Which are the main drivers?

How should telematics vendors, tackle the drivers in a predicted stage of adoption growth?

When making the decision of buying a telematics fleet management solution, the strongest driver remains the endless pressure to reduce costs, and improve service quality. This is why companies look into: reducing fuel costs, controlling unauthorized usage and monitoring drivers behaviour.

These changes will also become useful in reducing costs with maintenance and overtime payments. Still, there are other market drivers that influence the decision of adoption. These derive from different environmental factors, such as: policy, economic and technological.

European Union (EU) legislation is driving businesses to adopt Fleet management solutions. For example, the EU directive on road transportation (for trucks weighing more than 3.5 tons and collective transport for more than 9 persons) obliges companies and drivers to abide by the legislation on driving times. Legislation fulfillment is monitored through the reading of tachograph data. Telematics fleet management solutions are now capable of communicating with tachograph. As a result managers are able to download tachograph data in real-time. This offers an inestimable help in abiding by the legislation.

In the United States, telematics adoption is pushed by the need to follow environmental legislation.

Despite the worldwide financial recovery, companies seem to remain focused on becoming more competitive and reducing operational costs. This drives more businesses to adopt Telematics Fleet Management Solutions.

Electronic components are evolving. As a result, hardware presents better performance, reduced dimensions and lower prices. This allows vendors worldwide to adopt new business models. The implementation of the SaaS (Software as a Service) model is becoming a reality. We at Inosat believe it is the correct path to get more customers and remain competitive. The software as a service model, allows customers to pay a monthly fee for service and hardware. Thus, small and medium companies are gaining capacity to buy.

Undeniable is that the telematics market is growing and the adoption drivers are various:

  • Changes in the business model enable vendors to practice lower prices;
  • Governmental policies;
  • Companies endless need to remain competitive.

Thus, telematics vendors should have their focus on quality, innovation and meeting customers’ needs. Marketing and sales areas must find the correct messages to address these customers’ needs.

Discover more about Inosat Telematics Fleet Management Solution: www.inosat.com/telematics-fleet-management

Inosat is a member of 1-Fleet Alliance. Discover more on the alliance website: www.1-fleet.com

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