Developing Idea - What Wow?

Following hypothesis and assumption (Topic 5 - Assumption Testing, 2021) were used to test and
evaluate the proposed solution

 Customers and merchants wanted more competitive trucking rate

 Truckers wanted better earnings
 Customers and merchants will consider services provided by EcoTruck as an alternative
option versus their existing suppliers
 Customer and truckers will stay in the eco system with attractive incentive

Each of these assumptions were then reviewed with 3 IDEO circles as shown in Fig 1 questioning
the desirability, feasibility and viability in order to ensure the final proposal or business model can
practically work in harmony (IDEO, 2021).

Fig 1 – The 3 IDEO Circles from (IDEO, 2021)

Following questions were asked to test the solution in each of the 3 IDEO circle (IDEO, 2021) as
follows

- Desirability
o If this is something customers, merchants and truckers wants and needs?
- Feasibility
o If it is possible for EcoTruck to make this happen with its resources?
- Viability
o Is this going to be a profitable business model for the stakeholders?
On the assumption of customers and merchants wanted more competitive trucking rate as in Fig 2,
they would desire low and competitive platform fee, total open and free market which would benefit
only them, but this is to exactly feasible and viable for EcoTruck wanted they need to make profit
from the value-added services from the platform and benefit the complete eco system including the
truckers. Concept like EcoTruck to manage a suggest rates in real time is viable but may not be that
feasible based on current resources. Similar with using AI solution where its is desirable and viable
but will need huge investment from EcoTruck which made it not feasible. The feasible and viable
option is trucker to fix prices which simple to implement but it is obviously not desirable by customers
and merchants. The best solution which fits all the three criteria would be an open transparent online
bidding system which ensure merchant get the most competitive rates which truckers willing to
accept to deliver the shipment.

Fig 2 – Solution evaluation of competitive trucking rates with 3 IDEO circle

On the assumption of truckers wanted better earnings as in following Fig 3, they would desire
highest trucker fees and lowest platform fee possible. However, this is not viable business model as
customers and merchants will not use EcoTruck services if the rates are not attractive. Both feasible
and viable options where EcoTruck is already doing now, both feasible and viable is to provide perks
like better fuel rates and maintenance cost with supplier which will enable cost saving for truckers
and results better earnings but truckers desire more than this. The Truck Share idea which is desired
by truckers, feasible and viable for EcoTruck to implement to focus into less than full container load
shipment which will allow truckers to consolidate more than one delivery on single route, minimize
empty miles, reduced carbon footprint and eventually better earnings for the truckers.

Fig 3 – Solution evaluation on better truckers’ earnings with 3 IDEO circle

On the assumption of customers and merchants will consider services provided by EcoTruck as an
alternative option versus their existing suppliers with market outreach as in Fig 4, where it would be
desirable to organize mass marketing campaign in social media, national television and newspaper
but will not be viable and feasible as it will be too costly and not a profitable strategy approach for
business-to-business customer. More targeted advertisement in industry magazine or website such
as logistic association is more viable, but this might not provide the needed business result. The
most feasible option will be to do targeted sales campaign to industrial park in Vietnam and targeting
especially new FDIs company which is new in Vietnam. This will also be the most viable and
desirable option which can produce the needed results in short duration. At the same time, EcoTruck
can consider extending their market outreach in recruiting more truckers by recruitment campaign at
rest stop of expressway with the aid of marketing via radio which is an option which feasible and
viable.
Fig 4 – Solution evaluation on market outreach with 3 IDEO circle
On the assumption of customer and truckers will stay in the eco system with attractive incentive or in
short membership loyalty as in Fig 5, where customers would desire large discounts and perks
based on their membership profile and wanted low platform fee. This is not viable with EcoTruck
business model as should be focusing on value add rather than giving large discounts. The incentive
referral program would also extend to trucker as more trucker will attract more merchants and vice
versa. The idea is to expand the network and scale of the eco system with more user snowball
effect. Therefore, having an incentive on referal program will be something which merchants and
truckers desired at the same time affordable, feasible and viable for EcoTruck to implement.

Fig 5 - Solution evaluation on membership loyalty with 3 IDEO circle

Solution concluded with 3 IDEO circle assumption testing as follows:

 Customers and merchants wanted more competitive trucking rate with open and transparent
online bidding system.
 Truckers wanted better earnings with Truck Share which allows trucker to consolidate more
than one shipment in a single trip.
 Customers and merchants will consider services provided by EcoTruck as an alternative
option versus their existing suppliers or market outreach with targeted sales campaign to
industrial park, recruitment of truckers via radio and rest stop at expressway.
 Customers and truckers will stay in the eco system with attractive incentive or membership
loyalty with incentive referral program.
Due to constraints in building a rapid prototype model (Liedtka & Ogilvie, 2011), a Napkin Pitch
(Liedtka, 2016) was developed for stake holders to rigorously challenge and test the solutions. Key
points of the Napkin Pitch as shown in following table 1

Solutions to grow EcoTruck business and attract/retain more new users

The big idea Needs/Benefit
- Online Bidding System Customers/Merchants – Competitive rates and
- Truck Share convenience for their shipment
Truckers – Higher and better income
- Targeted Sales Campaign
EcoTruck – More users merchants and truckers to be
o New Customer – Industrial Park part of the eco system to get economic of scale and
o New Truckers – radio+rest stop eventually company profitability
- Membership Loyalty

Execution
- Open transparent online bidding system which
ensures merchant get the most competitive
rates which truckers willing to accept to deliver
the shipment
- To focus into less than full container load
shipment which will allow truckers to
consolidate more than one delivery on single
route, minimize empty miles, reduced carbon
footprint and eventually better earnings for the
truckers.
- Targeted sales campaign to industrial park in
Vietnam and targeting especially new FDIs
company which is new in Vietnam.
- Incentive on referral program to incentivize
more merchants and truckers to introduce new
user into the eco system.
Rationale
- Open and transparent online bidding system
will create an open market for trucking and
would potentially attract more users into the
eco system
- More than 80% of trucking load in Vietnam is
less than full container load or loose shipment.
This will allow truckers opportunity for more
income with access to larger market and
optimize every trip they made
- Targeted sales campaign will be focus activity
where existing EcoTruck resources able to
execute to attract more merchants and
truckers. This campaign can be executed with
existing sales resources instead of mass
expensive marketing campaign.
- Incentive on referral program will build loyalty
and introduce more users into the eco system.
This is important as more merchant will attract
more truckers and more truckers will create a
competitive market where it will attract more
merchants.

Table 1 – Napkin Pitch Template adopted from (Topic 5 - Napkin Pitch, 2021) on solution to grow
EcoTruck business and attract/retain them
References

IDEO, 2021. IEDO Blog - How to prototype a new business. Viewed 19 December 2021,
<https://www.ideou.com/blogs/inspiration/how-to-prototype-a-new-business>

Kahneman, D., Lovallo, D. & Sibony, O., 2011. Before You Make That Big Decision.... Harvard Business
Review, 89(6), pp. 50-60.

Liedtka, J., 2016. Design thinking: create some napkin pitches, s.l.: Charlottesville, VA: University of
Virginia Darden.

Liedtka, J. & Ogilvie, T., 2011. Designinig For Growth. s.l.:Columbia University Press.

Topic 5 - Assumption Testing, 2021. Course Notes for BUSM4535 - Design Thinking, RMIT Vietnam.
Viewed 13 December 2021, canvas@RMIT

Topic 5 - Napkin Pitch, 2021. Course Notes for BUSM4535 - Design Thinking, RMIT Vietnam. Viewed 13
December 2021, canvas@RMIT