Monetizing the Connected Car through Open Platforms Driving the Automotive Software Revolution through Open Innovation Rudolf J Streif, The Linux Foundation

Impressions of the connected car...

Where is the value proposition?

If you want to succeed you must differentiate

where it matters.

= Commodity = Your IPR

Operating System Middleware HW and UX independent API

Native and Web Application Toolkits and Services

Additional OS Utilities, SDK Libraries

Core Operating System

User Experience

HW 4 HW 1 HW 2 HW Platforms

HW 3

Operating System Base Kernel , Drivers

Domain Middleware Extensions

Applications

Middleware

System API

UX 1 UX 2 UX 3 UX 4

= Domain

Hardware Adaptation

Cross-industry Functionality

Domain Functionality

Differentiating Functionality

Searching for the killer app...

Killer App

Consumers want... ●  Variety – I like to pick and choose. ●  Integrated Services – Apps are great but why don't

they talk to each other? ●  Customization – I like to be able to configure the

system to my needs. ●  Upgradable – I like my car, I just want to be able to get

the latest and greatest infotainment. ●  Device Integration – My smartphone is my life. ●  Cloud Integration – My media and content is on

iTunes, Google Drive, Dropbox, ... ●  Ease of Use – Bluetooth pairing, enough said...

ROI

Source: Henry Chesbrough – Open Business Models

Cost and time saving from leveraging external innovation

Revenues

Costs

Closed Model Open Model

0

Internal Development

Costs

Market Revenue

Internal and External

Development Costs

Market Revenue

Applications

Services New Revenues

If you you are looking to succeed in

connected ecosystems you must master

open innovation, open platforms and open source

software.

The most successful companies are building their

products and services on open platforms.

Wait a minute - Apple???

The Automotive Industry as a Hardware Supplier?

Apple 388.73 B Google 292.26 B Toyota 206.10 B VW 90.36 B GM 44.28 B

Market Capitalzation in USD, Source: Bloomberg June 24, 2013

How can you successfully compete in this new

landscape?

Closed Innovation Principles Open Innovation Principles

The smart people in our field work for us.

To profit from R&D, we must discover it, develop it, and ship it ourselves.

If we discover it ourselves, we will get it to market first.

The company that gets an innovation to market first will win.

If we create the most and the best ideas in the industry, we will win.

We should control our IP, so that our competitors do not profit from our ideas.

Not all the smart people work for us. We need to work with smart people inside and outside our company.

External R&D can create significant value; internal R&D is needed to claim some portion of that value.

We do not have to originate the research to profit from it.

Building a better business model is better than getting to market first.

If we make the best use of internal and external ideas, we will win.

We should profit form others' use of our IP, and we should buy others' IP whenever it advances our own business model.

New Rules of Innovation

Source: Henry Chesbrough – Open Business Models

Finding the Balance

Source: IBM

Private Innovation

Advantages: Full Control First-to-Market

Differentiation

Standardization Balance Evolving

Private Innovation

Full Control First-to-Market

Open Innovation

Cost Reduction Interoperability

We need an Open Innovation Platform

Kenichi Murata Toyota

The car is becoming a mobile Information Device.

We need to deploy information and communication technology but we do not

have much experience.

Information and communication technology is evolving rapidly and it is hard to catch up.

We cannot develop everything ourselves anymore.

Automotive Grade Linux (AGL)

Enable the Automotive Industry to successfully utilize Linux and Open Source technologies for product

development and deployment with open collaboration and processes, reference software and hardware,

education and practices. www.automotivelinux.org

AGL Member Companies

●  System with different CPU platforms and automotive peripherals.

●  Affordable price point.

Developer Accessible Hardware

●  Build systems, collaboration and source code managment, automatic testing and QA.

●  Best practices.

Processes and Tools

●  Collaborating with and contributing to open source projects.

●  Open source licensing and compliance, supply chain management, IP management.

Education

AGL IVI Demo System

●  AGL Collaboration of Feuerlabs, Jaguar Land Rover, Symbio and Symphony Teleca

●  Tizen IVI Platform with HTML5/JavaScript User Interface

●  3 Weeks Project Time ●  Integrated into Land Rover LR4, including

CAN Control ●  Built out Media Player and HVAC Controls ●  Built remote control server backend ●  Created remote control website for HVAC

AGL Reference IVI Stack

http://content.linuxfoundation.org/auto/downloads/images/

HTML5 GUI

HTML5 / Java Engine

Middleware

Tizen OS

Drivers

Hardware

Graphics Framework

VM Image

Complete System Image

HTML5 GUI

HTML5 / Java Engine

Middleware

Tizen OS

Drivers

Hardware

VM Image

Complete System Image

Enabling Collaboration

●  Access Software and Documentation ●  http://automotivelinux.com/agl-

demonstrator ●  Downloads

●  UI Framework ●  Hardware Image ●  VMWare Image

●  Try it out in the Cloud ●  http://

ec2-54-226-30-234.compute-1.amazonaws.com:8080

Ford Smart Device Link

●  Integrated with AGL Software Stack

●  Simple and easy to use API on Device and Headunit Sides

●  GENIVI Middleware Open Source Project hosted by the Linux Foundation

●  Downloadable complete software stack for developers to explore functionality

AGL Webinar Series ●  AGL presents monthly webinars on topics related to open platforms, open

source and Linux relevant for the automotive industry. ●  The webinars are annouced on http://automotivelinux.com/webinars ●  Webinar slides and recordings can be downloaded from that site too. ●  Past Webinars

–  Jaguar Land Rover's Experiences in Moving to Linux-Based IVI – Matt Jones, Jaguar Land Rover

–  Leveraging the Tizen IVI Build Infrastructure – Mikko Ylinen and Ossama Othman, Intel –  Using Open Source Solutions for V2X – Konstantin Khait, Componentality –  Tizen IVI and an ARM Platform – Subham Sen, Samsung –  Ethernet AVB Stack Architecture – Dr. Gordon Bechtel, Symphony Teleca

●  Upcoming Webinars –  July 17, 2013: An Open Source RTOS for the Automotive Market – Paolo Gai, Evidence –  September 26, 2013: The Art of Making Clear Hands Free Calls – Stefan Balkowiec,

Symphony Teleca

Automotive Linux Summit 2013 Fall

http://events.linuxfoundation.org/events/automotive-linux-summit-fall

Edinburgh International Conference Centre Edinburgh UK

October 24 – 25, 2013

We are bringing together the industry and raising the

innovation bar!

Automotive Grade Linux Open for Business – Open for Collaboration

http://automotive.linuxfoundation.org rudolf.streif@linuxfoundation.org

Thank You!

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