daimler fleetboard - award report

BEST PRACTICES RESEARCH

© 2012 Frost & Sullivan 1 “50 Years of Growth, Innovation and Leadership”

2012 European Med ium 2012 European Med ium 2012 European Med ium 2012 European Med ium and Heavyand Heavyand Heavyand Heavy ----duty Te lemat i csduty Te lemat i csduty Te lemat i csduty Te lemat i cs Growth Leadersh ip AwardGrowth Leadersh ip AwardGrowth Leadersh ip AwardGrowth Leadersh ip Award

2012



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Frost & Sullivan is in its 50th year in business with a global research organization of 1,800 analysts and consultants

who monitor more than 300 industries and 250,000 companies. The company’s research philosophy originates with

the CEO’s 360 Degree Perspective™, which serves as the foundation of its TEAM Research™ methodology. This

unique approach enables us to determine how best-in-class companies worldwide manage growth, innovation and

leadership. Based on the findings of this Best Practices research, Frost & Sullivan is proud to present the 2012

Europe Growth Leadership Award in Medium and Heavy duty Telematics to Daimler FleetBoard GmbH.

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The core competency of Original Equipment Manufacturers (OEMs) lies not only in transport operation, but also in

vehicle usage and analysis as well as intelligent logistics processes. Therefore, OEMs generally restrain themselves

from knowing who is driving the vehicle, how the vehicle is performing or where the vehicle is. This will limit their

competition against the independent aftermarket telematics vendors, whose core competency is in transport

operation. Moreover, OEMs lose their customers, once they sell their vehicles. This is because they do not make

efforts to get closer to or stay in touch with the client after selling the vehicle. However, this is expected to change

once OEMs gradually start offering Fleet management system (FMS) as a standard in their models.

Offering FMS as a standard has its own challenges. When telematics systems are introduced as a standard line-fit, it

is not just a serious production challenge, but also a marketing challenge. Every truck needs to make changes to

accommodate the new unit, wiring harnesses and many other design and cosmetic changes. The other challenge is

choosing countries to offer telematics as a standard. Also, countries which are traditionally conservative or without

ubiquitous network coverage is always tough to penetrate with telematics. However, offering FMS as a standard

across all markets has its own advantages, especially if the vendor is the OEM itself.

The other key challenges faced by the OEMs are their inability to provide fleet performance management solutions

to all types of trucking operations, regardless of the type of fleets or vehicle segments. However, as the OEMs

provide a ‘wider product portfolio’ for all commercial vehicle segments, makes and target groups, they can easily

address the ongoing challenges posed by non-OEM providers.

Best Pract i ce Award Ana lys i s forBes t Pract i ce Award Ana lys i s forBes t Pract i ce Award Ana lys i s forBes t Pract i ce Award Ana lys i s for F leetBoardF leetBoardF leetBoardF leetBoard GmbHGmbHGmbHGmbH

The Frost & Sullivan Award for Growth Leadership is presented to the company that has demonstrated excellence

in capturing the highest annual compound growth rate for the last 3 years (in the telematics industry?).

FleetBoardFleetBoardFleetBoardFleetBoard’s Performance in ’s Performance in ’s Performance in ’s Performance in MediumMediumMediumMedium---- and Heavyand Heavyand Heavyand Heavy----duty Telematics duty Telematics duty Telematics duty Telematics

For over ten years, Daimler FleetBoard has been developing and marketing telematics solutions to boost profitability of

commercial vehicle fleets, including trucks, vans and buses of all brands. Currently, FleetBoard is the market leader in



Europe in the field of medium and heavy-duty commercial vehicle telematics. Globally, 100.000 units will be installed

this year. And with over 2,500 customers FleetBoard is in one of the leading participants in this industry.

By the end of 2010, FleetBoard's sales increased by 30% year on year, acquiring volumes even from its closest

competitor's home market. The success recurred in 2011. With its new strategy of offering FMS as a standard line-

fitment all over Europe and its commitment to penetrate LCV market, it is likely to increase its market share further.

Further growth will be realized by expanding its product portfolio and global presence. Considering the above,

FleetBoard is expected to reach the installation of about half a million units, globally, by 2017. This makes FleetBoard

the undisputed leader in the MCV and HCV telematics market in Europe currently.

Key Performance Drivers for Key Performance Drivers for Key Performance Drivers for Key Performance Drivers for FleetBoardFleetBoardFleetBoardFleetBoard

Factor 1: Factor 1: Factor 1: Factor 1: FMS as FMS as FMS as FMS as a a a a Standard LineStandard LineStandard LineStandard Line----FitFitFitFit

Though FleetBoard is currently one of the leading telematics providers in the European medium and heavy-duty

commercial vehicles sector, it is likely to face increasing competition from one of its major aftermarket competitors in

the coming years. The trend of market consolidation is peaking within the telematics space, especially for aftermarket

vendors to remain in the competition. This increasing cooperation among companies across the value chain would

ideally create an ever-increasingly competitive scenario. However, FleetBoard’s strategy of offering one of Daimler’s

top-selling trucks with FMS as a standard can increase its year-on-year installed base in the coming years and help it

stay competitive in the market. FleetBoard is offering its MY2012 Actros with a standard FMS as a line-fit. This,

followed by certain models that require platform change, are likely to have FMS as line-fitted.

Factor 2: Factor 2: Factor 2: Factor 2: An An An An ExpandingExpandingExpandingExpanding ProducProducProducProduct Portfoliot Portfoliot Portfoliot Portfolio

FleetBoard has the ability to provide fleet telematics solutions to all types of trucking operations, regardless of private

or for-hire or less than truck load (LTL) or field services or any other vertical market. Overall, it currently hosts a wide

product portfolio for all commercial vehicle segments, makes and markets. FleetBoard offers services starting from

vehicle-related to advanced back-end integration and logistics management solutions. It is also expected to offer a

security management package in 2012, addressing the demands of high-value goods transporters. FleetBoard offers

many add-on services that not only save time and money, but also essentially pay for themselves, offering a stronger

return-on-investment (ROI).

FleetBoard, currently, has three different versions of hardware, two of which have high-end ruggedized hand-held

computers with built-in scanner, laser scanner and few others; while, the third one is fixed mount display. The company

also offers logistics management integration, supporting bi-modal transportation in Germany and has plans to expand

its capability to multi-modality. Though its trailer solutions are currently offered through IDEM (third party vendor), it

has plans to offer its own trailer solution in the coming months. Through 2011, the company has focused on

expanding its portfolio in terms of logistics and time management services. FleetBoard continues to expand its product

portfolio to reach out to a wider customer base and expand its market presence.

Factor Factor Factor Factor 3: 3: 3: 3: Expanding into New RegionsExpanding into New RegionsExpanding into New RegionsExpanding into New Regions



Telematics vendors need to expand into new regions in order to reach out to new customers and attain growth. The

medium- and heavy-duty telematics market in Europe is still fairly under-penetrated with about 13 percent penetration,

leaving each vendor to expand geographically to stay in competition. Currently, FleetBoard leverages Mercedes-Benz’

large sales network to offer telematics ‘across’ Europe. It is also actively penetrating markets outside Germany to

increase its market share and acquire new customers, not just within Europe, but also outside Europe in countries such

as Brazil, South Africa and the Middle East.

FleetBoard has plans to expand in a phased manner in largely under-penetrated countries, like Turkey, Russia and other

parts of Eastern Europe. It also has plans to target countries, such as North America, China and other parts of the

world, to gain a global presence.

Factor 4: Factor 4: Factor 4: Factor 4: Expanding Growing PartnershipsExpanding Growing PartnershipsExpanding Growing PartnershipsExpanding Growing Partnerships

Every vendor needs several long-lasting partnerships, either with hardware or software suppliers, in order to grow

ergonomically. FleetBoard has formed many established partnerships in this market, which has helped it in offering

solutions with improved features and quality. FleetBoard has a wide service network, with over 140 certified service

partners in Europe. Apart from external partnerships, Daimler’s internal partners also helped in developing most of the

current special features for its trucks.

In collaboration with Mercedes-Benz, it provides truck service management, which helps it in reducing the vehicle wear

and tear decisively. Daimler’s collaboration with Zauner & Partner is just another example of a strategic move by

FleetBoard to offer enhanced value-added time management services to its customers. FleetBoard also partners with

IDEM to offer a dedicated trailer solution to its customers. It is through the formation of strategic partnerships that

FleetBoard can address the diverse customer needs and enjoy a competitive edge in the market, even in the years to

come.

Conclus ionConc lus ionConc lus ionConc lus ion

FleetBoard’s modular service portfolio, providing telematics services to all commercial vehicle segments, all makes,

and all markets, can only help the company achieve increased market growth in the coming years. Its vast

experience, proximity to truck development and access to vehicle brands, provides a strong basis for its growth in

the coming years. Thus, FleetBoard is committed to strengthening its position as one of the key telematics vendors

in Europe.



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The CEO 360 Degree Perspective™ model provides a clear illustration of the complex business universe in which

CEOs and their management teams live today. It represents the foundation of Frost & Sullivan's global research

organization and provides the basis on which companies can gain a visionary and strategic understanding of the

market. The CEO 360 Degree Perspective™ is also a “must-have” requirement for the identification and analysis of

best-practice performance by industry leaders.

The CEO 360 Degree Perspective™ model enables our clients to gain a comprehensive, action-oriented

understanding of market evolution and its implications for their companies’ growth strategies. As illustrated in the

Chart below, the following six-step process outlines how our researchers and consultants embed the CEO 360

Degree Perspective™ into their analyses and recommendations.

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Cri t i ca l Importance of TEAM ResearchCr i t i ca l Importance of TEAM ResearchCr i t i ca l Importance of TEAM ResearchCr i t i ca l Importance of TEAM Research

Frost & Sullivan’s TEAM Research methodology represents the analytical rigor of our research process. It offers a

360 degree view of industry challenges, trends, and issues by integrating all seven of Frost & Sullivan's research

methodologies. Our experience has shown over the years that companies too often make important growth

decisions based on a narrow understanding of their environment, leading to errors of both omission and

commission. Frost & Sullivan contends that successful growth strategies are founded on a thorough understanding of

market, technical, economic, financial, customer, best practices, and demographic analyses. In that vein, the letters T,

E, A and M reflect our core technical, economic, applied (financial and best practices) and market analyses. The

integration of these research disciplines into the TEAM Research methodology provides an evaluation platform for

benchmarking industry players and for creating high-potential growth strategies for our clients.

Benchma rk i n g Pe r fo rmance w i t h TEAM Resea r chBenchma rk i n g Pe r fo rmance w i t h TEAM Resea r chBenchma rk i n g Pe r fo rmance w i t h TEAM Resea r chBenchma rk i n g Pe r fo rmance w i t h TEAM Resea r ch

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The Growth Leadership Award is a prestigious recognition of FleetBoard’s accomplishments in medium- and heavy-

duty telematics. An unbiased, third-party recognition can provide a profound impact in enhancing the brand value

and accelerating FleetBoard’s growth. As provided in the Chart below, by researching, ranking, and recognizing

those who deliver excellence and best practices in their respective endeavors, Frost & Sullivan hopes to inspire,

influence, and impact three specific constituencies:

• InvestInvestInvestInvestoooorsrsrsrs

Investors and shareholders always welcome unbiased and impartial third-party recognition. Similarly,

prospective investors and shareholders are drawn to companies with a well-established reputation for

excellence. Unbiased validation is the best and the most credible way to showcase an organization worthy

of investment.

• CustomersCustomersCustomersCustomers

Third-party industry recognition has been proven to be the most effective way to assure customers that

they are partnering with an organization that is leading in its field.



• EmployeesEmployeesEmployeesEmployees

This Award represents the creativity and dedication of FleetBoard’s executive team and employees. Such

public recognition can boost the morale and inspire the team to continue its best-in-class pursuit of strong

growth strategy for FleetBoard.

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About About About About F leetBoardF leetBoardF leetBoardF leetBoard

FleetBoard is a wholly-owned Daimler subsidiary, offering telematics-based Internet services for modern vehicle and

transport management. Daimler FleetBoard has successfully positioned itself in the telematics market as one of the

leading market participants over the past ten years. FleetBoard, currently, serves the markets of Europe, Brazil, South

Africa, and the Middle East. Since its market launch in 2000, FleetBoard has continued to expand and enhance its

product and service portfolio. FleetBoard’s systems and services are specifically designed for fleet managers and

truck drivers of all industries and sizes. FleetBoard has been established for many years as a fleet management

system that provides greater efficiency and transparency.

About Fros t & Su l l i vanAbout Fros t & Su l l i vanAbout Fros t & Su l l i vanAbout Fros t & Su l l i van

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class

positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and

the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation and

implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with

Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six

continents.

daimler fleetboard - award report

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