Transcript

© 2010 Trajectory Group • Confidential & Proprietary 1

The Connected CarComes in Many Flavors

Presented by Ralf Hug, Founder Trajectory Group

October 2010

Updated March 2011

© 2010 Trajectory Group • Confidential & Proprietary 2

INTRODUCTION

Ralf HugFounder & President

15 Years of Global Management

Experience

Expertise in Strategy Development,

Business Development, Marketing and

Product Management

In-depth Industry Experience in

Automotive, Telematics, M2M, GPS/LBS,

Wireless, CE and Connected TV

MBA University of Bayreuth, Germany

Past Management Positions at:

Business development and strategic

advisory services firm with the very

specific conviction to help companies

to stay on the trajectory of success

Services include:

o Management Advisory

o Marketing Strategy and Planning

o Inbound and Outbound Marketing

o Business Development

o Product Strategy and Launch

o Interim Management

Deep Industry Expertise in:

o Automotive /Telematics/M2M

o GPS/LBS/Wireless/Apps

o Content/Media/Services

o CE/Connected TV

TRACTECORY GROUP LLC

Trajectory [trə′jektrē]: Plotting a realistic path

towards achieving a target over a period of time

© 2010 Trajectory Group • Confidential & Proprietary 3

KEY QUESTIONSHow will the telematics market evolve in the next

3-5 years?

What telematics flavors exist that car companies

can choose from to deliver a connected vehicle

experience?

How will the telematics ecosystem change?

The Connected CarComes in Many Flavors

© 2010 Trajectory Group • Confidential & Proprietary 4

US TELEMATICS MARKET

22.30%

40%

79%

95%

25.50% 30%

62%

85%

0%

20%

40%

60%

80%

100%

2008 2010 2015 2020

Bluetooth Embedded

US Vehicle Sales Connectivity

Source: US DOT- Federal Highway Administration, Wards

Auto 2010, Automotive News 2011

Source: iSuppli April 2009

Automotive Recovery on its way

Mar 2011 SAAR of 13.4 million vehicle in

2011

China #1 in 2010: 18.06 million

Total registered vehicles: 250 Million

Vehicle Connectivity Penetration Rates

enjoying rapid growth

Connected Vehicle is reaching

mainstream

17.444 17.049 16.460

13.493

10.601

12.20013.400

0

2

4

6

8

10

12

14

16

18

20

2005 2006 2007 2008 2009 2010 2011F

© 2010 Trajectory Group • Confidential & Proprietary 5

CONSUMER VEHICLE PURCHASE DECISION

28%

29%

44%

54%

8%

8%

11%

15%

0% 10% 20% 30% 40% 50% 60% 70% 80%

I will include Telematics features

in my research when deciding which brand

and model to purchase.

I would spend more money on

a car with the right telematics features.

I would change models from what I originally

wanted in order to get the right telematics features.

I would change brands from what I originally

wanted in order to get the right telematics features.

Strongly AgreeAgreeSource: Airbiquity TU Detroit 2009

Does Telematics matter?

© 2010 Trajectory Group • Confidential & Proprietary 6

• OnStar service was available on vehicles produced by Acura, Audi, Isuzu, Subaru, Volkswagen

and as Lexus Link in the past

• Other telematics programs that have been discontinued are Ford Rescu, Jaguar Assist and Ford

Wingcast

OEM TELEMATICS ADOPTION

OEM System Launch

GM Onstar/MyLink 1996

Mercedes-Benz mbrace (TeleAid) 1999

BMW BMW Assist, ConnectedDrive 2002

Toyota/Lexus Safety Connect/Lexus Enform/Entune

2009

Ford Sync/MyTouch 2009

Smart Smart Drive App 2010

Kia UVO 2010

Audi Audi Connect 2010

Nissan/Infinity Nissan Connect / CARWINGS 2010

Hyundai BlueLink 2011

Fiat Blue&Me 2011

Honda/Acura Planned

Chrysler Planned

VW Planned

Saab IQon Planned

Telematics Programs

came a long way and are

here to stay!

© 2010 Trajectory Group • Confidential & Proprietary 7

KEY QUESTIONSWhat telematics flavors exist that car companies

can choose from to deliver a connected vehicle

experience?

The Connected CarComes in Many Flavors

© 2010 Trajectory Group • Confidential & Proprietary 8

THE MANY CONNECTED CAR FLAVORS

Embedded Module Handset Integration Terminal Mode/VNC

SmartPhone Head-unit

Embedded TCU

“Classic” Telematics Program

Focus on Safety & Security

Use of handset for tethering

Access to cloud services

Focus on Infotainment,

Productivity and Hands-free

calling

Mobile device applications are

presented on the vehicle„s

head-unit

Applications can be controlled

via the vehicle HMI

For Head Units without a

Graphical Display

Car Integration Kit

Specialty Apps

Embedded TCU

SDK with APIs to develop auto

specific apps

Safety, Diagnostics &

Infotainment

Vehicle App StoreApple's iPod Out

iPod Out enables the car to

display the familiar iPod

navigation menu in the

vehicle‟s main center display,

and control features using the

vehicle‟s controls.

Mini Connected

© 2010 Trajectory Group • Confidential & Proprietary 9

THE MANY CONNECTED CAR FLAVORS

Connected Head-Unit Connected PND

Roadside Assistance OBDII Module

Embedded Connectivity or

wireless USB to Cloud Services

Focus on Navigation,

Productivity and Infotainment

Portable Navigation Device

Integration

Embedded Connectivity to

Cloud Services

Focus on navigation relevant

dynamic content

OBDII interface solutions

Bluetooth or embedded

wireless module

Monitoring/Capturing vehicle

and driver performance

Aftermarket, Fleet and

Insurance apps

Standalone SmartPhone Apps

without car integration

Primarily Roadside Assistance

Service and Insurance Claim

Processing

Internet in the Car

Embedded Module

Content and Service

Aggregation utilizing built-in

Apps and Browser

Access to the Cloud and

Internet

Wifi Hotspot in Car

Aftermarket installed box

Provide Wifi hotspot in car for

connected devices

Focus on Internet browsing,

email, remote office

© 2010 Trajectory Group • Confidential & Proprietary 10

New mobility ecosystem will

change how most of us think

about mobility (Ownership,

Financing, transportation modes,

transportation-related services)

Development and demo of a

unique and user-friendly

framework for green electro-

mobility

THE MANY CONNECTED CAR FLAVORS

Insurance Telematics Aftermarket Telematics The Shop of Tomorrow

Embedded vs. OBDII approach

Devices can track simple or

very detailed driving behavior

Usage-Based Insurance (UBI) or

PAYD in market today

Aftermarket installed box

Embedded Connectivity

Optional CAN-bus access

Focus on specific niche or

vertical s (tracking, fleet, etc.)

Automotive Aftermarket

Industry Association (AAIA)

and an alliance of aftermarket

innovators built a remote

diagnostics and communication

solution for the independent

service industry

Mobility as a ServiceCar Sharing

Car2Go, Zipcar, Connect:

innovative urban mobility

solution for car sharing

Convenient and secure fully-

automated car rental process

Electric Vehicle

Embedded TCU

Primarily for battery monitoring

and related services

Mobile Companion App

© 2010 Trajectory Group • Confidential & Proprietary 11

THE MANY CONNECTED CAR FLAVORS

Vehicle to Vehicle (V2V) Vehicle to Infrastructure (V2I) Vehicle to Grid V2G

Allows vehicles to "talk" to

each other over dedicated short

range communication (DSRC),

a 5.9 GHz band

Motivation is safety and

avoiding accidents and traffic

congestions

Provide a communications link

between vehicles and roadside

infrastructure

Motivation is to increase safety,

efficiency, and convenience of

the transportation system

Infrastructure such as traffic

signals, toll stations, parking

systems, etc.

Describes a system in which

plug-in electric vehicles

communicate with the power

grid

Manage demand by either

delivering electricity into the

grid or by throttling the

charging rate

Autonomous Driving

More advanced systems

propose to simulate human

perception and decision-

making during steering of a car

via advanced computer

software linked to a range of

sensors such as cameras, radar

and GPS

ADAS

Advanced Driver Assistance

Systems

Various sensors such as

camera, radar, GPS, Maps

wireless

Examples: Curve warning, lane

departure warning, collision

avoidance, park assist

© 2010 Trajectory Group • Confidential & Proprietary 12

MULTIPLE OPTIONS FOR OFFERING TELEMATICS

EMBEDDED

PORTABLE

OFF

-BO

AR

D C

on

ten

t/C

lou

d S

erv

ices

ON

-BO

AR

D C

on

ten

t

PND Dock/ Integration

Head-Unit withInfotainment

PND

TCU

Smart Phone + apps

BT Interface

Connected PND

Connected Head-Unit

Wireless USB

USB

OBDII Module

© 2010 Trajectory Group • Confidential & Proprietary 13

KEY QUESTIONSHow will the telematics ecosystem change?

The Connected CarComes in Many Flavors

© 2010 Trajectory Group • Confidential & Proprietary 14

DISRUPTION OF THE TELEMATICS VALUE CHAIN

UserSales

Channel

Delivery

Platform

Telematics

Installer

Network

Provider

Content

Provider

Software

Developer

Hardware

Manufacturer

Co

nte

nt

Cre

ato

r

Co

nte

nt

Ag

gre

gato

r

Connectivity

Provider

Car

Manufacturer

and After-Sales

Installer

Telematics

Solution

Provider

Pri

vate

La

bel

Bra

nd

La

bel

Auto

Dealer and

Mobile

Retail

Outlets

Auto

Dealer and

Mobile

Retail

Outlets

-Regulatory Environment

Service

Enablers

Infrastructure

Provider

Trends/Disruptions to Value-Chain:

Changing role of “classical” TSP

New emerging End-to-End Solution Providers

Increased Vertical and Horizontal Integration

Handset/SmartPhone Integration

The rise of the Electric Vehicle

Automotive App Store coming to cars

Shift from safety- to infotainment-centric services

Handset Makers are (re-) discovering the car

New business models besides “subscriptions”

Content aggregators offering content “quasi free”

The complex Telematics Ecosystem and Value-Chain:

© 2010 Trajectory Group • Confidential & Proprietary 15© 2010 Trajectory Group • Confidential & Proprietary 15

Ralf Hug, Founder & President

TRAJECTORY GROUP LLC

Email: [email protected]

Cell Phone: +1 773 733 6913

Skype: ralf_hug

LinkedIn: www.linkedin.com/in/ralfhug

Slideshare: www.slideshare.net/ralfhug

Twitter: @ralfhug

Questions? Please contact me at:

© 2010 Trajectory Group • Confidential & Proprietary 16

TRAJECTORY GROUP CAPABILITIES

Marketing & Product Strategy

Telematics

Strategy

Partner & Business

Development

M2M

Auto App Store

Value Chain

Business Models

Connected Car

Connected Services

Navigation

MRD/PRD

Consumer Research

Product & Services Roadmap

Best-in-Class Marketing

Processes

Content AggregationGlobal

B2B and B2C MarketingBenchmarking

Content & Service

Providers

Retail, Dealer & Channel

Marketing

Content Monetization

Device/Smartphone Integration

Marketing Strategy &

Planning

Go-To-Market Planning

Prospecting

Sales Planning

Customer Introductions

Partnership Development

Relationship Management

Competitor Analysis

Value Proposition

Innovation Management

Fleet Insurance

Aftermarket

Auto OEMs

Wireless Carriers

Category Mgmt

Europe

© 2010 Trajectory Group • Confidential & Proprietary 17

TRAJECTORY GROUP CAPABILITIES

Inbound and Outbound

Marketing

Marketing Strategy and

Planning

Management Advisory

Offering an effective Marketing

Strategy, Planning and

Implementation Process focusing

on the demand generation

objectives and value creation

activities that deliver a clear

competitive advantage for your

business. Able to translate these

business objectives and overall

"Marketing Vision" into focused

activities in sales and marketing

with best-in-class processes.

Offering strategic and tactical

business planning services to

organizations and leverage

profound expertise in strategic

planning, product, marketing, and

business development to develop

innovative business and go-to-

market strategies that translate into

measurable results (revenue

growth and EBITDA

improvements).

Skilled translating company and

brand positioning into effective

marketing plan execution utilizing

the latest inbound and outbound

marketing communication tools as

part of an integrated marketing plan

that can span across the many

elements of the communications

mix such as advertising, PR, digital

media, SEO, Paid Search and the

latest social media tools (Twitter,

Facebook, LinkedIn, YouTube, etc.)

© 2010 Trajectory Group • Confidential & Proprietary 18

TRAJECTORY GROUP CAPABILITIES

Interim Management

Engagements

\

Product Strategy and

Launch

Business Development and

Partner Management

Broad experience and passion

developing market relevant and

competitive product portfolios that

best meet end- user needs, while

achieving and maximizing business

results. Use of proven concept to

market process (including

innovation process, customer

insight windows, MRD/PRD,

analytical tools) combined with

innovative go-to-market tools and

processes to successfully launch

products and services in the market

place.

Built and maintain an extensive

active network of highly targeted

and qualified business contacts

from years of direct engagement.

Active involvement in several social

networking activities on LinkedIn,

XING, Twitter, Facebook and

traditional industry events. Skilled

forging effective customer and

business partnerships that generate

revenue and profits. Managed

many B2B lead management and

B2C marketing campaigns and

programs penetrating existing as

well as new markets with innovative

tools and tactics.

If you are in need of a proven

heavyweight interim executive

manager to manage a period of

transition, crisis or change within

your organization able to provide a

fresh perspective, address a

specific skills gap or problem and

are able to concentrate on what's

best for the business with speed,

dedication and measurable ROI.

© 2010 Trajectory Group • Confidential & Proprietary 19

BONUS DOCUMENTS ON SLIDESHARE

Presentation:

“How to Break Out of the Commoditization Trap”

Article:

“To Find the Business Case for Telematics, Look Higher Up.”

http://slidesha.re/hkpRkW

Presentation:

“Envision Automotive App Stores – Key Questions”

http://slidesha.re/eWnh0n

http://slidesha.re/hvKezSCheck out Ralf Hug SlideShare Channel

http://slidesha.re/i8c2Ll


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