digital journeys in the automotive sector

0 Copyright 2015 FUJITSU

Human Centric Innovation

in Action

Fujitsu Forum 2015

18th – 19th November


Digital Journeys in the Automotive Sector


Digital Journeys in the Automotive Sector

Paul Warburton VP of Automotive Global Delivery Fujitsu


Market Dynamics in a Changing Industry


Today’s Automotive Global Challenges

“There has to be some kind of solution that we can provide customers, which is not just to sell them another car.”

Mark Fields, CEO, Ford // 2015

“Now is the time for us all to be looking at vehicles on the road the same way we look at smart phones, laptops and tablets; as pieces of a much bigger, richer network.”

Bill Ford, Exec. Chairman, Ford // 2012

Disruption is continuously afoot in every industry, but especially in autos. It is how Toyota, Nissan and Honda bloodied Detroit…

Clayton M. Christensen, Author & Professor of Business Administration, Harvard Business School // 2009


Megatrends Affecting Automotive

No.1 World’s largest automotive market and auto manufacturing country since 2009

#share “25 years from now, car sharing will be the norm and car ownership an anomaly” - Jeremy Rifkin, Author and Economist

By 2050, 66% of the world’s population is projected to be in urban areas

Source: EU SME Centre Report “The Automotive Market in China” // May 2015

Source: Fujitsu “Megatrends“ // 2015

Source: Goldman Sachs Infographic “Data Story Millennials” // 2015


Shift in Automotive Industry

From 2010 … … To 2020

North America & Western Europe 34% of global production share

Region Asia & Eastern Europe 60% of global production share

Conventional car with length greater than 3,500 mm

Segment Small microcars with length less than 3,500 mm

Car ownership 1 million car-sharing member base

Mobility Car sharing 50 million car-sharing member base

Modular vehicle standard features like GPS, GSM, GPRS

Technology Intelligent Vehicle 3G/Wi-Fi connectivity, Internet radio, V2V, V2X

OEM as stand-alone entity

Operation Integration with outside world

Gen X Born 1965-1980 // age 35-50 in 2015

Consumer Gen Y (Millennials) Born 1981-1997 // age 18-34 in 2015

= half of global workforce in 2020

Green innovation Environment Innovating to ‘Zero’ Source: Frost & Sullivan, Pew Research, Catalyst


The Age of the Connected Vehicle is Truly with Us…

Steam engines

Mass production

Internet technology

Internet of Things

By 2020, there will be a quarter billion connected vehicles on the road, enabling new in-vehicle services and automated driving capabilities.

Source: Gartner “Predicts 2015: The Internet of Things” // Dec 2014


The Rise of Connections

Source: EMC “Digital Universe Study” with data and analysis by IDC // April 2014

+44ZB Data generated per year by 2020

Source: McKinsey Global Institute “The Internet of Things: Mapping the Value Beyond the Hype” // June 2015

$11T Potential economic impact of up to $11 trillion a year

in 2025


Digital Transformation in the Auto Sector


Digital Transformation

75% Source: John Mahoney, Vice President and Distinguished Analyst, Gartner @ Gartner Symposium/ITxpo // Nov 2014, Barcelona

Before the year ends, 75% of CIOs must lead digital transformation; if they do not, the enterprise will fall behind and/or someone else will lead the digital journey and the CIO's role will shrink to operational delivery.


Digital Transformation within Automotive: The Personalised Experience of the Virtual Car

Making cars smarter

Improve ease-of-use

Increase enjoyment & convenience

More excitement for your car!


Telematics & eCall ECU

Big Data

Biometric Security

The Virtual Car: Enabling Single Tariff Integrated Transportation

The Virtual Car Enabling Technologies Integrated Transport

In-Car Solutions

Managed Mobility

Remote Access

Cyber Security

Smart Transport

Driver Monitoring 360º Camera


Data Model for Integrated Transport


Digital Balance (Bi-Modal Approach)


Maintaining the Digital Balance

Digital Balance

Digital Transformation Robust ICT

Agile Responsive to business Innovative

Traditional Secure

Scalable


Bi-Modal IT

Emphasizing scalability, efficiency, safety and accuracy

Like the long-distance "marathon runner"

Emphasizing agility, creativity, speed and innovation

Like the "sprinter"

Mode 1 is traditional Mode 2 is nonsequential

75%

By 2017, 75% of IT organizations will have a bimodal capability.

Half will make a mess.

50%

By 2017, 50% of total IT spending will be spent outside of the

formal IT organization.

70%

By 2016, 70% of digital business initiatives will have failed

to deliver business growth…

Source: Gartner Predicts // various 2014-2015


Digital Balance for the Automotive Sector: Creating a Sustainable IT Model


Thank You

Visit our Exhibition Area: The Hyperconnected Van (N01)

Vehicle Monitoring (K04)

Drowsiness Detection & Driving Recorder (K05)

Connected Vehicle Solution (K06)

Driver Sight Tracking & Detection (K07)

Toyota Mirai and the Smart Transport Solutions on SPATIOWL (T04)