Zero Dollar Car - Part 2: Rewriting the narrative in favor of the automotive industry

I’m not a car guy; I’m a software guy and I work with cars.

Auto Captives Summit 2016November 9, 2016

All rights reserved. @2016. Ellis & Associates. Slide 2 of 40

Open

Who am I?

I’m a developer.


Some Background


What are you worth (just your internet traffic)?

Data Source: PrivacyFix, E&A 2013

Note – single desktop, does not include work issued laptop, home laptop, mobile phones, iPad_1, iPad_2 etc.

~$5,500


It is therefore no wonder Apple & Google are doing what they are doing in the car.But what are they doing?


Chevy MyLink

Cadillac CUE

Kia UVO

Mercedes mBrace2

Toyota Entune

Audi Connect

GM OnStar

25+Connected Solutions


One solution, all vehicles


Chevy MyLink

Cadillac CUE

Kia UVO

Mercedes mBrace2

Toyota Entune

Audi Connect

GM OnStar

Toyota

Chevy

Kia

CadillacAudi

Mercedes

GM

X


Who’s next is any one with a digital life mobile ecosystem, including …


Headlight

Rain

Wiper

Barometer

Traction Control

Microphone

Representative. Locations and specific sensors are meant to be descriptive.

Clock


38,300


Headlight

Rain

Wiper

Barometer

Traction Control

Clock

Microphone

Representative. Locations and specific sensors are meant to be descriptive.


Package 1 $ 6,000 Package 2 $ 4,000 Package 3 $ 7,000 Package 4 $ 4,000

Package N Total: $ 60,000

Scenario One – Sensors @ Dealers


Package 1 $ 6,000 Package 2 $ 4,000 Package 3 $ 7,000 Package 4 $ 4,000

Package N Total: $ 60,000


http://www.google.com/url?url=http://www.techyville.com/2012/12/news/did-you-know-mcdonalds-logo-is-recognized-more-than-the-holy-cross/&rct=j&frm=1&q=&esrc=s&sa=U&ei=knrGVIPGOtDioATczYHQDA&ved=0CB4Q9QEwBA&usg=AFQjCNE95byHy5NWuQadD-5A2DEFcJ2DDQ

http://www.google.com/url?url=http://en.wikipedia.org/wiki/File:Starbucks_Coffee_Logo.svg&rct=j&frm=1&q=&esrc=s&sa=U&ei=3XrGVIHrPImyoQSR2IDgBA&ved=0CBgQ9QEwAQ&usg=AFQjCNHsG7l5DHsaQHaTfhfroLe82l6oHA


Base Price $ 40,000 Package 1 $ 3,000 Sub-total $ 37,000

Package 2 $ 2,000 Sub-total $ 35,000

Total $ -


Packages $ 60,000 Data Sales $ 40,000 Difference $ 20,000


Scenario Two – Ecosystem Subsidy

Base Price $ 27,500 Subsidy - Year 1 $ 5,500 Subsidy - Year 2 $ 5,500 Subsidy - Year 3 $ 5,500 Subsidy - Year 4 $ 5,500 Subsidy - Year 5 $ 5,500

Total $ -


First Connected Car: 1922 Chevrolet with Radio


First V2V Installation?

“A final prediction: The end of an era… As a result of this changing competitive landscape, we fully believe that in 10 years, many of the major automakers will no longer bearound, at least not as independent companies… The companies that thrive in the future will likely be those that are nimble, future oriented—and prepared to invest in new technologies, new talent, and new strategic alliances.“

KPMG SPECIAL REPORT Nov. 2015“The Clockspeed Dilemma: What Does it Mean for Automotive Innovation?”

INSIGHTSLOOKING AHEAD TOWARD 2025

73% of all interviewed executives rated collaboration with other industries as the best opportunity for industry growth as we progress toward 2025

75% of all executives we spoke with expect non-traditional industry participants to have a key role in the automotive ecosystem by 2025

PREPARDNESS FOR 2025

Only 19 percent of interviewed auto executives describe their organizations as prepared for challenges on the way to 2025; 71 percent as somewhat prepared; and 10 percent as not prepared.

Exacerbating this limited readiness, just 33 percent said their organizations are adaptable to face challenges, 59 percent are somewhat adaptable and 8 percent are not adaptable.

IBM INSTITUTE FOR BUSINESS VALUE Jan. 2015“Automotive 2025: Industry Without Borders”

“The key question is: Do you sell cars or do you sell mobility?” said Tim Ryan, New York-based vice chairman ofmarkets and strategy for consultant PricewaterhouseCoopers LLP. “If you ignore these megatrends, you run the risk of becoming irrelevant.”

BLOOMBERG Feb. 2014“Woes of Megacity Driving Signal Dawn of ‘Peak Car’ Era”

…in 10 years many of the major automakers will no

longer be around…

…19% prepared for challenges…71% somewhat prepared…10%

not prepared

…33% adaptable to face challenges…59% somewhat

adaptable…8% not adaptable


Only the paranoid survive.


Vehicle data is the holy grailand the way the automotive industry can position itself to win against mobile ecosystems.So how to accomplish this?


OS Agnostic QNX / Microsoft / VxWorks Android / Linux / Integrity

iOS / AndroidWindows / other

SmartDeviceLink (“SDL”)


OEM Participation in SDLOEM Participation in SDL


Growing SDL Ecosystem Ever Expanding SDL Ecosystem


Vehicle Data External Data Feeds Cool Features

MyKey(Ford specific)

GPS

Speed

RPM

Acceleration

Braking

Oil Life

Tire Pressure

Courtesy – Scott Burnell, Ford Developer Program, BD

Current Weather Data

Live Traffic Data

IFTT-Ford Channel(Connects Apps)

IF THENKids DriveWithin 1 Mile of Home/School/Work

Send Me SMS That They Have Arrived

MyKey Reports More Than 5 Speed or Belt Alerts In 30 Days

Create a Reminderin Gmail to Speakto Child

Fuel Econ Above/Below X

Post Smile/Frown on Driver Social Graph

Oil Life Below XSend Appointment Request toSaved Dealer

Temp Outside is Above/Below X@ 6AM

Precondition Vehicle

Traffic Congestionon Route Home Between 4:45 - 5 PM

Send SMS Reminder to Take Alternate Route


SDL Advantages


SDL Advantages


SDL Advantages


Developer Opportunities with SDL


So what to do exactly?

All rights reserved. @2016. Ellis & Associates. Slide 31 of 40© 2011 Martin Eriksson http://sumo.ly/hx1y via @mindtheproduct


1. Quickly expand the SDL vehicle data APIs DIDResult

DTCGetDTCsGetVehicleDataHeadLampStatusPRNDL ReadDIDVehicleDataEventStatusVehicleDataNotificationStatusVehicleDataResultVehicleDataStatusVehicleTypeWiperStatus


2. Outreach & Educate dongle companies


3. Outreach & Educate Organizations



This vehicle is known to the State of California to

contain recording devices. Entering this vehicle means

you accept you have no privacy within this vehicle.



Software is eating everything. -- Marc Andreessen

Every company is now a software company. -- David Kirkpatrick


We can evade reality, but we cannot evade the consequences of evading reality. -- Ayn Rand

May you live in interesting times.

-- Purported Chinese Curse


Thank You.