Smart City Logistics

Smart city logistics: opportunity study for an urban mobility company

About This Project

As Smart City becomes an increasingly popular urban development vision, many businesses aspire to be the first mover to spot any newly created niche and gain market share riding on the wave of digital transformation.

Altair mobility team helped one such client to redefine their last-mile distribution business model to sensibly position themselves in the Smart City logistics competitive landscape.

Background

The Smart City is and will definitely be one of the most important challenges over the next few decades. Currently more and more cities around the globe have embraced this concept and this trend has created new opportunities for businesses across sectors.

Among all the topics related to the concept of Smart City, our client is mostly interested in the area of transportation. The objective of the study is to define the positioning of the company in the context of Smart City Logistics being a key set of tools for companies and cities. Our client hoped that Altair could help to find how they can add value for the solutions to the urban logistics problems and a better utilization of physical spaces in the city.

Approach

To structure the definition of positioning of our client, we divide the work into several stages:

Concept Research

  • We set out to understand better the current trends and existing practices of international companies’ business transformation to accommodate to the Smart City concept.
  • Comparative study of the world’s top Smart Cities: new policies and their implications, potential niche in the market in this changing environment.

Current Business Model Analysis

  • Identification and selection of relevant stakeholders with the Project. Interviewed over 20 of them to comprehend their most critical issues and standpoint in the value chain.
  • Analysis of key variables of value contribution for the users, activities and resources, products and service offerings, relations with different players in the last-mile distribution practice.

Opportunity Analysis

  • Defining positioning strategy and identifying potential alliances for the launch of the project.
  • Risk analysis: barriers to entry, competitor response, substitution, etc.
  • Cost structure analysis: Launching investment and service maintenance costs
  • Revenue stream identification and sales plan
  • Financial model and projected provisioned financial statements

Outcome

The final business plan we presented to the client includes a clear definition of the new business model, details of product and service offerings and technology applied, market analysis, financial projections, requirements for organizational transformation, and a pragmatic implementation plan.

Country

Spain

Date
Category
Automotive, Digital, Mobility
Tags
Cost Structure Analysis, Logistics, Risk Analysis, Smart Cities

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