Laptops on 4 wheels. New service processes for the automotive industry. Marko Weiße ProSTEP ivip Symposium

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1 Laptops on 4 wheels New service processes for the automotive industry ProSTEP ivip Symposium

2 Todays independent electronic systems from different suppliers will be integrated in the future Automotive 2010 The future will be integrated Sensor Technology Radar Tire air pressure Airbag Airbag Gear Gear Seats Seats Motor Motor Car Car PC PC Bussystem Bussystem Breaks Breaks Shockabsorber Shockabsorber Door Door Steering sensitive lighting Camera Breaking Sensor Temperature Emission controls Seite 2 April-06

3 Managed Car IT Two different lifecycles need to be integrated Car 10 to 15 years Car 10 to 15 years Recycling Engineering IT 3 to 4 years Information Diagnostics Diagnostics Lifecycle Produktion Sales A Managed Car allows access to the car at any time of the Car Lifecycle Target: Zero Defect! Zero Breakdowns! Zero Accidents! Seite 3 April-06

4 OEMs have to achieve higher percentage of aftermarket potential Market share in the passenger car segment Market shares after sales 100% Weakness of OEMs % % <2 ys 2-4 ys 4-6 ys 6-8 ys >8 ys Source: Dat-Veedol Report 2004 Vehicle age Other Do-it- Yourself Independent Garages Contract Dealer Maintenance demand per year Highest Sales < 2 ys 2-4 ys 4-6 ys 6-8 ys 8 ys Source: Dat-Veedol Report 2004 Vehicle age The European OEMs have to developing innovative sales channel and new partnership models with their Dealers to overcome OEMs weakness to enlarge their market share in the lucrative after sales business for older cars. Each 1% reduction in Inventory has a value of ~ $1.25M in cost reduction Each 1% increase in share of existing market has a revenue value of ~$160M and a margin value of ~ $80M Seite 4 April-06

5 Future Challenge: From a Vehicle Sales Centric Approach to Interaction Centric Managing & utilizing customer data will be the major success factor in OEM s future sales strategy Possible Transformation Approach: Focus on: Dealer Dealer Integration & Analytics Satisfaction & Loyalty Excellence Intelligence Interaction w. Dealer Integration Vehicle Sales Automation Sales Effectiveness & Parts Sales Silos & Point to Point Solutions Process & IT Integration Connectivity Integration 2006 Seite 5 April-06

6 Cornerstones for a Future Business Model Vision of an integrated Lifecycle Satisfaction & Loyalty Integrated Lifecycle Telematic s Mobility s / Internet registry Analytics (Profiles, buying behavior) Onboard Self Diagnostics Remote Diagnostics Web-based customer interaction Dealer / OEM's (customized push product information, digital promotions, loyalty programs, service reminders, e-maintenance scheduler) Sales Automation Dealer Integration & Analytics Dealer integration Central user help desk for Dealers OEM's managed Dealer inventory (own the channel) and virtual warehousing Integrated and standardized processes & IT systems Data Collection and active KPI management Optimized cross company supply chain, reduced safety stock and improved parts availability at Point of Sales through improved demand planning Dealer enablement service & parts sales Retail Enablement of Dealer Organization Advanced Dealer education programs Alignment of Incentive System with OEM's s strategic objectives Identification of KPI s for Point of Sales information Seite 6 April-06

7 Software & electronics offers new opportunities but calls for new service processes & value chain integration Logistics Warehouse Spare Part Availability Scheduling Date Conformation Sensor Technology & Repair Shop Diagnosis Devices Repair Shop Server Lenkwinkel sensor Airbag Gear Motor Car PC Bussystem Camera Shockabsorber Lamdasonde Managed Inventory Pull Concept Virtual Warehouse Radar Seats Break Padel Sensor Breaks Door Temperature OEM's Center Remote services, Call- Messaging of Diagnosis Data, SW-Updates, etc quality is increasingly becoming a distinguishing feature between the OEMs and has a crucial impact on longterm customer retention & loyalty These new service processes would deliver improved point of sales vehicle and customer lifecycle information For these reasons, standardized and efficient IT related vehicle services are becoming essential. Seite 7 April-06

8 Standardized service processes help increase quality Solution processes IT "classic" ITIL Managed PC s Car IT ITIL4CarIT Managed Car IT s The integral-solution approach of the service processes... calls for fundamental changes in the processes of the OEMs leads to cost-efficiency leads to high service quality that can be measured and controlled leads to greater end-customer satisfaction Seite 8 April-06

9 Solution Process Center SMC Call handling Call Data comparison Ticket Process Contact with vehicle, service or problem management Determine status of hardware/software for further processing Documentation of the call How is the provided? Cockpit Information from service provider Asset Integration and feedback SMC Decide on measures In-house or onthe-road (remote software update or repair shop) Implement measures Seite 9 April-06

10 Preventive maintenance and remote diagnostics open interesting opportunities for fleets and OEMs Onboard Truck Fleet / Truck OEM Fleet / Reduce unscheduled downtimes Copyright through Siemens preventive AG maintenance Alle Rechte vorbehalten Seite 10 April-06 New service and business models for OEMs Center (and large of Competence fleets) Automotive

11 Use Cases Remote Monitoring / Diagnostics / Fix Current Current pain pain Description of Vision Description of Vision Opportunity, solution idea Opportunity, solution idea Benefits Benefits / / KPIs KPIs Fleet owners want zero Fleet owners want zero unplanned unplanned repairs repairs to to maximize efficiency. maximize efficiency. OEMs need to reduce OEMs need to reduce warranty warranty and and service service costs costs to to reach reach profitability targets profitability targets Reliability and Reliability and performance of performance of vehicles is a key part of vehicles is a key part of the OEM's brand equity the OEM's brand equity and must be raised to the and must be raised to the optimum level optimum level Decreasing (relative) Decreasing (relative) education levels of education levels of drivers and service drivers and service personnel personnel limited actual vehicle / limited actual vehicle / component component data data from from field field available available at at OEM OEM OEM remote service OEM remote service center conducts remote center conducts remote monitoring of parameters monitoring of parameters and clarification / fixing of and clarification / fixing of problems, if possible. problems, if possible. OEM has overview of OEM has overview of failure patterns in the field failure patterns in the field and can plan spare part and can plan spare part inventory accordingly. inventory accordingly. Fleets know in advance Fleets know in advance when a predictive maintenance has to be done and when a predictive maintenance has to be done and can plan accordingly. can plan accordingly. Driver is proactively Driver is proactively informed that he needs to informed that he needs to interrupt his journey at a interrupt his journey at a specific service station to specific service station to fix a potential failure or to fix a potential failure or to get remote service support. get remote service support. Implement a system and Implement a system and processes which enables processes which enables remote services (monitoring,diagnostics) for remote services (monitoring,diagnostics) for all vehicles. all vehicles. Onboard unit has CAN Onboard unit has CAN interface, does onboard interface, does onboard monitoring of parameters, monitoring of parameters, and acts as trigger & and acts as trigger & connectivity gateway to connectivity gateway to backend system backend system Backend system interprets messages from Backend system interprets messages from vehicles, conducts intensive offboard analysis to vehicles, conducts intensive offboard analysis to plan further diagnostics plan further diagnostics and necessary fixing and necessary fixing activities. It also informs activities. It also informs fleet owner / driver. fleet owner / driver. Vehicle Vehicle availability availability and and performance performance process process quality quality & & costs: costs: First First time time fix fix rate, rate, remote remote fix fix rate, rate, spare spare part part usage, usage, mean mean repair repair time, time, fast fast response response and and expert expert support support customer customer satisfaction satisfaction sales sales increase increase through through new new attractive attractive service service offerings: offerings: e.g. e.g. utilization utilization services, services, or or advanced advanced analysis analysis and and reporting reporting risk risk mitigation mitigation in in longterm longterm contracts contracts Beneficiary Seite 11 April-06

12 Praxisbeispiel: Siemens MED Prevention is better than cure. Seite 12 April-06

13 Praxisbeispiel: Siemens MED System Center SRS Network Newark Fürth Singapore Internet, ISDN, Analog Router / Modem Seite 13 April-06

14 Praxisbeispiel: Siemens MED Our Delivery: Faster Response Remote Diagnostics SMC / USC / HSC Syngo service Newark - Fürth - Singapore SRS Network Internet, ISDN, Analog Router / Modem CURE Seite 14 April-06

15 Praxisbeispiel: Siemens MED Our Delivery: Problem Prevention Remote Diagnostics Proactive Event SMC / USC / HSC ERROR Newark - Fürth - Singapore SRS Network Internet, ISDN, Analog Router / Modem EVENT Seite 15 April-06

16 Praxisbeispiel: Siemens MED Our Delivery: Reports & Consulting Remote Diagnostics Proactive Event Utilization SMC / USC / HSC Newark - Fürth - Singapore SRS Network Internet, ISDN, Analog Router / Modem Seite 16 April-06 USAGE

17 Praxisbeispiel: Siemens MED Our Delivery: Optimized Image Quality Remote Diagnostics Proactive Event Utilization Application Support SMC / USC / HSC Newark - Fürth - Singapore SRS Network Internet, ISDN, Analog Router / Modem WORKPLACE IMAGE TRANSFER Seite 17 April-06

18 Praxisbeispiel: Siemens MED Our Delivery: Reports & Consulting Remote Diagnostics Proactive Event Utilization Application Support Clinical Network SMC / USC / HSC Newark - Fürth - Singapore SRS Network Internet, ISDN, Analog Router / Modem NETWORK TRAFFIC DATA NETWORK TRAFFIC DATA Seite 18 April-06

19 Siemens Common Remote Platform System Center SRS Network MED SRS Best practice example for highly secure and available Remote communication infrastructure. Experience has shown, that commonly used RS infrastructure is considerably saving costs and improves security. Newark Fürth Singapore Internet, ISDN, Analog Router / Modem Fleets, OEM-Suppliers, Proposed Remote Access Scenario based on Common OEM Remote Platform Center and new / Corporate Special Standards* Experts Group A Area Access Portal B DB A DB Group B Area C DB User Access User Access Access Portal User Access Group C/Partner Area Access Portal Siemens CIO IN and the Task Force Remote establish a cross-group common RS Platform as a corporate shared service. Common RS Platform is based on best practice solutions of COM and MED. Seite 19 April-06 R DB Generic Access s A Access Portal B User Access Common Remote Platform (crsp) Access Server-1 Object C Access Server-2 network complexity and security demands Object D VPN LAN-LAN Client-LAN HQ/ BLS RC- FSE OEM ext. Vendor Partner, Personal Object *) CIO projects Partner Ready IT, SNX/NGNI Truck Gateways or Center OEM of Competence CentersAutomotive Authentication (PKI o.ä.) Access Server-x

20 The basic approach for the Siemens One scenario is to integrate SW product and SW service Engineering / Production Post-production Product Product Innovative architectures and software as a product Many components and systems in vehicles incorporate software The objective is to develop new architectures that allow rapid deployment of software in the components and systems New manufacturing/assembly cell The software is installed as a complete package in the last work activity (a few minutes) Software installation via WLAN, for instance No intermediate steps required; genuine JIS production possible After sales Software products can subsequently be purchased in the same way as parts and accessories It is possible to install new, innovative, softwarebased features Repair shop services Software errors can be diagnosed up front Professional software management forms an adequate basis for updating software parts (complete flash is not required) Rapid update (just a few minutes) center Errors can be diagnosed remotely; software errors can be eliminated remotely Software provision and management Custom software is provided, where necessary taking over customer parameters from previous models of software distribution and maintenance Software updates Software updates/patches can be loaded in the vehicle at service points (e.g. authorized filling stations etc.) or using new technologies (e.g. UMTS) Infrastructure management Provision and management of the requisite infrastructure (plant, repair shop, service points, remote services) Seite 20 April-06

21 Thank you for your attention! Seite 21 April-06

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