a 2008 perspective on the i-car

1Copyright © 2008 Cisco Systems, Inc. All rights reserved.Cisco ConfidentialCisco Confidential Internet Business Solutions Group

iCAR

a Cisco Perspective

Paris, October 15, 2008


Santa Maria del Fiore, FlorenceOne of the Middle-Ages’ Most Daunting Engineering Challenges


Cisco IBSG Automotive Practice Partnering for Innovation and Value

Next Generation Dealer POC

Dealer eLearning benchmark

Best-in-class outsourcing

U.S. customer experience strategy

Lean corporate

Distributed engineering

Enabling a new OEM culture

Connected vehicle

Adapting TelePresence to the auto engineering world

Auto interactive retail experience

Source: Cisco IBSG Automotive Team

Examples: IBSG OEM Engagements

4Copyright © 2008 Cisco Systems, Inc. All rights reserved.Cisco Confidential

Introduction

Times of Disruptions


Disruptions Are Adding Up…Starting to Resonate

New Competition

ChinaIndia Subprimes

Green InflationEnergy Technology

New Models

Customer

Source: Cisco IBSG analysis

Source: Cisco IBSG 2008

New Requirements New Clock Speed


…The Industry Is Fighting Back Aggressively

New Models

Innovation

IndiaRussia

Partnerships &Acquisitions

Globalization

Restructuring

Low PriceChina HybridsNovelty

Platforms

Source: Cisco IBSG analysis

Retail



Is Auto Reaching a Turning Point?

All OEMs are struggling

Hierarchies have been toppled

Green has finally caught up

Emerging markets have emerged

OEMs are all globalizing

Consumers have changed

New technologies looming



Scenario 1 Scenario 2 Scenario 3

“Do a Cisco on Auto”

A newcomer enters the industry with no legacies, a radically different operating model and an open technology philosophy.

“Do an Apple on Auto”

An industry player or a newcomer turns the industry upside down by radically changing and enhancing the customer experience, possibly tapping into unforeseen new sources of revenue.

“Do a Google on Auto”

An industry player or a newcomer turns the industry upside down by disrupting fundamental automotive technologies (CO2 reactor, …)

and capturing significant marketshare value.


Three IT-inspired Disruptive Scenarii

Could What Happened in IT Happen in Auto?


iCAR

An Entirely New Car Experience


Can OEMs afford to maintain this model?

Traffic Jams

40% of people rate “traffic” as one of the three most annoying issues when operating a car

Lost Productivity

>$70B lost in 75 largest U.S. metro areas

Finding Parking

Avg. time to find parking in selected European cities: ~20 minutes

Isolation

Average occupancy in U.S. metro areas: 1.15 persons per car

Despite the Passion of Some Owners,the Car Experience Is Still Not All Positive

Hard Facts

Source: Texas Transportation Institute; EC; Allégo; Cisco IBSG, 2008


VisioniCAR: pronunciation \’ ī kär \ noun

Etymology:

Cisco Brand i-Phone for The Phone of the Future

1 chiefly a CONCEPT: The i-Phone of cars. A concept which would trigger the same phenomenon the iPhone created in consumer electronics in the car industry. 2a: A disruptive product offering which - within the limits of existing safety and legal rules - puts the customer experience first and utilizes the latest advances in IT and automotive innovation to deliver that. b: predessors of iCAR are the Mini, Scion or BMW’s iDrive. c: A concept which builds on current and upcoming energy and technology disruptions to penetrate a changing industry 3a: Combination of new user-interfaces, Internet technologies, social networks (including social engineering) with (probably) electric powered vehicle. <Cisco in iCAR>4: Our motto to: Changing the Way we Work, Live, Play and Learn…and Drive the iPhone of Cars

Source: Cisco IBSG, 2008


Vision

Source: Cisco IBSG, 2008

Cisco Confidential

Does away with some major inconveniences of driving today

Simplifies and reinvents the driving experience

Combines fun, safety, and environmentally friendly features

Communicates with its environment, the home, and the driver’s communities

Caters to the need for personalization

Accesses the Internet seamlessly thru multiple media and allows participating in Web 2.0 activities whilst on the drive

Commands a higher premium and generates a sense of community

i-CAR


John checks his schedule by voice activating Webex. As he drives off, his i-Car synchronizes with his latest calendar, and the integrated GPS displays the fastest route to his next meeting.

33

What An Every Day iCAR Experience Could be Like

44 Traffic builds and he wants an alternate route. John accesses the i-Car Community network to learn local traffic conditions. The GPS uses this data to build an optimum route.

En-route, John voice activates the i-Car application store. He buys and downloads a new flight status tracker widget with high ratings in the iCAR community site.

55 John arrives and the parking lot is full. He sees i-Car owners in lot on screen and starts voice chat (VIM) to ask where there is parking. The other driver directs him to an available space.

66

His RFID-enabled key starts his personalized dashboard display settings. Before driving off, he checks in with his family using the on-board HD TelePresence dashboard unit.

2211 Having just landed back, John contacts his iCAR to remind him where he parked. He receives directions by SMS.


iCAR: The Human Network Takes to the Road

DRIVER

“Unlimited” options to design “MyCar”

Easier to locate,less time on road

More personalization,Mor functionalities

More intuitive to use,active remote service

Connecting car andhome applications

More interactionwith the world

iCAR“A Car You

Need to Own”

Safer to drive,Easier to park

PASSENGER

COMMUNITYRicher interactions


iCAR Changes Five Car Fundamentals as We Know Them Today

Experience Community

Car ArchitectureSelf-Expression

Business Model


Transforming In-Car Experience

User-Interface

Our Vision

What’s different?

Why is that relevant?

All-in-One, highly intuitive “iPhone”-like multi-touch interactive dashboard to control car, media & other functionalities

• One UI• Easier to operate• Better in-car experience

Partly or fully assisted auto-drive or self-park functionalities

• Technology takes on key driver responsibilities

• Driver determines grade of support

• Better ease of use• More productive/fun• Safer

• Ergonomics • Personalization• Physical to virtual

lay-out

Automation


Opening to Communities on the Road

Our Vision

What’s different?


Community Presence

Opt-in on-the-road community services to vizualize localization and presence of relatives, friends, fellow workers and/or any relevant person part of the driver’s network.

• Doesn’t exist today• Visual• Context

• Locate friends• Builds on Social

Networks (LOOPT)• Services Possibility

Opt-in Voice-Instant-Messaging, CB-like functionalities available at the touch of a button to reach the driver’s or the passenger’s contacts on the road.

• Instant voice reach• Directional• Opt-in

• Ease-of-use• No numbering• Interact car-2-car• MyCar community member

Community Interaction


Improving Self-Expression

Personalization

Our Vision

What’s different?


i-Car would offer possibilities to personalize the car (internally & externally), notably by add-on software, dashboard personalization and own accessories creation.

• Limited today • Wider scope & scale• Add-on features or

softwares

• Adapts to customers• Innovation in features• New business model

Automatic synchronization of systems in car with brought-in devices and systems at home and at work

• Sync media, email, calendars

• Grid computing (parked)• Automatic backup

• Access home content• Synchronize home &

office• Send content to

home

Synchronization


Building New Technology Platforms

Our Vision

What’s different?


SDK

Software Development Kit is a Platform made available to the developers community to produce new apps and new widgets available on the iCAR interactive dashboard.

• Power of Social engineering

• Innovation platform

• Change foundation• Personalization• Changes Business

Model

Mobile Access Router proposes an upgradeable connectivity platform which is application and device agnostic enabling seamless connectivity & roaming across media.

• Multi-purpose • Multi-medium• IT standards

• Sustainable• Virtualization• Solves the lifecycle gap

MAR


A Different Business Model Could Emerge

Our Vision

What’s different?


Software

Accessories Personalization

Generate incremental business “à la Scion” through aftermarket sales of personalizable accessories by proposing design-it-yourself add-ons orderable over the Internet or at dealer sites.

• Limited today• Create your own

accessory

• Aftermarket control• New profit stream• Customer trends

Similar to Apple’s iTunes, Chrysler could start a new business line by providing new software for customers to install after market directly through their dealer or/and directly via the Internet.

• New revenue stream• New interactions w/

customers• New features (SDK)

• More aftermarketcontrol

• New profit stream• Alignment with market


Accelerate Clock Speed

An iCAR Play Could Transform Traditional Business Models

New Revenue Opportunities

More Aftermarket Control

Social EngineeringResources

SolutionScalability

Increased CustomerSatisfaction

Better Service

Direct Contact with Customers

Stick toCustomer Trends

Higher Brand Value

GreaterProduct AppealBRAND

PRODUCT

REVENUE

PROFIT

CUSTOMERS

ENGINEERING

ImprovedCustomer Loyalty

Price Premium

Greater Aftermarket for Dealers

Higher Volumes

iCAR“Transformed

BusinessModel”


iCARDiscussions


iCAR Architecture in Action

Core Car Functionality

Engine Management

Car Operations

Safety & Security

Services & Maintenance

Communications

Navigation

Entertainment, Content Mgmt. & Gaming

Interfaces & Connectivity

Car Configuration

Integration Systems

ExtractTransform& Load

BusinessProcessMgmt.

EnterpriseApplicationIntegration

Vehicle Information

On Board Diagnostics (OBD)

Electronic ControlUnit (ECU)

Response Automation

Hazard Alert Sys

Surveillance

Tampering Control

Simulation System

Biometric Systems

Monitoring, Maintenance, Mgmt.

Passenger Environment Diagnostics

Robotics Control

3rd Party APIs

Hybrid Applications

Voice Services

Data Services

Video Services

GPS & Routing

Traffic Services

Recommendations

Concierge Services

Search

Content Mgmt.

Digital Media

Game Modules

Gaming Platform

Bluetooth

WiFi, WiMAX, 3G

Other Wireless

Multi-touch

Haptics

Olfactory

Personalization

Skin Control APIs

Scent Control APIs

Mechanical Control APIs

Preferences Mgmt.

John returns home from a long trip, locates his iCAR via GPS, and follows directions on his mobile.

Entering the car, he reunites with family via a heads-up TelePresence display.

Meanwhile, his business data is synchronized in the background, and the iCAR instinctively navigates the best route to his upcoming meeting.

Entering the parking lot for his client meeting, he spots colleagues nearby and touches Nancy’s iCAR to speak live with her, let her know he has arrived, and hone last-minute strategy for the meeting.

Other Services

Home Services

Productivity & Collaboration

Commerce

Appliance Access & Control UI

Monitoring & Automation

Retail Services

Leisure Services

Messaging

Conferencing

Expertise Location

Presence

Socializing


RACE: A Detailed ViewiCAR SolutionsRelevancy

Save &

Secu

re

“My C

ar”

En

viron

men

t

Fu

n to

Drive

Ease o

f Use

Co

st Saved

Tim

e Saved

Safety & Security

Severity of crash notification Remote customization of performance Kid in a car monitoring: Speed, distance,

alcohol

Retinal biometrics (sense sleepiness, anger) Carbot (could be watching your house from

your driveway, onsite emergency support) Back up data in the car ( terra byte of storage)

Navigation / Traffic Mgt

Dynamic traffic flow/route optimization Traffic alerts: traffic light, density, accidents Distant video traffic check

Trip planning Pollution control Highway trains

Operation & Service

Travel cost and time optimizer Car software updates Preventive warranty control

Vehicle diagnostics with recommended service Plug-in-Hybrid recharge optimization (stations

in range, cost, time) Personalized CRM

Convenience & Comfort

Assisted drive/ auto-pilot, Auto-park Car ergonomics of user interface to control car,

media and connectivity Easy assess: mobile phone, voice, biometrics Text-to-voice and Voice-to-text applications

Synchronization of entertainment files, calendar, email (Mobile Me?)

Hook car into home automation system Air quality monitoring for pollution, allergies

Infotainment Car media center (internet, slingbox, tivo, yelp) Video-on-Demand Satellite-TV

Gaming Web-browsing Stock quotes, headline news, weather, etc.

Productivity & Communication

Office/ E-mail synchronization and operation via voice

Conference calls/ telepresence: w/windshield as the screen in the future

Grid computing (connecting parked cars) Cross-roads ad-hoc voice IM (cop contacts you

in car, where do you get your hair done?)

Commerce & Community

Location-based services: rank & find restaurant, hotels, service stations, upcoming events, points of interest, lowest gas price in range/ on route

Loopt: Locate and video-in friends and family on the road

Find and chat with community member Chrysler clubs, Yelp by Chrysler MyCar: best road trips, most unique car, latest

car performance and experience innovation

Personalization

Change the interior kits RFID for personalization, business rules for the

vehicle, user profile you set up Interior light and smell profiles

Car versatility (electric stove, waxing iron, pneumatic tools, storage)

Software, accessories from marketplace to improve performance and experience

a 2008 perspective on the i-car

Automotive

cisco systems

cisco confidentialicaran

cisco ibsg analysissource

ibsg oem engagements

new oem culture

autoan industry player

new technologies loomingsource

thecustomer experience