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The Connected Car – Finally Coming True?

By rotide
Created 04/07/2012 - 00:42
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The vision of the "connected car" or more general "connected vehicle" has been around for some time without significant impact in the industry. Today however, the mobile internet is growing in importance and e-Mobility and the efficient use of natural resources are becoming ever more important in defining the image of OEMs. With improved mobile connectivity and telematics putting the concept back on the agenda, Dr Andreas Gissler, Director for the Automotive, Manufacturing and Mobility Group at Arthur D. Little, outlines how OEMs must create the framework today to overcome start-up hurdles and achieve competitive advantage in a saturated market.

 

Ultimately, the growing penetration of smartphones has educated the consumer regarding accessing information on demand wherever they are - the car is just another logical place where this information is created, used and stored. So, OEMs find themselves in a real dilemma. There is a need for action to fulfil the requirements of the ecosystem on connected vehicles and telematic systems - but, there are still no existing market models that have been successfully applied - be it with respect to customer acceptance, sustainability or willingness to pay.

 

The amount of use cases within the connected vehicle environment is manifold. OEMs need to understand which services are relevant to which group and build on a common infrastructure that can be seamlessly integrated into the according ecosystem requirements. For example, car sharing and integrated transportation concepts are spreading with the development of smart cities. While functions such as location-based traffic, weather information and remote-locking concepts are also of value to future mobility providers and their users. OEMs therefore need to set up the prerequisites now to be able to serve business models in the future.

 

OEMs have to create the framework today. The development of services that enhance the customer experience, prevent revenue losses, and differentiate from the competition can be achieved with a three step approach:

 

  1. Trends and vision: Analysis of markets and user trends is key to identifying corresponding use cases.
  2. Joint strategy: The organisation as a whole should develop the strategy and a rough roadmap should be created to compare the expected benefits with costs and technical feasibility.
  3. Implementation plan: A comprehensive plan detailing the required changes in the internal structural and process related organisation must be formulated. Core competencies and capabilities should be defined and a search for partners for optimal service implementation initiated.

 

The vehicle of the future will be connected but OEMs immediately need to find answers to some key questions in order to make the vision of the connected vehicle a sustainable success story. The OEMs should act now, define an overall strategy as well as a roadmap, and enable a capable implementation organization. Only then can the connected vehicle dilemma be overcome and long-term competitive advantage achieved.

 

Dr. Andreas Gissler, Director for the Automotive, Manufacturing and Mobility Group at Arthur D. Little


Source URL:
https://www.newbusiness.co.uk/articles/vehicles/the-connected-car-%E2%80%93-finally-coming-true