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Location Based
Services
Enabling on-the-go businesses
A vital building block for
Enterprises to enhance customer
experience across different
Omkar Malage
Senior Research Analyst
Digital Transformation Practice
@Omalage | OmkarM@frost.com
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Internet of Things : Location matters!
3
Connected
Cars
Wearable's
Mobile
Devices
Social Media
Fleet
Management
Connected Cities
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What are Location Based Services?
Location Based Services : The concept—Mobile LBS consists of a broad range of services that incorporate location information with
other data to provide a value-added experience to a mobile user. Location services rely on a combination of terrestrial, satellite, and
software-based measurement technologies to pinpoint the location of a user, which is then integrated with contextual data to provide a
value-added experience to a mobile user.
GIS
Internet
Mobile GIS Mobile InternetMobile
devices
Web GISLocation Based Services is convergence of multiple technologies
Location Based Services are a part of geo-spatial system that rely on a mapping
representation, positioning information and content or service providers who can
customise or enhance their offerings
Location Based Services cover a wide range of services that are directly dependent
on maps and navigation or have indirect applications like adding location information
Technologies used in Location Based Services
Positioning Technology Location Based Services Network Computing Wireless CommunicationsProgress in the domain of network computing has, in part, led to the development of the Spatial Data Infrastructure (SDI) initiative. Aimed at providing an environment in which geospatial users and producers have access to the data that they require, SDIs are still undergoing refinement, but the infrastructure is proving to be a useful and necessary mechanism for LBS.
The most important technology is of course the positioning technology, the way to find out the location of a mobile device accurately. Due to the unique
Wireless data communication combines mobile communication and data communication by giving consumers easy access through wireless
devices (mobile phones, personal digital assistants, palmtop computers, etc.) to relevant
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Location Based Services : Overview of key service segments
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Location Based
Services
Mapping, discovery
and infotainment
Tracking
Advertising
Location Based Games
Analytics
Emergency support
Finding places, friends,
maps, add location to
posts, etc
Vehicle & Fleet,
Supply chain &
Inventory
Mobile coupons,
ads, deal finders
etc.
Real life games like
Google Ingress,
apps
Business
Intelligence, sales &
distribution, etc
Emergency 911,
Disaster recovery
Types of Location Based Services
Pull
:
In the case of a pull service the user issues a request in order to be automatically positioned and access the LBS
he/she wants. For Eg: A tourist roams in a foreign city and wants to receive information about the nearest restaurants
to his current location.
Push :
In the case of a push service, the request is issued by the Service Provider and not the user himself.
For Eg: This type of LBS is used in location based advertising, which informs users about products of their interest,
located at nearby stores.
Tracking :
In a tracking service, the basic idea is that someone (user or service) issues a request to locate other
mobile stations (users, vehicles, fleet etc.)
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Location Based Services : Trends driving
adoption in India
Factors driving adoption of Location Based Services in India
The world is going mobile:
With low cost smart phone devices available in the market and dipping Mobile data rates is resulting in proliferation of smart phone adoption Rising wave of the Internet of Things : Industries have started to witness major investments in Internet of Things Time spent by an avg. Indian on Mobile has gone up by 34%, consumers are spending 70% of their time on social media and entertainment Enterprises are increasingly coming up with their own company application : Digital India Initiative Proliferation of Smart Devices and Wearable's: The wearable's market in India is on a rise and has grown by almost 26% compared to last year
Integration of location based search with social networking
websites: The use of
social networking sites, such as Facebook,
Twitter, and Flickr, on mobile platforms is increasing rapidly.
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POLL QUESTION 1
What is the primary driver for your enterprise to adopt Location Based Services?
Why enterprises need Location Based
Services?
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Location Based Services – An imperative for enterprises
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Enhancing
employee
productivity
Helping mobilise
vast transit
operations
Aiding
business
intelligence
Embracing
futuristic
technology
Improves brand
affinity and
customer
service
Driving sales
and
business
Location Based Services are used in multiple enterprise
verticals
Relevance
FMCG
Telecom
Retail
BFSI
Automotive
Consumer
Durables
Fleet Management
and Vehicle
Tracking
Business
Intelligence and
Analytics
Location Based
Advertising
Map Based
Visualisation
Sales and
Distribution
Planning
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BFSI:
BFSI vertical has experienced almost
34%
increase in CSAT levels
due to location based personalized digital banking experience
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Banks
Customer oriented benefits: Helps promote
brand loyalty and improve customer service.
Operational benefits: helps drive cross sales
opportunities by delivering relevant information to interested customers.
Cost benefits: helps in addressing low-end
customer queries and self serving traditional transactions or non-transactions without engaging a customer call center.
Promotions: Helps promote content to relevant
and target customers only, instead of a large customer base which requires additional resources.
Collaborate with vendors
Customers
Offers anytime anywhere access to certain banking needs.
Offers access to relevant data, updates and promotions to customers.
Offers customers space to engage on social media platforms and to find friends and places of interests.
Provides an additional security layer that validates transaction by comparing location of the user with location of transaction.
Enhance security : Reduce transaction fraud
Market Potential
Opportunity Scope
Low
Med
High
Short term 1-2 Years Mid term 3-4 Years Long term 5+ Years
Applications: ATM Locator, Appointment Booking, AR Home Loan,
Branch Locator, Discount Coupons and Deals, Personalized greetings,
Customer Identification, Fraud prevention
Manufacturing:
The relevance of LBS in Manufacturing is found mainly in
Asset Tracking, Inventory Management and FSC tracking for better sales
generation
•
Manufacturing and distribution:
Manufacturing and distribution facilities are already optimized for efficiency to a great degree. But workflows can be complex, and the scheduling of the arrival of material at a given station can be similarly so. LBS can help in minimizing traffic and downtime (really enhancing just-in-time shops), while maximizing staff productivity.• Semiconductor industry: In the semiconductor industry, constant monitoring of valuable materials and equipment
is essential. LBS asset tracking technologies can be used to help facilitate work-in-process cases in the mask shop, fabrication, and advanced test manufacturing facilities. Real-time location of manufacturing lots helps managers take advantage of improved capital equipment utilization as well as labor savings and increased throughput.
• The aerospace industry—The aerospace industry deals with a unique array of expensive systems, equipment, and
materials in order to complete its projects on time and on budget. Each case of a misplaced part can cause assembly to stop, having a negative impact on direct labor costs, capital equipment utilization, and cycle time.
• The mining industry—Recent events have made it clear that better management of tools and people underground
is increasingly critical to the mining industry. Location tracking solution provides a clear signal underground, helping to maintain miner safety while speeding ore production. Offering a technology that is intrinsically safe for explosion-sensitive environments.
• The automotive industry—LBS can be used for asset tracking which can minimize the amount of offline
work-in-progress by providing vehicle tracking during production, helping to ensure that quality issues are appropriately addressed. By tracking high-value tools throughout the manufacturing process—from tools, dies, and jigs to test equipment—these solutions can help ensure the rapid, cost-effective production of vehicles in this highly competitive industry
Market Potential
Opportunity Scope
Low
Med
High
Short term 1-2 Years Mid term 3-4 Years Long term 5+ Years
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Healthcare:
As per our survey, healthcare facilities can save
15%
of their
cost annually through equipment loss prevention and the reduced need for
new purchases
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•
Healthcare:
The primary benefit location services offer to the healthcare sector is the ability to quickly and surely locate critical care equipment and personnel. The spin-off benefits are multiple and include the ability to better exploit the working life of expensive, specialist equipment, leading to improved diagnostics and treatment; reduction of over-ordering of assets and equipment due to waste of current resources.• LBS can help in equipment tracking which assists in driving down the search time and reduces the operational cost by enhancing overall efficiency and productivity.It’s not only equipment that needs constant monitoring and tracking: in some cases the patients do too. When clinicians are performing time-sensitive procedures, they need to know the affected patient’s location and condition continuously. Other patients may simply want to get out of bed against orders – in these cases a “sitter” may be assigned to them, which again is incredibly wasteful and frustrating in the fast-paced healthcare environment.
• Location-aware technologies can help by augmenting hospital information systems in key areas: patient care and safety, asset management, regulatory compliance and workflow optimization. The ability to track the location of people and assets in real time and over time gives hospital staff the ability to manage assets effectively, tackling safety problems and increasing efficiency, thereby reducing costs while improving patient outcomes.
• LBS applications are predominantly used in hospitals to improve efficiency and reduce expenditure. It works on WI-Fi and RTLS technology in indoor locations. LBS is used in hospitals for indoor navigation, tracking staff and patients, location-based messaging, asset management, location analytics, and in integrating with other clinical systems.
Market Potential
Opportunity Scope
Low
Med
High
Short term 1-2 Years
Mid term 3-4 Years
Long term 5+ Years
Applications: Patient experience, hospital operations like staff finding process
automation, patient safety, asset management, ambulance tracking and finding,
equipment replacement and locator.
Retail:
Retailers who have adopted Location Based marketing strategy has
witnessed almost 23% growth in their footfalls and 14% growth in
conversions compared to those who have not adopted it.
• Location-based offers and vouchers: one of the most talked about use cases for location services. Some brands
claim to have seen a 16.5-fold increase in app usage for users who received a beacon-trigger message.
• In-store navigation: particularly suited to larger store formats, for example supermarkets, where a number of
players have already trial in this space.
• "Checking-in" in store : using location services that allow customers to let the store know they’re coming to
collect a parcel before they’re even in the store.
• Bringing in convenience to customer and providing unique experience: By combining the power of mobile
and location services, retailers are saving customers time and enticing them to come back. The result may mean less time spent in your store, but higher spend because of the speed and convenience you provide them when they’re searching for goods. This is a win-win for the retailer and the consumer. Eg: Starbucks.
• 69% of consumer electronic brands offer in-store inventory checks on their mobile website (Consumer Electronic, 2015).
• 56% of Smartphone users would like to receive location based offers on their phones when they are near a store (Juniper Research Finds)
• 42% of Indian consumers see potential benefits of sharing their location with retailers via GPS (Frost & Sullivan, 2016).
• 27% of customers cited location specific tools as the most important feature of retail apps.
Market Potential
Opportunity Scope
Low
Med
High
Short term 1-2 Years
Mid term 3-4 Years
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Benefits of LBS for an SME :
38%
of SMB companies planned to
implement location based marketing services in 2018
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1. Get to know your customers better
2. Reward loyal customers
3. Attract new customers in an affordable way
4. Convert impulses to sales
5. Even out “bumps” in trade
6. Become a local legend
7. Brand affinity and customer satisfaction
8. Futuristic and one step ahead of competition
Why should location based marketing for small businesses
be a key focus for marketers?
66%
Marketers believe location-based advertising
is the ‘most exciting’ mobile opportunity
for 2017
45%
Increase in customer loyalty was experienced
by SMB’s
32%
Increase in repeat sales occurred for smaller
companies
27%
Increase in Return On Investment
The average human attention span when using a mobile phone is now just ‘8 seconds’ and from a marketing perspective the content must capture the
potential customers attention in such time or they’ll risk losing potential sales.
•
72% Of brands have a mobile app and a mobile-friendly website.
•
80% Of brands advertise on web, social and mobile, indicating that more brands are spending on digital advertising than ever.
•
60% Of brands use a 360o or an omni-channel approach to marketing
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Location Based Service :
Customer service flow in Retail
Enriching customer service experience through LBS
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1. Customer logs-in the retailers app
and turns on its Location Tracker
Service.
GPS
2. GPS tracks the location of
the customer and updates it
on the retailers server
Geo-Fencing trigger set by the retailer
3. As soon as customer reaches
with-in the perimeter of the
geo-fence, a notification goes
from the retailer to place the
order.
1
2
3
Retail Store
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4. Customer places the order
and the staff gets the order
ready before the customer
arrives, thus minimizing wait
time.
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5. Retailer also send notifications at
different stages of order fulfillment
to keep customer posted. Their
‘click and collect’ model works
perfectly for their time-sensitive
customers.
Customer
Happy
customer
Challenges for Location Based Services
within Enterprises
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Technological Challenges Awareness Levels and Pricing Concerns Standardization/ Computing and Battery Power Data Consistency and User Experience Privacy and Security ConcernsPOLL QUESTION 2
What is the key constraint which is preventing your enterprise from adopting Location
Based Services?
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Key things to consider while selecting a LBS solution provider
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Plug and play integration with multiple
devices & sensors
State-of-the-art mapping
features
Fast loading pages, dynamic
updation of location data
API integration with customer’s
own website/apps
Analytical reports – correlating
reported parameters
Multiple used-cases and corresponding set of
sensor integrations
Advanced features such as
directional-navigation, route
optimisation
Latest web-technologies, uniform
experience across web and mobile
Flexibility to integrate
within customer’s own
MIS, CRM and other
applications
Beyond reporting just “as recorded
data”, layers of machine learning
and correlation analytics
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Use Case | Power generating company| 250+ vehicles
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About the Company
• Company operates and develops power generation assets in India and currently has 750 MW of power
generation assets in operation
• All units have technology allowing them to use imported coal (typically Indonesian) or domestic (Indian) coal
• The company has fleet of trucks used for transporting coal from ports to the thermal plants
Challenges
• No visibility of fleets moving between port to plant
• Fleet owned by both company and contractors
• Vehicle not following the defined route thereby increasing chances of theft
• Low productivity since managing huge fleet is a tedious task
Solution
Pre-defined
Geo-fencing radius
Loading
Ticket Issue
Desk
Unauthorized vehicle falsely
claiming to be the authorized
vehicle
Authorized vehicle fitted with
M2M device is not present at the
port
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Key takeaways & conclusion
Key take away and conclusion
Key takeaways
LBS is a key imperative for Enterprises of all sizes to enhance their business growth, employee
productivity and drive down costs: Location-based applications can help companies of all sizes in nearly every
industry cut costs, improve worker productivity and simplify regulatory compliance.
Aiding business intelligence: Traditional business intelligence (BI) tools are adding location elements to provide
precise geo-analysis and intelligence for enhancing contextual decision-making capabilities, resulting in improved
productivity and growth opportunities.
Future ready business: Enterprise across the globe are now driving their business operations by embracing digital
technologies and with digitisation wave erupting amidst Indian enterprises too, technologies like Location Based Services would play a vital role in putting enterprises ahead in sync with the technologies driving future ready businesses.
An asset for SME’s:
Those SME enterprises that embrace these technologies will possess a unique communication advantage. And a decided competitive edge in the race toward our expanding, rapidly evolving digital future. It will provide SMB’s with cost effective visibility in the market to build a strong brand and improve their sales and profitability along with customer experience/stickiness.Key is to partner with right service provider: For LBS to be implemented successful to reap the business benefits, it
is important for Large as well Small Enterprises to partner with a right solution provider who understands your business case well and provide your Enterprise with right solution suite by taking care of the quality and security aspect on priority basis, otherwise LBS solution can also sometimes back-fire if not implemented with proper modular planning.
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