Professional Documents
Culture Documents
Team 107 Proposal
Team 107 Proposal
Table of Content
1. Executive Summary…………………………………………………….
2. Business Overview……………………………………………………..
2.1 The problem………………………………………………………..
2.2 Solution Proposal…………………………………………………..
2.3 Product Description………………………………………………..
2.4 Intelligent Driving Test……………………………………………..
3. Market Analysis…………………………………………………………
3.1 Customer Analysis…………………………………………………
3.2 Competitor Analysis………………………………………………..
3.3 The Marketing Strategy……………………………………………
4. Financial Analysis……………………………………………………….
5. Implementation………………………………………………………….
1. Executive Summary
In South Africa, the problem of corruption within the government is very serious. The
same goes for traffic problems. Candidates can bribe the examiner to pass the
driving test and get a driver's license. This not only affects the fairness of the test, but
also greatly increases the danger of road traffic, resulting in frequent traffic accidents.
We, Drive-Safe South Africa, introduced a technology and equipment called Smart
Driving Test from China to prevent corruption during the test. This technology is
already in use in various cities in China with positive results. So we think the same
applies to South Africa, and even to all countries in Africa.
The total capital investment required is R151583, approximately $15000, which will
be used for system development and terminal purchase and installation in year 0.
Drive-Safe South Africa team members provided a total investment of $7000, with
the remainder being supplemented by bank loans.
The price is R30000, and the target customers are government agencies and driving
schools. At the same time, installment payment is allowed. This will give Drive-Safe
South Africa up to R7394400 in annual revenue and R2256253 in annual profit. In
our expectation, Drive-Safe South Africa's revenue has gradually increased in sales
in the first 1-3 years, peaked in the fourth year, and began to decline in the fifth year.
Business promotion in neighboring countries needs to be developed in the third year.
The UNSDG goals which we address are Sustainable cities and communities(11) and
Peace, Justice and strong institutions(16).
2. Business Overview
2
3
At the same time, according to the Corruption Perception Index (CPI) of 180 countries and
regions around the world, South Africa's CPI is 44/100, ranking 70th. Although higher than
the average for sub-Saharan African countries with an average score of 33. This means that
corruption in the public sector in South Africa is high. Corruption Watch said 24% of all
corruption reports in 2021 were related to local governments. Abuse of power and bribery or
extortion accounted for 16% and 8% of the total reported.
Therefore, corruption can be considered to indirectly affect road safety issues. Bribes can be
used to buy driver's licenses from government officials and examiners or to cheat. It is
difficult for drivers who obtain a driver's license through this method to drive on the right
road. Even though they have not received systematic training. This has greatly increased the
occurrence of road traffic safety accidents.
We can also sell driving test systems to driving schools to help students conduct mock tests.
It mainly helps students to understand the test process and overcome the nervousness
before the test; find training defects, conduct targeted training, and provide scientific
guidance to students before the test. This can help driving schools increase their income by
charging practice test fees.
3
4
3. Market Analysis
3.1 Customer Analysis
Government
In African countries and regions, driving habits are poor and traffic accident rates are high.
At the same time, the problem of government corruption is serious. Therefore, the intelligent
driving test terminal can effectively help African countries and regions to reduce the
occurrence of these problems. First of all, the human factor is minimized, and the fairness of
the test is truly realized. Candidates are remotely monitored by the examiner during the
entire examination process, and the system will score the candidates' examinations. The
examination process is more transparent, and examiners cannot modify scores for
illegitimate means such as bribery. It is conducive to government supervision and reduces
the occurrence of corruption.
For U-turn, crossing and crosswalk line items, IDTT will automatically identify and make
judgments based on the actual location of the test vehicle. At the same time, it can also
complete the evaluation of comprehensive examination items such as getting in the car,
starting, changing lanes, etc. Further standardize the test process, improve the accuracy of
test evaluation, and improve the test quality of vehicle drivers.
Driving School
After IDTT goes live, we will also sell smart driving test simulation terminals to local driving
schools. The IDTT will result in lower local driving test pass rates. Exams may initially fail to
accommodate the high standards of the system. Driving schools with simulation terminals
can provide simulation exercises for the test to correct bad driving habits and problems in
4
5
the test. Its main purpose is to enable candidates to develop a good habit of civilized driving
and enhance the safety awareness of drivers through diligent practice.
Operational strategy
According to the Technology Adoption LifeCycle (TAL), the initial adoption rate of new
technologies is 2.5%. Therefore, we set up 3-4 pilots in the main 3 cities of South Africa,
Johannesburg, Durban and Port Elizabeth, and each pilot has 5 sets of IDTT. Because these
are the main economic cities in South Africa, and the infrastructure is basically perfect.
Changes are then made based on feedback and needs. In the second year, it expanded to
three other major cities. Until the third and fourth year, IDTT is saturated in South Africa, and
the demand cannot rise, or it falls.
5
6
Sustainability Strategy
With the development of technology, there will be better terminals to replace the current
IDTT. Recycle these old IDTTs at low prices and sell them to other regions and countries in
Africa for pilot purposes. While promoting our products, explore more markets to other
African countries. Develop business in various African countries and regions with the same
sales and operational strategy.
Talent Strategy
We can put some of the profits into local education and help those in need to obtain higher
levels of education. Occupations that meet the company's needs, such as software
engineers, hardware engineers, etc. can be directly recruited as employees after graduation.
Provide more employment opportunities for local people.
4. Financial Analysis
1 South African rand(AZR) = 0.98 NZD
At the price of AZR30,000 per set, Safe-Drive Africa made a small profit when the project
was implemented, with a cash flow of AZR415,371. By the third year, the cap is reached and
the cash flow is AZR256,253. Revenues start to decline in the fourth year and still be
profitable. Because the demand for the product within South Africa is saturated. The target
can be turned to countries in need near South Africa and rolled out in a network format. In
South Africa, ensure that the system can continue to operate.Demand started to pick up in
the fifth year, as commercial rollouts to remote areas had begun.
6
7
Capital Investment
Safe-Drive Africa is partly funded by our team. The remaining investment will be through
loans from banks, suppliers and the South African government. The initial capital investment
is $15,000, and the seven members of the team save $1,000 each. In the initial stage, the
South African government can pay the deposit to purchase IDTT first, and our team uses
this deposit and funds to purchase products from suppliers. The resulting equity split will be
divided into: 84% to our team, 12% per person; 6% to suppliers; 6% to the South African
government; the remaining 4% for technology development and local infrastructure building.
5. Implementation
Implementation
Year 0: Proposal Preparation
Drive-Safe South Africa will finalize proposals and prepare funds to fund research and
development, with government approval. Once Drive-Safe South Africa is funded and
licensed, and we will work with our suppliers to modify and develop IDTTs that meet local
South African traffic safety requirements. Afterwards, pilots were set up in three major
economic cities in South Africa.
7
8
After the development of IDTT, pilot projects will be carried out in three major economic cities
in South Africa. Through the feedback and questions in the test, the IDTT is updated and
revised to conform to the driving of the local people and the occurrence of IDTT problems in
the test is reduced.
Future potential
Drive-Safe South Africa continues to grow and the constituent growth will prompt expansion
not only on a geographical perspective but also on the industry and the existing partners.
Such expansion includes, Motorbikes, trucks and even construction vehicles testing. All road
vehicles that require licensing will fit within the same model software and same social
entrepreneurship business model can and will be used to enter different countries.
8
9
Reference
World Health Organization. 2018. Global Status Report;
International Transport Forum. 2019. Road Safety Annual Report 2019: South Africa;