and in case a

project is lost or mislaid. It is not sufficient to keep a copy on computer. Please do not bind projects or place

in covers unless specifically requested.

3 Assignments that are submitted to the Programme Coordinator office must be placed into the

assignment box located outside the office.

Office Use Only

Signature:

Date:

Penalty Applied (if applicable):

BUSINESS STRATEGIES REPORT KARAN CHHABRA 2

2 Delhi Bus Service


3 Delhi Bus Service

TABLE OF CONTENTS

1 OVERVIEW ............................................................................................................................................. 4

2 OFFERINGS ............................................................................................................................................ 4

2.1 BUSINESS BACKGROUND .............................................................................................................. 5

2.2 BUSINESS OFFERING ..................................................................................................................... 5

2.2.1 Real Time Information (RTPI) ................................................................................................ 5

2.2.2 Bus Timetables ...................................................................................................................... 6

2.2.3 News Centre .......................................................................................................................... 6

2.2.4 Route Planner ....................................................................................................................... 6

2.2.5 Fare Calculator ...................................................................................................................... 6

2.3 SEGMENTS OF THE TARGET CUSTOMERS ..................................................................................... 7

2.4 CLOUD COMPUTING IN BUSINESS OFFERING ............................................................................... 7

2.5 VALUE PROPOSITION .................................................................................................................... 8

3 CUSTOMER RELATIONSHIP MANAGEMENT ACTIVITIES ....................................................................... 8

3.1 MARKETING AND PROMOTION STRATEGIES ................................................................................ 9

3.1.1 Psychographic exploration .................................................................................................... 9

3.1.2 Geographic exploration ........................................................................................................ 9

3.1.3 Demographic exploration ..................................................................................................... 9

3.1.4 Behavioristic exploration ...................................................................................................... 9

3.1.5 Promotional Strategies ......................................................................................................... 9

3.2 KEY RESOURCES .......................................................................................................................... 10

3.2.1 Cloud environment ............................................................................................................. 10

3.2.2 Employee............................................................................................................................. 11

3.2.3 Business process ................................................................................................................. 12

4 LEGAL AND REGULATORY PRACTICE ................................................................................................... 12

5 REVENUE AND COST MODEL .............................................................................................................. 14

5.1 FINANCIAL FOR START-UP: .......................................................................................................... 14

5.2 SERVICES SUBSCRIPTION/PRICING MODEL: ............................................................................... 15

5.3 SALES MODEL: ............................................................................................................................. 15


4 Delhi Bus Service

1 OVERVIEW

Road Transportation is a multibillion industry. The idea of road transportation is grouped

into transportation of goods and people from one place to another. There are a huge number of people

which daily move from one place to another by means of road but how and what is to be transported is

largely dependent on what is to be transported along-with the distance it travels. People and good can

be transported via road by means of bus, automobiles, coaches, taxis or rickshaws. In a country like

United States the foremost means of road transport is automobiles but in other parts of the world buses

and rails are used as a foremost means of transport, like India. Delhi is the capital state of India and has

one of the largest CNG powered bus transport network.

“Delhi Bus Service” is a Rich Internet Application (web service) which will serve as an efficient

source of information and provide all the necessary details related to the bus service in Delhi. It will

provide information like real time information, timetables, list of bus stops, news centre, route planner

and fare calculator. This application will be available by means of both web and app store.

In the initial phase, for the first year we will provide services like list of bus stops, news

centre and all the details of arrival and departure of buses by means of creating and publishing

timetables for the convenience of customers. These detailed timetables will provide the required

information about buses and will help the travelers by providing them required information. In the

following years the company will develop by adding the real time information about the scheduled

buses also the route planner and the fare calculator for checking the routes and calculating fares of the

distance travelled respectively.

The services from “Delhi Bus Service” will be more of an information service. These services

will include real time information of buses which can be furthered filtered by checking the real time

information using the search by stop number, search by route, search by stop address and search on the

map. This document is divided as follows: The overview of the document is described in section I

followed by offerings in section II which includes the business offerings and strategies of the business

proposal, section III confers the customer relationship management activities, section IV discusses the

legal and regulatory practice and is followed by revenue and cost model of the proposed business.

The main purpose of the proposed document is to give the understanding of the proposed

idea for business and the factors affecting the business along-with the detailed explanation of usage of

concept of cloud in order to get advantage over the infrastructure used traditionally. The next section

will confer the offerings of the business proposal.

2 OFFERINGS

This section provides a detailed explanation about the major interest of the company and its offerings

along-with the management of the business offerings. This section is subdivided into business


5 Delhi Bus Service

background, business offering, segments of the targeted customers, cloud computing in business

offering and the value proposition.

The subsequent section discusses the business background.

2.1 BUSINESS BACKGROUND The department of transportation in Delhi comes was once under the control of central govt. of India

and was named as the “Delhi Transport Service” but after the amendment of the road transport

corporation act, 1950 it was renamed as the “Delhi Road Transport Authority”. The transport authority

of Delhi came under the Municipal Corporation of Delhi under the act of parliament which came into

existence in April, 1958. The authority was transferred to the Municipal Corporation of Delhi on the

recommendation of Government of India.

The department for road transportation of Delhi government i.e. Delhi Transport Corporation (DTC) is

responsible for providing services like registration of vehicles, control on the pollution caused by the

vehicles, providing the driving licenses, creating new policies, regulating and monitoring all the

services provided by the transport authority of Delhi.

2.2 BUSINESS OFFERING

The “Delhi Bus Service” is proposed as a platform which is web based and provides services like real

time information of buses, bus timetables, the list of bus stops, news centre related to buses, route

planner of the routes covered by buses and the fare estimation using the fare calculator.

2.2.1 Real Time Information (RTPI)

This service will provide the customer with the privilege to know about when the bus is due for arrival at

the bus stop. This helps the customer to plan the journey accordingly. This service will work in the

following manner:

Figure 1 Flow Diagram of Real Time Information (RTPI)

The RTPI will be accessed by the customers using a variety of ways. A customer can select any means out

of all the ways depending upon its feasibility. The fastest and the most convenient way to access RTPI

An onboard computer will be equipped inside the bus.

A radio and a GPS system for navigation will be installed.

The onboard radio and GPS navigation system will report the current position to the central computer.

At last the central computer will estimate the time taken by all the buses to reach all the bus stops throughout the bus route.


6 Delhi Bus Service

will be by either visiting the website of “Delhi Bus Service” or using the mobile application. A customer

can easily find the bus stop number at the bus stop.

The most important part will be the inclusion of all the buses for Delhi Transport Corporation (DTC) in

RTPI. This service will be created for the Transport Authority of Delhi and will be responsible for an

automatic location system for buses along-with the real time predictions of arrival and departure of

buses.

2.2.2 Bus Timetables

This service will provide the detailed schedule of all the buses travelling to and fro from their

respective destinations. All the details of buses including their bus number and the route description will

be listed in the timetables. This may further include the DTC connecting buses to the railway station and

airport. This web service will also include an A to Z finder which will filter the buses on the basis of the

name of the places from where the buses arrive.

2.2.3 News Centre

The news centre will be a web service which will provide all the news related to any event

which has happened, happening or about to be happen in the Delhi Transport Corporation (DTC). This

service will allow the customer to know about the general news or any media release for DTC. The news

centre will provide the news by the title of the news along-with the date and time on which the news is

published. This service will help the customers to know about the events happening inside DTC.

2.2.4 Route Planner

This service will help the customer to find the routes of public transport in order to

connect between the bus stop locations and addresses all around Delhi. When a start point and the

address of the destination will be entered the system will provide the transport option along-with the

information of the bus stop in the vicinity.

2.2.5 Fare Calculator

The fare calculator will help the customer to calculate the bus fare between the two stops

which will use the Delhi bus stage fare system. The “Delhi Bus Service” web service will allow the

customer to choose a bus route and direction, and afterwards select a boarding and alighting bus stop.

This web service also facilitates the customer with a selecting the bus stop using a map by selecting the

map icons above the boarding and alighting stop boxes whenever they appear.

A customer can zoom in and around the map when it appears, and afterwards just select

one of the stop icons for the fare calculator. There is a separate offering of fares & tickets for an adult, a

student, a child and a tourist which make this web service more user friendly.


7 Delhi Bus Service

2.3 SEGMENTS OF THE TARGET CUSTOMERS

Business-to-Consumer marketing is different from Business-to-Business marketing and is usually

abbreviated as B2C and has attached to the electronic business activities which mainly focus on the

retail transactions rather than the activities conducted between the Business-to-Business. Business or

the transactions which are conducted directly in between the company and consumers who are at the

end users of the products or services of the business. The major targeted consumers are:

1. Public of Delhi.

2. Delhi Transport Authority.

So our target customers will be the general public as well as Delhi Transport Authority as this service will

be created for Delhi Transport Authority and support will be provided on all IT related services. Our

product will benefit the organization using our product in numerous ways:

1. Reduced expenditure on capital.

2. Reduced operational expenditure.

3. High flexibility.

4. Highly cost effective.

2.4 CLOUD COMPUTING IN BUSINESS OFFERING

The “Delhi Bus Service” is more of an information-based web service which will provide all

the required information about buses. The raw data will be all the details related to entire bus

service provided by Delhi Transport Corporation across Delhi. The large amount of raw data will

consume more resources for a short period of time. The Cloud Model will assist in

accommodation of the large amount of information. We will perform all the operations and keep

all the data filtered and analyze the data for further reference in future. We may also eradicate the

fallow data in order to lessen the scaling of resources of cloud.

We have to build an online service which has to be up and running 24x7 and 365 days and

for that it requires a huge infrastructure which can run multiple services which are required to keep

the application live for entire time. The infrastructure should highly reliable, scalable and cost-

effective IT architecture.

All the above elements are considered to select cloud computing in as the environment to

host our business idea as it has numerous advantages over the traditional computing methods. The

benefits related to cloud computing for our business are stated as follows. This section will illustrate

various benefits of adopting cloud computing in development and deployment of infrastructure for

“Delhi Bus Service” in Delhi. The major benefits which can be achieved by adopting the cloud

environment are as follows:

Reduction of cost.

Availability of resources.

Highly scalable and elastic resources.


8 Delhi Bus Service

Maintenance of infrastructure to be used for business deployment.

2.5 VALUE PROPOSITION

The value proposition for “Delhi Bus Service” can be inferred on the basis of problems

possessed by the users for the application.

Value proposition for our business will be based on the number of users using the

application. On the basis of the quantitative analysis of the number of users using the web service

the value of our business will be decided. In traditional network hardware people are facing issues

like complexity of the hardware features, control over management interface, scalability, flexibility

and optimization. So, our product will provide the management interface in such a way that it will

improve the user experience and will reduce the existing complexity along-with increasing, scalability

and flexibility in the network.

The features of the proposed value proposition for our business are as follows:

Figure 2 Features of value proposition

3 CUSTOMER RELATIONSHIP MANAGEMENT ACTIVITIES

Feat

ure

s

Easy adoption of the proposed application.

User friendly application.

Access to the application is easy.

Cost efficient.


9 Delhi Bus Service

This section confers about the strategies which will be used in order to make our product famous in the

market. Moreover this section discusses the marketing and promotional strategies along-with the key

resources required to make it volatile for populous use.

3.1 MARKETING AND PROMOTION STRATEGIES

This section discusses the marketing and promotional strategies to be used to make the product popular

in the market. The marketing plan can be created on the basis of Psychographic, Geographic, and

Demographic and Behavioristic exploration. This section also discusses the strategies required to do

promotion of the product.

3.1.1 Psychographic exploration

The major strategy for psychographic exploration will be to target the customers who have more

interest in investment i.e. investing time and money in travelling through buses. Those individuals who

are ready to make investments in taking buses as their option for road transport will be the targeted

customer.

3.1.2 Geographic exploration

In the initial phase we will target Delhi as our customer base for starting our business. The higher

literacy rate and an easy access of internet will contribute majorly towards reaching our customers. The

place where most of the people use buses as their primary mode of transportation will be targeted first

especially Delhi city whereas rest of the city will be targeted using strategies like electronic variants.

3.1.3 Demographic exploration

The demographic analysis provides a population subset for the product also we can divide the market

based on the number of people preferring to travel by buses or currently are travelling through buses.

3.1.4 Behavioristic exploration

This exploration technique will help us to thin down the customer base and also categorizes the market

in terms of financial products and services. Since our product is related to mode of transportation, we

will put our all focus on the customer base which currently exists in the domain of people travelling

through buses.

3.1.5 Promotional Strategies

This section discusses in detail about the strategies required to promote the product in the market and

in order to make the business successful we have to reach out to the customers with our proposed idea.


10 Delhi Bus Service

The way of promoting the product creates a sense of interest amongst the customers for which the

product is being created. The ways in which we will carry out our promotion are discussed below using

the following diagram:

Figure 3 Promotional Strategies

3.2 KEY RESOURCES

3.2.1 Cloud environment

We will use Amazon Web Services to deploy our infrastructure. The Infrastructure as a Service from the

Amazon cloud is used to deploy complete application. The S3 service from Amazon will be used to store

the raw data and the management is done using CloudFront.

•Facebook and twitter will be used as a means to promote our product.

•A user will be redirected to the promotional page once it clicks on the message displaying our product.

Facebook/Twitter

•LinkedIn is one of the biggest networking sites for working professionals and will be used as a medium of promotion of our product.LinkedIn

•YouTube is the biggest means of promoting a product by uploading videos over it.

•The videos will be used to shoe the additional benifits of our business proposal.

YouTube

•We will promote our product for our targeted customer by using MailChimp as the profiles for different users are stored in Google.Email Marketing

•A working prototype of the product is lauched.

•A feedback from the customer will help in resolving any issues before the final launch of the product.

Soft Launch of the product



Since our web service “Delhi Bus Service” will produce a high volume of data so the scalable resources

from Amazon will help us to manage huge data.

We have selected Amazon Web Services as our cloud option over any other cloud provider as it is cost

efficient and also provides high performance with negligible interruption. All the services provided by

Amazon Web Services will provide high speeds to process BigData.

3.2.2 Employee

Employees are the soul of any company so we will make sure to make most out of this resource we

satisfy the employees in terms of motivating them, giving them good compensations, carefully

distributing the workload.

In the initial phase minimum hiring will be done and more employees will be added as the business

grows. The employees which we require in the initial phase are:

Figure 4 Types of Employees

Developer

•A team of 20 developers is hired in the initial phase in order to develop the web service.

•Few developers will work on creating the design of application while some of them for development of User Interface.

Sales person

•In the initial phase a sales professional is hired to for the promotion of the product.

•The sales person will be solely responsible for targeting the customer using various market strategies

Financial Analyst

•The financial analyst generates the specification of the requirements of our web service.

•The financial analyst will also define an algorithm and the raw data analysis method.

Employees required



3.2.3 Business process

In this section a business process is defined in order to review the term and contract on monthly basis

and will also keep the track of the basic pricing structure of the resources on the cloud platform and will

also assist us in order to keep the track of the estimated balance sheet.

4 LEGAL AND REGULATORY PRACTICE

The legal and regulatory practice is one of the biggest parameter in the business proposal. In order to

perform legal and regulatory practice following practice is followed:



Figure 5 Legal and Regulatory Price

Service Level Agreement

•The service level agreement will maintain the integrity of service provided to the consumers.

•The rules to be defined in agreement will include the limitations of our services. Like, raw data provision to big consumer will depend upon availability of resources from a cloud provider.

•The agreement will include resolution time, method and way to contact us for any failed service.

•We will be signing the SLA with a cloud provider to make sure services provided by them should remain accountable for us.

Contract with the cloud provider

•We will be signing Confidentiality, Subscription, SLA and Data protection agreement with AWS due to dependency on using resources from a cloud provider.

Confidentiality Agreement

•The commercially sensitive data will be protected by signing a confidentiality agreement with every customer.

•The agreement will include consequences for misuse of data.

•The signed contract will be in digital format as well as on paper to maintain the integrity.

•Two copies of agreement will be created. One copy will hand over to the consumer and other will keep to ourselves.

Consumer Protection Act

•The Consumer Protection Act 2007 will be enforced to maintain delivery of services to the consumer.

• The law will be enforced to protect the interest of consumer before opting a service from us.

Data Protection

•The data protection will include the rules and regulation to protect the data acquire by “Delhi Bus Service"

•By signing the agreement for Data Protection Act 1998-2003, we will be bound to secure above information in undisclosed manner. As per the law, consumer data can be only used for internal auditing and data cannot be shared with any of the third party without consumers consent.

•The application will generate large chunks of raw data. Additionally, the application will save following important data,

•· General Consumer Information

•· Link information to connect the consumer infrastructure for raw data provision

•· Secured raw stock information



5 REVENUE AND COST MODEL

This section includes all the details including the financials required for the startup, expenditure and

profit/loss.

5.1 FINANCIAL FOR START-UP:

In the initial phase more money will be invested in the business as compared to the maintenance cost

for the following years. The initial expenditure to start the business is explained as follows:

Start-up Expense Cost in Euro

Office Rent plus Lease for 1 Year 13,000

Insurance 400

Telephone 360

Office Stationary 40

Legal Document Outsourcing 1200

Domain Name 40

Network Administration 400

Software Licensing 4000

Marketing /Promotion 6000

Miscellaneous 10000

TOTAL Start-up Expenses 35,440

Start-up Assets Required

Advance Cash Balance 10000

Additional Assets 5000

TOTAL PRESENT ASSETS 15,000

Long-term Assets 0

TOTAL ASSETS 15000

TOTAL REQUIREMENTS 50,440

FUNDING

Investor 1 20000

Investor 2 30000

TOTAL INVESTMENT 50,000

Liabilities

Account Payable 440

Current Borrowing 0



Other Present liabilities 0

Current Liabilities 440

Long-term Liabilities 0

TOTAL Liabilities 440

Loss at Start-up -35,440

Total Capital 14,560

Total Capital & Liabilities 15,000

TOTAL Start-up Expenses 35,440

TOTAL ASSETS 15,000

TOTAL INVESTMENT 50,000

Table 1: First Year Expense for start up

5.2 SERVICES SUBSCRIPTION/PRICING MODEL:

1. We will use a penetration pricing model during the first year of start-up.

2. The low price for a subscription and freemium period will be used to attract the customers.

3. We have categorized service type based on the type of data to be provided to the consumers. Our

marketing strategy will identify the targeted consumer and put forward the respective service type

to the consumers.

4. New consumer will get limited hours of Freemium period.

5.3 SALES MODEL:

This section discusses the estimated sale for “Delhi Bus Service”. This estimation is based on the number

of users subscribing to the services provided by us. The following table:

Sales Model Year 1 Year 2 Year 3

Processing Fees 65000 90000 100000

Franchise charges 40000 60000 60000

Total Sales 105000 150000 170000



Figure 6 Sales Model

Processing Fees

Franchise charges

Total Sales

0

50000

100000

150000

200000

Year 1 Year 2 Year 3

Processing Fees 65000 90000 100000

Franchise charges 40000 60000 60000

Total Sales 105000 150000 170000

SALES MODEL

Processing Fees Franchise charges Total Sales

business_strat_doc

Documents

karan chhabra date

project title

business background

business offering

office use

karan chhabra student

bus timetables

delhi bus service word