121019 gilles corby presentation

STRATEGIC CHALLENGES JAGUAR LAND ROVER FACES IN CREATING A DIGITALLY RICH CONNECTED CAR

2014-2018

Gilles Corby, 19 October 2012

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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012

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Infotainment is reaching the limit of what can be done in standalone mode

First mass-produced car radio

1920s 1970s

AM/FM radioCassette

1980s 1990s

AM/FM radioCassetteAuto-reverse

AM/FM radioRDSCassetteCD (multi)

AM/FM/DAB radioRDSCD/mp3 (hard disk)Sat-NavDVDHandsfreeBT, USB, Jack, iPod

2000s

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3

Mobile data usage explosion provides an opportunity for Infotainment

Cost per MB v monthly data consumption, Worldwide

2008

2009

2010

2011

2012

2015

Cost/MB (USD)

0.46 0.19 0.10 0.06 0.03 0.01

MB/mth/smartphone

149 323 528 736 1041

3390Source : Portio Research via Mobithinking

Internet access (Mercedes-Benz) Apps (Lexus 2013 GS350)

Source : SBD 2012

Forecast Embedded Telematics revenues (Billion Euros)

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4

To seize this opportunity, JLR must address 3 strategic challenges

Actors fragmentation

Lifecycle synchronisation

UX to drive ROI

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Actors fragmentation


UX to drive ROI

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Connected car infotainment brings together usually unacquainted parties

Network operators Car Makers

Technology providers

Service providers

?

?

?

?

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7

Each party has a decent claim to owning the user and their revenue



Service providers

Who owns the user/driver ?

They are using my network They are driving my vehicle

They are enjoying my contentThey are using my system

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8

Competitiveness within each party increase the likelihood of turf war



Service providers

Who builds the strongest competitive advantage ?

Vodafone v. Telefonica BMW v Toyota

Google Maps v Nokia MapsAndroid v iOS ecosystem

Broadcom v CSRMicrosoft v Linux

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9

This is a recipe for cacophony and procrastination, can JLR be heard?

Network operators

Technology

providersService

providers

BMWMercedes-BenzToyotaRenault-NissanGM

Jaguar Land Rover

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10

The way out is for JLR to get a plan and drive on with it

Network operators

Car Makers

Technology

providersService

providers

Jaguar Land Rover infotainment plan

Network access decision Digital security solution Integration with vehicle systems In-car connectivity A/V functionality Telematics content Ecosystem decision Vehicle service decision Hardware partner

3. Confidently drive forward

1. Make a plan

2. Milk what can be got from industry fora

jPod + iTunes was not born in GSMA

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Jaguar Land Rover cannot wait for stakeholders to agree. We must run with

our own plan


UX to drive ROI

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our own plan


UX to drive ROI

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13

The pace of technology evolution increases risk for Jaguar Land Rover

Inception Market Launch

Car : 5-7 years

iPhone* iPhone 3 iPhone3GS iPhone4 iPhone5

3G 3.5G/HSPA 4G/LTE

Lack of visibilityAngry Birds

* iPhones generate 46% of mobile data traffic (Source Chikita)

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Lack of visibility makes technology planning decisions trickier Hardware decisions will affect fluidity

CPU power Memory Interface

Connectivity decisions will affect comfort of use Set up Data speed Quality of service

Content decisions will affect consumer appeal Ecosystem Service provider Service content

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To de-risk the situation Jaguar Land Rover must be bold, open and agile

When you only have your best guess, go Large Remember predictions 1MB/s would be enough? Flip phones were still the rage 7 years ago

Avoid getting locked in a specific technology Open standards guaranty continued access Check track record for backward compatibility

Not all decisions have to be made today Be ready for change Have fall-back options

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JLR’s market footprint growth brings a simplification factor

80% sales in 4 geographical segments

57% in 3 countries, China is getting bigger

Land Rover Evoque 30% units sales

21%

21%

19%

17%

17%

5%

JLR sales last 6 months

ChinaEuropeUKNorth AmericaAll other mktsAsia Pacific

22%

20%

20%

17%

17%

5%

JLR sales last 12 months

Source : Jaguar Land Rover

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The growth of the Chinese market will have a lasting impact on developments

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our own planTo be future-proof Jaguar Land Rover must

be bold, open and agile, still being consistent with our market

UX to drive ROI

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UX to drive ROI

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Infotainment must reinforce the branded experience JLR has built over the years

style, performance, refinement, prestige affordability

Inspiringliving the spirit of adventure

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The consumer base of Evoque is likely to set the bar higher

Evoque customers are younger affluent early adopters Used to smartphones, digitally savvy Technology is an enabler, not a wow factor

Existing devices must integrate seamlessly Easy set up Synchronise content and selected functionality

Be ready to keep the proposition at the cutting edge Non-intrusive upgrades, updates Compatibility with the leading ecosystems

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The reward for all this effort will be a stronger customer loyalty

An augmented positive experience provides additional reasons to stay with Jaguar Land Rover

Reduce the pain of switching to a new vehicle by easily transferring the content and services

Technology cycles can drive the vehicle replacement cycle down and increase sales.

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Adapting a user experience that breathes the Jaguar Land Rover identity to the new consumer base will provide a strong return

on investment


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One more thing …

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The connected car experience will impact the value chain, be prepared.

In-car Telematics interfaceNew technologiesNew skillsNew peoplePrevent silo effectAgile development

Infotainment awarenessCrisp and clear communicationPosition as part of the whole value proposition

Sales force trainingCustomer introductionCustomer support

New processesMarket specific Software packages


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Thank you

121019 gilles corby presentation

Automotive