Connected Cars as the next great consumer electronics device

Mark ThomasGlobal Head of Connected Car Product Marketing

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Connected Cars: The next great consumer deviceConnected Cars are the next great consumer electronics device

Personal computers connect to the Internet

Dotcomrevolution

Phones connect to the Internet

Smartphone app revolution

Vehicles connect to

the Internet

Connected Carrevolution

http://www.slideshare.net/CiscoJasper/iot-now-from-things-to-outcomes

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Embedded connectivity is key for connecting carsAccess to device hardware enables disruption

Smartphone app disruption

Access to hardware• Fingerprint reader (finance)• GPS location (maps)• Motion tracking (fitness)• Graphics hardware (gaming)• Camera (social)

Works offline• Always available

Yahoo Mail SnapChatFlickr InstagramMapquest Waze

Connected Car disruption

Access to hardware• Airbag (safety)• GPS location (insurance)• Door locks (car sharing, app

unlock)• Mechanicals (maintenance)• Battery level (charging mgmt)• Sensors (hazard reporting)

Works “offline” (phone not in car)• Always available (Security)

New connected car services

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Services by optimal connectivity type

Infotainment• Music and playlists

Wi-Fi• Car Hot Spot

(better antenna)

Communications• Phone calls• SMS

Security• Break in detection• Tracking/slow down

Safety• Ambulance call• Crisis assist

Maintenance• Diagnostics• Firmware OTA

E-vehicle• Reserve station• Auto-payments Insurance

• Pay as you drive• Pay how you drive

Remote monitoring• Door unlock• Engine start

Concierge services• Human assistance• Ecommerce

Embedded Connection

Navigation• Turn by turn directions• Traffic alerts• Last block, multi-modal• Parked vehicle locator

Web Browsing(while parked)• News, stocks, reviews

Smartphone

Services by optimal connectivity type

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• Cars are app ecosystems

• Connectivity for consumer and OEM

• OEM pays data bill

• Subscriptions max at 10-15% take rates

• Internet business models needed

Connected Car has unique IoT requirements

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Service portfoliominimal complete

Wave 1Safety and Security

Subscription

Internet Monetization

Wave 2MusicNavigationConciergeOEM diagnosticsWiFi Hotspot

Complete services portfolio

Wave 3App stores

Business model innovation

Business model sophistication

Shifting from services to monetization

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Offer: Music + Data

Model: 3rd party subscription

Offer: In car insurance

Model: Bounty. Data cost recovery, markup.

Offer: Book discovery, purchase, listen including data

Model: Bounty, revenue share, data cost recovery

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Internet monetization increases complexity

Offers & ServicesBusiness Models &

Payer Relationships

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Service platform requirements

Split billing AutomationService level

controls

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Vehicles Operator Networks Enterprise Backend

Connected Vehicle

Systems

IT Systems

IoT Service Lifecycle

Services Platform

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Vehicles Operator Networks Enterprise BackendServices Platform

Connected Vehicle

Systems

IT SystemsControl Center

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What will my car have to say to other IoT things?

“”

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CARS ARE CONTEXT Cars are context

Destination Entered, calculated, recommended

Person stateCalculated (tired), hungry, bored

Vehicle state Engine, tire pressure, CAN bus, air bag incident

Location stateRoad, current speed, road hazard

Person activityIdentity, music, destination context

Cloud based ideas (food, saved places)

Entertainment streaming, friend destination/ETA

Real-time route changes

Undetectable immediate hazards, parking spot

Service bulletins, remote state changes (unlock)

Person

Location

Vehicle

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Connected Car: a constant dialog

ContextPerson,

Location, Vehicle

Arrival time (triggers heat)Route (reminders) Location (arm/disarm)

Destination and ETAPodcast. Mood.

Road conditions, weather (wipers), pothole.

Destination, pollution

Published Context: Consumed Context:House reminders that are route aware. (milk)

Same. Ride requests. Meet ups.

Vehicle status. Destination. Usage.

Service advisory, firmware, lock/unlock (OnStar like functions)

Same.

Parking, traffic, impending closures, pollution, fees

Connecting with:

Home

Friends/Family

Other drivers

Auto manuf.

Cities

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Enabling the revolution

Traffic: Probes Airbag incident Driver re-assessment

Insurance: Car, driver, annual mileage

Per mile, hard stop (most accurate billing)

Driver re-assessment(new driver behavior)

Context changes behavior

Report Predict Influence

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Connecting cars…is just the beginning

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Thank you