iot services in the automotive sector
TRANSCRIPT
IoT Services in the Automotive SectorThe Car as a Platform of Services……Changing The Automotive EcosystemToward a Broad Array of ServicesSecurity As The Main Challenge To OvercomeToward a Continuous Customer Relationship
+ June 2015
+ Hélène André
IoT Services Become Crucial For Both Enterprises & Consumers
For EnterprisesServices derived from the connected devices will drive IoT revenuesIoT Business revenues in 2020 : $300 Billion 90% from software & services
For ConsumersThese services will provide awareness, knowledge & actions on their surroundingsUltimate answer to their need of cost-effective & tailored solutions
Products to be designed as Connected Platforms of Services
Gartner, Press Release, December 2013
From Product-Centric to Service-Centric Business Model
Product
One-time product sales
After-sales service
Shift in Value CreationCompanies need to create and capture value differently
Experience
Recurring revenues
Continuous customer relationship
HBR, How the Internet of Things Changes Business Models, July 2014
The Car as a Platform of Services…
90%40%
10%
40%20%
23MConnected vehicles
2015 2020
152MConnected vehicles
The car becomes a platform of services connected to the city, to companies and to other vehicles
hardware contentsoftware
IHS, Emerging Technologies: Big Data in the Connected Car, Nov 2013Morgan Stanley, Self-Driving the New Auto Industry Paradigm, Nov 2013
…Disrupting The Automotive Ecosystem
The IoT-enabled car is a hub for an entire ecosystem of connected services provided by various players for various players
Drivers & Passengers
Car Makers, OEMs & Traditional suppliersGM, VW, Renault-Nissan, Valeo, Delphi, Faurecia…
Third-party suppliers & Content producersGarmin, Apple, Netflix, Google, Comcast
Toward a Broad Array of Services
4G LTESmartphone
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Business Insider, March 2015
Toward a Broad Array of Services
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Business Insider, March 2015
AT&T Mobility is currently emerging as a leader in infotainment in the USA. The carrier has secured Tesla, Subaru. AT&T has made it easy for the customers to use AT&T with their car by allowing AT&T-equipped cars to work inside AT&T's shared data plans. There’s room for more carriers but also for content producers to gain ground in the car space. According to Business Insider, 25% of global consumers would be willing to receive in-car advertising if it meant they got free basic services in exchange.
Google is developing a version of its Android software that would be built directly into the consoles of cars. Such a move could obviate the need to have a smartphone connected to the car's infotainment system.
Toward a Broad Array of Services
V2VV2IOBD-II plugin
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Toward a Broad Array of Services
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
There are services that can be preinstalled by the car manufacturer like Volkswagen’s Car-Net which can automatically alert emergency services when an accident has occurred. These services can also be provided by additional devices. The Automatic car adapter can alert Automatic’s call center to send emergency services to the location of the crash and notify emergency contacts.
Beyond emergencies, Garmin launched Garmin Traffic–a subscription add-on to their GPS devices that helps drivers avoid traffic and other delays in real-time. Traffic alerts come from a traffic data collection system that analyzes traffic flow data collected from millions of Garmin device owners, cellphone owners, incident reports, fixed traffic sensors on major roads…
Toward a Broad Array of Services
OBD-II pluginBluetoothSmartphone
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Toward a Broad Array of Services
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Connected cars, and soon autonomous cars, are expected to bring accident rates down. It is an incentive for insurers to develop usage-based insurance instead of relying on premium income. Insurers now have to tailor their product offerings with historical and real-time data about customers’ behavior. Like Allstate and its Drivewise program that collects data every time customers drive their vehicle and that rewards safe drivers.
Big data analytics can help insurers monitor how their customers drive. But incumbents may be too slow to catch up with startups like Metromile and big data kings like Google. Metromile offers per-mile car insurance and is already attracting low-mileage drivers. Additionally, carmakers may choose not to share the data they collect and rather use it to bundle their own policies in with their vehicles. That’s what BMW has hinted at.
Toward a Broad Array of Services
SIM card4G / LTE
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Toward a Broad Array of Services
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
Over the air updates enable to keep contact with the vehicle while skipping the visit to a dealership.
Tesla is better positioned than most automakers to offer OTA software upgrades, particularly major ones that affect the powertrain and not just the infotainment or navigation system. This is because all of the Model S's electronic control units (ECUs) can be centrally accessed as part of the vehicle's telematics system. On most vehicles, there are hard firewalls between ECUs that serve navigation systems, entertainment units and powertrains to avoid hacking and protect IP.But Tesla is not alone, Mercedes has partnered with Verizon to develop and offer Mbrace2 to its drivers.
Toward a Broad Array of Services
Infotainment Safety & Security
Usage-based insurance
Data Management
OBD-II pluginBluetooth & SmartphoneGPS & Radio
Over-the-air updates
TechCrunch, January 2015
Toward a Broad Array of Services
Infotainment Safety & Security
Usage-based insurance
Data Management
Over-the-air updates
TechCrunch, January 2015
Airbiquity is a platform of services that goes from collecting to analyzing data. It links the vehicle to Airbiquity cloud via mobile or embedded device. Airbiquity then delivers smartphone apps, cloud content, and services through the vehicle head unit with the driver’s smartphone. Airbiquity raised a bit more than $35 million.
Mojio connect cars to the cloud via its OBDII plugin devices. Mojio includes built-in connectivity and a GPS in its unit (Vs. Bluetooth and smartphone). It uploads hundreds of data points about the car every minute, tracking everything from the brakes to the locks. Everything is available for developers on Mojio’s open source platform. It then uses these data points to provide connected car services in partnership with apps like Concur to measure gas mileage and Glympse for GPS tracking.
Next opportunities
Security As The Main Challenge To OvercomeContinuous Customer Relationship
+ IoT services in the automotive sector
Security As The Main Challenge To Overcome
Securing both hardware and software in the car against hacking
Central telematics systems Vs. Closed circuitsMany embedded systems that have not been designed to be connected to the outside world, are wired to other systems more vulnerable. So, how should mission critical software be wired to other software in the vehicle to ensure both security and efficient updates? Some will advocate in favor of privacy by design creating closed circuits, while others will be less conservative and will design central telematics systems
IHS, Emerging Technologies: Big Data in the Connected Car, Nov 2013Morgan Stanley, Self-Driving the New Auto Industry Paradigm, Nov 2013
Security As The Main Challenge To Overcome
Building interfaces & security standards for the Connected Car
Most car manufacturers and OEMs believe that there is strength in unity. British Telecom has announced the launch of an ethical hacking service: a new security service developed to test the exposure of connected vehicles to cyber-attacks. The objective is to include suppliers, IT security specialists and certification bodies to build the security standards of tomorrow.
IHS, Emerging Technologies: Big Data in the Connected Car, Nov 2013Morgan Stanley, Self-Driving the New Auto Industry Paradigm, Nov 2013
Toward a Continuous Customer Relationship
It is a perfect opportunity to create more value and to enhance brand loyalty. Service providers are encouraged to explore open platforms for the production of apps that bring innovation to all users: drivers, OEMs and all the automotive players.
In terms of value creation, services are becoming far more important than hardware. In this new paradigm, customer relationship goes far beyond the sale.
Sources
gartner.com/newsroom/id/2636073
hbr.org/2014/07/how-the-internet-of-things-changes-business-modelsbusiness.time.com/2014/01/07/your-car-is-about-to-get-smarter-than-you-are/forbes.com/sites/eliseackerman/2014/12/11/freescale-talks-about-its-sweet-spot-the-growing-market-for-connected-cars/
businessinsider.com/connected-car-is-next-digital-platform-2015-2#ixzz3WqCnR29M
techcrunch.com/2015/01/31/how-connected-cars-have-established-a-new-ecosystem-powered-by-iot/wired.com/2015/05/feds-say-banned-researcher-commandeered-plane/marketwatch.com/story/bt-launches-ethical-hacking-service-to-enhance-the-security-of-connected-cars-2015-04-20