Technology Enabled Business Transformation Plan W.P. Carey School of Business Arizona State University Master 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 plansStand alone providers  New vehicle  Credit Card Add-on plans  Cell Phones  Insurance Substitutes  Friends & Family  Highway Patrol  Smart Phone Apps  OnStar Call Dispatch Tow

AAA Company Analysis 51 million members 51 individually operated clubs Value chains  Membership (Brand)  Insurance (revenue generator)  Travel Benefits Discounts Travel Services Access to Insurance Automotive Services (DMV) Roadside Assist

SWOT Strengths Brand recognition Customer Loyalty Financial Stability Established Infrastructure Preferred Provider Weaknesses Outdated technology Limited product knowledge by customers Decreased product relevance Fragmented club structure Opportunities Mergers Shared technology platforms Product and operating innovation Changing consumer demographics Emerging business intelligence and mining solutions Social Web Threats Economic Downturn New Entrants Disruptive Technologies Smart phones Telematics GPS and internet communication capabilities SWOT

Smart Phone App Vehicle Telematics Onsite Light Repair Advanced Go Transformation Plan Goals and Objectives Recommendation Future BI Roadmap Increase AAA market shareIncrease switching costs Increase product relevanceImprove the accuracy of event dispatch Reduce operating expenses Develop Business Intelligence Membership Data for Future Strategic Efficiency Process Improvements.

Technology Solution $44 $65 OBD Knowledge DB D2000 Dispatch Application D2000 Database

Pilot Plan Project Duration 8 MonthsPilot 3 MonthsCost of Project $ 480,037Annual post implementation costs $ 182,400

Advanced Go – Projected Incremental Contribution To Margin Membership Type ConservativeModerateAggressive Classic1%2%4% Plus3%6%12% Premier5%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

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