connected cars are the next must have consumer electronics device
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Connected Cars as the next great consumer electronics device
Mark ThomasGlobal Head of Connected Car Product Marketing
© 1992–2016 Cisco Systems, Inc. All rights reserved.
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Connected Cars: The next great consumer deviceConnected Cars are the next great consumer electronics device
Personal computers connect to the Internet
Dotcomrevolution
Phones connect to the Internet
Smartphone app revolution
Vehicles connect to
the Internet
Connected Carrevolution
http://www.slideshare.net/CiscoJasper/iot-now-from-things-to-outcomes
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Embedded connectivity is key for connecting carsAccess to device hardware enables disruption
Smartphone app disruption
Access to hardware• Fingerprint reader (finance)• GPS location (maps)• Motion tracking (fitness)• Graphics hardware (gaming)• Camera (social)
Works offline• Always available
Yahoo Mail SnapChatFlickr InstagramMapquest Waze
Connected Car disruption
Access to hardware• Airbag (safety)• GPS location (insurance)• Door locks (car sharing, app
unlock)• Mechanicals (maintenance)• Battery level (charging mgmt)• Sensors (hazard reporting)
Works “offline” (phone not in car)• Always available (Security)
New connected car services
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Services by optimal connectivity type
Infotainment• Music and playlists
Wi-Fi• Car Hot Spot
(better antenna)
Communications• Phone calls• SMS
Security• Break in detection• Tracking/slow down
Safety• Ambulance call• Crisis assist
Maintenance• Diagnostics• Firmware OTA
E-vehicle• Reserve station• Auto-payments Insurance
• Pay as you drive• Pay how you drive
Remote monitoring• Door unlock• Engine start
Concierge services• Human assistance• Ecommerce
Embedded Connection
Navigation• Turn by turn directions• Traffic alerts• Last block, multi-modal• Parked vehicle locator
Web Browsing(while parked)• News, stocks, reviews
Smartphone
Services by optimal connectivity type
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• Cars are app ecosystems
• Connectivity for consumer and OEM
• OEM pays data bill
• Subscriptions max at 10-15% take rates
• Internet business models needed
Connected Car has unique IoT requirements
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Service portfoliominimal complete
Wave 1Safety and Security
Subscription
Internet Monetization
Wave 2MusicNavigationConciergeOEM diagnosticsWiFi Hotspot
Complete services portfolio
Wave 3App stores
Business model innovation
Business model sophistication
Shifting from services to monetization
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Offer: Music + Data
Model: 3rd party subscription
Offer: In car insurance
Model: Bounty. Data cost recovery, markup.
Offer: Book discovery, purchase, listen including data
Model: Bounty, revenue share, data cost recovery
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Internet monetization increases complexity
Offers & ServicesBusiness Models &
Payer Relationships
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Service platform requirements
Split billing AutomationService level
controls
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Vehicles Operator Networks Enterprise Backend
Connected Vehicle
Systems
IT Systems
IoT Service Lifecycle
Services Platform
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Vehicles Operator Networks Enterprise BackendServices Platform
Connected Vehicle
Systems
IT SystemsControl Center
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What will my car have to say to other IoT things?
“”
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CARS ARE CONTEXT Cars are context
Destination Entered, calculated, recommended
Person stateCalculated (tired), hungry, bored
Vehicle state Engine, tire pressure, CAN bus, air bag incident
Location stateRoad, current speed, road hazard
Person activityIdentity, music, destination context
Cloud based ideas (food, saved places)
Entertainment streaming, friend destination/ETA
Real-time route changes
Undetectable immediate hazards, parking spot
Service bulletins, remote state changes (unlock)
Person
Location
Vehicle
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Connected Car: a constant dialog
ContextPerson,
Location, Vehicle
Arrival time (triggers heat)Route (reminders) Location (arm/disarm)
Destination and ETAPodcast. Mood.
Road conditions, weather (wipers), pothole.
Destination, pollution
Published Context: Consumed Context:House reminders that are route aware. (milk)
Same. Ride requests. Meet ups.
Vehicle status. Destination. Usage.
Service advisory, firmware, lock/unlock (OnStar like functions)
Same.
Parking, traffic, impending closures, pollution, fees
Connecting with:
Home
Friends/Family
Other drivers
Auto manuf.
Cities
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Enabling the revolution
Traffic: Probes Airbag incident Driver re-assessment
Insurance: Car, driver, annual mileage
Per mile, hard stop (most accurate billing)
Driver re-assessment(new driver behavior)
Context changes behavior
Report Predict Influence
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Connecting cars…is just the beginning
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Thank you