Enabling Technology of the Year, Commercial Vehicle Telematics North America, 2010

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1 Enabling Technology of the Year, Commercial Vehicle Telematics North America, 2010 Frost & Sullivan s Global Research Platform Frost & Sullivan is entering its 50 th 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 in turn 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 2010 North American Enabling Technology Award in Commercial Vehicle Telematics to Agnik, LLC. Significance of the Enabling Technology Award Key Industry Challenges Addressed by Commercial Vehicle Telematics Data Analytics Commercial vehicle telematics, an industry that is projected to create $6.5 billion in hardware and service revenues by 2015, is a key soft technology that will offer growth opportunities to all corners of the trucking industry. However, despite being placed in the launchpad for rapid and organic growth, this industry has not been able to reach the penetration levels that justify its growth potential. A key reason behind this is the lack of technologies or solutions that offer strategic and actionable information to the fleet managers which can translate into operating cost reduction, mobile resource productivity enhancement, and efficiency and effectiveness of fleet operations. The first wave and even to a large extent the current wave of telematics applications centered around location and tracking offer solutions that have not quite been able to deliver deeper and wider market penetration opportunities to market participants Frost & Sullivan 1 We Accelerate Growth

2 While there is a perception that the current generation of telematics offers too much data but too little information, it is encouraging to note that some market participants are focusing on elevating data analytics to a new level. Advanced data analytics drawing from vehicle and driver performance monitoring, and prognostics can help deliver real-time, strategic, mission-critical actionable information to fleet managers. This can greatly augment the quality, importance, and value of telematics and enable not only telematics service providers but also truck manufacturers, tier-1 suppliers, and the aftermarket to derive revenue streams. Most importantly, advanced data analytics in telematics can help catalyze the second wave of telematics applications that can truly deliver actionable information and value to the end-users opening up large-scale market penetration opportunities. Enabling technologies like advanced and scalable data analytics, on-site vehicle performance and prognostics data aggregation, and low cost and form-factor hardware and application layers that reduce power dependency can greatly enable the development and growth of the commercial vehicle telematics market in the new decade. Impact of Enabling Technology Award on Key Stakeholders The Enabling Technology Award is a prestigious recognition of Agnik LLC s accomplishments in the crucial area of commercial vehicle telematics data mining and analysis. An unbiased, 3 rd party recognition can provide a profound impact in enhancing the brand value and thereby accelerating the Agnik s growth. As captured in Chart 1 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: Investors 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 most credible way to showcase an organization worthy of investment. Customers 3rd 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. Vehicle prognostics and driver and vehicle performance monitoring are slated to usher the next wave of telematics adoption and can greatly augment the revenue growth potential of the industry. The best practices research leading to the award underline the potential of Agnik s MineFleet solution to deliver high degree of value and mobile resource productivity enhancement opportunities and support to customers. Employees This Award represents the creativity and dedication of Agnik s executive team and employees. Such public recognition can boost morale and inspire your team to continue its best-in-class pursuit of developing a solid foundation of advanced, 2009 Frost & Sullivan 2 We Accelerate Growth

3 real-time, distributed yet effective and efficient data mining and analytics that catalyzes industry advancement and cements a culture of innovativeness for Agnik. Chart 1: Best Practices Leverage for Growth Acceleration Key Benchmarking Criteria for Enabling Technology Award For the Enabling Technology Award, the following criteria were used to benchmark Agnik LLC s performance against key competitors: Enables Creation of New Products Enhances Current Products Enables New Applications Potential for Market Acceptance Breadth of Access to Technology 2009 Frost & Sullivan 3 We Accelerate Growth

4 Decision Support Matrix and Measurement Criteria To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is an analytical tool that compares companies performance relative to each other with an integration of quantitative and qualitative metrics. The DSM features criteria unique to each Award category and ranks importance by assigning weights to each criterion. The relative weighting reflects current market conditions and illustrates the associated importance of each criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for each market and Award category. The DSM allows our research and consulting teams to objectively analyze each company's performance on each criterion relative to its top competitors and assign performance ratings on that basis. The DSM follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are shown in Chart 2. Chart 2: Performance-based Ratings for Decision Support Matrix This exercise encompasses all criteria, leading to a weighted average ranking of each company. Researchers can then easily identify the company with the highest ranking. As a final step, the research team confirms the veracity of the model by ensuring that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. Chart 3: Frost & Sullivan s 10 Step Process for Identifying Award-Recipients 2009 Frost & Sullivan 4 We Accelerate Growth

5 Best Practice Award Analysis for Agnik, LLC. The Decision Support Matrix, shown in Chart 4, illustrates the relative importance of each criterion for the Enabling Technology Award and the ratings for each company under evaluation. To remain unbiased while also protecting the interests of the other organizations reviewed, we have chosen to refer to the other key players as Competitor 1 and Competitor 2. Chart 4: Decision Support Matrix for Enabling Technology Award Measurement of 1 10 (1 = lowest; 10 = highest) Award Criteria Enables Creation of New Products Enhances Current Products Enables New Applications Potential for Market Acceptance Breadth of Access to Technology Weighted Rating Relative Weight (%) 20% 20% 20% 20% 20% 100% Agnik, LLC % Competitor % Competitor % Criterion 1: Enables Creation of New Products The first wave of telematics products and services were largely centered around location and tracking applications. However, the second and larger wave of adoption in the new decade will be powered by driver and vehicle performance monitoring applications. Soft technologies will play an expanded role in offering lucrative revenue streams to disparate market participant groups within the telematics and related industries. However, to support this new wave and also to offer a solution to the issue of too much data, too little information, there is a clear and present need for robust, scalable, and dynamic data analytics. Moreover, new telematics-enabled mobile resource management and productivity enhancement products such as prognostics, emission monitoring, fuel economy aggregation, and driver and vehicle security and safety, among many others will present far greater degree of data analysis complexity in the near future. With telematics service providers, truck makers, aftermarket participants, and tier-1 suppliers looking at the telematics industry for revenue growth opportunities, many new products will be launched that will rely heavily on data mining and analysis in mobile and embedded environments. Agnik s MineFleet is an advanced, robust, and scalable decision support system that can greatly catalyze and support the development of advanced driver and vehicle performance monitoring and analysis products and services. Compared to the data mining and analytics support systems offered by its competitors, Agnik s MineFleet rank s higher in terms of offering a dynamic and robust predictive vehicle data mining and driver performance monitoring foundation that can be scaled and customized for application 2009 Frost & Sullivan 5 We Accelerate Growth

6 in disparate application areas. The onboard data mining and analysis functionality coupled with its ability to enable low-cost wireless data transmission and delivery can help in creating advanced telematics products that deliver time and mission critical actionable information to fleet managers. The MineFleet decision support system when compared to competitive data analysis tools and support systems was found to offer a higher degree of enabling support for the next generation of telematics solutions such as prognostics, driver behavior monitoring, fuel economy optimization, and advanced emissions monitoring, all at a lower wireless communication burden and cost. Criterion 2: Enhances Current Products While key competitors in the telematics data mining and analytics space and also major market participants in the area of commercial vehicle telematics are still focused largely on location and tracking products, Agnik has chosen a more arduous path. Being a new entrant and a smaller-scale organization featuring advanced expertise in computational science and analytics, it possesses the strategic advantage of being lean and focused organization. This agility and the foresight built upon its expertise in advanced data analytics not only enables it to complement the development of advanced telematics products but also enhance the performance and value of the current generation offers advanced telematics products. While most of the solutions offered by its competitors are targeted at the GPS based location and tracking with some additional features such as monitoring some key vehicle parameters, Agnik s MineFleet leverages advanced analytics to analyze a wide array of vehicle and driver performance and also location and tracking based data. MineFleet can be easily integrated with map-based visualization systems to deliver advanced layers of analysis offering key strategic actionable information to the decision makers within fleets. The current generation of telematics products is hamstrung in terms of offering advanced vehicle performance monitoring. The advanced data streaming analytics solutions and advanced algorithms leveraged and offered by Agnik enables it to offer greater value than its competitors in terms of the depth, breadth, and criticality of the information analyzed and delivered to the fleet managers. Moreover, Agnik s approach of on-board data analysis reduces communication costs for adopters and fleet managers. These benefits facilitate the creation of products and solutions that deliver advanced vehicle performance monitoring and analysis which reduce operating expenses and vehicle downtime. Moreover, the benchmarking and depreciation analysis benefits of MineFleet meets many insurance and leasing industry needs and helps in identifying and monitoring outlier vehicles in a fleet. MineFleet, more than any other advanced data analytics tool designed for enhancing current generation of telematics products, mitigates the need for sending large volumes of data. It also offers advanced data mining, decision support analysis, and performance enhancement recommendations that increases the quality of information delivered to decision makers within the fleet. A key value proposition that differentiates MineFleet from the solutions offered by its competitors is its ability to analyze data onboard the vehicle and build predictive models that facilitate operating cost reduction strategy planning. These attributes of Agnik s MineFleet system can greatly enhance the value proposition of the existing range of telematics products and service offerings. They also create the necessary support structures for accelerating the development of the next generation of advanced applications. Criterion 3: Enables New Applications Agnik s MineFleet, when compared to its competitor offerings, features most enabling power and potential for supporting the widest range of vehicle and driver performance monitoring and analysis based applications. The future of advanced telematics applications indicates that vehicle prognostics, driver behavior monitoring, and vehicle performance, emission and 2009 Frost & Sullivan 6 We Accelerate Growth

7 fuel efficiency monitoring will emerge as some key applications in the short-medium term. However, these applications will pose major data analysis and transmission burdens on the current telematics infrastructure and also necessitate advanced analysis to reduce the volume of data presented to fleet manages. MineFleet is not only emerging as a solution offering the most comprehensive and cost-effective solution to these burdens but also opening up areas of further innovation in vehicle and driver performance monitoring. Agnik, through MineFleet is offering a platform of advanced data analytics that can be leveraged to develop scalable and customizable fleet management solutions. MineFleet enables several prognostics applications that rely on fault-code and OEM enhanced parameters. It uses predictive health monitoring analytics and predictive modeling of vehicle sub-systems to detect problems even before fault codes are generated. This decision support system executes built-in test libraries in real-time to test the condition of various vehicle systems. Moreover, MineFleet generates frequent vehicle health reports which can be aggregated into fleet health report for comparing vehicles and drivers. The current and continuing environment of fuel price volatility has had an adverse impact on the commercial vehicle industry. This is also creating the demand for several innovative applications that enable fleet-wide fuel economy optimization, which will be a key focal point for the telematics industry in the short-medium term. MineFleet enables the development and execution of many such applications through on-board analysis of fuel consumption patterns of the host vehicle and comparing the vehicle s health with its fuel economy ratings so as to identify areas of fuel-economy improvement. Moreover, the MineFleet system benchmarks fuel sub-systems and gauges driver behavior on fuel consumption. The data analytics and modeling functionalities are leveraged fully to optimize factors that improve fuel economy. This decision support system performs onboard analysis to offer timely and effective reports that not only offer a wealth of fuel economy optimization and monitoring information to fleets but also help in pin-pointing areas of improvement in a fleet s overall fuel economy. As mentioned earlier, driver monitoring for safety and mobile resource productivity enhancement is poised to emerge as a new area of telematics application development. MineFleet s data analysis and decision support enabling algorithms enable driver performance and compliance monitoring. Speeding, idling, braking and exception monitoring are used and analyzed to detect violations which can be used for a range of purposes from training to incentivization. Policy-based driver monitoring and collective cluster analysis enable the development and delivery of actionable information and alerts to fleet managers. The monitoring of driver behavior also helps in offering analysis of a driver s driving habits on the fuel economy of the host vehicle and reveals areas of improvement. Agnik s emission monitoring analytics platform, and that of one of its closest competitor, is approved for wireless emission monitoring by the California Air Resource Board. MineFleet does not only help in monitoring carbon dioxide monitoring but helps in monitoring NOx, hydrocarbon, carbon monoxide and particulate matter emissions enabling fleets to track their environmental footprint and also to qualify for government incentives and tax credits. Most importantly, this advanced technology developed by Agnik, does not only enable creation and augmentation of new driver and vehicle performance applications but also minimizes wireless communication. This offers developers of advanced applications the latitude to reduce the volume of data transfer through wireless channels and pass this benefit to the end-users and customers. Moreover, the on-board data stream mining and on-board analysis enables application developers to effectively leverage the most cost effective component of a multi-modal wireless network infrastructure Frost & Sullivan 7 We Accelerate Growth

8 Given the direction of evolution of commercial vehicle telematics and the emerging trucking business eco-system it can be inferred that Agnik s MineFleet offers compelling enabling technology value proposition to the telematics service and hardware industries. Moreover, the key benefits and decision support offered by this technology transcends all corners of the trucking industry, and can catalyze the development of several innovative applications that will greatly improve the efficiency and productivity of commercial vehicles. In this category, Agnik ranks higher than its two major competitors in the commercial vehicle telematics market. Criterion 4: Potential for Market Acceptance There is a clear and present need for advanced decision support systems to take the telematics services and applications to a level from which a larger segment of local, regional, and long-haul fleets can be attracted as subscribers. Psychological inertia among fleet managers has offered resistance to telematics service providers in attained deeper and wider market penetration. Fleet managers are concerned that telematics is a service that offers volumes of data but little actionable information, and as the number and complexity of advanced applications increases the degree of inertia will increase proportionately. Therefore it is vital at this stage of the industry s evolution to focus on making some structural changes and incorporating advanced data analytics and decision support technologies that help in aggregating the data coming in from various vehicular systems and sub-systems and analyzing the data to deliver real-time, strategic, actionable and mission-critical information to the fleet managers. The potential for market acceptance of such a technology is deemed very high by Frost & Sullivan. Agnik s MineFleet product offers a key solution towards accelerating the development and introduction of advanced prognostics, emission monitoring, and more importantly vehicle and driver performance monitoring focused telematics applications. The extreme fuel price volatility and increasing complexity of the new an upcoming generation of commercial vehicles is rapidly changing the demands of fleet managers. Frost & Sullivan s study titled: U.S. Fleet Managers Desirability and Willingness to Pay for Advanced Truck Technologies indicates that there is very high degree of desirability and willingness to pay for prognostics and any other telematics technology that helps fleet managers to reduce operating costs and ensure regulation compliance. Moreover, the industry is now experiencing tectonic changes leading towards a mass movement towards adoption of green technologies. Comparing the decision support analytics solutions of the three key competitors in the commercial vehicle telematics market, it was found that the potential for market acceptance of Agnik s MineFleet system is highest. The market has been demanding data mining and advanced analytics based decision support systems to improve the value proposition of telematics for the widest spectrum of potential adopters. MineFleet features very strong potential for market acceptance as the industry prepares for the next wave of vehicle and driver performance monitoring based applications that can deliver cost-effective, robust, and actionable information for mobile resource management Frost & Sullivan 8 We Accelerate Growth

9 Criterion 5: Breadth of Access to Technology Agnik s MineFleet decision support system features the flexibility to integrate with thirdparty systems. Moreover, it is designed to enable vehicle manufacturers and tier-1 suppliers of key vehicular systems to create interfaces that facilitate prognostics, remote diagnostics, and many other mobile resource productivity enhancement applications. The system is designed to offer seamless integration of third-party systems and to operate in a multimodal communication network infrastructure. The open architecture of the MineFleet system is designed to facilitate the integration of third-party wireless modems, GPS tracking and feet management software. The MineFleet technology allows customers to apply its analytics with map-based visualization systems and other key interfaces. This enabling technology also offers a wider breadth of access to the technology than competing technologies since it solves a key intellectual property and patent preservation related challenge. The MineFleet technology is applied at the host vehicle level where it analyzes the raw data on-board and sends the analyzed data to the server. In this way the intellectual property is protected. This greatly expands the breadth of access to this technology, in addition to offering a solution to the high cost associated with large volumes of data transferred through wireless channels. Agnik has been extremely proactive in developing and offering the MineFleet system as a solution that offers propulsive power to the development of advanced and fleet operations pertinent decision support technologies. The evolution and development of MineFleet underlines the vision of the company to create a technology that offers actionable information to the fleet managers in facilitating operating cost reduction and mobile resource productivity enhancement. This evolution, however, is built on the objective of offering a technology that is backward and forward compatible with telematics hardware and software technologies with intent of greatly improving the quality and value of the information delivered through telemetric channels. The CEO 360 Degree Perspective TM - Visionary Platform for Growth Strategies 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 360 degree perspective is also a must-have requirement for the identification and analysis of best-practice performance by industry leaders. The 360 degree 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 Chart 5 below, the following six-step process outlines how our researchers and consultants embed the 360 degree perspective into their analyses and recommendations: 2009 Frost & Sullivan 9 We Accelerate Growth

10 Chart 5: How the CEO's 360 Degree Perspective Model Direct Our Research? 2009 Frost & Sullivan 10 We Accelerate Growth

11 Critical 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 7 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 the 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. Chart 6: Benchmarking Performance with TEAM Research About Agnik, LLC. Agnik, LLC is emerging as a leader in commercial vehicle telematics focused data analytics. The company is focused on enabling creation of advanced and innovative applications offering mobile resource management and productivity enhancement value propositions to the commercial vehicle and other mobile resource intensive industries. The company has amassed and leverages critical expertise in areas such as distributed data mining and mobile and embedded data stream management. The company s research and experience in mobile, distributed and embedded environments coupled with its innovativeness and focus on advanced data analytics have resulted in the creation of the MineFleet software platform that offers a dynamic, effective, and efficient foundation for spawning the next generation of advanced telematics applications. About Frost & Sullivan 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 2009 Frost & Sullivan 11 We Accelerate Growth

12 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 almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 12 We Accelerate Growth