Automotive Companies Save Costs, Gain Advantages with Red Bend s FOTA. Case Study

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1 Automotive Companies Save Costs, Gain Advantages with Case Study

2 Notices vlogix Mobile Notice Copyright , Red Bend Software. All Rights Reserved. Patented: vdirect Mobile Notice Copyright , Red Bend Software. All Rights Reserved. vrapid Mobile Notice Copyright , Red Bend Software. All Rights Reserved. Patented: vsense Mobile Notice Copyright , Red Bend Software. All Rights Reserved. Red Bend Software Management Center Notice Copyright , Red Bend Software. All Rights Reserved. This Software is the property of Red Bend Ltd. and contains trade secrets, know-how, confidential information and other intellectual property of Red Bend Ltd. TRUE, vlogix Mobile, vdirect Mobile, vrapid Mobile, vsense Mobile, Red Bend and other Red Bend names, as well as the Red Bend Logo are trademarks or registered trademarks of Red Bend Ltd. All other names and trademarks are the property of their respective owners. The Products contain components owned by third parties. Copyright notices and terms under which such components are licensed can be found at the following URL, and are hereby incorporated by reference:

3 Table of Contents 1 Introduction Market Trends in Automotive Software Traditional Method for Automotive Software Management and the New Solution: FOTA... 5 How FOTA Works How FOTA Solves Five Challenges to Managing Automotive Software... 6 Challenge 1: Reducing the Cost and Resources Needed to Maintain Automotive Software...6 Challenge 2: Strengthening the OEM s Relationships with Consumers...7 Challenge 3: Helping the Environment...7 Challenge 4: Managing Car Software Globally...8 Challenge 5: How to Get Started? Automotive Case Studies... 8 Case Study 1: Leading Tier 1 Company...8 Case Study 2: Leading Automotive Manufacturer Case Study 3: Leading Aftermarket Fleet Management Manufacturer Summary About Red Bend Software , Red Bend Software [3 of 12] Confidential

4 1 Introduction The new generation of car buyers is no longer exclusively looking under the hood for horsepower and fuel efficiency. Today, they also are looking inside the car for on-screen navigation, entertainment and wireless connectivity. The same phenomenon that happened in the mobile industry during the last five years where consumers moved from feature phones to smartphones is now happening in the automotive industry. Cars are becoming smarter with touch-screen infotainment systems, advanced driving features and Internet-connected services. While sophisticated software features and car connectivity introduce new opportunities to create a better and safer driving experience, they also introduce greater challenges associated with cost and manageability. This case study describes the market trends in automotive software and examines the current challenges that OEMs face in managing the accelerating amount of software in connected cars. It introduces a solution using Firmware Over-the-Air (FOTA) updating technology that is proven in the mobile industry and that is successfully being adopted in the automotive industry. The paper present three case studies from a leading car manufacturer, a Tier 1 supplier and a leading aftermarket fleet management manufacturer that are using Red Bend s market-leading FOTA solution, vrapid Mobile, to improve their methods for managing automotive software while reducing vehicle maintenance costs. 2 Market Trends in Automotive Software Software is responsible for many advanced safety and entertainment features in today s cars. GM Cadillac CUE and BMW ConnectedDrive are two examples. GM CUE delivers natural voice recognition and touch-screen technology for added driver safety. BMW ConnectedDrive offers rich entertainment services and driver assistance capabilities. Another example is Mercedes-Benz, which recently announced the 2014 Mercedes S-Class. This model is considered by some to be the most sophisticated and safest car in the industry. Source: ExtremeTech In addition to these current examples, software is becoming increasingly important to cars of the future. Nissan recently announced it will fulfill the promise of self-driving cars by Earlier this year, Shanghai OnStar introduced the OnConnect service. This allows subscribers to share location and destination information with family and friends using both text and photos. This service is evidence of the growing amount sophisticated software that is being added to cars even in emerging markets. 2013, Red Bend Software [4 of 12] Confidential

5 3 Traditional Method for Automotive Software Management and the New Solution: FOTA As the amount of code in the head unit, in-vehicle infotainment (IVI) system, Telematics devices and electronic control units (ECUs) increases, so do the challenges to manage that code. This is a new dilemma for the automotive industry. Historically, car manufacturers minimized how often they update the software in vehicles. If an urgent matter occurs, there is a product recall. If the issue is not urgent, the update is performed during a maintenance visit, which costs time, labor and money. If this practice for managing software updates continues, especially with the growing amount of software in cars, car manufacturers will spend more money on software maintenance, which will decrease their profitability and deteriorate the customer experience. Automotive OEMs are starting to borrow lessons learned and technology proven from the mobile industry. Mobile OEMs have long used FOTA Firmware Over-the-Air updating to manage software on mobile devices. This has allowed mobile OEMs to ensure that the firmware in phones and tablets can be updated and be made continuously better even after the device is purchased. Some automotive OEMs are early adopters of over-the-air software management technology. For example, GM, Mercedes (in the U.S.) and Tesla have already implemented FOTA. However, currently the deployment scale and number of changes and updates is limited. In order for the automotive industry to realize the overall benefits that the mobile industry has realized, over-theair software management technology needs to be adopted widely and deployed rapidly. How FOTA Works With Red Bend Software s vrapid Mobile, car manufacturers, Tier 1 companies and other automotive systems manufacturers can remotely manage the software in embedded and aftermarket automotive devices throughout the lifetime of the vehicle. Here s how FOTA works: Once there is a new version of software containing additional features or fixes, the manufacturer will create a FOTA update package using the vrapid Mobile Update Generator. The update package includes only the changes (also referred to as the delta ) between the version that already exists in the vehicle and the new version being deployed to the vehicle. Red Bend s patented delta algorithm produces the smallest update file in the industry, usually less than five percent of the original size, which ensures the least amount of bandwidth is used to deliver the update, saving significant costs in data charges. technology also provides the greatest flexibility by enabling any version-to-any version software updating, meaning the FOTA updates do not need to be sequential. This reduces the time to complete software maintenance, which can save costs paid by manufacturers to dealers during the warranty period. The update package is distributed to the vehicle from the Red Bend Software Management Center, which uses Open Mobile Alliance Device Management (OMA-DM) industry standards to communicate over the wireless network with the vehicle. Red Bend s vrapid Mobile is agnostic to which type of transport is used, whether there is an embedded wireless module in the head unit or in another car system or after-market device, or even via smartphone connectivity. In addition, software updates can be distributed through the CAN bus. Once the update package is received inside the vehicle by Red Bend s vdirect Mobile Device Management client, it is handed off to the vrapid Mobile Update Installer to perform the update installation in-place on the device s firmware accurately and reliably and with significant reduction in the update time. Red Bend s vrapid Mobile Update Installer, which performs the fastest 2013, Red Bend Software [5 of 12] Confidential

6 updates in the industry, can uniquely update both file systems and images in-place, which can greatly reduce the amount of memory required, saving BOM costs. Updating Solution for Connected Cars In addition to managing software inside automotive head units, IVI systems and Telematics devices, Red Bend also has a solution for performing FOTA updates of electronic control units (ECUs) inside the vehicle. Red Bend s vrapid Mobile Fuse for Firmware Updating of Small Electronics (Fuse) offers a new solution to manage software across the Internet of Small Things such as automotive ECUs. With vrapid Mobile Fuse, even the smallest, resource-constrained computing device can receive firmware updates over-the-air or over a cable connected to the CAN bus. Performance tests have proven Fuse to reduce update time by as much as 60%. As a result, automotive manufacturers can save significant warranty costs and maintenance time while keeping the car operating at peak performance. 4 How FOTA Solves Five Challenges to Managing Automotive Software Challenge 1: Reducing the Cost and Resources Needed to Maintain Automotive Software There is a growing number of instances when automotive software needs to be updated yet the way OEMs perform updates today is expensive and cumbersome. OEMs need to find a less expensive, easier and faster way to manage software inside cars. According to a recent J.D. Powers and Associates survey, technology was the cause of two out of every three problems reported by 83,000 people. Most OEMs offer firmware updates via USB, or require consumers to visit the dealership and leave their car while the technician performs the update. For example, recently Ford responded to flaws in its MyFord Touch by sending a software update on USB memory dongles to 300,000 customers. The customers also had the choice to perform the update at the dealer. It is estimated that this update cost Ford more than $10 million based on the assumption that 200,000 consumers performed the USB update and 100,000 went to the dealer. This does not take into consideration the cost of 200,000 USB dongles and the shipping and handling costs, which also is quite expensive. Over-the-air software updates can save this cost and provide a much better user experience. 2013, Red Bend Software [6 of 12] Confidential

7 BMW offers a similar updating process. BMW customers either log into the BMW website and download the new software version onto a disk-on-key and then plug the key into the car s USB port, or they have to visit the dealership. OEMs need to find a better way to do software updates. Source: BMW Challenge 2: Strengthening the OEM s Relationships with Consumers OEMs are losing an opportunity to have a long-term, direct relationship with consumers. Traditionally, independent dealers have acted as proxies between the consumer and the car manufacturer. After a car is purchased, the ongoing relationship is typically maintained by the dealer and the customer has almost no communication with the manufacturer. OEMs can change the dynamics of their current relationship with consumers through software management and the always-connected car. Car manufacturers can now maintain an ongoing relationship with their customers using FOTA. By providing OTA software maintenance, the OEMs can have a positive touch point with consumers by providing new infotainment and Telematics features, fixing software defects and adding functionality. Challenge 3: Helping the Environment There are more than 1 billion cars in the world, each using fuel and emitting carbon dioxide. Any innovation that minimizes the amount of necessary driving is good for the environment. In the current method used by most OEMs, performing a software update to the infotainment or Telematics system requires the car owner to bring his car to the dealer. But with OTA software updates, fuel is preserved and carbon dioxide emissions are minimized. Such improvements are important to helping the environment while appealing to environmentally conscious consumers. Another important contribution of FOTA to the environment is in the case of electric cars. One of the key components that will determine the successes of electric vehicles (EVs) and hybrid cars is their ability to manage the car s power resources and provide longer range between charges. The infotainment systems in EVs and hybrids are not only for showing routes or playing videos, but 2013, Red Bend Software [7 of 12] Confidential

8 also for performing EV power monitoring and management. Recently Tesla 1 released a new software version by using FOTA that fixes several defects and adds improved power management when the car is not in use (sleep mode) that should provide additional range. Challenge 4: Managing Car Software Globally Given the global nature of mobile phones and connected devices, the mobile industry had to standardize on software management protocols set by the Open Mobile Alliance (OMA) to ensure global interoperability. OMA Device Management (OMA-DM) standards provide a common management scheme for service providers to remotely configure, provision, update and troubleshoot mobile devices. Through the OMA standardization of FOTA, operators such as NTT Docomo, KDDI, Softbank, Sprint, AT&T, Verizon and many others can update and maintain their customers device firmware through the Firmware Update Management Object (FUMO) protocol. OMA-DM standards also benefit the global automotive industry. Use of standards-based protocols enable car manufacturers to update car software over any wireless network, whether cellular, Wi- Fi or Bluetooth. In addition, OMA-DM standards have built-in security mechanisms such as authentication and validation when performing software management actions, ensuring that FOTA updates can be delivered and performed safely. Finally, selecting standards-based management systems for automotive software shortens the time to market to deploy a software update solution and lowers the overall build out and maintenance costs of operating the system, no matter where the car is driven globally. Challenge 5: How to Get Started? Planning a winning over-the-air software update system begins first by analyzing the requirements, understanding the scale required, deciding which technology to use and developing the business logic that will determine a successful user experience. Decisions have to be made about connection methods (some update solutions are connected to the cloud by an embedded 3G/4G module or by using smartphones as a gateway), frequency and size of the updates, number of vehicles to be updated at any given time, and industry standards that are going to be leveraged in the overall process. The software update system should be integrated with the other operation support systems (OSS) that OEMs have in order to be integrated into the whole lifecycle management of the car. There are a few implementation options that can be considered by OEMs and Tier 1 suppliers such as software as a service (SaaS), hosted or installed on-premise, and most FOTA solutions can support all three models. Red Bend Software offers many resources for helping automotive OEMs to plan and implement FOTA. Visit: 5 Automotive Case Studies Case Study 1: Leading Tier 1 Company This case study describes how a leading Tier 1 company integrated Red Bend s vrapid Mobile FOTA solution into the company s infotainment system and manages the end-to-end updating service with the Red Bend Software Management Center , Red Bend Software [8 of 12] Confidential

9 One of the leading manufacturers of infotainment systems made the strategic decision to include software update functionality in its offering as a key competitive advantage. This Tier 1 partnered with Red Bend Software, the global leader in FOTA updating, to leverage Red Bend s vast experience in delivering end-to-end software management solutions to the mobile phone market and automotive industry. Red Bend s solution includes a dedicated, cloud-based Software Management Center used to perform updates in any geographic location and a FOTA client residing in the head unit. As opposed to an embedded cellular connectivity, the Tier 1 decided to use the smartphone as a gateway between the infotainment system and the Red Bend Software Management Center. Because Red Bend is network agnostic, the connection between the smartphone and the infotainment system can be done either by a USB cable or by wireless connectivity such as Bluetooth. For this project the Tier 1 selected to use a USB cable. Using Red Bend s vrapid Mobile Update Generator, the Tier 1 creates the update package and then uploads the package to the Red Bend Software Management Center. This system, which uses OMA-DM standards, manages the various versions of the update packages and pushes the packages to the appropriate vehicle model and specific IVI system over the network. There are typically multiple versions of update packages, each intended for particular vehicle models and configurations. Red Bend s Software Management client on the smartphone connects to the Red Bend Software Management Center to download the package using the OMA-DM Firmware Update Management Object (FUMO) standard and transfers the package to the head unit. There, the vrapid Mobile Update Installer (FOTA client) opens the package and applies the update in-place. Benefits to the Tier 1: Saving in cellular bandwidth and therefore lower data charges paid to the cellular operators (Red Bend produces the smallest update packages) Improving the customer experience by decreasing the update time (Red Bend provides the fastest updates) Flexible connectivity options, either by embedded module (SIM) or via a mobile device (Red Bend is transport agnostic) Ability to update firmware, middleware and applications simultaneously (Red Bend s solution can update any type of software anywhere in the device) Reliability and security due to a standards-based solution (Red Bend supports OMA-DM industry standards) Red Bend FOTA Solution for Tier 1 Company 2013, Red Bend Software [9 of 12] Confidential

10 Case Study 2: Leading Automotive Manufacturer This case study highlights how a leading automotive manufacturer integrated Red Bend s vrapid Mobile FOTA solution into the company s Telematics system. The manufacturer was looking for a solution that could enable safe, economic and secure software updates. After a thorough competitive review process, the OEM chose Red Bend s vrapid Mobile as the update technology. The OEM built its own end-to-end software managment system that is interoperable with Red Bend s vrapid Mobile FOTA client software integrated into the Telematics unit. The OEM uses the vrapid Mobile Update Generator to create the FOTA update package. Once generated, the update package is published to the OEM s software management system, which manages the various versions of the update packages and handles the actual network delivery (download) of the packages to the appropriate vehicle model and specific electronic control unit (ECU). Even though the OEM built its own management system, the manufacturer chose to adopt OMA-DM standards at Red Bend s recommendation in order to manage software updating to its vehicles globally. Once the update package is received inside the device, Red Bend s vrapid Mobile Update Installer (FOTA client) performs the update quickly, safely and reliably. Red Bend FOTA Solution for Automotive Manufacturer The system described above has been in operation for several years managing hundreds of thousands of secure and reliable software updates without failure due to Red Bend s patented Fail-Safe technology. In addition, the OEM is realizing great cost savings by doing over-the-air updates. The company no longer has to pay dealers for software updates and it is paying less to the mobile operator because Red Bend s delta file is so small. In addition, customers are more satisfied with the software maintenance experience and have built an ongoing, loyal relationship with the OEM. Benefits to the OEM: Decreases recall rates and reduces warranty costs by over-the-air updating of Telematics units with the industry s most trusted FOTA solution Ensures 100 percent completion of software updates, even in the event of power or network disruption, due to Red Bend s patented Fail-Safe technology Improves the consumer experience while building brand loyalty with new services and functionality throughout the lifetime of the Telematics unit and the vehicle 2013, Red Bend Software [10 of 12] Confidential

11 Provides greater convenience for consumers with the industry s fastest updates that do not require a visit to the dealer for software maintenance Reduces bandwidth costs with Red Bend s smallest update packages Case Study 3: Leading Aftermarket Fleet Management Manufacturer This case study describes how a leading aftermarket fleet management manufacturer integrated Red Bend s software update solution into the company s new Android line of products. As a result, the manufacturer now can offer a FOTA update service to its customers. The fleet management market is divided into two main categories: integrated Telematics units, which the fleet manager can subscribe to or not, and aftermarket Telematics units, which are installed in the truck based on a services agreement. This aftermarket fleet management manufacturer introduced a new line of Android-based Telematics device that provide mobile workforce management, including driver electronic logs, incab navigation, scanning and printing, and two-way messaging and dispatch. One of the required features was to be able to update the Telematics unit firmware with 100% reliability without needing to bring the commercial truck into the dealer or service center and without paying extra data charges to the connectivity provider for delivery of the updated version over-the-air. Red Bend and the manufacturer worked together to integrate Red Bend s Fail-Safe FOTA update agent and standards-based OMA-DM client into the Telematics device in a matter of days, without delaying time to market. Using the Red Bend Software Management Center, the manufacturer can deliver new software versions with added features and performance improvements to keep fleets on the move. The Red Bend solution opens up new opportunities for the Telematics manufacturer to offer firmware updates as a service to commercial fleet operators beginning in Q1 2014, and also in the future to provide an app-store from the Telematics device with dedicated applications for this customer segment. Benefits to the Fleet Management Manufacturer: Red Bend FOTA Solution for Aftermarket OEM Updates over-the-air firmware, middleware and applications at any memory location in the Telematics units (Red Bend s solution can uniquely update any software anywhere in the device, even individual software components inside the firmware without a full OS update) 2013, Red Bend Software [11 of 12] Confidential

12 Adheres to OMA-DM industry standards for the communication between the client and the server using the most widely adopted standards-based FOTA solution Increases customer satisfaction by preventing loss of driving time because of a software issue in the unit (Red Bend s solution can deploy updates rapidly anywhere in the world) Minimizes bandwidth costs and update time with the smallest update file size in the industry Enables fast and easy device-side integration of Red Bend s software clients without delaying time to market Supports on-demand update process controlled by the user, so users can get new software versions when it is most convenient for them, keeping trucks moving 6 Summary The increasing amount of software in cars is forcing the automotive industry to look for more efficient and more cost-effective methods for managing software. The traditional way of doing software updates is expensive for the manufacturer and inconvenient to consumers, who have to wait at the dealership while the software is being updated. FOTA technology is a proven, safe and cost-effective method for OEMs to manage the car software evolution, which is turning the car from iron-driven to code-driven. FOTA can help automakers save time and costs, mitigate risk and attract and retain customers. In addition, FOTA can enable car manufacturers to establish new ways of up-selling services and delivering new features and applications to consumers throughout the car s lifecycle. Leading OEMs and Tier 1s that have selected Red Bend s vrapid Mobile are benefiting from the best-in-class software update solution, with more than 1.75 billion device installations in the last 10 years. Red Bend s vrapid Mobile FOTA solution has proven to be the right choice for automotive software management. 7 About Red Bend Software Red Bend Software, the leader in Mobile Software Management (MSM) with more than 1.75 billion Red Bend-Enabled devices, makes mobile devices and services continuously better in a rapidly changing world. Red Bend is the only company that provides standards-based products and solutions for software management, device management, and mobile virtualization that work on any mobile phone and connected device uniformly, efficiently, and securely over the air. Red Bend enables its customers to stay competitive in a fast-moving market by helping them deliver highvalue services on an increasing number of connected devices with growing software complexity. More than 80 leading device manufacturers, mobile operators, semiconductor vendors and automotive companies worldwide trust Red Bend with their most important assets the mobile and connected devices their consumers depend on. For more information, visit: , Red Bend Software [12 of 12] Confidential

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