THE INTERNET OF THINGS

IOT WORKSHOP MAY 2015 John Baird EPSRCCraig Nicholls CITRichard O'Donohue Dell Financial ServicesPatrick Olivier Newcastle UniversityEamonn Phelan WV Financial ServicesRob Rugman Motability OperationsRichard Ryan InvigorsHelena Thernstrom RBSMatthew Williams Close BrothersPhilip White Syscap

Identify opportunities for IoT in the leasing and asset finance industry

Professor PATRICK OLIVERIoT definitions, issues, examples, projects

PETER THOMASReview of the workshop

DISCUSSION

ASSETS ARE ALREADY CONNECTED

We’ve been funding telematics for 10 years- which has been a transceiver in a truck with a SIM card in, relatively basic technology. You've seen the evolution of that to drive a number of different outcomes: to improve customer service, or to ensure compliance around speed limits or driving capabilities, for example, in delivery vehicles.

RICHARD RYMAN INVIGORS

THERE NEEDS TO BE A WIN-WIN

There’s got to be a win-win for everybody. From a consumer perspective, the win for consumers is less cost for usage-based insurance. For service providers it’s location based services. For manufacturers, it would be reduced warranty from information coming back from the car.

EAMONN PHELAN WV FINANCIAL SERVICES

WHO IS GOING TO PAY?

I don't think any of the big car manufacturers are going to develop proprietary solutions because you need the flexibility of software upgrades over in the Cloud. There are lots of opportunities going forward - entertainment, safety features – but who’s going show on it on their P&L: is it the software players or is it the car manufacturer?

EAMONN PHELAN WV FINANCIAL SERVICES

THE LOCUS OF INNOVATION

The locus of innovation is finance and not manufacturers. I think the manufacturers do a certain kind of innovation but it is better sited with finance because it is about the flow of money. I think the real value of IoT is about the flow of money in the end.

PHILIP WHITE SYSCAP

IOT FOR ASSET TRACKING

If you can track an asset that is interesting - because if you take residual risk on that asset you might not want it to come back, even though it’s in the interest of the customer. You want to know what customer behaviour is going to be. The tracking would allow you to know whether the usage of that asset is in line with what you're expecting and if the value of that asset has been retained.

CRAIG NICHOLLS CIT

THE IOT ECOSYSTEM

One of the key differences is thinking about it as a broader ecosystem. There are advantages to developing interoperability platforms that allow you to scale up quickly - so you go from one truck with a sensor in it to a thousand things that work together.

ROB RUGMAN MOTABILITY OPERATIONS

WHO OWNS THE DATA?

There will be a challenge to get finance companies together because of the rights amongst different players. If you want to enter into a second lease, then there's definitely going to be an incentive for a second lessor to have access to all the previous data. Can you sell it? How can you transfer it? What are the rights may you need to think about? How does it actually sit within the notion of customer consent?

HELENA THERNSTROM RBS

CUSTOMER TRUST

What’s going to be key moving forward is customer trust. Think about a multi-model transport solution where you've got multiple partners or multiple suppliers to an end customer. In that value chain of suppliers to customer, where’s the real value in terms of the companies that are really interfacing with the monetisation?

EAMONN PHELAN WV FINANCIAL SERVICES

STRUCTURES FOR DATA SHARING

In an ideal world it would be great if we could all share data but practically, financially and legally, that probably isn’t viable. It’s all about how we as an industry find a sensible structure. The captives will put pressure on to stop it if there's no sensible way sharing data and getting paid for it, and that will create roadblocks that don’t need to be there.

MATT WILLIAMS CLOSE BROTHERS

DELIVERING SERVICE

It’s about collecting relevant behavioural data. That’s what’s going to enable us to deliver a better service. It’s really about how can you show a customer that they're going to get a benefit but that they may initially have to pay a little bit more at the start to get that benefit.

RICHARD O’DONOHUE DELL FINACIAL SERVICES

REAL APPLICATIONS

Data creates information and information drives customer benefit. From an industry perspective, it would help us to develop utility based models. The challenge for the industry is to get real applications for the captives and real risk sharing models. None of it is going away. Doing nothing is not an option.

PHILIP WHITE SYSCAP

CONSUMPTION-BASED MODELS

As you start to see people wanting genuine consumption based models, utility based models, and capacity on demand, I see us having to align even more closely with the software industry to get access to data about consumption and utilisation.

PHILIP WHITE SYSCAP

INFORMATION AND DATA

Putting in local sensors and transmitting that data is fine, but the issue is how you manage that data and how you get insight from that data.

ROB RUGMAN MOTABILITY

DISCUSSION