Masternaut

Product Model






Masternaut

Masternaut is an example of a “product” business model. The company provides fleet management software for businesses operating vans, trucks, and other trade vehicles. This software interfaces with tracking units installed in vehicles and in turn provides customers data about their vehicle fleets, including speed, distance, route, timing, etc, which can be fed into the customer's ERP systems. The service can also be used for non-vehicle resources, such as engineers, using portable terminals to interface with the company's CRM/ERP systems.

HISTORY

Masternaut was founded in 1996 as SDM by Serge Daleau in France, and through various acquisitions and mergers took its current form in 2011. The company was backed by US venture/growth-capital firm Francisco Partners effectively since 2011, when Masternaut merged with Francisco Partners portfolio company Cybit. The firm was later acquired by a joint venture of private equity firm Summit Partners and NYSE-listed business services company Fleetcor. Following the merger in 2011, Masternaut had 500 employees, and operated across Europe. In 2013, revenue totaled over $100 million, and its sales increased by 58 percent on average over the last 3 years.

CUSTOMERS – WHO THEY ARE:

Masternaut's customers may be any operator of vehicle fleets, including specialist logistics companies, businesses such as food service providers in which vehicle fleets are a necessary but non-core area of the business, or public sector/municipal entities. Customers also include companies which use mobile assets, such as engineers, which also benefit from mobile resource management.

ENGAGEMENT – VALUE CREATION PROPOSITION:

By providing route and telematics data about vehicle fleets, businesses can optimize fuel consumption, routes, and driver (or engineer) time. In this way, Masternaut's service functions as (or as a component of) an enterprise resource management function. Additionally, companies can seek to improve safety by observing speed limits or other indications of unsafe driving, reducing potential liability or insurance costs.

DELIVERY – THE VALUE CHAIN:

Masternaut's software is web-based (no application needed) and interfaces directly with customers' ERP and CRM systems. Masternaut in turn uses commercial off the shelf components (such as vehicle tracking devices) and software/services, such as automated route calculators, accounting and enterprise middleware or add-ons, and mobile networks in delivering the service.

MONETIZATION – VALUE CAPTURE:

Masternaut delivers its product via a software-as-a-service model - i.e. Masternaut customers are engaged in long term contracts for as long as they use Masternaut’s products.

Sources:

Masternaut Website: Masternaut.com

Masternaut Wikipedia Entry:

Disclaimer:

Written by Matthew Fung and edited by James Knuckles under the direction of Prof Charles Baden-Fuller, Cass Business School. This case is designed to illustrate a business model category. It leverages public sources and is written to further management understanding, and it is not meant to suggest individuals made either correct or incorrect decisions. © 2016

Published 21 April 2016



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