Implementation model of smart connected motorbike service: An engineering economic analysis of Machine to Machine application

Nowadays, mobile operators are faced with difficult conditions, where subscriber growth rate is already at its peak. Revenue growth is also declined because legacy services are tend to decreased due to threat from OTTs. Therefore we need a strategy to be able to withstand these conditions, one of which is a glance at the digital market. Strategy to offer digital services is developed in order to increase operators' revenue through offering of Machine to Machine (M2M) services, where potential and digital ecosystem support of those services is promising. In reality, implementation of those digital services is not yielding significant effect on operators' revenue growth, thus they need new strategy with a new service innovation. This research aims to modeling an M2M services, into a Smart Connected Motorbike (SCM) services. Furthermore, this research also analyzes business model implementation of this service as a study case at PT.XYZ, where this service is expected to become a new revenue source. From system modeling result and business model analysis, it is revealed that implementation of Smart Connected Motorbike services practices multi-sided platform business model pattern that brings together two different groups of customers which are motorbike users/buyers and corporate customers. Moreover, this research analyses four business models approach to find appropriate implementation models of Smart Connected Motorbike services and additional revenue opportunities for PT.XYZ.