Mobility in Automotive GEARING UP FOR CHANGE
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1 Mobility in Automotive GEARING UP FOR CHANGE
2 MOBILITY IN AUTOMOTIVE The automotive industry is confronting a number of trends that create new challenges while also providing opportunities for growth. These trends include geopolitical and demographic changes, a need for sustainability, and the demands of operating in a connected world. Other changes in the market include increasingly responsive supply networks, new mobility-based business models, more complex development cycles, and more savvy customers. Based on our global experience of working with some automotive manufacturers over the past few years, we at Mobinius believe that, in the future, the most successful car manufacturers will be those that transform into businesses that operate more like high-technology companies. In the process, the car itself will become not merely a device for mobility, but a mobile device in the same sense that technology companies understand the term a platform for innovative, compelling applications that enrich the user s experience. Therefore the dominant industry players in the car s next century will be those that understand and embrace this shift early. This will require them to work with the right partners to build a global framework and infrastructure that ensures they re successfully able to meet the differing demands and requirements of diverse markets and customers, while also supporting growth in a way that s environmentally sustainable. The automotive industry is already highly dependent on computer technology. There are more lines of software code in a modern car than in a commercial airplane from pollution avoidance solutions, through comfort and safety features, to in-car entertainment and satellite navigation. What s more, cars and the advanced computing power they contain are now becoming increasingly connected to the internet. When you begin to think about the car as a connected, mobile device, the possibilities are compelling and, indeed, telematics (the fusing of telecoms and information technologies in vehicles) is now playing an increasingly central role in customers purchasing decisions. In addition, once cars can communicate electronically with other vehicles on the road (and, indeed, with the road itself) in real time, exchanging information such as their current speed, performance data, road conditions and precise location, it opens up a whole new vista for accident-avoidance, traffic-flow and parking management solutions ultimately, even, the self-driving vehicle.
3 WHAT ARE THE FACTORS BEHIND THIS RADICAL SHIFT? First, mobile technology in the last two decades has completely revolutionized the consumer s lifestyle. The consumers now demand the same connectivity choices and features while on the move as in their homes and offices. They want to multi-task-talk to their friends on the phone and Tweet or update their Facebook status while driving the car. According to a study by insurer State Farm, web-surfing on smartphones while driving among drivers aged between 18 to 29 years increased from 29% in 2009 to 48% in Similarly, a study by J.D. Power and Associates reveals that 47% of vehicle owners indicate they use a navigation app on their smartphone in their vehicle, compared with 37% in The rising use of smartphones behind the wheel is raising concern about distracted drivers on the road jeopardizing his/ her safety. In-vehicle apps address this issue by bringing apps on to the dashboard of the vehicle. The in-dash system requires minimum driver attention to activate apps allowing him/her to concentrate on the road. Furthermore, there is a considerable percentage of car buyers who value driving experience above cost and fuel efficiency. These prospective car owners want the best technology in their car, just like the technologies in their personal and professional lives. There is also a massive surge in the number of innovative, compelling apps that promise to enrich the driving experience.
4 APPS IN THE NEW GLOBAL AUTOMOTIVE MARKET Year Cars Sold Apps take up Numbers of Average $ Total (Millions) (%) users buying Spend Per Revenues apps (Millions) User (Millions)
5 NEW TECHNOLOGIES New technologies are powering the driver behind the wheels. It s not a single technology but a collaboration of technologies and engineering concepts that are redefining the vehicle. Telematics The integration of telecommunication with information and communication technology commonly called telematics is bringing a host of advanced features in to the vehicle. Some examples of telematics in the automotive industry include providing driving feedback, automatic driving assistance systems, wireless safety communications, remote vehicle diagnosis, GPS navigations and car tracking, etc. Insurance companies are also coming up with mobile apps that can be connected with the car s telematics to provide real-time driving data which can then be used to price insurance premiums. Speed management devices These devices help drivers when they exceed a particular level of speed. Parents who are worried that their teenage kids might speed can also use it to ensure their safety. Mobile apps integrated with speed management devices can provide drivers with an array of speed-related information like maximum speed, speed graph, speed limits and speed warnings. Satellite navigation systems It aids drivers by providing information on road conditions and traffic congestion ahead and hence improve vehicle safety. Satellite navigation systems could be used in building mobile apps to provide voice-guided directions, location-based information, traffic flow, etc., to drivers. Voice response systems Already in use for hands-free phone dialing and operating car stereo systems, the VRS is expected to extend into other car functions like locking/unlocking and giving instructions for location based services, etc. There are mobile apps in use that enable drivers to use voice control for their smartphone apps in the vehicle. VRS is also being used to enable drivers to operate the stereo system of the car, search for desired songs and play it using voice instructions.
6 Radars Short range radars are fitted into vehicles that enable automatic braking in case of the possibility of a collision. Mobile apps connected to these radars can help drivers detect radar and laser guns used by law enforcement agencies and warn them of speed cameras, red light cameras and dangerous intersections ahead. Cameras Cameras are already in popular use to provide a rear view to the driver. The newest advancement is using multiple cameras to provide a 360-degree view to the driver with alerts and alarms for approaching objects. Moreover, some automakers have come up with apps that allow drivers to shoot images, videos, etc., from the running vehicle using these cameras. Night Vision The technology isn t new. Premium vehicles were using it in one form or another, providing drivers with better vision at night or in low light areas. The technology pinpoints people, prevents glare and enhances road signs. We will see its mainstream usage in the days ahead. There are mobile apps available that can turn a mobile phone into a color night vision device with picture, video and zoom features. These apps can be integrated with the dashboard display of the vehicle to provide high-quality night time vision to drivers. With vehicle-to-vehicle and vehicle-to-infrastructure technology gaining traction in automobile engineering, newer technologies will play a pivotal role in the transformation of the vehicle.
7 UNLIMITED POSSIBILITIES When you begin to think of powering the car with mobile technology, the possibilities are endless. While entertainment apps in the cars are getting a lot of interest these days, there is much more beyond music and videos that can be brought to a vehicle via an app. Imagine the car stereo automatically muting when the driver receives a call on his mobile phone or the AC temperature of the car automatically adjusting depending on the heat outside. Or, the driver receiving weather and traffic updates on planned routes along with service reminders from the dealer. The apps have the potential to redefine the driving experience. Driving Real-time maps, direction advice. Route planners Traffic-flow advice Parking assistance Fuel efficiency, Climate control Hybrid Navigation Geo fencing Vehicle Care Service alerts and reminders Car diagnosis Service alerts and reminders Car breakdown warning automated emergency assistance in accidents Safety Traffic violation and collission warning Theft alerts Remote door locking/unlocking Vehicle tracking Entertainment Download and play music, videos, watch TV etc. Wi-Fi hotspot to connect mobile devices Social media apps Location based information Points of interest information Others Connectivity to smart homes e-commerce solutions Mobile banking apps Mobile health apps Mobile office
8 TO GROW MARKET SHARE, AUTOMOTIVE COMPANIES CAN TAKE THE FOLLOWING STEPS: Rapidly position for globalization and growth Emerging markets are growing faster than the old economies, and new business models and services will change the automotive landscape. Automotive companies must respond to changes in supply and demand while catering to regional characteristics and new customer behaviors. Enable collaboration and real-time insight Enable collaboration and real-time insight Automotive companies can harness real-time analytics to build innovative, high-quality products and vehicles that consumers want, helping them to drive profitability and win market share. With real-time analytics, companies can also quickly detect, understand the potential impacts of, and resolve critical situations in the material flow. Deliver a customer-centric buying and ownership experience Customers expect convenient, personalized, and highly relevant experiences, both online and in person. Advocate customers are increasingly becoming the currency of marketing. Preference for engagement channels is constantly evolving as new social platforms and technologies appear.
9 WHY MOBINIUS? Mobinius offers solutions, best practices, and technology that enables automotive companies to orchestrate key business processes. This enables them to focus on becoming profitable, best-run organizations. Big Data, cloud computing, mobile solutions, a stable platform, and analytics applications all support the market-driven transformation required for automotive companies to prosper. These solutions help companies to integrate and accelerate business throughout the automotive value chain. The technology also powers growth and enables automotive organizations to better meet the needs of customers. When companies can innovate faster, increase quality, manufacture efficiently, and deliver an excellent customer experience, they increase profitability and gain competitive advantage. Accelerating the pace of innovation requires insight and improved collaboration. Mobile solutions from Mobinius extend the work platform and provide a flexible, secure working environment for internal and external global teams. Becoming more agile and efficient while avoiding disruptions across the extended value chain depends on close scrutiny of key performance metrics. Cloud solutions by Mobinius help ensure usability, speed, flexibility, and integration across all business processes. With these solutions, automotive companies can improve business value and agility while reducing up-front costs and minimizing risk.
10 Operational Excellence AUTOMOTIVE VALUE MAP Collaborative Product Innovation Manufacturing and Logistics Responsive Supply Networks Marketing, Sales, and Aftermarket Asset Visibility and Performance Continius Product and Service Innovation Product Planning and Execution Sales, Inventory, and Operations Planning Data-Driven Marketing Environment, Health and Safety Integrated Product Development for Discrete Industries Operational Procurement & InboundLogistics for Direct Material Demand and Supply Planning Agile Marketing Quality Management and Compliance Product Safety & Stewardship for Discrete Industries Lean Manufacturing Transportation Management Dealer Business Management Sequenced Manufacturing Warehouse Management Vehicle Sales Management Outbound Logistics Service Parts Management Customer Service, Support and Warranty Management Human Resources Core Human Resources and Payroll Talent Management Time and Attendance Management Workforce Planning and Analytics Finance Financial Planning and Analysis Accounting and Financial Close Treasury and Financial Risk Management Collaborative Finance Operations Enterprise Risk and Compliance Management Procurement Strategic Sourcing and Supplier Management Procure to Pay with Business Network Collaboration Business Network Extensions for Procure to Pay Information Technology Application Lifecycle Management IT Infrastructure Management IT Portfolio and Project Management IT Service Management IT Strategy and Governance Technology and Platform Big Data Real-Time Enterprise Real-Time Analytics Enterprise Information Management Application Integration Colud Solutions
11 MOBINIUS INNOVATIONS With tough economic conditions and stagnant mature markets, automotive companies need to increase efficiency across the entire product lifecycle by speeding up product innovation times, improving quality, manufacturing profitably, and better satisfying customers. Data-driven knowledge is instrumental in driving a strategic advantage through more relevant and highly targeted marketing. With Big Data and powerful analytics, automotive companies can turn terabytes of information into a clear insight and competitive advantage. At the same time, mobile apps are enabling every aspect of your business to fun faster and more efficiently by providing employees with access to critical intelligence anytime, anywhere. Cloud computing is providing new ways to unlock extraordinary potential that allows businesses to run faster and better. Today, new technologies will enable automotive businesses to better understand the needs of customers and ensure that business users have access to the insight they need to improve every aspect of enterprise operations.
12 CHALLENGES While mobile technology offers tremendous benefits, opportunities and possibilities to the automotive industry, there are many issues and challenges that need to be addressed and resolved. The first major issue is the cost of in-vehicle apps. While there are car owners who are willing to pay extra for mobile-powered vehicles, their numbers are still too low to sustain the business model. Most people see their smartphone as the solution to many of their driving needs and hence are unwilling to spend more on in-vehicle apps. Car manufacturers need to bring in capabilities and features that are distinct from what s available already on the smartphone. Safety and security are other key challenges. Driver distraction needs to be minimized through smart interface design. Consumer data and privacy needs to be protected through robust security mechanisms. Another major issue is platform proliferation; every manufacturer is attempting to build its own ecosystem though unique APIs, SDKs and developer community programs. The platform fragmentation needs to be minimized through common platforms to bring more apps, and thereby customers, to the fold.
13 1 Understand and embrace this shift. Mobile will alter the industry landscape. Get ready to leverage it with a well-planned strategy. Mobility is not only about apps, but about optimally leveraging mobile technology to create a unique experience. Pay special attention to data security. WE RECOMMEND There will be a lot of customer 4 data that will be exchanged 5 between apps. Ensure that customer privacy is not in danger. Employ adequate authentication and authorization processes. 2 Collaborate to gain. Simple in-vehicle apps will not suffice. Simple in-vehicle apps will not suffice. Building a platform that offers an innovative and immersive experience will be the game changer. You need to collaborate with service and technology providers who can, together, help you create an awesome experience in the car. 3 Focus on consumer experience. Experience suggests that apps that extend driving experience are found to be a huge hit among customers. Car owners not only want mobile applications that are superior in functionality but that Get ready for next generation technology. Augmented reality, vehicle-to-vehicle and vehicle-to-infrastructure communication will form the basis of the next generation of developments in in-vehicle apps. Ensure that your technology infrastructure is capable of supporting them in the future. are also easy and fun to use.
14 To learn more about including the Mobility in Automotive as a strategy for your organization, visit or speak to a Mobinius Consultant , info@mobinius.com
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