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Table of contents
automotiveIT international, Arjen Bongard 4
Evercore ISI, Arndt Ellinghorst 6
Volkswagen UK, Ian Plummer 10
H.R. Owen, Chris Harris 14
salesforce.com, Patrick Plata 18
Jaguar Land Rover, Mike Bell 24
Verizon Telematics, Kevin Link 28
Volvo Cars, Thomas Mueller 30
MHP, Oliver Kelkar 34
Qoros, Maurits Aalberse 40
GENIVI, Philippe Gicquel 44
Google, Hugh Dickerson 50
McKinsey & Company, Juergen Laartz, Dominik Wee, Matthias Kaesser 56
Nissan Group of Europe, Stephen Kneebone 62
CVTA, Scott J. McCormick 66
Lotus F1 Team, Michael Taylor 70
Dassault Systmes, Olivier Sappin 74
Continental Automotive, Otmar Schreiner 80
CE 21, Thomas R. Koehler 84
Imprint/ Contact 87
Revolution or Evolution?
It wasnt so long ago that the auto industry was all about engines
and top speeds and, maybe, a little bit of safety and comfort
thrown in for good measure. But that was yesterday. These days
were talking about electrification, car-sharing, connectivity and
autonomous driving. Those are the defining characteristics of todays - and tomorrows - personal mobility. Technically, there are
no limits to what the industry can do. But what about the practical implementations? And, more importantly, how is a traditionally conservative industry such as the car business going to adapt - and possibly even
lead - the transformation we have embarked on? Thats the question we try to answer in
this book, which is titled Automotive 4.0 The Digital Revolution.
A lot of things come together as we discuss the far-reaching changes in the personalmobility space:
Urbanization is redefining the purpose of the car
Growing air pollution drives electrification of the powertrain
Connected consumers want their personal networks to include the automobile
New IT and communication technologies help adapt business models
And 3D, simulation and the internet of things are moving manufacturing systems
to a new level of sophistication.
All these changes provide business opportunities for the auto industry, for the auto
industry and for suppliers, IT service providers and telecommunications companies.
And they open up the personal mobility market to a host of new players that previously
focused their attention elsewhere. In theory then, theres nothing but upside to the
transformation. But risks and uncertainties abound. Scenario planners at market researchers IHS Automotive have made a map of all the global crises - or potential crises
- the world faces. They include: hostilities in Ukraine, a further spreading of the Ebola
virus, the continuing conflict in the Middle East, higher interest rates in the booming US
market, economic downturns in Latin America, etc. The list is long.
In this book, we focus on the actions that are being taken to change the nature of the automotive product offering to bring it in line with the demands of todays consumers. But
we also demonstrate how car companies and their partners are making the auto industry more resilient, more flexible and better prepared for whatever challenges it will face.
In interviews and contributions, automaker, supplier and IT executives provide concrete
examples of innovation at work, actions already taken, development in progress and
opportunities being realized. Whether its about connectivity at the speed of light in
Formula 1 racing, the power of connected retail to convince reluctant car buyers, the
promise of big data or the quantum leaps in infotainment technology, the stories and
interviews are an uplifting read.
Which leaves the one big question we posed in many of the interviews in this book:
What will the car of the future look like? The answers vary, but, as the transformation of
the industry picks up speed, there is no doubt that the automobile will play a key role in
tomorrows personal mobility. And thats reassuring.
Arjen Bongard
Editor-in-chief
automotiveIT international
Mr Ellinghorst, please explain briefly what Evercore ISI does in the auto
industry.
We look at the automotive industry and
our clients are institutional investors who
ask us where they should invest. We answer questions such as: should I buy a
carmaker, should I buy a supplier, what
should I do now that there is an IPO coming? My job is to serve as a line of communication between the industry and the
finance community.
So, lets cut to the chase and ask you: Is
todays auto industry a good and safe
investment bet?
That depends. Europe is recovering slowly but steadily. The US is probably at the
peak of the current cycle. China just keeps
growing. The supplier industry has been
very, very successful. So I think the industry is in better shape today than it used to
be, but in Europe most of the companies
are still losing money. Its a very challenging environment and that will probably
stay so for a while.
If youre not involved with the car industry on a daily basis, you would tend
to think that automakers are rich and
make huge profits. But youre telling us
this isnt necessarily the case?
Look at the financials. People are always
shocked when I tell them 60-to-70 percent of all cars sold in Europe are sold at
a loss. Every year these carmakers are losing money in Europe. In a good year, they
managed to come up with a competitive and exciting car. The big question is
whether traditional carmakers have the
mindset and the flexibility to adopt a similar approach quickly.
A final question: What kind of car do
you think youll be driving 10 or 20
years from now?
I really believe in electric mobility. I think
the combustion engine will increasingly be replaced, also because of the
driving-pleasure potential of electric motors. Mobility will be more electric in 10
or 20 years, but I hopefully will no longer
own a car then. Instead, I will pay for mobility. Imagine Im a BMW premium customer. During the week I will probably
have an electric vehicle to drive around
in the city. On weekends, Ill need a bigger car to go into the country. Evenings I
might prefer to have a driver to take me to
a concert in downtown London. Owning a
car is increasingly outdated, but paying for
mobility is something that consumers will
still be willing to do.
Interview by Martyn Warwick,
TelecomTV, for automotiveIT
www.telecomtv.com
Photos by Silvia Steinbach
Photo: Volkswagen
Ian Plummer is making major changes to the way cars are sold, as consumers
adopt a new approach to buying cars. The head of Volkswagen sales in the
UK, believes dealers will use a lot more digital technology to better explain a
host of new features that are redefining cars. And, in an interview with automotiveIT, he says he is looking forward to the day when the car will be able
to drive itself.
10 VW Ian Plummer
Ian Plummer VW
11
12 VW Ian Plummer
years? And what will your sales operation look like then?
I cover a lot of miles each year and I fancy
the idea that in 10, 20 or 30 years the car
will drive itself and I can sit back, work, read
or sleep on the road. To sell that kind of car
I think we need to do an awful lot more of
the stuff we are doing right now. A Google executive told me recently that, if we
think the revolution we are seeing right
now is not going to affect our industry we
are frankly delusional. I think that there is a
real need for change and I think we will see
an acceleration of the digitalization of the
sales process. Well need to see a lot more
theater in the way we actually sell cars, with
the kind of things you can see, for example,
in the Audi City digital showrooms.
Interview by Martyn Warwick,
TelecomTV, for automotiveIT
www.telecomtv.com
Ian Plummer VW
13
Chris Harris, who is the marketing and customer director of H.R. Owen,
says managing customer relationships in a smarter way is the key to
success for the luxury-car dealer group. H.R. Owen sells brands that include Aston Martin, Lamborghini, Ferrari and Rolls-Royce. Customers
interested in buying these cars like to be recognized and treated professionally when they enter a dealership, Harris says. The dealer executive
spoke to automotiveIT on the sidelines of the automotiveIT International
Congress in London.
H.R. Owen specializes in luxury vehicles, but, as consumer attitudes to personal mobility change, is there still a
future for this high-premium segment?
We obviously hope so from our business
point of view. But one of the advantages
we have as a dealer group is that, from a
brand marketing point of view, our customers really like cars. They are not choosing any kind of vehicle to simply get from
A to B in the most efficient way. In fact, I
would happily admit that most of our cars
are probably not the most practical way
of driving from A to B. But thats not the
point. Its actually about the enjoyment
of the journey, its about the enjoyment
of the driving experience and I think there
will probably always be petrol heads and
people who want to drive cars that are
more engaging. And obviously, its clear
that you need a certain amount of wealth
to be able to afford the cars we sell. So lets
say wealthy petrol heads are our target
audience.
What are the biggest and most important trends you see in the car industry
today?
Ill answer the question from a retailers
point of view. For us the most important
thing is how we use current technology
to gather and organize customer data in
order to serve these customers better. Our
job as a retailer is to sell the cars and selling
cars is all about understanding customer
needs and listening to customers. That
could be in a conversation, but it could
15
sure that he no longer gets Ferrari-related email. You can even take Ferrari out of
intelligent emails that, for example, have
four brand options listed in them. The key
is using IT intelligently.
In the new world of social media, email
seems to be losing its relevance in
private interactions, but you seem to
say that in your business its still important.
Email may be a bit of an old-fashioned
technology, but for us it is far and away
the best means of communication with
customers. Customers tell us they like it.
More than 50 percent of our customers
open our emails, which is a rate I have
never seen in other industries I have
worked in. And less than 0.2 percent unsubscribe from our emails. We believe that
the data effort weve made helps us produce well-targeted emails. The money we
spent on writing, designing and delivering
emails well is paying off for us. Our customers are voting with their mouse clicks
in terms of opening and reading them.
Finally, we would like to ask you what
kind of car will people interested in the
top end of the market be driving in 10,
20 or 30 years?
As I mentioned, our customers are first and
foremost what I would call wealthy petrol
heads. Theyre interested in the experience of the drive, so I think they are going
to be driving cars that are fun and exciting
and involving to drive. Cars will have more
17
19
The most successful carmakers will take advantage of the new channels and opportunities
to connect with their customers in a whole new way to deliver a consistent experience that
matches their needs and the brand promise. By giving them more information and more
ways to stay in touch, they can create a new type of relationship with the customer.
Engineering a New Type of Automotive Experience
To be successful, carmakers, dealers and other players in the ecosystem need to design
processes, systems, and competences to deliver a one-to-one, consistent, relevant, fast,
24x7 customer experience. It starts with a unique 360-degree view of the customer, with
real-time insight into channel contacts, social posts, time spent with specific models on a
web page, app utilization, and new information captured by the sales or service people.
It continues with rapid test and implementation of new applications made possible by
todays cloud computing platforms.
A key challenge to executing the new automotive experience lies in the numerous but
partially or totally disconnected databases and applications of today, managed by differ-
Contact
Center
Web
Social
Apps
Brand
Portal
Motor
Show
Connected
Car
Dealership
Legacy Systems
ent functions inside the carmaker or the dealers. The hope is that the same technology
that drives the digital revolution for customers (mobile, cloud, social, apps, artifical intelligence and big data) will enable automotive companies and their dealers to deliver it.
But they need to integrate these new technologies with the legacy ones and create the
right tools to succeed.
Build A Customer Success Platform
Whats needed is a multi-channel platform that integrates technologies around the
whole customer experience, not around legacy systems or silos. At Salesforce, we call
this the Customer Success Platform. An automotive customer success platform complements most legacy systems. It is a data and application layer with APIs that sits on top of
them, and a middleware layer interfaces with appropriate APIs. For automotive applications, it delivers the following six core capabilities:
1:1 and Social Marketing: Carmakers are able to listen to and engage customers and
potential customers on social media. They can address issues and identify and nurture
leads in a personalized manner. But just as important, they can also amplify positive
messages, react quickly to address bad ones, publish content, and actively participate
in social discussions about the company and its products and services.
Dealer Sales: Whether owned or influenced, automotive retail is literally where the
rubber hits the road. With strong lead management, retailers can catch potential customers who might otherwise slip through the cracks. With a shared 360-degree view
of the customer, carmakers and dealers can sell more intelligently. Mobile tools allow
salespeople to interact and close sales in real-time, even away from the dealership.
Connected Services: Dealers, carmaker engagement centers, and social listening
teams are able to answer and serve customers anytime, anywhere, through any device including their connected car. These teams can access up-to-date customer
information so they know who the customers are, their history with the brand and its
dealer network, and even what their connected car has to say.
Owner Portal and Communities: Car owners need a single interface so they can
see and take action on the important details of their relationship with the brand, the
dealers, the service department, and finance department. In addition, a community
functionality allows owners, dealers, service personnel, and employees to share infor-
21
mation, opinions, reviews, and media in an open forum. The interface needs to be on
the web, on mobile, or on the car display.
Analytics: Car manufacturers, their suppliers, and dealers can get new insight through
the huge amount of data made available from customers, cars and legacy data.
Apps: Developers can create and deploy new app experiences at lightning speed to
take advantage of new value-added services and maintain an active relationship with
customers.
But technology is not the only issue. Car companies need to align their organizations to
become fully customer-centric, dealing in a more holistic way with these new customer experiences. They need a much more cross-functional approach. For example, social
listening and social engagement shouldnt only be done by marketers and telematics
shouldnt only be done by engineering. Similarly, sales and service processes at dealers
need to be addressed in a very new and more holistic way by the dealers and the
different departments of carmakers.
Conclusion
Designing a best-in-class automotive customer journey and rolling it out across different
geographies is possible today. But it requires transformational thinking, the technology
tools to make it happen, and alignment of talent, organization, and processes to support
it. It requires a customer success platform. With the right leadership, an automotive customer journey will create new opportunities for carmakers and dealers to generate new
revenue and create loyal and engaged customers for life.
23
Mike Bell, global connected car director at Jaguar Land Rover (JLR), is
responsible for managing the end-to-end connected car business service for
the British automaker. In an interview with automotiveIT, he explains how JLR
caters to clients who increasingly consider connectivity one of the key factors
in the buying decision. Bell also talks about the companys data policy and
shares his views on how cars will evolve over the next 25 years.
25
The Jaguar XE, which was unveiled in September 2014, features a new mid-range infotainment system
tomer experience. For example, a customer may find it useful to send vehicle
diagnostic information to their preferred
dealer. The customer can opt-in to these
features.
Every carmaker says the data belongs
to the customers, but theres still a lot
of concern over privacy. Is that not justified?
It is about our customers. So we adopted
the most stringent data protection principles, which means that we comply with
German laws - on a global scale We also
do not monitor individual customers use
of the car. The data is provided to the customer via the smartphone App, InControl
Remote.
Can you name some IT and telecommunications companies you work closely
with? And what exactly do you do with
them?
We partner with multiple mobile operators, including Vodafone, AT&T and China
Unicom. We also work with service providers like WirelessCar, AppCarousel and we
work with silicon suppliers such as Intel.
We have a joint research program with the
latter. We also work with Bosch on multiple levels for the infotainment hardware
and software (Bosch Softech), with Symphony Teleca and TCS for infotainment
systems integration and with Panasonic
for consumer technologies. There are several more partners we work with.
Theres a lot of talk about driverless
driving. Will we at some point see autonomous Jaguars and Land Rovers on
the road?
When were talking about autonomous cars
there will be an evolution of technologies
rather than a revolution. We will have more
and more sensors and functions to automate
and assist with driving. We are not setting a
time, but, of course, JLR will at some point
provide autonomous vehicles. But well also
provide a choice. Our customers - whether
they are luxury or sports car buyers - like to
drive, and it will be the customers choice. A
sports car is built specifically for the enjoyment of driving. But even in a luxury vehicle
you probably won't enjoy being stuck in a
traffic jam. So you will be able to engage autonomous functions where you choose.
27
Kevin Link, chief technology officer (CTO), is responsible for the OEM vehicle technology and network architecture of Verizon Telematics. He is also
in charge of the overall technology strategy. Link is one of the co-founders of
Hughes Telematics, which later became Verizon Telematics. Prior to his involvement in the telematics industry, he spent 19 years in various engineering roles
developing products and services for the US wireless industry.
The car is quickly becoming the coolest mobile device we own just ask the 16,000
decision makers and influencers who attended the Los Angeles auto show in November to discuss the latest technological advancements in connected cars. In 2015
more mainstream automakers will adopt connected car and other advanced technologies. Here are five auto technology trends to watch for in the new year:
1. The number of vehicles that include a telematics option will increase: There are
14 automakers that control 80 percent of the car market globally and each one of
them has a connected-car strategy. In 2015, well start to see these strategies apply to
more car models as connected features such as high-end navigation, telematics and
infotainment are included as standard options.
2. Advanced technologies will become a precursor for autonomous vehicles:
Future-forward car manufacturers will start to push the envelope on enhancing advanced technologies such as adaptive cruise control and lane departure warning
further setting the stage for autonomous vehicles.
3. Competition for off-the-shelf aftermarket solutions will intensify: Overall, adoption rates for connected cars remain relatively low. For example, 200 million cars in
the US are not connected. The coming year will usher in more competition for solutions to benefit the aftermarket.
4. 4G LTE will become the de facto standard and Wi-Fi in the car will become a reality:
Often lauded as the early adopters, high-end auto makers will set the course when
it comes to 4G LTE and Wi-Fi hotspots in their car deployments as a future-proofing
mechanism. While the amount of bandwidth that comes with 4G LTE may not be needed by all drivers, automakers do not want to be faced with a situation down the line
where they are required to migrate from 3G to 4G because their models have suddenly become antiquated. Meanwhile, demand for mobile Wi-Fi hotspots is increasing as
rear-seat entertainment in the form of tablets and mobile computers becomes a
must-have for parents of small children, limo drivers, field service workers, etc.
5. Wider integration between connected cars and the internet of things: As the
internet of things becomes more prolific, location and intent will be central to identifying drivers algorithms, thereby making the car the proxy for delivering on the
promise of the connected lifestyle. In other words, intelligent technology will continue to embed itself into peoples day-to-day lives, changing how they engage with
the world including the driving experience.
(Photo provided by Verizon)
29
to bring two worlds together. The traditional automotive industry comes from a
very mechanical world. In the past 15 to
20 years it has moved more and more into
the direction of electrical and electronic
systems and software. That was the first
challenge we had. And we could still manage this well because it was all in the car in
what was pretty much a closed environment. Now the car is getting connected
and we have to deal with data exchanges with the outside world. Were talking
about different technologies, different
lifecycles, a different way of thinking and
different possibilities for new features.
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These new technologies help broaden the customer experience beyond owning the car
33
FLEXIBILITY
The customers growing demand for individuality, ever more volatile markets, global
competition, shortage of resources, ecological aspects and cost pressures force business
organizations to become more flexible:
Flexibility with regard to their own production and product development, but also flexibility with regard to the stronger internationalization of the lines of industry. For instance,
just look at the fact that consumer electronics has found its way into automotive vehicles.
Volatile markets with heavy fluctuations in sales have an increasingly drastic and permanent impact on manufacturing companies. After all, fluctuations of this kind prevent a
reliable forecast of the required product volumes. As a consequence, the ability to ensure
high flexibility regarding delivery periods and quantities has become very important for
business organizations, if they wish to still be able to meet customer expectations in
future. This means that, in future, manufacturing companies will find themselves in an environment in which both the correct and rapid response to changes on short notice and
absolute customer orientation while taking the best interests of the staff into account
will be of vital importance. The shortage of natural resources and space consumption in
urban areas will have an impact on the decisions and actions of business organizations.
This fourth industrial revolution is inspired, made possible and driven by the Internet of
Things and Services. The focus is on the Smart Factory. It is powered by cyber-physical
systems (CPS). It is served by smart logistics, by intelligent mobility, by smart buildings,
resource-saving power generation and supply. It produces smart products that continue
to evolve and change, even after leaving the smart factory.
With our MES projects (Machinery Execution Systems) which are frequently based on
SAP technology, we integrate the centralized business management with production
equipment. The resulting transparency yields flexibility - flexibility for job order planning,
for logistics and production. This integration constitutes a significant component in the
implementation of Industry 4.0 with its cyber-physical systems.
35
60%
High
50%
Very high
40%
hoch
sehr hoch
6%
14%
40%
35%
70%
sehr niedrig
niedrig
7%
7%
80%
Low
12%
43%
58%
63%
30%
20%
10%
0%
n=227
60%
59%
40%
31%
19%
Forschung &
Research
&
Entwicklung
Development
Produktion
Production
Logistik
Logistics
Marketing &
Human Resources
Marketing
Human
Vertrieb &
Sales
Resources
Figure 1: The role of IT from the perspective of the business departments (MHP-Study Industry 4.0,
Nov. 2014)
Industry 4.0 is an interdisciplinary challenge that needs to be dealt with as a top management issue. The business departments expect a tight integration with IT. IT plays a central
role within the company. It orchestrates the backbone of the business.
The Internet of Things and Services is the technical vision of integrating objects of any
kind into a universal digital network. Sensor and identification technologies give various
objects a unique identity and enable their localization. Thanks to digital product memories and embedded systems things (such as cars, consumer goods or clothes) communicate both among themselves and with their environment. They can make decisions
on their own and trigger actions. As a result, the physical world of things is linked with
the virtual world of data. Cyber-physical systems constitute the core, the infrastructure,
of Industry 4.0. These are devices, buildings, transport vehicles or production plants and
logistics components that contain embedded systems and are capable of communicating via the Internet. These objects are intelligent and capable of assigning and executing
tasks on their own.
Thanks to its know-how on contact-free identification technologies, MHP helped to create an RFID-based solution for test vehicles in the Transparent Prototype project. The
assembly status is automatically documented prior to each test run and the test run data
is then compared with this data. As a consequence, we obtained faster and more reliable
results which motivated us to develop a significantly enhanced, GPS-based integration
for the entire test vehicle fleet on behalf of our customer.
The necessary platform for company-wide or cross-company data storage is provided by
cloud computing solutions. The smart objects, products, machines, and internal ICT systems are linked with the cloud via communication networks. This way, data is also available to mobile applications. Using the MHP BIG DATA scenarios, we enable our customers
to create value from data, to make (partly) automated decisions and analyses in real time.
In the course of the fourth industrial revolution, our industrial production, the working
methods and probably even our entire social life will fundamentally change.
Still, how well is Germany, how well are the leading markets of the automotive and manufacturing industry prepared for the pending changes? We took a closer look at this
question and carried out the study Industry 4.0 a positioning of the German automotive and manufacturing industry (November 2014).
34%
17%
0%
I fully agree
I agree
I do not agree
52%
41%
20%
40%
12%
24%
60%
17%
80%
100%
n=227
Figure 2: Industry 4.0 as an opportunity for business organizations and Germany as a business and
investment location (MHP-Study Industry 4.0, Nov. 2014)
The findings of the study show that business organizations still need to cope with many
challenges. Certainly, this equally applies to all organizations in society, such as associations, research institutes and politics. It would be easier to get a grasp on this topic, if
37
Starting point
Environment analysis
Corporate analysis
Roadmap
2012 Mieschke Hofmann und Partner Gesellschaft fr Management- und IT-Beratung mbH
specific, industry-related case studies were used. This is, in particular, true for mid-sized
companies. There is a large demand for concepts, paradigm shifts, technologies and
solutions in connection with Industry 4.0, although the Industry 4.0 is not an established
concept yet and the underlying understanding will have to grow. At present, there is still
a certain degree of skepticism and uncertainty. Generally, business organizations attach
a high importance to Industry 4.0, which will significantly rise in future, although only
50 % believe that Germany will be able to play the leading role. This complex topic is
definitely a task for the top management.
80 % expect that Industry 4.0 will hold a high benefit for their business. In particular, the
ability of responding to changing conditions in a highly flexible manner stands in the
foreground. Cost and resource efficiency are also driving factors. Industry 4.0 technologies
such as BIG DATA, public clouds and the Internet of Things are gaining in importance.
Naturally, the machinery and plant engineering industry is more intensively involved in
Industry 4.0 than the automotive industry, since the efficient and flexible production of
smart products and vehicles requires cross-linked, smart und versatile machines.
39
Qoros Auto was founded in 2007 as a Chinese-Israeli automotive manufacturing company headquartered in Shanghai. The first Qoros production
model, the Qoros 3, made its public appearance at the Geneva Motor Show
in March 2013 and went on sale in China in December 2013. From the start,
the car has come with the QorosQloud infotainment system as standard.
Maurits Aalberse, director of Connected Services at Qoros, spoke to automotiveIT about the brands infotainment strategy and its plans going forward.
discovered that 75 percent of Qoros buyers actively use the majority of the core
services in their car and more than 90 percent would recommend QorosQloud to
friends and family. Thats a great start and
our challenge now is how we can make
this number 100 percent.
So far youre only in China. What kind
of data security concerns are you dealing with in the market and how do you
address them?
Hackers of any kind target connected
objects everywhere in the world. We are
working with world-class global partners
in the end-to-end QorosQloud architecture. That includes the car and the backend. Our partners are strongly involved
with us in this area. Partners include Microsoft, China Unicom, Harman, Wireless Car,
and Neusoft/Alpine.
Given the dominance of the mobile
phone in China, do you need an embedded system there as well?
Our onboard unit is easy to operate. It
offers local functions as well as functions
relying on cloud connectivity and hybrid
as a continuum. We see the car monitor
as one of the screens for the users mobile
journey. The idea behind this is simple.
For example, you plan your route on any
device; it does not matter if this is your
PC, your tablet or your smartphone. Your
smartphone tells you about the whole
journey including walking information.
You then use the screen in the car while
41
Qoros unveiled a hatchback version of the Qoros 3 at the Geneva auto show in March 2014
standard. Were very happy that other carmakers also see connectivity as more and
more important. With our QorosQloud we
created a head start and we are building a
digital value chain from the ground up. It
will be relevant not only for our customers
but also for business partners. Think insurance or car dealers.
Which IT and telecommunications
companies do you work with most
closely?
We are a true first mover in China and
work with several top suppliers. Microsoft provides telematics service, we use
the dispatcher from Wireless Car on China
Unicom as telecommunications provider.
On the backend side, traffic information
is supplied by AutoNavi and enhanced by
TomTom. We get map services by AutoNavi and we also integrate server content
providers like EasyPark for Dynamic Parking services, Dianping local services that
work like Yelp in the US, and many more.
Working with partners help us to innovate
at high speed. Our cloud-based approach
allows regular incremental updates, which
makes us flexible.
But you dont outsource everything.
We rely on key functions to be provided
in-house: We have a team for the product
vision, product management and concept
as well as a design team that focuses on
user experience, interaction and graphic
design and a technical team to get it done,
with, indeed, a strong link to our partners.
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In-vehicle infotainment (IVI) has been in the spotlight for several years and with
recent announcements from Apple and Google, the focus is even more on this
important area.
With the smartphone, the consumer electronics industry has created a revolution
that has totally changed consumers and their habits. Smartphones are now both
communication devices and digital extensions of their individual owners. Benefiting from this digital extension anytime and everywhere is a requirement for more
and more people, which puts the automotive industry under significant pressure
to answer a growing number of questions.
How to deliver to customers in the car their normal smartphone experience as well as an
undistracted and safe drive? How to manage the rapid evolution of consumer electronic
devices? How to manage the diversity of customer expectations resulting from the diversity of the smartphone industry? How to balance the pros and cons of smartphone
integration with the pros and cons of a pure, embedded solution? Is there a risk to lose
brand recognition in a car to the profit of the consumer electronics industry? Should cars
be connected by themselves or through smartphones? What is the value of car data and
should smartphone apps get full access? How is cyber-security managed? What level of
integration or segregation is needed between pure infotainment and car functions tied
to driving assistance? An exhaustive list of questions would fill pages.
Multiple options
Most of the open-ended questions listed have multiple possible answers. And for those
that are not open-ended, the answer may depend on a variety of factors. These include
car segment, market zone, brand strategy, who you put the question to in a company,
when you ask it, etc... For this reason one should be wary of people who pretend they
can describe the future in definite terms. Multiple options are possible and will eventually coexist in coming years. Uncertainty is the only certain assessment one should make
when talking about the future. What is clear and undisputed today is that automakers
do not wait for the answers to all questions before moving forward. They have already
joined organizations that define smartphone integration standards. After the generation
of systems allowing Bluetooth phone, including Bluetooth audio streaming, the new
trend is to allow drivers on the road to use smartphone applications through the cars
HMI equipment: large touchscreen, loudspeakers, microphone, steering wheel switches
and commands.
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This strong trend does not mean that automakers have a smartphone integration only
policy. They still have several good reasons to keep some of the features native to the
OAA
(Android Auto)
BMW
APPLE
(Carplay)
CCC
(Mirrorlink)
X
X
FIAT - CHRYSLER
FORD
GM
HONDA
HYUNDAI - KIA
MERCEDES
MITSUBISHI
X
X
RENAULT - NISSAN
SUBARU
SUZUKI
TOYOTA
VW GROUP
VOLVO
X
Info Web September 2014
embedded head-unit. First, this head-unit does not provide only CE type infotainment
but also supports specific car features such as front and rear parking cameras, on-board
computer, vehicle function configuration, climate control and other features. Second,
the smartphone market is diverse and fast moving. Covering a broad market-share of
smartphones will be challenging and no automaker can afford to leave customers without a preferred solution. Third, some car companies are unwilling to lose control of the
most important customer-facing branding opportunity, the user interface delivered by
the HMI. Fourth, data is seen by some people as the black gold of 21st century. Modern
cars generate a huge amount of data that may be of interest to a very diverse and growing number of companies. The ability to collect and process data and then resell the
information is something that many automakers may like to keep under control.
Competitive solutions
Eventually, some other considerations may favor embedded solutions. Such may be the
case for navigation for autonomous vehicles, as it is not likely that an automaker will trust
a smartphones navigation for autonomous driving use-cases. For all these reasons, a
large majority of car companies still believes they need a competitive solution to develop embedded infotainment. That means a solution under their control, with smartphone
integration being one feature among many others.
GENIVI is working to develop one such competitive solution. Since it was launched in 2009 by
BMW and Intel together with PSA, General Motors, Wind River, Delphi, Magneti-Marelli, and Visteon, the GENIVI Alliance has grown to maturity.
Products using GENIVI deliverables have been launched; membership is stable at more
than 160 companies; and movement from a closed industry organization to an opensource development approach has been accomplished. GENIVI is now launching a more
aggressive technical and marketing strategy in order to better leverage the great assets
realized during the last five years. Consultants estimate that GENIVI-based systems market-share will reach more than 20 percent by 2018. And with member activitiy on the
rise and new automakers joining the alliance, the trend suggests growth will continue.
GENIVI well-positioned
If we look at the big picture of connected cars and the move to the Internet of Things,
GENIVI appears to be well positioned for the future. GENIVI software embedded in the
head unit is in a critical path of the growing number of services provided by the connected car. The head unit deals with infotainment and navigation, both of which use data
from the cloud. The head unit connects through Bluetooth or Wifi to customer devices
enabling communication between vehicle and cloud. On-board HMI enables interaction with connected services provided by the head unit. Through its partnership with
Autosar, which defines car ECU standards, and with W3C, which defines web standards,
GENIVI helps define software standards for sensor-to-cloud communication.
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Through its Linux-based, open source model, the alliance is facilitating a dramatic reduction in development cost and time to market. GENIVI offers the automotive industry the
agility that Android brought to smartphones, plus the fact that the development is facilitated by a non-profit organization with broad community involvement. This last aspect
is a guarantee for the members that they will keep control and can steer developments
without the liabilities incurred by unbearable commercial contracts.
HTML5 brings convergence
Three other important technology moves need to be mentioned to draw the full picture
in the area. First, HTML5 deployment brings some convergence in apps development.
Apps using this technology can be deployed on any device, including GENIVI head units.
Second, personal data storage in the cloud allows people to get their personalized environment everywhere on any device without the need to carry it with them. Finally,
telecommunications technology on the SIM card is moving quickly, especially in the European market. European carriers may allow the use of reprogrammable SIM cards, thus
allowing new business models for communication contracts. For example, a car could
become just one of the devices included in a multi-device, family contract.
Bring all these technologies together, and you can imagine a future where people do not
need to carry their digital extension with them but can access it anywhere, including in
their cars. Such a trend has been described as the pervasive step. It appears it happens
in every technology field after a while.
The future
Through wearable devices available today, the movement of diversification of formats
for a persons digital extension has started. The car as an electronic device may become
one object among others that implements and provides access to the customers digital
world, without the need of any intermediate device.
Once again, the uncertain nature of the future is the only certain assessment we can
make, so the description above is not THE future but only one hypothetical view. But one
thing is clear: GENIVI as the major organization in the in-vehicle infotainment ecosystem will play an important role in the delivery of these future trends for the automotive
industry.
(Photos provided by GENIVI)
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The world is changing fast, being fueled by the rapid acceleration of technological
advances. As I sit writing this piece my youngest son is reading the news on his
tablet and recounting how Alan Eustace, one of my Google colleagues, has just
skydived from a height of more than 40 kilometers at speeds of over 1,300 km/h.
Alans feat is mind-blowing but so also are the technological advances that allow
the spread of this news, in both words and video, so wide and so quickly. He broke
the record previously held by the Austrian Felix Baumgartner. Felixs jump has
been watched over 40 million times on YouTube and was watched by so many
globally at the time that it used 8 percent of the worlds internet bandwidth.
Alan Eustace skydived from a height of more than 40 km at speeds of over 1,300 Km/h
This pace of change in media is incredible. The telephone took 75 years to scale to 50
million users, the radio took 38 years, the television 13 years and the internet just four
years to reach that same figure. Perhaps making the point of this acceleration most
poignantly is that the Angry Birds app took just 35 days to reach 50 million users. This
rapid acceleration is only set to continue. As you read this you are experiencing the
slowest day of technological change for the rest of your life. This pace of change can be
bewildering for many of us as our linearly wired human brains struggle to come to terms
with the exponential rates of advancements.
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It is against this backdrop that I joined Google just over three years ago to lead a team
that works in partnership with automotive manufacturers in developing and delivering
successful digital sales and marketing strategies. This move followed twenty years of
working across the globe in various parts of the automotive industry.
During this last decade, advancements in vehicle design and performance have both
benefitted from and fueled this technological revolution. There have been major advancements in cleaner more efficient propulsion systems and there is also much development time spent on connected vehicles and driverless cars. I would contend, however, that vehicle brands are not generally at the cutting edge, compared to leading
retail businesses, in keeping pace with their consumer and grasping the opportunity
that digital offers them in forming more profitable and longer lasting relationships with
their drivers.
The capacity to change and grasp the digital opportunity is critical for manufacturers
as the consumer shifts behaviors and small agile disruptors flood into the auto space
snapping at the heels of the car giants. These disruptors are sometimes well known and
publicized such as Tesla, which is perhaps as well reknowned in the industry for challenging the distribution model as it is for its sporty electric vehicles. But more often the
disruptors take the form of smaller startups or disintermediators sensing opportunity as
auto manufacturers struggle to change gear and accelerate the adoption of digital into
their sales and marketing.
But it is still not too late to be early in the digitization of automotive commerce if they
act now. The key to success, in my belief, is switching the focus of sales and marketing
departments away from what is emerging from the factory gates to the behaviors of
existing and future customers. The car product cycle is understandably long due to the
huge amount of investment and research that goes into designing and building a new
model, but it is not this rhythm that should be dictating the pace of change in communication and retail strategies.
The role of my team is to help sales and marketing teams across the industry cast off
the shackles of the status quo to ensure automakers commercial businesses are fit for
purpose for Generation Y, who have grown up in the digital age and are forecast to make
up 75 percent of vehicle customers by 2025. We believe there are a number of key behaviors that will characterize success in automotive sales and marketing going forward
and I would like to share these thoughts.
The first of these behaviors is being prepared to take risks or, perhaps more importantly
in the motor industry, remove the fear of failure. At Google we think that if you are not
failing it means you are not setting ambitious enough goals. Our major projects are born
out of moonshot thinking, whereby we have identified a huge challenge and then tackled it with a radical solution together with breakthrough technology.
Take Risks
Notable examples of late include Project Loon. We have a vision that the whole world
should benefit from internet connectivity, but currently two-thirds of the worlds population does not yet have internet access. Project Loon is a network of balloons traveling on
the edge of space, designed to connect people in rural and remote areas, help fill coverage gaps, and bring people back online after disasters. More relevant to this publication
is our work in the field of driverless cars. Our goal is to help prevent traffic accidents, free
up peoples time and reduce carbon emissions by fundamentally changing car use.
Project Loon is a network of balloons designed to connect people in rural and remote areas
Today automotive marketers often find themselves constrained by the existing distribution model. The current unwillingness to risk destabilizing the fine balance between
all stakeholders leads to inaction that allows other new players to disintermediate prof-
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itable areas of the business. Similarly, conservatively persisting with a media mix that
does not match the pattern of consumption of your audience seems more risky than
actually breaking the status quo and fully embracing digital media. Empowering teams
to be creative and take risks can be mitigated by ensuring you constantly listen closely to
the customer. They will always keep you on the right track pointing out if your program
requires iteration.
Wise up
There is lots of talk of Big Data and there is certainly no paucity of data available to auto
brands. The critical skill going forward is not only collecting all the signals your audience
is providing you but, perhaps more crucially, interpreting this data into actionable insights. As Niall FitzGerald, former Unilever CEO put it: Data makes your briefcase heavy
insight makes you rich. Listening and reacting to audience signals enables brands
to have conversations with prospects as they go through their complex multi-device,
multi-platform research journeys with a view to vehicle purchase.
Brands success at winning new customers and increasing loyalty will depend very much
on such conversations, as customers increasingly expect a more personalized digital relationship. To do this most effectively we work with car brands to work across the historically siloed after-sales, sales, finance, dealer and CRM departments. This ensures there is
one voice of the brand listening and responding with the most relevant response at the
moments that matter.
Another benefit of all the data provided by digital marketing is the ability to measure the
effectiveness of your media spending. This is clearly dependent on measuring all the KPIs
that truly measure actions that propel the customer down their route to purchase, rather
than only valuing KPIs such as brochure orders or test drive requests. Research suggests
these are no longer the core currency in lead generation.
As automakers increasingly move to programmatic digital media buying they have the
opportunity to manage real time personalized digital customer journeys. However, the
holy grail of truly understanding the conversion rates of both on and offline prospects
into actual customers by media source remains the key to ultimate success.
My last point brings me back to the rapid acceleration of technological change and how
this has transformed drivers into constantly connected consumers, time-poor but with
high expectations.
Move Fast
To be ultimately successful we will strive to help car brands to become quicker on their
feet and with this increased agility be able to keep one step ahead of their challengers.
Our research shows that over half of car buyers globally would contemplate buying online. With car sharing schemes and other innovative mobility solutions gathering pace,
automakers are going to have to be ahead of the pack, driving and benefitting from
these changes rather than suffering from the potentially more negative consequences
for existing business models.
The world is moving fast and automotive sales and marketing needs to catch up quick. I
am personally excited about the future for automotive and I am committed to ensuring
that OEMs grasp the opportunity that digital offers and use it to drive successfully to
2020 and beyond.
(Photos provided by Google)
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Even with the rise of Toyotas lean production system, the automotive industry
and its business models have remained largely stable for decades. Most of todays
OEMs and tier-1 suppliers were already household names a generation ago, and
economic downturns and attempts at consolidation have had little or no effect
on the industrys basic line-up. Now, however, the automotive industry faces the
prospect of gale-force disruption. A combination of new developments has the
potential to change or even replace current OEM business models in the decade
ahead. To adapt successfully, OEMs will need to come up with strategies to guard
the most important control points the human-machine interface, car condition
data, and dynamic real-time information as they are the gateways to the redistribution of profits over the car ownership lifecycle.
Of the new developments in the automotive industry, the connected car and, to a lesser
extent, e-mobility have clear potential to severely alter todays automotive value chain.
While revenues from connectivity in all its facets might only account for a small share of
the total customer lifecycle spend, the connected car opens the door to todays digital
titans, who may be able to move in front of the OEM, directly facing the customer. Incumbent OEMs and suppliers could find themselves fighting a losing battle if they underestimate the risk and lack strategies to define, defend, or expand their competitive positions.
Assuming e-mobility continues to grow, OEMs face losing one of the most important differentiating components the internal combustion engine (ICE) developed and produced
in-house or with a tier-1 supplier. Furthermore, as a powertrain with an electric motor and
no gearbox is much less complex than an ICE, the spread of e-mobility will lower technological barriers to entry. New players as epitomized by Tesla may intensify competition
in an already fiercely contested market. What is more, they will almost certainly accelerate
the pace of change in the automotive industry. One early sign of the speed of change
potentially ahead is the large number of Tesla customers who switched from Model S to the
new and improved Model D within 24 hours of its market launch in October 2014, only two
years after the debut of Model S a pace of change so far only seen in consumer electronics.
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driver of impact. To get a better idea of how disruptions and more evolutionary changes
could play out, we find it useful to consider their impact on customer spending pools
along the entire car ownership lifecycle (Exhibit 1).
Exhibit 1
New car (base) price. Car connectivity has the potential to shift significant market shares
between OEMs. In McKinseys 2014 Connected Car Consumer Survey, one new car buyer in five would switch brands to get better connectivity features. The emergence of
third-party connectivity solutions, such as the Open Automotive Alliance and AppleCarPlay, has the potential to level the playing field among automotive OEMs for infotainment and other software features.
Operations. Powertrain innovations will be pivotal. Not only because customers increasingly seek low-consumption vehicles, but also because it will be crucial for OEMs
to master new powertrain technologies in order to meet upcoming CO2 regulations.
E-mobility/electric powertrains currently seem to be the most viable option.
Insurance. Insurance is a potential source of additional revenues for OEMs given their
privileged access to connected driving data that supports pay-as-you-drive and pay-howyou-drive models.
Maintenance. Vehicle upkeep and repairs will remain steady as a customer spend pool,
but connected services will likely open up new or better ways for non-OEM parties to grab
a bigger piece of the revenue stream. For example, suppliers have launched apps that
not only detect maintenance needs but also suggest a maintenance service center to
the driver, which clearly opens the path to directing customers away from a given OEMs
authorized service centers.
Dealer margin. Digitization revolutionizes sales and service processes, and other industries
are leading the way in innovating their retail formats to integrate online and offline shopping. Most new car buyers still rely on traditional dealers and will continue to do so, especially in the decision phase and for the all-important test drive. As digital and cyber-physical
systems become more widespread, however, OEMs will need to transform todays dealer network into a profitable multi-format sales channel that combines offline and online strengths.
Connectivity hardware. There is also the increase from the underlying connectivity
hardware, a spend pool that is expected to grow from EUR 29 billion today to about EUR
155 billion in 2020. However, this pool will stay part of the new car price. As we expect
customers will not increase their spending over a five-year car lifecycle, overall revenue
from connectivity hardware for the OEM is not expected to increase either: higher rates
of adoption will just be offset by eroding feature prices. Furthermore, such revenue is at
risk of being reduced or taken over by consumer electronics players.
Drivers time and attention. This spend pool is enabled by the growing connectivity in
the car. We expect a fifteen-fold increase until 2020 in app- and content-related revenues
over the lifecycle, mainly through usage-based subscription payment models. However,
customers will likely be loyal to their existing app/content providers, thus limiting OEMs
ability to capture part of this revenue stream to around 50%, even in an optimistic scenario.
Infrastructure. The cost of road repairs will remain in the taxpayer domain in the medium term. However, for the connected car and autonomous driving, which we expect to
see from 2017 onwards, OEMs might need to support investments in digitized infrastructure, such as the algorithmic optimization of driving patterns. This task is too big and too
critical for city or state-level governments to orchestrate alone.
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As these points suggest, we see clear risks that new attackers will force OEMs to accept
thinner margins along the value chain.
Access to granular map data will also become one of the critical enablers of (semi)autonomous driving.
Other lessons that have proved valuable are to anticipate customers priorities instead of
relying on a current value proposition (i.e., Apples iPhone strategy); to manage IT as if it
were a profit center instead of a mere support function; and to foster industry-wide and
cross-industry alliances/partnerships instead of playing lone ranger.
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Were not just talking about the engineering perspective but also about the support
and service we provide to the customer.
Well want to make changes to onboard
services much more frequently and take
advantage of how quickly technology advances. That remains a challenge in terms
of culture and discipline. The service we
provide needs to be more in line, perhaps,
with whats customary in consumer electronics than in the traditional automotive
realm.
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and other communication devices we carry with us all the time. Another obstacle
on the road to car connectivity is the pace
of deployment. It will take eight years to
replace just half of the cars on US roads
today, so if you supply every new car with
connectivity this wont be enough. You
have to enable the functionality also on
existing cars by adding a device or offer
smartphone-based services.
Is connectivity an area where carmakers are more inclined to work together than on other issues?
The car manufacturers have to work together. There is no space for three competitive consortiums. Also no automaker has
the resources to do everything by itself. Of
course they can and will differentiate their
services. The look and feel will be different
from maker to maker. We currently have
the Connected Car Symposium and AUTOSAR and the VII (Vehicle Infrastructure
Integration) Consortium. The VII Consortium should be in the lead.
Who is driving the connected-car revolution: automakers, IT companies, consumers?
The IT companies are late to the party.
Data analytics companies are participating in the development of the connected
car rather than driving it. The car is not a
cell phone accessory. The user interface
is different and the focus has to be on
easy-to-use controls. In the two seconds
you spend looking at something on your
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The best way to predict the future is to create it, US President Abraham Lincoln
once said. So, as we enter Industry 4.0, a new era of cyber-physical systems, the
internet of things and connected processes, what is the future that we will create
in the automotive space over the next 10 to 15 years?
Given the evolution of mobility, history teaches us to think boldly about its future. Just
three generations ago, who would have predicted that we would be able to travel anywhere, anytime and with minimal effort? Rail travel opened up a whole new world of
connectedness in the mid-1800s, only to be superseded little less than half a century later by the automobile for the masses. Societies accustomed to traveling by buggy, bicycle
or foot had to reimagine their worlds.
As we envision the mobility of the future, will we be able to both create and produce
our own custom car? Can we go beyond a zero-emission vehicle to a mode of transport
that actively supports environmental health and balance? What about vehicles that are
so smart they literally cannot be crashed and that can even contribute to personal and
urban safety?
What if the main producers of mobility end up as governing bodies that abolish sound,
smells or other factors deemed detrimental to their community, similar to non-smoking laws? Or, as one futurist predicts, will we nearly do away with the need to travel as
nano-bots implanted in our brain deliver full-immersion virtual reality environments?
One thing is for certain, with the immense societal and emotional impact of mobility and
with the increasing rate of technological change, the automotive industry will evolve at a
pace like never before. At Dassault Systmes we are conscious of our role in this change
and we have architected our offering with the purpose of building a future open to
choice and backed by security. And, we make it available in a way that opens the path to
the future now, regardless of where the customer currently stands. Our contribution to
the industry is based on three fundamental assumptions for achieving the possibilities
we can imagine in Automotive 4.0
Place the customer experience in the center of innovation
As we enter the age of experience across the economy, the automotive industry, or
more aptly the mobility providers, will also broaden their scope. It will no longer be
about producing and marketing a product or a brand. It will be about creating mobility
experiences around how consumers use and interact with the vehicle.
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To lower the risk of innovation in this new world of mobility experience, customers will
be strongly involved in the creation process up front via lifelike 3D virtual experiences.
The ability to run dynamic and immersive clinics in a virtual environment at the design
stage will offer new ways for understanding and validating consumer desires around
mobility. Furthermore, leveraging massive amounts of unstructured information (Big
Data) will catalyze the creation of customized mobility experiences. In-vehicle sensors
alone, expected to reach 200 per vehicle by 2020, provide new levels of real-time feedback so that technical and business people will be able to interpret customer behavior.
All of this information, meshed with external data from online social networks, will be
used to continually improve driving performance and provide the desired experience.
Visteon has already leveraged a 3D-enabled social innovation platform to eliminate formal organizational barriers and gather insight in the creation of its e-Bee concept vehicle.
This reduces development time while leveraging both internal and external communities to drive a company culture of innovation and knowledge-sharing.
To understand the full impact of innovation, manufacturers will extend beyond the physical and technological aspects of the vehicle to simulating functional and behavioral
aspects. Furthermore - the vehicle, which is now a smart system, will be simulated within
the scope of larger systems such as traffic, energy and even community- and homegrids. All of our automotive customers have started to build their innovation on systems engineering. AKKA Technologies concept car Link&Go is proof of how innovators
in the automotive supply chain can marry advanced systems engineering know-how
with social innovation to deliver impressive new perspectives for self-driving mobility on
urban roads.
Become agile by managing the increasing complexity
This may sound contradictory. But in the era of Automotive 4.0, automakers will be able
to master the immense backend complexity of the development and manufacturing
processes while simplifying the user experience across the enterprise. The first method
to achieve this is integration and in todays IT environments, where many isolated applications have grown over decades, the opportunities are numerous. Integrating design
and engineering to preserve design intent. Integrating engineering and simulation for
cost-performance tradeoffs and for product compliance. Integrating mechanical, software and E/E development for an
optimized development architecture. Integrating test and validation
with marketing and sales to meet
requirements. Every part of the organization will benefit from intense
integration, connecting people, information and processes in a single,
intuitive and collaborative environment.
AKKA Link&Go simulation of its u-turn function
The next key to managing complexity is modularization, ideally by implementing a
modularization strategy again requiring integration of various disciplines from requirements over systems design, detailed engineering, and testing to manufacturing.
The integration will comprise the virtual and physical world: Integrated hardware and
software testing, integrated manufacturing planning and operation, etc. whereby smart,
modular objects will implement the behavior of complex systems. The base technology
and concepts are available today, and what will follow is solutions in support of concepts
like the Resilient Factory or Adaptive Logistics. Dassault Systmes recent acquisitions of
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APRISO and QUINTIQ are providing the capability to build flexible shop floor and logistics
processes, leveraging the complex information systems with which they integrate. The
next step implementing intelligent, self-adaptive systems in manufacturing and logistics will only be limited by how far the integration and modularization strategies will
reach. If 3D printers are able to handle a portion of the spare parts production, what will
be the impact on product design, packaging and commercial aspects?
Lastly, the management of complexity has another dimension. Just as mobility users will
gain the ability to personalize their experience, the mobility creators will also (need to)
benefit from a workbench that is more flexible, attractive, intuitive and customizable to
the individual needs. High levels of data security, technical precision and performance of
the product development tools and applications will be the foundation of a more inspiring work environment that attracts any generation of innovators. Cloud solutions lead
the way, as they enable the organization of agile, scalable IT environments that bring the
world-best capabilities to anyone, whether a single expert or globally operating corporations with tens of thousands of users.
Assume greater responsibility
Companies are accustomed to acting as responsible corporate citizens, but these responsibilities will grow with the capabilities of tomorrows technologies. Environmental
aspects have long been part of the automotive industry concerns and todays drivers
expect delivery of fuel-efficient, eco-friendly vehicles without sacrifice to performance.
With varying compliance mandates across the globe, mobility providers will use a platform that manages compliance complexity and enables modeling and behavior simulation that shows the energy balance and potential impact of the vehicle design on the
environment.
Increasing passenger and pedestrian security will continue to be a driving element for
future innovation and we see how this focus is growing rapidly. This is why Target-Zero-Defect approaches are (and will continue to be) so high on the industry agenda today. They address faultless and incident-free operation around corporate processes and
data. And what about the leveraging of customer and customer-use data? With the array
of in-vehicle and exterior sensorics available, the industry may be expected to actually
contribute to a persons social well-being and health. These requirements could begin by
recording a passengers state of health and - according to the situation - emit calming
scents into the vehicle, start a massage that prevents backache or blood clots, or immediately connect to a medical specialist in case of emergency. Generating and processing
the respective personal data will at least in data-sensitive countries require passengers to feel a great amount of confidence. Mobility providers brand promise and associated dimension of trust will have to reflect business models that will take the pleasure
of driving and advantage through technology to a new level.
Looking forward
We are not clairvoyants who can predict the future of mobility. However, we are certain
that integration and the impact of social innovation will be fundamental enablers for
further time-to-market and productivity gains by mastering the exponentially increasing
complexity of mobility innovation. More connectedness within vehicles and between
vehicles and their environments, as well as continuing demand for individualized mobility will provide new opportunities for automotive innovators to create differentiated
customer experiences. Virtual work environments that are realistic, collaborative, intelligent and intuitive will be the innovation labs for creating these experiences. Todays
technologies although constantly evolving already build a bridge to provide the level
of collaboration required for operating tomorrows Automotive 4.0. We have architected
our inclusive and open 3DEXPERIENCE platform and our Industry Solution Experiences
to connect imagination with action, enabling innovation both today and tomorrow. We
look forward to creating the future of the automotive industry with you.
(Photos provided by Dassault Systmes)
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Schreiner: With more data, we can enrich the functionality of in-car systems
Otmar Schreiner, director R&D Interior Electronics Solutions at Continental, is responsible for new system
solutions and programs within the
interior division of the German automotive supplier group. Since 2012, he
has also headed the Interior Electronics Solutions division in France, with
a focus on hightech low-cost components and systems. Schreiner has
a degree in mechanical engineering
and business administration. He studied at Darmstadt Technology University in Germany and UC Berkeley,
California. He joined Continental in
2005.
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By Thomas R. Koehler
In November, 2014, the worlds major automakers decided to address the privacy issue
proactively. Nineteen automotive companies from the US, UK, Japan, Germany and Sweden agreed on common principles for collecting, analyzing and sharing of consumer
and driving data. These principles were agreed upon by the members of the Alliance of
Automobile Manufacturers and the Association of Global Automakers. They are listed on
the www.autoalliance.org web site as follows:
Transparency: Participating members commit to providing owners and registered
users with ready access to clear, meaningful notices about the participating members
collection, use, and sharing of covered information.
Choice: Participating members commit to offering owners and registered users with
certain choices regarding the collection, use, and sharing of covered information.
Respect for Context: Participating members commit to using and sharing covered information in ways that are consistent with the context in which the covered information
was collected, taking account of the likely impact on owners and registered users.
Data Minimization, De-Identification & Retention: Participating members commit
to collecting covered information only as needed for legitimate business purposes.
Participating members commit to retaining covered information no longer than they
determine necessary for legitimate business purposes.
Data Security: Participating members commit to implementing reasonable measures to protect covered information against loss and unauthorized access or use.
Integrity & Access: Participating members commit to implementing reasonable
measures to maintain the accuracy of covered information and commit to giving
owners and registered users reasonable means to review and correct personal subscription information.
Accountability: Participating members commit to taking reasonable steps to ensure
that they and other entities that receive covered information adhere to the principles.
These principles are an important first step for the protection of consumer privacy rights.
They also give automakers sufficient flexibility to address their needs and wishes in the
ever growing field of consumer data collection and usage. From an outside perspective
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the principles outlined here cover much more than one would expect from a tech company. The European influence can be seen throughout the whole agreement.
However, from a customers point of view, the agreed-upon rules leave a lot to be desired. For example, just think about data minimization and data retention for legitimate
business purposes. Most likely, this will open the door for companies to store data on
driving habits even when the customer may not want this information captured at all.
Of course, all carmakers have to abide by the law and have to hand over data if forced
to do so by a public warrant. Customers and automakers both would, in such an event,
be better off having stored no data at all in the first place. After all, the driver could get
a speeding ticket on the basis of connected-car data. And the automaker may incur
sizable administrative expenses as government agencies request more and more access
to connected-car data.
Consumer fears of total surveillance are growing and automakers need to be sensitive to
this. That means adopting a proactive approach to privacy that goes beyond the common principles outlined here. When consumers have to deal with questions of sharing
data with governmental agencies, insurance providers or other companies, automakers
need to be their allies. With cars only now getting connected, this is the proper time to
lay the proper groundwork. The acceptance of all connected car services is at stake. It will
be crucial for long-term success to get the approach right from the start.
Imprint/ Contact
Book title
Contributions from
Volume 1/ 2014
Publishing house
Schmiedgasse 11
82335 Berg
Germany
www.automotiveIT.com
online@automotiveIT.com
Publisher
sauer@media-manufaktur.com
Editor-in-chief
Arjen Bongard
abongard@automotiveIT.com
Art Direction
Interviews
Henrik Schramm
www.enjoy-design.de
Printer/ E-Paper
BWH GmbH - Die Publishing Company
Beckstrae 10
30457 Hanover
Germany
www.bw-h.de
ISBN: 978-3-9817013-0-2
87
Personal mobility is changing and the auto industry is adapting to a new era
of connected consumers living in an increasingly urban environment. The
subject of this book is how the industry is in the midst of developing a totally
new business model to build on its successful 125-year history. In a series of
exclusive interviews, automotive executives explain how they are drafting
and executing this blueprint for a new era of personal mobility. Their insights are complemented by the views of the automotive IT partners that are
instrumental in making the changes happen. The transformation has many
sides and all of them get ample attention in these pages. The focus, however, is on the big issues: Connected vehicles, big data, car sharing, electric
propulsion, digital retail, Industry 4.0, autonomous driving and data security.
www.automotiveIT.com