Cango Technologies awarded by Frost and Sullivan

2018 European FMS Interface and CANbus Solutions
Customer Value Leadership Award
2018

BEST PRACTICES RESEARCH
© Frost & Sullivan 2018 2 “We Accelerate Growth”
Contents
Background and Company Performance ........................................................................3
Industry Challenges..............................................................................................3
Customer Impact and Business Impact ...................................................................3
Conclusion...........................................................................................................8
Significance of Customer Value Leadership ....................................................................9
Understanding Customer Value Leadership....................................................................9
Key Benchmarking Criteria ..................................................................................10
Best Practice Award Analysis for CANGO Technologies ..................................................10
Decision Support Scorecard .................................................................................10
Customer Impact ...............................................................................................11
Business Impact.................................................................................................11
Decision Support Matrix ......................................................................................12
Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best
Practices .................................................................................................................13
The Intersection between 360-Degree Research and Best Practices Awards.....................14
Research Methodology ........................................................................................14
About Frost & Sullivan ..............................................................................................14

Background and Company Performance
Industry Challenges
The need for a fleet management system (FMS) tool is steadily growing as an increasing
number of fleet operators wish to have better transparency and better control of their
vehicles and assets. Using fleet management software or solutions, fleet managers are
able to track and trace their vehicles as well as monitor driver performance parameters
such as hard braking, idle time, late starts, speed limit adherence, and detours.
The information provided by current FMS solutions is gathered in one of two ways from
the vehicle: either via a portable solution or through an embedded solution. A portable
solution is a detachable device such as a personal digital assistant (PDA), a portable
navigation device (PND), or a simple On-board Device II (OBD-II) dongle that includes
low-cost solutions and detachable devices. These collect and synchronize information with
other devices (typically, a tablet or a phone) through Bluetooth or Wi-Fi, whereas an
embedded solution is a telematics box that is functionally hardwired into a vehicle and
helps provide access to the connected world. The embedded solutions offers access to a
wide range of vehicle management features and allows the integration of multiple
features.
A CANbus-based FMS interface is necessary in order to glean information through
embedded solutions. An FMS interface is an electronic device that acts as a gateway that
reads data from a vehicle data network and translates it into standard FMS (J1939) data.
Translating proprietary vehicle signals, acting as a data filter, and acting as a vehicle data
network firewall are the key functions of FMS interface. The ability to plan routes, track
vehicle health and safety compliance, and manage the vehicle life cycle from acquisition to
disposal are few of the many advantages of using an effective FMS interface in commercial
vehicles. Additionally, with an FMS interface, several layers of intricate vehicle data can be
collected and processed, whereas with a basic OBD-II dongle, the vehicle data collected is
limited. This high degree of data collection enables to assess multiple vehicle parameters.
Though the embedded solutions dominate more than 80% of this market, a small portion
of fleet operators tend to use a portable OBD-II dongle mainly due to its cheap hardware
cost, easy installation, and handling. A simple plug and play OBD-II dongle costs around
150 to 250 euros, whereas an embedded FMS interface solution costs between 400 and
800 euros.
Because the installation of a CANbus-based FMS interface requires a certain degree of
technical expertise, those services are usually charged on the customers. Identifying and
connecting the CAN_High and CAN_Low lines with the right connector is itself a challenge,
not to mention the cost involved in doing this for every piece of equipment or vehicle.
Also, the process often includes striping or soldering in order to have a physical CANbus
connection. This is considered a significant technical inconvenience.

The aforementioned reasons explain why an organization looking for a basic setup might
turn away from a CANbus-based FMS interface system. It is because of these reasons that
it is a challenge to provide a customer with a basic but satisfying CANbus-based FMS
interface at an affordable price range.
Customer Impact and Business Impact
Price/Performance Value
Romania-based CANGO Technologies (CANGO) is a pioneer in the FMS CANbus solutions
market. CANGO focuses on providing a complete, holistic FMS solution package to
customers as opposed to a low-cost generic streaming data gateway solution, such as
those offered by its competitors. While most of the company’s competition is mainly
interested in the number of units sold, CANGO strives to provide value in accordance to
the price that its customers invest in the company. CANGO offers elaborate services with
its efficient CANGO FMS Interface, which provides twice the value for its price. The
complete interface is made available to customers at almost 60% of its direct competitor's
pricing.
The interface’s features include FMS 3.0, driver behavior, driver scoring, driver
performance assistant, Tire Pressure Monitoring Systems (TPMS), Trailer integrated, and
digital tachograph live data. All these features are combined in a unique hardware
package that can be easily mounted to all vehicle segments, including heavy commercial
vehicles (HCVs), light commercial vehicles (LCVs), buses, coaches, passenger cars,
agricultural equipment, construction equipment, and mining equipment. This easy and fast
integration with all kinds of telematics platforms makes the product as versatile and
rugged as an OBD-II dongle should ideally be. The company’s latest development,
CANGOclick, allows for a non-intrusive installation setup in a vehicle's ECU system,
thereby avoiding any technical inconvenience. CANGOclick reads vehicle signals without
making a wire-to-wire connection. This technology guarantees that no intrusive signals
are sent to the vehicle CANbus and thereby eliminates liability matters, warranty issues,
or wrong connections. Its products and services are backed by a 3-year replacement
warranty as a way of building trust with its customers and partners. Additionally, its
customers enjoy a wide variety of add-on services such as free online fresh-desk accounts
for clients that contain all installation manuals and user guides, as well as free on-site
consultations based on projects.
CANGO's products provide numerous advantages to its users, including decreased CO2
emissions, 10% to 25% reduced fuel consumption, reduced fleet maintenance costs, and
increased safe driving standards. CANGO’s technological advantage over other companies
includes an over-the-air-programming (OTAP) system, fully configurable software, and six
exclusive CANbus ports for new products.

Customer Ownership Experience
CANGO is well aware that great service experiences can decide whether a potential
customer or client becomes a profitable business opportunity and stays a loyal customer.
This is why CANGO constantly communicates its support and the value it holds of its
customers. The company sees the ownership experience as everything that happens after
a transaction takes place, including the delivery, installation, and maintenance. As such, it
uses its sales and support team to engage with its customers all along the process in
order to ensure complete guidance and support throughout. CANGO developed a simple
yet different approach to support and helps its customers contribute to the company’s
optimization, which entailed CANGO developing a wish list of items from its customers.
The list gets scrutinized and analyzed regularly, and it not only gives the company an idea
as to what its customers want, but also provides it a way to improve and optimize its own
processes. Every request or suggestion is made to the technical support team, which then
categorizes and forwards these to management for prioritizing and to identify the
necessary resources to address them. These requests are then launched into the
development process. CANGO's strong determination to bring value to customers by virtue
of its products and leading innovation in research and development keeps it ahead of its
close competition.
Customers from various industries view CANGO as a trusted partner with high flexibility
and responsibility, competitive prices, and exceptional customer support. CANGO believes
in making the right investments and as such, it invests heavily in people and innovation—
the two factors that CANGO believes will have enormous returns. A huge project might
start from a single idea that an employee or a customer provides. Likewise, active
learning, sharing knowledge, working directly with customers, and being open to feedback
are actions taken to build better experiences and better products.
Customer Service Experience
CANGO welcomes challenging projects and project requests from customers because these
tend to bring out the adaptability of the company, demanding more innovation to solve
the challenge. CANGO has structured its products that even its services are customizable
to individual customer needs and are committed to the success of their partners through
its products. Documented customer feedback along these lines includes:
“CANGO have always gone above and beyond for my business to assist as much as
possible. The software tools provided and technical support is excellent. The CANGO FMS
hardware fits every vehicle type and CANGO will customize data at any time I require to
suit specific applications. Customer service and shipping from CANGO is very prompt and
they keep me up to date with latest developments and new happenings with regards to
hardware. If you are a truck or Bus company my business can gather and deliver CANbus
data at a fraction of the cost and provide superior data to any other provider when
combined with existing telematics. CANGO is also open to exploring deeper more complex

CANbus data for customers and providing development support to turn a project into a
workable solution.” – Fleet management specialist
The company provides customer pilot projects with on-site assistance by trained
personnel, which ensures that special requirements are implemented, supervised, and that
the customer is given adequate training. In a market where providing 100% coverage for
all vehicles is extremely difficult, CANGO claims that it has found solutions to 100% of
problems or issues related to customer service for FMS interfaces, such as language
support, online support, faster response rate, and product reliability. Some of documented
customer feedback includes:
• “CANGO is reliable partner with high flexibility. CANGO has a fast rate of
responsibility and great services related to sales and support, with competitive
prices.” – Component Supplier
• “We choose CANGO as ECM product, the reason for choosing CANGO—We tested
the product and found it suitable for our requirements and our customer's needs.
Reliable product, Easy to install, Cost was meeting our expectations, Good Service
and support.” – Technology Provider
Once a customer partners with a supplier, it becomes obvious that supplier’s development
means the customer’s improvement. CANGO looks forward to mutually beneficial
relationships with its clients and partners and to maintain its ties over the long term. In
order to better serve its customers, CANGO moved its Tech support to London to optimize
its intervention time. Because CANGO is headquartered in Eastern Europe, having this
customer support office in London will help it manage customer queries from the western
part of the world in a timelier manner.
When it comes to collecting feedback about products, most companies follow the
traditional method of sending out feedback forms via email or by using a call center
process. However, CANGO realizes that there is a lot of room for error in such a system
because this does not allow for direct interaction between the two parties. By enabling
direct interaction through daily briefings and customer service points CANGO builds trust
with its customers, which improves the chances of getting accurate and honest feedback.
Brand Equity
CANGO’s decade-long presence in the CANbus Telematics market has witnessed many
challenges and a lot of competition along the way, especially from already established
companies with a global presence. Unconventional strategies, innovation, and competitive
pricing are a few means by which companies can enter new market spaces. Despite the
fierce competition, CANGO proved its stability in the market and earned a brand name for
itself and a reputation for providing its high-quality, durable CANbus Interface and
systems. CANGO’s products are so sturdy and of top quality that there is a return rate of

only 0.02% of the 100,000 FMS Interface units sold worldwide. CANGO has also earned a
reputation as a strong brand with dedicated personnel and excellent customer services.
In terms of product placement, CANGO’s products are in the least expensive range when a
customer requires only basic FMS parameters, such as fuel consumption, operating time,
and distance travelled. With CANGO's FMS Interface, there is no need for any additional
hardware installation, as opposed to those of its competitors.
Customer Acquisition
One of the most important attributes to acquiring new customers is a company’s ability to
understand exactly what the customer wants and how these needs can best be met. Like
most other market scenarios, 80% of the FMS market’s business is brought about by the
top 20% of clients. CANGO’s retention rate of this coveted 20% of customers is an
impressive 90%. Additionally, all those few regular customers that left CANGO in search of
cheaper options came back to CANGO within a year. This speaks to CANGO’s technological
background, quality, and trust that the company has built with its partners and customers.
CANGO used to conduct exhibitions and take part and organize marketing events, but in
spite of regular success in such events, CANGO was actively looking for ways to double its
sales without exceeding its allocated budget. The company's active leadership panel
eventually managed to double its sales by investing its resources into premium on-site
services, point of contacts (POCs), and free on-site trainings. This led to better
communication between the company and its customers and subsequently stronger
relations between them. This innovative change in its marketing strategy led to many new
clients through user recommendations.
CANGO places its products in markets with well thought out strategies, factoring in
multiple parameters that would affect its performance. The company varies its market
strategy assessing its geographical location, target segment, and market education and
plays it to its competitive advantage to deploy the most suitable strategy for attracting
and retaining customers. For instance, the clients operating in Western Europe are more
interested in not just basic, but also mid-tier and advanced solutions like driver behavior
and fleet optimization. Those in Eastern Europe have their focus set on basic solutions like
fuel monitoring and vehicle location.
CANGO estimates that it consistently meets its customer acquisition goals to 100%
efficiency and even though CANGO bases its operations in Eastern Europe, its production
standards on par to its Western European counterparts. Having developed a loyal
recurring customer base in Europe, UK, LATAM, Australia, and Africa, CANGO has indeed
made itself an important global participant to this niche market sector.
Growth Potential and Financial Performance
CANGO looks to grow along with its partners. In 2017 alone, CANGO doubled its software

engineers because they are the backbone of its FMS interface technology. The company is
anticipating steady growth due to its new products and in 2019, expects to turn in twice
the sales number it achieved in 2018 thanks to its new CANbus FMS interface products. At
around the same time, CANGO is planning to unveil two of its latest products to the
market. CANGO believes its dynamic real-time driver coaching system LUCAS, which is
due to hit the market soon, will be a disruptive technology in the market and has a huge
potential to perform. The other product will merge telematics with Remote digital
tachograph download for EU. This telematics platform as a service is open and merges all
features worldwide. CANGO also plans to release a GDPR-compliant remote Digital
Tachograph (DTCO) Download for Europe and an Electronic Logging Device (ELD) solution
based on the same platform as a service with an open application program interface (API)
to customers in the US market.
This LUCAS driver performance assistant is built on the driving behavior algorithm inside
the FMS Interface. LUCAS will help achieve a better, safer, cleaner, and more economical
way of operating a fleet apart in addition to coaching the driver in real time. LUCAS can be
retrofitted to already installed FMS interfaces, making the product unique in the entire
FMS industry. The company’s FMS Interface alone has seen an extraordinary 275% growth
rate over the past year and a gross profit margin of 72%. The company has several high
prospect products and technologies in its arsenal and is very well set to begin a steep
growth curve over the next few years.
Conclusion
Because the importance of advanced data points is ever increasing, it necessitates the
need for a better and more reliable CANbus FMS interface solution to glean accurate
information. Cost, installation, and, most importantly, customer support are identified as
key challenges in FMS Interface market, and overcoming these is necessary in order to
achieve overall market domination.
CANGO, with its high performance implementation of CANbus protocols—like J1939 and
data networks—is committed to delivering on-time results along with a high standard of
quality. Also, with the CANGOclick solution, the customer can benefit 100% non-intrusive
technology without the need for striping and soldering. With CANGO’s advanced FMS
interface solution, customers are offered more than just streaming data—they are given
the ability to streamline, process, and translate the data into standardized protocols.
CANGO will continue to benefit from its well-established customer base built over the last
10 years, its lineup of disruptive products and technologies, and well-configured revenue
plans in the coming years, standing firm as a strong name in the FMS interface market.
With its strong overall performance, CANGO has earned Frost & Sullivan’s 2018 Customer
Value Leadership Award.

Significance of Customer Value Leadership
Ultimately, growth in any organization depends upon customers purchasing from a
company and then making the decision to return time and again. Delighting customers is,
therefore, the cornerstone of any successful growth strategy. To achieve these dual goals
(growth and customer delight), an organization must be best-in-class in three key areas:
understanding demand, nurturing the brand, and differentiating from the competition.
Understanding Customer Value Leadership
Customer Value Leadership is defined and measured by two macro-level categories:
Customer Impact and Business Impact. These two sides work together to make customers
feel valued and confident in their products’ quality and long shelf life. This dual
satisfaction translates into repeat purchases and a high lifetime of customer value.

Key Benchmarking Criteria
For the Customer Value Leadership Award, Frost & Sullivan analysts independently
evaluated two key factors—Customer Impact and Business Impact—according to the
criteria identified below.
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity
Business Impact
Criterion 1: Financial Performance
Criterion 2: Customer Acquisition
Criterion 3: Operational Efficiency
Criterion 4: Growth Potential
Criterion 5: Human Capital
Best Practices Award Analysis for CANGO
Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation.
Ratings guidelines are illustrated below.
RATINGS GUIDELINES
The Decision Support Scorecard is organized by Customer Impact and Business Impact
(i.e., these are the overarching categories for all 10 benchmarking criteria; the definitions
for each criterion are provided beneath the scorecard.). The research team confirms the
veracity of this weighted scorecard through sensitivity analysis, which confirms that small
changes to the ratings for a specific criterion do not lead to a significant change in the
overall relative rankings of the companies.

The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key
participants as Competitor2 and Competitor3.
Measurement of 1–10 (1 = poor; 10 = excellent)
Customer Value Leadership
Customer
Impact
Business
Impact
Average
Rating
CANGO 9 9 9
Competitor2 9 8 8.5
Competitor3 7 7 7
Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market.
Criterion 2: Customer Purchase Experience
Requirement: Customers feel they are buying the most optimal solution that addresses
both their unique needs and their unique constraints.
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service and have a
positive experience throughout the life of the product or service.
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality.
Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty.
Business Impact
Criterion 1: Financial Performance
Requirement: Overall financial performance is strong in terms of revenues, revenue
growth, operating margin, and other key financial metrics.
Criterion 2: Customer Acquisition
Requirement: Customer-facing processes support the efficient and consistent acquisition
of new customers, even as it enhances retention of current customers.
Criterion 3: Operational Efficiency
Requirement: Staff is able to perform assigned tasks productively, quickly, and to a high
quality standard.
Criterion 4: Growth Potential
Requirements: Customer focus strengthens brand, reinforces customer loyalty, and

enhances growth potential.
Criterion 5: Human Capital
Requirement: Company culture is characterized by a strong commitment to quality and
customers, which in turn enhances employee morale and retention.
Decision Support Matrix
Once all companies have been evaluated according to the Decision Support Scorecard,
analysts then position the candidates on the matrix shown below, enabling them to
visualize which companies are truly breakthrough and which ones are not yet operating at
best-in-class levels.
High
Low
Low High
BusinessImpact
Customer Impact
CANGO
Competitor2
Competitor3

Best Practices Recognition: 10 Steps to Researching,
Identifying, and Recognizing Best Practices
Frost & Sullivan analysts follow a 10-step process to evaluate Award candidates and
assess their fit with select best practice criteria. The reputation and integrity of the
Awards are based on close adherence to this process.
STEP OBJECTIVE KEY ACTIVITIES OUTPUT
1
Monitor,
target, and
screen
Identify Award recipient
candidates from around the
globe
• Conduct in-depth industry
research
• Identify emerging sectors
• Scan multiple geographies
Pipeline of candidates who
potentially meet all best-
practice criteria
2
Perform
360-degree
research
Perform comprehensive,
360-degree research on all
candidates in the pipeline
• Interview thought leaders
and industry practitioners
• Assess candidates’ fit with
best-practice criteria
• Rank all candidates
Matrix positioning of all
candidates’ performance
relative to one another
3
Invite
thought
leadership in
best
practices
Perform in-depth
examination of all candidates
• Confirm best-practice criteria
• Examine eligibility of all
candidates
• Identify any information gaps
Detailed profiles of all
ranked candidates
4
Initiate
research
director
review
Conduct an unbiased
evaluation of all candidate
profiles
• Brainstorm ranking options
• Invite multiple perspectives
on candidates’ performance
• Update candidate profiles
Final prioritization of all
eligible candidates and
companion best-practice
positioning paper
5
Assemble
panel of
industry
experts
Present findings to an expert
panel of industry thought
leaders
• Share findings
• Strengthen cases for
candidate eligibility
• Prioritize candidates
Refined list of prioritized
Award candidates
6
Conduct
global
industry
review
Build consensus on Award
candidates’ eligibility
• Hold global team meeting to
review all candidates
• Pressure-test fit with criteria
• Confirm inclusion of all
eligible candidates
Final list of eligible Award
candidates, representing
success stories worldwide
7
Perform
quality check
Develop official Award
consideration materials
• Perform final performance
benchmarking activities
• Write nominations
• Perform quality review
High-quality, accurate, and
creative presentation of
nominees’ successes
8
Reconnect
with panel of
industry
experts
Finalize the selection of the
best-practice Award recipient
• Review analysis with panel
• Build consensus
• Select recipient
Decision on which company
performs best against all
best-practice criteria
9
Communicate
recognition
Inform Award recipient of
Award recognition
• Present Award to the CEO
• Inspire the organization for
continued success
• Celebrate the recipient’s
performance
Announcement of Award
and plan for how recipient
can use the Award to
enhance the brand
10
Take
strategic
action
Upon licensing, company is
able to share Award news
with stakeholders and
customers
• Coordinate media outreach
• Design a marketing plan
• Assess Award’s role in future
strategic planning
Widespread awareness of
recipient’s Award status
among investors, media
personnel, and employees

The Intersection between 360-Degree Research and Best
Practices Awards
Research Methodology
Frost & Sullivan’s 360-degree research
methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and
demographic analyses. The integration of
these research disciplines into the 360-
degree research methodology provides an
evaluation platform for benchmarking
industry participants and for identifying those performing at best-in-class levels.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best-in-class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages more than 50 years of
experience in partnering with Global 1000 companies, emerging businesses, and the
investment community from 45 offices on six continents. To join our Growth Partnership,
please visit http://www.frost.com.
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