NMO S5 Semi Final | BUSINESS CASE SCENARIO - 14 | Airway Delivery: A New Business Opportunity

Submission BCS

IT Powered Solution for Airway Delivery

Submission Date & Time: 2023-11-18 21:53:36

Event Name: NMO Season 5 Semi Final

Solution Submitted By: Ashutosh Das

Assignment Taken

IT & Business Management Based Proposals for Airway Delivery focussing on multiple goals of Excellence

Case Understanding

The traditional logistics & supply chain has been the backbone of industrial revolution, making heavily contribution for manufacturer to retailer delivery, door to door delivery etc. With advent of technology in last 20 years, the hindrance faced due to traditional systems have been overcome now. One such new age class of technology is Drone Technology. Drones in the domain of supply chain management (SCM) can be a game changer in upcoming years due to its last mile secure and high precision delivery. There are some areas of concern for airway delivery which needs to be addressed before embarking it as a full fledged solution 1. Catering Item Type Delivery : In present scenario many SCM companies cater to different needs of delivery, for instance a perishable item like food needs to be taken care with a hot bag to ensure the quality of food. Some medicines requires a specific temperature to maintain its value. When we talk about airway delivery, this accounts a great value as a provision needs to be maintained in the drone setup rather than bland transfer system. 2. Trust for Airway Delivery : Drone Technology is one of the latest technology that has come up in space of SCM and understanding the customer psychology where customer is assured of traditional delivery, he/she feels safe to to pre payment of delivery charges along with product. As a first year of growth it's important to focus on customer acquisition and thus Pay on Delivery (POD or COD) is a must so that customer never lose out on money. 3. Data Encryption : Data is the Gold of new world and its the value of utmost importance and thus all customer data fed into the drone and applications needs to be highly encrypted as these hold critical user details like personal number, payment details etc. 4. Adhoc Feature Capability : Efforts is not only to ensure a quick delivery but a quality delivery with enriching user experience as well, A user should feel safe for its product delivery and quick query resolution as well and that requires multiple feature addition to application interface as well as drone too. 5. Recent Arial Information : Just similar to Google Maps which provides us with the traffic info and closed routes for navigation, its important to understand that we need latest arial routes as well for the least hindrance of the drone and shortest graph based algorithms as well. 6. LOB Expansion : Traditionally SCM companies have been B2B or B2C delivery goods from businesses to business or business to consumer. There is a high scope to do C2C or P2P (Peer to Peer) delivery as well which have been possible earlier as well but its been quite cumbersome and time staking process. With drone technology this arena of Logistics can be explored. Moreover a comprehensive IT based solution is required to onboard different manufacturing companies to enable Logistics for them. All problem statements identified above considers drone based goods delivery for. short ranges.

BCS Solution Summary

Recognising the immense growth potential in Drone Based Airway Delivery, an extensive IT strategy encompasses the development of applications for drone operators and customers, emphasising crucial aspects: 1. Varied Delivery Needs: Drones need tailored setups for different goods (e.g., insulation for food, specific temperatures for medicines) to maintain optimal conditions during transport. 2. Adaptive Pricing Approach: Employing dynamic pricing based on location, weather, and demand ensures more effective cost management in operations. 3. Secure Payments & Verification: Offering payment-on-delivery via secure methods like UPI and incorporating facial recognition boosts trust and verifies successful delivery. 4. Data Safety - Concealed User Details: Implementing Virtual Delivery Addresses safeguards user information, ensuring confidentiality and utilising advanced encryption for added protection. 5. Expanding Delivery Scope - Peer-to-Peer Transfers: Facilitating direct transfers between users streamlines transactions, offering swift and hassle-free product exchanges. 6. Drone Flexibility: Allowing human intervention with features like timeouts enhances safety and resolves issues for undelivered items. 7. Real-time Navigation and Route Optimization: Utilising live aerial and weather data coupled with advanced algorithms ensures efficient and obstacle-free delivery paths. 8. Streamlined Onboarding to Airway Services: Simplifying app entry for retailers and companies ensures smooth last-mile deliveries, addressing compliance issues and enhancing overall user experience. These initiatives aim to optimise delivery efficiency while emphasising an enriched user journey, ensuring superior delivery standards, and securing both data and products.

Solution

Acknowledging a high potential growth in Drone Based Airway Delivery, its important to understand the nitty and grits of the potential blockers which might come up going forward and thus needs to be mitigated.

The detailed IT based strategy involves a holistic approach focussing on areas of drone operator application development, customer facing application development as well as equipping drone with range of capabilities. This involves development of Two Applications one oriented for the customer which is public app available over play store and other involves for the company employees/drone operator.

One things needs to taken in account that drone can only carry a specified weight and it can't be deployed to deliver multiple products at the same time just like a traditional 2 wheeler person can do, Weight on drone decides the battery consumption, flight height, pick up and drop time, as important as safety of product, we as a company needs to make sure long life of drones optimising the working capabilities of it and thus small range drones with small distance should be aligned to process in a "One-to-One"(One product delivery to one person) Manner rather than "Many-to-Many" (Many product delivery to many person) at the concurrent time.

Considering euclidean distance is always a straight line in air, One-To-One delivery will be much quicker, not only from customer's point of view but from multiple delivery fulfilment as well.Incase of P2P delivery drone can picked up product from the last area of delivery to optimise its working.

1. Multi Cart & Multi Item Type Delivery

  • Management Principle : Ensure the product is delivered based on kind of product and ensure right environmental conditions
  • Area of Focus : Drone
  • Solution : Its important to understand Airway Delivery is a logistic & SCM based solution and thus different companies shall be leveraging our delivery capability ranging from food, Pharma, generic item etc. As each product requires its own set of conditions to maintain its sanctity thus an artificial conditions may be under a box needs to be created in the drone itself. For instance a food delivery must require an thermodynamic covering to ensure least heat is escaped keeping the food warm or an medicine with a certain below 0 degree Celsius condition is required. Thus drone needs to be equipped with such capability,

2. Dynamic Pricing Algorithm

  • Management Principle : Every Conditions aren't same and so are the prices
  • Area of Focus : Operator/Company Facing Application, Customer Facing Application & Drone
  • Solution : Every geographical location provides with different set of weather conditions.A tier-2 city will not be a city with high sky scrapers where as tier-1 city can be highly dense with high rise buildings and thus pricing for each delivery needs to managed for better management of operational cost. Within a same city there possess different weather conditions like drizzling, scorching heat etc., Thus its important to an algorithm for dynamic pricing based on current weather conditions, nature of the operating city as well as the current demand of the system. For instance a hike in prices of delivery on days of high rain and low prices on normal weather conditions,

This is primarily important point for travel based or logistic based companies to manage the operational cost of delivery and dynamic pricing is one such solution

3. Payment on Delivery & Multi Factor Authorisation for Collection

  • Management Principle : A Credible form of Payment is the Key
  • Area of Focus : Customer Facing Application & Drone
  • Solution : As a first time user, no user wants to lose out on money in the wake of quick delivery and thus its important to recognise the need of payment option which can be easily started with the users. Payment on delivery is one such mechanism where user shall only pay when the delivery has been completed, This requires UPI based transaction for quick money settlement with all drone equipped with QR code and unlocking of delivery after item has reached the destination after payment. To enable multi factor authorisation, a facial recognition of sender or receiver as well as OTP based collection method should also be deployed as part of this solution.

A cash on delivery is also a possible solution but it presents us with a problem when drone is lost somewhere in middle and thus losing on actual currency along with the drone and thus a digital based payment is only encouraged.

4. Data Security - (Virtual Delivery Address)

  • Management Principle : Security of data is as important as security of product,
  • Area of Focus : Company Facing Application
  • Solution : As data is the new currency of the world, its important to keep the personal details of the user in a highly secured environment, Similar to the approach which NPCI took for UPI payments where each payer and payee is abstracted using its VPA (Virtual Payment Address), this can be taken up here as well. All users registered in the application should be abstracted with a virtual address lets name it (Virtual Delivery Address). This will abstract all user specific details and can be fetched from backend servers at time of starting and completing the journey only. With this it will prevent all sorts of data breach, Moreover further level of encryption can be introduced to strengthen the security of the data.

5. LOB Expansion - P2P Transfer

  • Management Principle : Ensuring quick P2P transfer with least hassle
  • Area of Focus : Company Facing Application & Customer Facing Application
  • Solution : Apart from traditional delivery mechanism where goods are delivered from retailer to customer, a Peer-to-Peer delivery system can be initiated, User needs to book a drone for the quick delivery of product within some minutes making it complete hassle free as opposed to current scenario which is highly cumbersome as well as time taking. It's similar delivery mechanism which Uber recently started along with travel completion needs.

6. Drone Adhoc Capabilities

  • Management Principle : Drone is loaded with all essential features in terms of product safety, query resolution
  • Area of Focus : Company Facing Application, Customer Facing Application & Drone
  • Solution : Not everything can be automated and thus its important to have provision to enable human help along with technology, Drones as well Both apps should hold the capability to connect to each other anytime. Features like time-out for delivery can also be leveraged so that in case user fails to collect the good within stipulated time, drone returns to the inventory or sender for better safety of the product.

7. Updated Aerial Info and Routing Algorithms

  • Management Principle : Least hindrance is the optimised and quickest way of delivery
  • Area of Focus : Company Facing Application & Drone
  • Solution : Similar to Google Maps which holds the recent traffic information to help us with least traffic or least time taking routes, Airway Delivery will require the same aerial as well as weather data to ensure better routing mechanism which includes Computer Science Based Graph Algorithms like Dijikstras etc. Moreover cameras and sensors fitted in the drone should allow the drones to changes its path whenever required along with human handling capability by operator.

8. Hassle Free Onboarding to Airway

  • Management Principle : Onboard with ease and leave it rest to Us for Delivery
  • Area of Focus : Company Facing Application & Drone
  • Solution : Its important to understand that Our company is like an adapter of Logistics and SCM, Many retailers and companies wants to ensure last mile delivery of there produced goods, therefore they need a credible and trustworthy means to transfer the good. We need to ensure Apps are highly documented with write ups and video along with quick onboarding to the company so that they don;t need to worry about the compliance issues or any other issues.

Efforts are not restricted to obvious milestones like last mile delivery and quick delivery but also an enriching user experience like better tracking, ensuring the quality of delivery as well as security of data as well as product,As we embrace the horizon of airborne logistics, this strategy stands tall as a beacon of transformation, propelling us into an era where seamless, secure, and swift deliveries become the norm, ensuring a brighter future for the logistics industry.

Post Delivery Service & Error/Exception Handling

In IT or Computer Science considering the error and reconciliation scenarios are as important as Happy Case Scenarios. For best customer experience, its important to realise customer should feel assured of issues which develop in the course of delivery.

  • 1. Damaged Product Received/Replacement : Though the quality of product needs to be assured from retailer or manufacturer end, its important to understand as new form of delivery, airway needs to facilitate the communication to retailer as well as to own  as well. Customer should have the capability to report an issue to Airway within 24 hours so as to backtrack the whole procurement process by drone and in case of problem caused by drone, renumeration or replacement should be initiated by Airway Delivery only. In case of Retailer/Manufacturing defect, Airway should delegate the same process to product dealer/sender.
  • 2. Drone Lost/Product Lost in course of Delivery : As Logistic company, company holds the sole responsibility for safety of product as well as the means of delivery, Incase drone is lost or damaged in the course, an alert needs to be triggered to the nearest operator managing that region so it can be backed by traditional logistic manner (like collecting the drone and product by means of two wheelers and delivering the product for the same) In case of rough terrain another drone should deployed to do the rescue task of the product and drone.
Conclusion
In essence, the envisioned solution for Drone Based Airway Delivery not only responds to the pressing needs of modern logistics but also revolutionises the landscape of delivery services. By addressing multifaceted challenges and leveraging cutting-edge technological advancements, this comprehensive strategy redefines the very essence of efficiency and user-centric delivery. It's a testament to innovation and adaptability, seamlessly integrating various approaches such as tailored product handling, dynamic pricing structures, fortified security measures, and simplified operations. With a steadfast commitment to excellence, this solution doesn't merely facilitate deliveries; it orchestrates a symphony of precision, reliability, and customer satisfaction.
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Article Type: Business Case Scenario, Case Study Solution Submission
Business Case Detail
Title: NMO S5 Semi Final | BUSINESS CASE SCENARIO - 14 | Airway Delivery: A New Business Opportunity
Type: Case Study
Stream: Management

Tags: developing a business case for drone services, business case, scenario analysis, business case solution, drone services, management learning, public business case, business case example and solution, business case structure, management olympiad, management competition, business case competition, case study competition, virtual company, business simulation, online management competition, drone delivery

Participant

Ashutosh Das

Department of Information Technology
Expedia, Software Developer Engineer- 2

I have been building products in payments domain enabling the payment experience of Hotel/Car/Flight Partners as well as travellers just like you and me I have deep interest in understanding the business viability and all the aspects before building the tech capabilities of any product. Business and Technology are 2 sides of a single coin !