The Connected Car Comes in Many Flavors UPDATED Mar 2011

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  • 2010 Trajectory Group Confidential & Proprietary 1

    The Connected CarComes in Many Flavors

    Presented by Ralf Hug, Founder Trajectory Group

    October 2010

    Updated March 2011

  • 2010 Trajectory Group Confidential & Proprietary 2

    INTRODUCTION

    Ralf HugFounder & President

    15 Years of Global Management

    Experience

    Expertise in Strategy Development,

    Business Development, Marketing and

    Product Management

    In-depth Industry Experience in

    Automotive, Telematics, M2M, GPS/LBS,

    Wireless, CE and Connected TV

    MBA University of Bayreuth, Germany

    Past Management Positions at:

    Business development and strategic

    advisory services firm with the very

    specific conviction to help companies

    to stay on the trajectory of success

    Services include:

    o Management Advisory

    o Marketing Strategy and Planning

    o Inbound and Outbound Marketing

    o Business Development

    o Product Strategy and Launch

    o Interim Management

    Deep Industry Expertise in:

    o Automotive /Telematics/M2M

    o GPS/LBS/Wireless/Apps

    o Content/Media/Services

    o CE/Connected TV

    TRACTECORY GROUP LLC

    Trajectory [trjektr]: Plotting a realistic path towards achieving a target over a period of time

  • 2010 Trajectory Group Confidential & Proprietary 3

    KEY QUESTIONSHow will the telematics market evolve in the next

    3-5 years?

    What telematics flavors exist that car companies

    can choose from to deliver a connected vehicle

    experience?

    How will the telematics ecosystem change?

    The Connected CarComes in Many Flavors

  • 2010 Trajectory Group Confidential & Proprietary 4

    US TELEMATICS MARKET

    22.30%

    40%

    79%

    95%

    25.50% 30%

    62%

    85%

    0%

    20%

    40%

    60%

    80%

    100%

    2008 2010 2015 2020

    Bluetooth Embedded

    US Vehicle Sales Connectivity

    Source: US DOT- Federal Highway Administration, Wards

    Auto 2010, Automotive News 2011

    Source: iSuppli April 2009

    Automotive Recovery on its way

    Mar 2011 SAAR of 13.4 million vehicle in

    2011

    China #1 in 2010: 18.06 million

    Total registered vehicles: 250 Million

    Vehicle Connectivity Penetration Rates

    enjoying rapid growth

    Connected Vehicle is reaching

    mainstream

    17.444 17.049 16.460

    13.493

    10.601

    12.20013.400

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    2005 2006 2007 2008 2009 2010 2011F

  • 2010 Trajectory Group Confidential & Proprietary 5

    CONSUMER VEHICLE PURCHASE DECISION

    28%

    29%

    44%

    54%

    8%

    8%

    11%

    15%

    0% 10% 20% 30% 40% 50% 60% 70% 80%

    I will include Telematics features

    in my research when deciding which brand

    and model to purchase.

    I would spend more money on

    a car with the right telematics features.

    I would change models from what I originally

    wanted in order to get the right telematics features.

    I would change brands from what I originally

    wanted in order to get the right telematics features.

    Strongly AgreeAgreeSource: Airbiquity TU Detroit 2009

    Does Telematics matter?

  • 2010 Trajectory Group Confidential & Proprietary 6

    OnStar service was available on vehicles produced by Acura, Audi, Isuzu, Subaru, Volkswagen and as Lexus Link in the past

    Other telematics programs that have been discontinued are Ford Rescu, Jaguar Assist and Ford Wingcast

    OEM TELEMATICS ADOPTION

    OEM System Launch

    GM Onstar/MyLink 1996

    Mercedes-Benz mbrace (TeleAid) 1999

    BMW BMW Assist, ConnectedDrive 2002

    Toyota/Lexus Safety Connect/Lexus Enform/Entune

    2009

    Ford Sync/MyTouch 2009

    Smart Smart Drive App 2010

    Kia UVO 2010

    Audi Audi Connect 2010

    Nissan/Infinity Nissan Connect / CARWINGS 2010

    Hyundai BlueLink 2011

    Fiat Blue&Me 2011

    Honda/Acura Planned

    Chrysler Planned

    VW Planned

    Saab IQon Planned

    Telematics Programs

    came a long way and are

    here to stay!

  • 2010 Trajectory Group Confidential & Proprietary 7

    KEY QUESTIONSWhat telematics flavors exist that car companies

    can choose from to deliver a connected vehicle

    experience?

    The Connected CarComes in Many Flavors

  • 2010 Trajectory Group Confidential & Proprietary 8

    THE MANY CONNECTED CAR FLAVORS

    Embedded Module Handset Integration Terminal Mode/VNC

    SmartPhone Head-unit

    Embedded TCU

    Classic Telematics Program

    Focus on Safety & Security

    Use of handset for tethering

    Access to cloud services

    Focus on Infotainment,

    Productivity and Hands-free

    calling

    Mobile device applications are

    presented on the vehicles head-unit

    Applications can be controlled

    via the vehicle HMI

    For Head Units without a

    Graphical Display

    Car Integration Kit

    Specialty Apps

    Embedded TCU

    SDK with APIs to develop auto

    specific apps

    Safety, Diagnostics &

    Infotainment

    Vehicle App StoreApple's iPod Out

    iPod Out enables the car to

    display the familiar iPod

    navigation menu in the

    vehicles main center display, and control features using the

    vehicles controls.

    Mini Connected

  • 2010 Trajectory Group Confidential & Proprietary 9

    THE MANY CONNECTED CAR FLAVORS

    Connected Head-Unit Connected PND

    Roadside Assistance OBDII Module

    Embedded Connectivity or

    wireless USB to Cloud Services

    Focus on Navigation,

    Productivity and Infotainment

    Portable Navigation Device

    Integration

    Embedded Connectivity to

    Cloud Services

    Focus on navigation relevant

    dynamic content

    OBDII interface solutions

    Bluetooth or embedded

    wireless module

    Monitoring/Capturing vehicle

    and driver performance

    Aftermarket, Fleet and

    Insurance apps

    Standalone SmartPhone Apps

    without car integration

    Primarily Roadside Assistance

    Service and Insurance Claim

    Processing

    Internet in the Car

    Embedded Module

    Content and Service

    Aggregation utilizing built-in

    Apps and Browser

    Access to the Cloud and

    Internet

    Wifi Hotspot in Car

    Aftermarket installed box

    Provide Wifi hotspot in car for

    connected devices

    Focus on Internet browsing,

    email, remote office

  • 2010 Trajectory Group Confidential & Proprietary 10

    New mobility ecosystem will

    change how most of us think

    about mobility (Ownership,

    Financing, transportation modes,

    transportation-related services)

    Development and demo of a

    unique and user-friendly

    framework for green electro-

    mobility

    THE MANY CONNECTED CAR FLAVORS

    Insurance Telematics Aftermarket Telematics The Shop of Tomorrow

    Embedded vs. OBDII approach

    Devices can track simple or

    very detailed driving behavior

    Usage-Based Insurance (UBI) or

    PAYD in market today

    Aftermarket installed box

    Embedded Connectivity

    Optional CAN-bus access

    Focus on specific niche or

    vertical s (tracking, fleet, etc.)

    Automotive Aftermarket

    Industry Association (AAIA)

    and an alliance of aftermarket

    innovators built a remote

    diagnostics and communication

    solution for the independent

    service industry

    Mobility as a ServiceCar Sharing

    Car2Go, Zipcar, Connect:

    innovative urban mobility

    solution for car sharing

    Convenient and secure fully-

    automated car rental process

    Electric Vehicle

    Embedded TCU

    Primarily for battery monitoring

    and related services

    Mobile Companion App

  • 2010 Trajectory Group Confidential & Proprietary 11

    THE MANY CONNECTED CAR FLAVORS

    Vehicle to Vehicle (V2V) Vehicle to Infrastructure (V2I) Vehicle to Grid V2G

    Allows vehicles to "talk" to

    each other over dedicated short

    range communication (DSRC),

    a 5.9 GHz band

    Motivation is safety and

    avoiding accidents and traffic

    congestions

    Provide a communications link

    between vehicles and roadside

    infrastructure

    Motivation is to increase safety,

    efficiency, and convenience of

    the transportation system

    Infrastructure such as traffic

    signals, toll stations, parking

    systems, etc.

    Describes a system in which

    plug-in electric vehicles

    communicate with the power

    grid

    Manage demand by either

    delivering electricity into the

    grid or by throttling the

    charging rate

    Autonomous Driving

    More advanced systems

    propose to simulate human

    perception and decision-

    making during steering of a car

    via advanced computer

    software linked to a range of

    sensors such as cameras, radar

    and GPS

    ADAS

    Advanced Driver Assistance

    Systems

    Various sensors such as

    camera, radar, GPS, Maps

    wireless

    Examples: Curve warning, lane

    departure warning, collision

    avoidance, park assist

  • 2010 Trajectory Group Confidential & Proprietary 12

    MULTIPLE OPTIONS FOR OFFERING TELEMATICS

    EMBEDDED

    PORTABLE

    OFF

    -BO

    AR

    D C

    on

    ten

    t/C

    lou

    d S

    erv

    ices

    ON

    -BO

    AR

    D C

    on

    ten

    t

    PND Dock/ Integration

    Head-Unit withInfotainment

    PND

    TCU

    Smart Phone + apps

    BT Interface

    Connected PND

    Connected Head-Unit

    Wireless USB

    USB

    OBDII Module

  • 2010 Trajectory Group Confidential & Proprietary 13

    KEY QUESTIONSHow will the telematics ecosystem change?

    The Connected CarComes in Many Flavors

  • 2010 Trajectory Group Confidential & Proprietary 14

    DISRUPTION OF THE TELEMATICS VALUE CHAIN

    UserSales

    Channel

    Delivery

    Platform

    Telematics

    Installer

    Network

    Provider

    Content

    Provider

    Software

    Developer

    Hardware

    Manufacturer

    Co

    nte

    nt

    Cre

    ato

    r

    Co

    nte

    nt

    Ag

    gre

    gato

    r

    Connectivity

    Provider

    Car

    Manufacturer

    and After-Sales

    Installer

    Telematics

    Solution

    Provider

    Pri

    vate

    La

    bel

    Bra

    nd

    La

    bel

    Auto

    Dealer and

    Mobile

    Retail

    Outlets

    Auto

    Dealer and

    Mobile

    Retail

    Outlets

    -Regulatory Environment

    Service

    Enablers

    Infrastructure

    Provider

    Trends/Disruptions to Value-Chain:

    Changing role of classical TSP

    New emerging End-to-End Solution Providers

    Increased Vertical and Horizontal Integration

    Handset/SmartPhone Integration

    The rise of the Electric Vehicle

    Automotive App Store coming to cars

    Shift from safety- to infotainment-centric services

    Handset Makers are (re-) discovering the car

    New business models besides subscriptions

    Content aggregators offering content quasi free

    The complex Telematics Ecosystem and Value-Chain:

  • 2010 Trajectory Group Confidential & Proprietary 15 2010 Trajectory Group Confidential & Proprietary 15

    Ralf Hug, Founder & President

    TRAJECTORY GROUP LLC

    Email: ralfhug@trajectorygroup.com

    Cell Phone: +1 773 733 6913

    Skype: ralf_hug

    LinkedIn: www.linkedin.com/in/ralfhug

    Slideshare: www.slideshare.net/ralfhug

    Twitter: @ralfhug

    Questions? Please contact me at:

  • 2010 Trajectory Group Confidential & Proprietary 16

    TRAJECTORY GROUP CAPABILITIES

    Marketing & Product Strategy

    Telematics

    Strategy

    Partner & Business

    Development

    M2M

    Auto App Store

    Value Chain

    Business Models

    Connected Car

    Connected Services

    Navigation

    MRD/PRD

    Consumer Research

    Product & Services Roadmap

    Best-in-Class Marketing

    Processes

    Content AggregationGlobal

    B2B and B2C MarketingBenchmarking

    Content & Service

    Providers

    Retail, Dealer & Channel

    Marketing

    Content Monetization

    Device/Smartphone Integration

    Marketing Strategy &

    Planning

    Go-To-Market Planning

    Prospecting

    Sales Planning

    Customer Introductions

    Partnership Development

    Relationship Management

    Competitor Analysis

    Value Proposition

    Innovation Management

    Fleet Insurance

    Aftermarket

    Auto OEMs

    Wireless Carriers

    Category Mgmt

    Europe

  • 2010 Trajectory Group Confidential & Proprietary 17

    TRAJECTORY GROUP CAPABILITIES

    Inbound and Outbound

    Marketing

    Marketing Strategy and

    Planning

    Management Advisory

    Offering an effective Marketing

    Strategy, Planning and

    Implementation Process focusing

    on the demand generation

    objectives and value creation

    activities that deliver a clear

    competitive advantage for your

    business. Able to translate these

    business objectives and overall

    "Marketing Vision" into focused

    activities in sales and marketing

    with best-in-class processes.

    Offering strategic and tactical

    business planning services to

    organizations and leverage

    profound expertise in strategic

    planning, product, marketing, and

    business development to develop

    innovative business and go-to-

    market strategies that translate into

    measurable results (revenue

    growth and EBITDA

    improvements).

    Skilled translating company and

    brand positioning into effective

    marketing plan execution utilizing

    the latest inbound and outbound

    marketing communication tools as

    part of an integrated marketing plan

    that can span across the many

    elements of the communications

    mix such as advertising, PR, digital

    media, SEO, Paid Search and the

    latest social media tools (Twitter,

    Facebook, LinkedIn, YouTube, etc.)

  • 2010 Trajectory Group Confidential & Proprietary 18

    TRAJECTORY GROUP CAPABILITIES

    Interim Management

    Engagements

    \

    Product Strategy and

    Launch

    Business Development and

    Partner Management

    Broad experience and passion

    developing market relevant and

    competitive product portfolios that

    best meet end- user needs, while

    achieving and maximizing business

    results. Use of proven concept to

    market process (including

    innovation process, customer

    insight windows, MRD/PRD,

    analytical tools) combined with

    innovative go-to-market tools and

    processes to successfully launch

    products and services in the market

    place.

    Built and maintain an extensive

    active network of highly targeted

    and qualified business contacts

    from years of direct engagement.

    Active involvement in several social

    networking activities on LinkedIn,

    XING, Twitter, Facebook and

    traditional industry events. Skilled

    forging effective customer and

    business partnerships that generate

    revenue and profits. Managed

    many B2B lead management and

    B2C marketing campaigns and

    programs penetrating existing as

    well as new markets with innovative

    tools and tactics.

    If you are in need of a proven

    heavyweight interim executive

    manager to manage a period of

    transition, crisis or change within

    your organization able to provide a

    fresh perspective, address a

    specific skills gap or problem and

    are able to concentrate on what's

    best for the business with speed,

    dedication and measurable ROI.

  • 2010 Trajectory Group Confidential & Proprietary 19

    BONUS DOCUMENTS ON SLIDESHARE

    Presentation:

    How to Break Out of the Commoditization Trap

    Article:

    To Find the Business Case for Telematics, Look Higher Up.

    http://slidesha.re/hkpRkW

    Presentation:

    Envision Automotive App Stores Key Questions

    http://slidesha.re/eWnh0n

    http://slidesha.re/hvKezSCheck out Ralf Hug SlideShare Channel

    http://slidesha.re/i8c2Ll

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