Monetizing the connected car - Digital Transformation World · 2016/5/11  · 15 BIG Data...

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Monetizing the connected car

David HolecekDirector Connected Products and Services

Volvo Car Group11 May 2016

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Importance of Connectivity

In-vehicle technology top selling pointfor 39% of car buyers Dec 2013(vs. power & speed top priority to 14%)

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Importance of Connectivity

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Valuedifferentiation

FunctionalConnectivitylayers Digital

eco-systemintegration

Digitaleco-systemintegration

Your digitalremote

Your digitalremote

Connectingdevices in

the car

Connectingdevices in

the car

In-dashapps

In-dashappsNative or web apps

running in the carNative or web appsrunning in the car

Volvo On Call app

My Volvo website

Volvo On Call app

My Volvo website

Car-to-car

Car-to-infrastructure

Car-to-workshop

3rd-party integration

Car-to-car

Car-to-infrastructure

Car-to-workshop

3rd-party integration

Smartphone connectedto the car (e.g.

Bluetooth, AppleCarPlay, Android Auto)

WiFi hotspot for all yourdevices

Smartphone connectedto the car (e.g.

Bluetooth, AppleCarPlay, Android Auto)

WiFi hotspot for all yourdevices

Full-worthy citizen ofthe networked society

Car to infrastructure

Prerequisite: Constant connectivity

Car to car

Car to serviceVolvocloud

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Volvo On Call Sales Development

• 500 000 Volvo On Call cars since 2001

• Current VOC take rate: almost 50%

• Added ~150 000 VOC cars in 2015!

0%

10%

20%

30%

40%

50%

2002

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2015

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ytd

Volvo On Call take rate (per model year)

Volvo On Callapp

Volvo On Callapp

Heater Starterapp

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everything we do starts with people

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Drive TimeMaking the

most ofmy journey

Drive TimeMaking the

most ofmy journey

Connected LifeThe car asa part ofmy life

Connected LifeThe car asa part ofmy life

Big DataLeveraging the

car in connectedsociety

Big DataLeveraging the

car in connectedsociety

Big data

Our Strategy with the connected car

Making life more enjoyable… saving time… with new customer benefits.Making life more enjoyable… saving time… with new customer benefits.

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Drive TimeMaking the most of my journey

Our customers spend 52 minutes on average in their daily commute; we have anopportunity to give some of that back. Volvo will provide the means to turning this intome time (music, audio books, and more), staying in touch (phone integration, VoIP, instantmessaging), or being productive (mail, calendar, mobile office).

Our customers spend 52 minutes on average in their daily commute; we have anopportunity to give some of that back. Volvo will provide the means to turning this intome time (music, audio books, and more), staying in touch (phone integration, VoIP, instantmessaging), or being productive (mail, calendar, mobile office).

• Apple CarPlay and Android Auto – the next generation of phone integration.• Apple CarPlay and Android Auto – the next generation of phone integration.

• Sensus Connect – class leading infotainment with a global reach and an offeringtailored per market. World first native Spotify in-car app, integrated audio books, andpark & pay solution.

• Sensus Connect – class leading infotainment with a global reach and an offeringtailored per market. World first native Spotify in-car app, integrated audio books, andpark & pay solution.

So... is Apple trying to kill us?

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Connected LifeThe car as part of my life

When the car is connected, it becomes a part of your life also when you are not driving.When the car is connected, it becomes a part of your life also when you are not driving.

• Volvo On Call – state-of-the-art telematics solutionwith highest market coverage of any OEM.Standard in key markets.

• In-car Delivery – receiving deliveries to your parked carby handing out a digital key to the delivery company.

• 3rd party integration – home automation, remote diagnostics,tailored offers... A totally new field.

• Volvo On Call – state-of-the-art telematics solutionwith highest market coverage of any OEM.Standard in key markets.

• In-car Delivery – receiving deliveries to your parked carby handing out a digital key to the delivery company.

• 3rd party integration – home automation, remote diagnostics,tailored offers... A totally new field.

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BIG DataLeveraging the car in the connected society

The modern car has hundreds of sensors and connectivity lets us leverage those beyond theindividual car. GSMA has estimated that this market will be worth €39B globally by 2018.The modern car has hundreds of sensors and connectivity lets us leverage those beyond theindividual car. GSMA has estimated that this market will be worth €39B globally by 2018.

• RFI – collecting Road Friction Informationand propagating it through the cloud.

• ITS – leveraging car information for makingour infrastructure smarter.

• UBI – Usage Based Insurance for loweringinsurance costs.

• RFI – collecting Road Friction Informationand propagating it through the cloud.

• ITS – leveraging car information for makingour infrastructure smarter.

• UBI – Usage Based Insurance for loweringinsurance costs.

Big dataBig dataBig data

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Valuedifferentiation

Businessmodels

Digitaleco-systemintegration

Digitaleco-systemintegration

Your digitalremote

Your digitalremote

Connectingdevices in

the car

Connectingdevices in

the car

In-dashapps

In-dashapps

Incr

emen

tal

cars

ales

New

reve

nue

oppo

rtuni

ties

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The only thing we know...Is that everything will changeDrive TimeMake the most of my journey Add convenience to my life Maximize connected society

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Q&A

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