Business Proposal Report

on
 

Impact of Drone Technology in the improvement of

efficiency of E-Commerce

Submitted by: 
GROUP NO. 9 SECTION A
DESHMUKH ADITYA JAYAWANT- P22018
GAIKWAD SANKET SITARAM- P22020
GOSANGI DHASHARADHA RAM- P22024
JAYADITYA THAKUR- P22029
JAYANT CHOUDHARY- P22030
RAJAT AGGARWAL- P22048
RAKESH KUMAR- P22050
Executive Summary:
 
The future will continue to move thanks to technology in today's environment of rapid high-tech
breakthroughs quickly. Almost all businesses employ technology to streamline their operations
and increase productivity. Optimising the computing infrastructure is one of the keys to raising a
company's effectiveness. The company could be as productive as it had intended with efficient
technology. It also would need help to hold its own against the market. Some industries,
including agriculture, that had not previously benefited from technological advances, are now
doing so thanks to drones. Drones are also proving to be quite helpful in air logistics. We will
discuss drones in our research because they are used in various daily tasks, logistics, and
agriculture.
 

Introduction:

We are, therefore, here to discuss the effects of technology. Then, we must understand the
technology being discussed and its implications for what. Usually, we'd discuss how it affected a
particular system. Let's use the industry of eBooks as an illustration. The eBook has had a
significant impact on the publishing sector. This industry used to be quite solid, with well-
defined responsibilities, but when the digital transformation happened, a lot of that altered. The
entire value network was changed. Specific roles have almost wholly disappeared while new
positions have emerged. So that's one illustration of a sector that new technology has profoundly
impacted or altered. Instead, consider using drones as Drones are technology in this case. How
drones will affect the package distribution sector is a possible question. Most sectors have
changed and adapted as technology improves and plays a more significant part in consumers'
lives. Due to easy access to the Internet, brick-and-mortar businesses began to focus more on
providing services online. This change has generally assisted online companies in lowering
overhead expenses associated with running a physical store and resetting customer expectations
of next-day or even same-day delivery.
All enterprises will be impacted by technological development. New management, diplomatic,
and social abilities will be required, along with a new decision-making process that current
organisational structures cannot support. Technology change will impact three specific aspects of
the corporate environment: the level of market competition and uncertainty will rise; the
demands for more diversity and higher quality in the organisation's products or services; and the
complexity of external politics and legislative reform. The organisation will react to these
developments by adjusting its internal structure and interactions with employees and customers.
Fundamental managerial functions will change as a result of technological transformation.
Because management will be held more accountable for organisational outcomes, planning,
decision-making, control, and coordination will receive more attention. These frequently rely on
computer-based management science methodologies, which need managers to have more robust
intellectual capacities.
This will pressure managers and other people, which could impact morale, output, and
productivity. Technological advancement can positively impact personal values, giving people
more time to think things through before making a decision. This could result in improved moral
awareness, more tolerance and compassion for others, and a more logical approach to making
decisions. Increased devotion to one's profession rather than to one's organisation may result
from technological development. It is still being determined how technological advancement
may affect a manager's search for self-actualisation. Technology transformation has increased the
need for all enterprises' strategic planning. We must ask ourselves, "What do we need to
accomplish right now to achieve our goal tomorrow?" regularly. By following this process, we
may assess the different options to deal with those changes and be ready for the future as it
comes. This approach also helps us predict changes, especially those brought about by
technology.

Background:
The drone is a type of uncrewed aerial vehicle. The invention of drones was first intended for
military use. However, there are currently significantly more consumer drones than military
ones. Drone use is growing outside of the military into industries including commerce, science,
and leisure, In addition to agriculture. Drones can also be used for specialised tasks like aerial
photography, product delivery, and surveillance. Drone racing is a sport that has emerged due to
the widespread use of drones. Participants in this event pilot drones fitted with cameras while
wearing head-mounted displays that relay a live camera feed from the drones. One must finish
the predetermined course as rapidly as possible to win the air race.
Drones have been used for photography, security, safety, and environmental applications since
they were initially deployed in the middle of the 19th century. However, the drone technology
we use today was made possible through conflict. Global military organisations were among the
first to realise the advantages drones could offer to combat plans and started working to develop
the business.
Modern military drones are typically considered sleek, high-tech planes or quadcopters.
However, drone technology was initially created by armies and inventors worldwide as flying
targets, torpedoes, and balloons—achievements of invention and ingenuity at the time.
Armed forces all across the world have been using drone technology since the mid-1800s for:
· Training
· Target Practice
· Air Strikes
· Bomb Detection
· Surveillance
· Hostage Negotiation
In 1849, the Austrian Navy used two hundred incendiary balloons to capture Venice.
By the early 1900s, the United States military began exploring drone technology to build practice
targets for training. 

Based on the number of wings or rotors, they are classified into three categories:
· Fixed Wing
· Single Rotor
· Multiple Rotor

The Positive Aspects

1. Drones are a helpful tool that aids in tracking endangered species and tracking changes to the
habitats and behaviours of wildlife. Even WWF employs this technology to stop the poaching of
animals.
2. Drones enable firefighting without endangering other people by aiding in the localisation of
wildfires and monitoring movement. Furthermore, by providing an aerial picture of the situation,
this technology can help with disaster management.
3. The logistics industry is also attempting to use drones. This is because more giant corporations
like Amazon are exploring deploying drones for quicker door-to-door product delivery.
4. Drones are beneficial for surveys, surveillance of challenging terrain, mapping, and
geophysics surveys in scientific research. It aids in remote environments and hostile situation
monitoring.
 
5. Low cost: Drones are considerably less expensive than aeroplanes, and the cost of purchasing,
fueling, maintaining, and storing drones is significantly lower than that of helicopters and planes.
 
6. Equally dangerous: Drones employed for terminal operations can wreak the same havoc and
confusion as an airliner.
 
7. Low risk: Because drones are more miniature than aeroplanes, they pose less of a threat to
military assets. Additionally, drones travel at lower altitudes than aircraft.
 
8. Accuracy: Drones offer greater pinpoint accuracy even at highly great distances. This lessens
needless harm to citizens and infrastructure.
 
9. Drones save lives: Using drones eliminates the need for military personnel to participate in
combat and saves lives.
 
10. Longer operational hours: Drones can operate for more extended periods than aeroplanes,
and they can do so without a human pilot. Drone pilots and operators can effortlessly switch off
the controls without the drone losing any operational time due to weariness.
 
11. Effective for spying: Drones have increased military intelligence and monitoring. 

The Adverse Effects

One of the most common but dangerous tools, drone strikes have a lot of negative repercussions.
These attacks significantly impact the ecology and general public health. They undermine the
political and economic climate in the region. Damage is comparable to that of aircraft missile
strikes. Agriculture, public health, several skins, and respiratory ailments are all harmed by these
strikes' chemical composition and residue.
 
1. Drones have restricted capabilities: Drones cannot communicate with civilians to gather more
in-depth intelligence and significant amounts of information. Additionally, drones cannot
identify military base camps, soldiers who have turned themselves in, or abandoned equipment.
They also need help to knock on doors.
2. Drone use is too simple and accessible for civilians since video games and actual conflict
share too many similarities.
3. Loss of civilian lives: Drone battles frequently destroy innocent civilian property and lives.
4. Drone operators and pilots frequently find it challenging to switch seamlessly between their
professional lives as drone combatants and their personal lives as civilians. This disrupts the
balance between work and personal life. When drone operators have less free time, this is more
challenging.
5. When the enemy commandeers drones: Situations in which the enemies seize one or more
drones are too risky.
In addition to these aerial assaults, using drones results in privacy violations, interference with
air traffic, the storage of weapons, and several other unlawful acts.

The E-Commerce Industry:

Online stores are convenient, but customers frequently pay additional shipping and handling
costs when they make purchases of services or commodities. Additionally, even though
technology has transformed many businesses over the past ten years, shipping and postage
remain unchanged. For well-known online merchants, traditional postal service providers like
USPS, FedEx, and UPS continue to be the primary sources for shipping and handling.
Amazon has debuted Amazon Prime Air, upending the established order. The primary function
of Amazon Prime Air is to act as a drone delivery service that can foresee your product
deliveries and deliver them in less than 30 minutes. Although the plan has yet to be implemented,
Amazon claims that its drones will carry packages to backyards this year.
Drones have a significant impact on the economy and finances. The introduction of commercial
drone services has been slowed by FAA regulations and privacy and security concerns.
Currently, the United States has approved the use of drones for military, recreational, and
research purposes. Similar rules do not apply to military drones used for entertainment and
research.
Uncrewed aerial vehicles (UAV) are now restricted in populated areas of the United States to
400 feet of airspace. Since the FAA has not yet certified it, commercial drone use is prohibited.
The FAA is hesitant to grant permits allowing companies to test drone services in the United
States, primarily due to worries about ground safety and airspace.
Because it could not do local research on airborne delivery, Amazon decided to test this novel
technology in the United Kingdom. In 2016, tests were completed in Cambridge, England. The
FAA granted Amazon permission to test its drone models in 2015. However, Amazon had
already started conducting tests in Canada by this point.
One of the main obstacles to the commercial use of drones is the FAA rule requiring "line of
sight." The goal of using drones commercially, especially for deliveries, is defeated by the law,
which mandates that a drone operator always have their drone in their line of sight.
Rapid technological advancement has given consumers access to top-tier goods at affordable
prices. Due to their high cost and high level of technical sophistication, drones have historically
only been used by the military. However, buyers can purchase drones for less than $100 thanks
to economies of scale.
In addition, easy access has made it possible for consumer-focused businesses like Amazon to
investigate using unmanned aerial drones for commerce. For packages weighing up to 5 lbs,
Amazon Prime Air claims that delivery will occur within 30 minutes. Google has created aerial
vehicles to deliver medicine to remote locations, contrasting with Amazon's altruistic approach.
The effects on the environment are substantial. Drones use batteries for electricity and are less
harmful to the environment than delivery vans. Using delivery drones on a large scale would
reduce the need for vehicles for many businesses. Additionally, this would hurt suppliers of
conventional fleets. However, the positive effect on the environment would help many nations
reduce their emissions, allowing them to meet the emissions targets outlined in other
international agreements.
Commercial drone uses have undeniable economic benefits. The global drone market is
estimated to be worth $127 billion. It's also important to note that infrastructure and agriculture
will be considerably impacted more than commerce by the commercial use of drones. Drone use
in agriculture is anticipated to efficiently reduce disease exposure by hydrating and feeding
plants while covering large areas.
The use of UAVs could result in the creation of more than 100,000 employment on a
macroeconomic level. Within ten years, manufacturing and drone operators will make up most of
the new jobs resulting from commercial drone use. States will also benefit from tax windfalls
from increased economic activity.
The consequences unquestionably benefit both consumers and corporations. The growth of jobs
benefits consumers directly by increasing earnings. Commercial drones can help businesses save
money on inventory, distribution, and transportation costs. By lowering expenses, such cost
savings could be transferred to the customer.
Despite the significant economic benefits of drone use, many governments, authorities, and
citizens believe that authorised UAV use is dangerous. A total of 44 states have passed
legislation governing the use of drones for commercial, recreational, and governmental purposes.
People concerned about governmental and corporate data collecting are predicted to become
more concerned about privacy as drone use increases. Many people find this intrusive because
Amazon drones frequently use GPS and cameras to navigate delivery locations.
There will be logistical difficulties with Amazon's and other companies' drone delivery systems.
Usually, traditional postal services are responsible for lost or damaged goods during delivery.
However, with human oversight, a drone can guarantee error-free deliveries. Similar issues will
inevitably arise with deliveries in large cities and towns. For instance, a crewless aerial vehicle
cannot reach housing units in city buildings.
Aerial vehicle proliferation threatens wildlife, such as birds, and privacy and logistical issues.
The FAA estimates that birds in the US have damaged aeroplanes to the tune of $1+ billion.

Where we stand today:

The FAA and Congress were obliged to change drone restrictions due to Amazon's ongoing
study and testing of uncrewed aerial vehicles. Including drones in the national airspace will help
sectors like agriculture, public safety, natural disaster management, and e-commerce companies
like Amazon. Google hopes its drones will be used to carry medical supplies and help the
environment.
The integration of UAVs will have significant economic growth and the creation of new jobs.
Industries also cut costs by using very efficient distribution and transportation methods. Despite
the obvious drawbacks, it is estimated that every year this integration is postponed, the United
States loses out on about $10 billion in growth!
Drones are the technology at hand. And another possible concern is how drones may affect the
package delivery sector.
The most typical method of package delivery to our homes; In that situation, the last scene would
show us having things delivered to our house by drones. The first is where we are, and the one in
the centre is where we will start to see items sold commercially. Therefore, once we have
completed that map, we will already know several critical business roles. Drawing up the future
value network is another way to go about it because it shows how all the various business roles
relate to one another.
 Additionally, we'll revisit that. Then, we may evaluate the numerous components that may be a
part of them and maybe more intriguing than others from a more business-oriented perspective.
Hence, in the drone scenario. Drones require someone to deliver them, as is only natural.
Someone is in charge of providing delivery services, and someone else is responsible for the
automatic payment of these, who may be able to travel further. And someone is in charge of the
assurances, security, and monitoring. When we talk about drones delivering packages to our
homes, there are numerous roles to play in this new value network.

Market Dynamics:
Small uncrewed aerial vehicles are increasingly used for various industrial applications,
including aerial photography, filmmaking, precision agriculture, law and order, wildlife
monitoring, entertainment, disaster management, relief & rescue operations, research &
development, logistics & transportation, and construction. This is expected to drive market
growth. Additionally, several engineering firms and companies use small drones extensively for
various commercial operations. Other significant commercial uses include thorough project
inspection, maintenance, transmission cable, and oil pipeline inspection. Market growth in the
coming years is most likely fueled by an increase in demand for unmanned systems in the oil and
gas, energy, and power generation sectors. Additionally, due to the rise in demand for home
delivery services for food and e-commerce platforms, major technology companies like Amazon
Inc. and logistical behemoths like UPS, DHL, and FedEx are making significant investments in
creating drone delivery platforms. Due to a surge in demand for online food delivery services
worldwide, small drone demand is expected to increase during the forecast period.
 
In August 2020, the Federal Aviation Administration (FAA) authorised Amazon's Prime Air to
use its platform for air drone delivery services. The company plans to employ a new drone
delivery technology to increase unmanned package delivery. Amazon guaranteed it would take
less than an hour and a half to deliver products to clients.
 
In 2021, North America dominated the market, and it is anticipated that it will continue to do so
during the forecast period. This can be attributed to a sizable number of businesses in the
commercial drone sector and the high adoption rate due to government initiatives supporting this
sector in this area. The rise in collaborations is the main factor contributing to the growth. As we
can see that the demand is expected to grow @55.2% CAGR between 2021-2028. So, we can
estimate how important this technology can be in changing the world order.
Conclusion:
So let's shift our focus from the present to the end goal. So, assuming we use automatic charging
stations, We want to concentrate on it. Then, we must consider how that role might change
across the various phases.
Furthermore, what might be successful in the final stage might differ from what is required to
establish that position in the preliminary stage. We also need help with time. You will therefore
be able to examine the various triggers once you have sketched the map, and we will then be able
to estimate how long this will take. Although we frequently make mistakes, we can still use the
triggers.
The fact that all the triggers are present is thus one sign that we're prepared to start a new phase.
Additionally, since there are a few drones, playing the role of automatic charging, for example,
for drones, may not be all that exciting in the early stages. Even though it's still in the
experimental stage, it might be an exciting position to hold in the future if drones make most
deliveries. So, how do we ensure that we establish the work so that we are prepared for the final
phase, even in the intermediate step?
There are a few things you need to know to be able to accomplish all of this. We need to keep
track of the many trends in addition to our many beliefs about innovation and how new
technology has entered markets. Will the self-driving car compete with drone delivery, for
instance, or could other trends support this development? And because the patterns are becoming
more and more similar and incorporating new technologies, we can also learn a lot from
historical examples.
So, we'll also take a look at a few of those. Additionally, you must possess an extensive
understanding of the area you are considering. Therefore, in this instance, the industry of
package delivery and drones. Therefore, whatever you look at or are interested in, you need to
delve deeper into what the technology can achieve and how it might advance. The particular
system in which you are interested.