Vehicle2X Economical View (From the OEM s Perspective)

Transcription

1 Vehicle2X Economical View (From the OEM s Perspective) Automotive Connectivity 2009, Berlin Stefan Wiechmann Jens Unsinn Gerrit Göbel

2 Agenda Introduction Car2X Fields of Application / Technical Categories / Addressable Markets Drivers/Enablers of Car2X Challenges for the OEM Example: Parking Spot Finder Value Chain Business Model Summary

3 Introduction Car2X Fields of applications Comfort Music Telephony Remote activation of AC/Heating Production / Operation Tracking/Tracing Maintenance notification Theft notification Software updates Car2X Different Scopes Safety / Driver Assistance Road condition warning ecall Hazard warning High beam assist Lane assist Mobility Road sign assist Traffic information Parking fee assist Parking spot finder

4 Introduction Car2X Technical Car2X Categories Car-to-Mobile Car-to-Car Car-to-Internet Car-to- Infrastructure

5 Introduction Car2X Addressable Market Business-to- Consumer (B2C) Safety functions Comfort functions Entertainment Security Business-to- Business (B2B) Vehicle telematics Fleet management Business-to- Gouvernment (B2G) Traffic efficiency improvement Safety services

6 Introduction Car2X Key Drivers/Enablers Wireless service use is growing / Mobile connectivity is becoming a commodity Car infotainment is growing Coverage of mobile networks is growing Data transfer rates are growing Mobile data transmission costs are decreasing Cost reduction potentials for remote maintenance of vehicles Standardisation (NGTP, WAVE, etc.)

7 Introduction Car2X Challenges for the OEM Competitiveness of automotive industry within itself and with PND manufacturers and ASPs (who will win the race?) Wide variety of customer needs and wants Complexity in value chain Business model which is new to car manufacturers (e. g. end user contact through vehicle life cycle, subscription models, etc.) Complexity in partner network Unclear customer ownership Too few players won't work, too many players will eat the profit Integration of M2M application with business and production processes Dilemma of incongruity of development cycles (consumer electronics vs. vehicle development vs. ownership lifecycle) Penetration of vehicles with connectivity and how to grow the critical mass (Network effects) Causality dilemma of RSU vs. CCU (high cost of infrastructure: who pays first?)

8 Introduction Car2X Example: Parking Spot Finder Idea: Expansion of the navigation functionality to display free parking spots in the surrounding area. P 15 P % frei 20-70% frei 0-20% frei Presentation of single free parking spaces Presentation of the probability to find a free parking space in a certain area

9 Agenda Introduction Car2X Value Chain Overview Value Chain for Parking Spot Finder Added Value Business Model Summary

10 conventional value chain User Value Chain Overview Tier 2 Tier 1 OEM Content Device Vehicle

11 User Value Chain Overview Tier 2 Tier 1 Additional value chain for online services OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

12 User Value Chain for Parking Spot Finder Overview Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

13 User Value Chain for Parking Spot Finder Content General tasks Offering appropriate content E.g. collection of specific data Transmission of this information Services Offering parking space Detecting free parking lots Providing this information Examples Communes and Cities Parking facilities and car parks Companies Private persons Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

14 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Tier 2 Tier 1 OEM Source: Siemens Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

15 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Tier 2 Tier 1 Source: Department of Electrical and Electronic Engineering Meijo University, JAPON OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

16 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Magnetic sensor at the parking lot Tier 2 Tier 1 OEM Source: Streetline Inc. Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

17 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Magnet sensor at the parking lot Sensor in the parking meter Tier 2 Tier 1 Source: Flickr OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

18 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Magnet sensor at the parking lot Sensor in the parking meter Tier 2 Ultrasonic sensor above parking lot Tier 1 OEM Source: Siemens Quelle: Siemens Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

19 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Magnet sensor at the parking lot Sensor in the parking meter Ultrasonic sensor above parking lot Sensors at street accesses Tier 2 Tier 1 OEM Quelle: Siemens Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

20 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Magnet sensor at the parking lot Sensor in the parking meter Ultrasonic sensor above parking lot Sensors at street accesses Manual entry Tier 2 Tier 1 Quelle: Siemens Source: OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

21 User Value Chain for Parking Spot Finder Content - Examples Car Park Management System Image Processing Magnet sensor at the parking lot Sensor in the parking meter Ultrasonic sensor above parking lot Sensors at street accesses Manual entry Extended floating car data (XFCD) Tier 2 Tier 1 OEM Quelle: Siemens Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

22 User Value Chain for Parking Spot Finder Content - Example General tasks Aggregation of data from different supplier Services Aggregation of data from different car park operators Tier 2 Examples Communities and Cities Traffic management control centre Parkinfo.de ParkingCarma Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

23 User Köln Content Aggregation Berlin Value Chain for Parking Spot Finder Content Aggregation TMC Service Tier 2... TMC Car Park Operator Service TMC = Traffic Management Control Centre ASP = Application Service Tier 1 OEM ASP Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

24 User Value Chain for Parking Spot Finder Service General tasks Offering services Allocating of central infrastructure Implementing of services Accounting Services Parking spot reservation Online payment Examples mpark.com, easypark.de WirelessCar Hughes Telematics ATX Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

25 User Value Chain for Parking Spot Finder Network Infrastructure Tasks Allocation of communication infrastructure amongst components Examples Conventional internet connection Leased lines Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

26 User Value Chain for Parking Spot Finder Air Interface General Tasks Online connection of vehicle Example Mobile Network Operators, e.g. T-Mobile, Vodafone, Orange, etc. Specialised Machine-2-Machine, e.g. Jasper Wireless, Aeris, Connexis, Airbiquity Others: WiFi, WiMAX, etc. Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

27 User Value Chain for Parking Spot Finder Device General Tasks Presentation of applications and services in the vehicle HMI Example Device manufacturers Integrated navigation systems Portable navigation devices Car PCs or PDAs Mobile Phones Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

28 User Value Chain OEM Tasks Design of a service concept Specification of the terminal and integration in the vehicle Strives for Ownership of the Customer Tier 2 Tier 1 OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

29 User Value Chain Added Value s Where is the Money? OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

30 Agenda Introduction Car2X Value Chain Business Model User s Adoption / Potential Users Target Customer / Value Proposition Core Competencies and Partner Network Summary

31 Carmeq GmbH, Berlin; CB v Mai Folie 32 Business Model User s Adoption / (Diffusion of Innovation) Innovators Early Adopters Early Majority Late Majority Laggards 2,5% 13,5% 34% 34% 16%

32 Carmeq GmbH, Berlin; CB v Mai Folie 33 Business Model Potential Users Adoption rate of vehicles with online connectivity Number of car customers willing to pay for mobile services in vehicle 1 year service for free

33 Carmeq GmbH, Berlin; CB v Mai Folie 34 Business Model Potential Users and Competitors Vehicles ASP PND OEM OEM: Original Equipment Manufacturer PND: Personal Navigation Device ASP: Application Service

34 Business Model Overview How? What? To whom? Infrastructure Offer Customer Finance Quelle: Alexander Osterwalder / Arvetica

35 Business Model Overview Infrastructure Offer Customer Finance Quelle: Alexander Osterwalder / Arvetica

36 Business Model Target Customer Infrastructure Offer Customer Finance

37 Business Model Customer Needs General customer needs Specific customer needs Mobility Convenience Information Spending the time reasonably Support of driving tasks Driving or parking without stress Satisfaction of technology affinity Social differentiation Low parking fees Short distance to destination Spending the time reasonably Satisfaction of specific requirements (SUV parking) Low search and transaction costs Low probability of getting parking tickets Requirements vary with intention of driving and parking

38 Business Model Target Customer Resident Working Commuter Customer, Visitor, Guest Comes home after driving Comes to his working place, to the school or another activity area Visits a store to go shopping Visits a restaurant or a special event Visits friends Service, Deliveryman Delivers material or provides services Searches for a parking spot in the vicinity of the home Long time parking Parking spot occupied at night Searches for a parking spot at working place Long time parking Parking spot not occupied at night Searches for a parking spot in vicinity of the target Parking time varies between minutes to hours Searches for a parking spot in the direct vicinity of the target Short or medium parking duration

39 Business Model Offer Infrastructure Offer Customer Finance

40 Business Model Value Proposition Value Proposition Parking Spot Finder Simplification of finding a free parking spot Time saving More comfort Customer Needs Quality of Service Customer Expectations Challenge Presentation of parking facilities Substantial demand: Reliability! Risk: Backfire! Value Proposition

41 Business Model Target Customer Resident Working Commuter Customer, Visitor, Guest Searches for a parking spot in the direct vicinity Will not pay for parking spot Long time parking Knows the parking situation at target area Parking spots of the housing association are not registered Searches for a parking spot at working place Will not pay for parking spot Long time parking Knows the parking situation at target area Company parking spots are not registered Commuters are not wanted in an area with public parking space control Searching for a parking spot at working place Parking time varies between minutes and hours Parking situation at target might not be known Will pay for parking spot Target customers of the parking space control Service, Deliveryman Searches for a parking spot in the direct vicinity Short or medium parking duration Parks in second lane before searching for a parking spot Searches a parking spot in the direct vicinity of the target Short or medium parking duration

42 Business Model Core Competencies Infrastructure Offer Customer Finance

43 Business Model Core Competencies OEM Core Competencies Vehicle manufacturing Vehicle marketing Definition of integrated navigation devices Modularisation of vehicle components International organisation Alliances and involvement in EU projects

44 Business Model Core Competencies Content Customer Service Developing mobile services Partner management Missing OEM competencies to provide end-2-end solutions Offering telematic services Provisioning Billing Operating the infrastructure

45 Business Model Partner Network Infrastructure Offer Customer Finance

46 Business Model Partner Network for the Parking Spot Finder Cities & Communes TMC Content Aggregator Internet Services Call Centre Car Park operator Service 2nd Tier Mobile Payment Mobile Network Operator Device OEM End User

47 User BusinessModel Make or Buy? s OEM Content Content Content Aggregation Service Network Infrastructure Air Interface Device Vehicle

48 Business Model Different ways to bring mobile services into vehicles (from the OEM s perspective) Strategy 1 Development of one s own hardware Establishing one s own services Service and support by company s personnel Business Model: Customer pays OEM for services Strategy 2 Integration of existing hardware Adaptation to one s own technology and HMI External service providers Business Model: shares hardware costs with OEM OEM participates in service fees Strategy 3 Customer integrates additional hardware OEM not in charge for services or support No Business Model: OEM does not participate in any fees

49 Agenda Introduction Car2X Value Chain Business Model Summary

50 Summary Vehicle2X covers a wide field in terms of - applications (comfort, mobility, safety, ) - communication (Car-2-Car, Car-2-Internet, ) - markets (B2B, B2C, ) Each Vehicle2X use case has its own value chain In every link of the value chain an analysis has to be elaborated on - how much value is added (i.e. how much money can be potentially earned) - whether to make or buy (can the OEM provide the service by himself or does he need a partner) The OEM has to answer the question who the customer of the given use case is and what his expectations and needs are No OEM can handle all challenges alone! Each OEM has to determine which business model to choose and which part of the value chain to occupy. Smart partnering is the key!

51 Thank you for your attention! Stefan Wiechmann Carmeq GmbH Carnotstr. 4 D Berlin [email protected]