Telematics Service Providers The evolving role of Automotive Systems Integrators REPORT SAMPLE CON612-154 November 2015
About SBD SBD is a world-leading knowledge partner to the global automotive industry, providing actionable insight and strategic support in the development of more connected, secure and safe vehicles. Intelligence Insight Evaluation Strategy For questions or comments, please contact one of our representatives: Europe Alessio Ballatore aballatore@sbd.co.uk +44 (0)1908 305 107 Japan Our Intelligence & Insight Services Our Evaluation Services Our Strategy Services Masako Kondo mkondo@sbdjapan.co.jp +81 (0) 52 253 6201 Model-level Databases Technology Forecasts Supplier Intelligence Market Regulations News Analysis Expert Product Testing Consumer Product Testing Iterative Prototype Evaluation KPI Testing Cyber Security Testing New Market Entry Support RFP/RFQ Management M&A Due Diligence Strategic Workshops Supplier Positioning Support North America Jeffrey Hannah jeffreyhannah@sbd-na.com +1 (734) 619 7969 Working closely with major OEMs, suppliers and industry bodies, SBD provides unrivalled sector insight and consultancy helping you gain greater clarity and make better decisions.
Introduction to this report Welcome to SBD s latest report about Telematics Service Providers (TSPs). The term TSP is used within the connected car industry as a broad term to categorise service providers who play a role in the connected car value chain centred around secure vehicle to cloud data management. However, the traditional roles that TSPs play in the value chain are evolving. The term TSP has been adopted by IT companies, systems integrators and even tier-1s. Network operators are expanding their M2M/IOT services into automotive, intent to de-commoditise the data connection. Conversely, against this backdrop of ever more players offering TSP services, car makers are increasingly bringing elements of the TSP value chain in-house. This report aims to clarify the roles and strengths of those offering TSP services, and to provide guidance to car makers about appropriate selection criteria for TSPs based around their own connected car strategy. There is no such thing as a one size fits all TSP. TSP
Main menu Click here to learn how the role of the TSP is likely to change Click here to compare 8 TSPs who operate services for OEMs today Click here to see common scenarios faced by OEMs, and TSPs who could be a good fit for those scenarios Reference section for service & characteristic definitions
The evolving role of the TSP
TSP Role: Systems integrator The core role of a TSP is to connect things together The traditional role of a TSP is to securely enable the vehicle to exchange data with remote servers via a cellular bearer. These remote servers would store data accumulated from vehicles and process remote service requests like start engine, lock door received from smartphone apps and owner portals. The scope of early implementations connecting car-server-smartphone for simple convenience use cases have now expanded significantly, and the TSP now connects many more things together; Call centres, 3 rd party infotainment content, ecall & bcall service providers, cashless payment systems & countless back-office OEM systems. Typically, the TSP delivers this expanding web of connectivity by creating middleware which connects proprietary, and sometimes open interfaces together. This approach of connecting 3 rd party systems together involves translating data between different formats, and often aggregating separate sets of data together to satisfy the data exchange needs of new use cases. It is the level of this ability to connect things together which differentiates TSPs. The number of systems that an OEM requires the TSP to be able to connect together varies significantly. For example, some OEMs only require the TSP to be able to connect cars in one region others will need global capability. Some OEMs will require the TSP to be able to connect to many of their internal systems while other OEMs will take a simple vehicle data interface from the TSP and make those internal connections themselves.
Comparing TSP capabilities
TSP Capabilities TSP SERVICES & CHARACTERISTICS TSP PROFILES OEM SCENARIOS How does SBD compare a TSP s capabilities? This report addresses the proven capabilities of TSPs rather than their theoretical or potential capabilities. By proven, we mean capabilities which have been demonstrated operationally rather than services which have not yet been launched. SBD s Guide to OE Services (Guide 526) is updated quarterly and details which TSPs are supporting which OEMs by region. The required role of a TSP will vary from one car company to another, depending largely upon the OEMs regional plans, level of in-house IT capability, breadth of services etc. This report breaks the TSP s capability down into the services that it provides and a qualitative assessment in 12 key characteristics can be used to differentiate one TSP from another. The assessments of TSPs against these services and characteristics is based upon SBD s analysis of the role that each TSP is operating for their OEM s current services.
TSP comparison Click logos to navigate Geographical Coverage B2C Service Management Consumer Services Content Integration MNO Management Protocols OEM Internal Services Customised Services Data Monetisation Interoperability Experience Scale
Covisint - Profile TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS IOT user-authentication specialists expand role into OEM systems integration Founded originally by a consortium including General Motors, Ford and DaimlerChrysler to develop supply chain management tools such as secure supplier portals, Covisint built upon their secure access experience and now provide identity and access management services to OEMs, notably General Motors for OnStar. Announced in January 2013, Covisint now provide consumer-facing services as well as back end security and integration services to Hyundai for its Blue Link platform in North America. Covisint s Interoperability platform is used by Hyundai to integrate vehicle/user data to their owner portal, CRM systems, mobile apps and call centre systems. Covisint s API-based approach to integration is said to have enabled Hyundai s transition away from incumbent SXM. Earlier this year Covisint further demonstrated the expansion of its role from provider of secure authentication services and back-end integrations to include customer-facing solutions when it supported (in association with Station Digital Media) the launch of Hyundai s Blue Link smartwatch app.
Covisint - Services TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS Covisint have long OEM experience in identity & access management services and have more recently expanded their role to cover broader systems integration through an APIenabled implementation platform. Services shown in grey are either not currently operated or considered a strength
Covisint - Characteristics TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS Rating Comments Key Strengths Geographical Coverage B2C Service Management Consumer Services Content Integration MNO Management Protocols OEM Internal Services Customised Services Data Monetisation Interoperability Experience Scale Services are only operated in the US. Demonstrated capability to integrate to 3rd parties who manage B2C. Focus is on integration to consumer services rather than direct dev & ops. This is Covisint s area of focus. Verizon network only for Hyundai. Good protocol management experience through access mgmt. Covisint s API-based platform enabled Hyundai to switch TSPs relatively easily. Covisint s custom integrations are based upon modular platforms. Not a key focus in automotive. Proven ability to integrate with existing systems replaced incumbent TSP. Full spectrum TPS services limited to 1 OEM. Good scale for back-end authentication services. Covisint have taken their experience gained in identity and access management and are applying their principles of data abstraction to broader systems integration challenges. Hyundai s confidence to appoint them as TSP for Blue Link, currently Covisint s only full spectrum OEM deal is built upon their systems integration credentials. Client List Coverage
OEM scenarios
OEM scenarios TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS Each OEM s situation is different As described earlier in this report, the characteristics of TSPs vary as much as the needs of their OEM customers. A TSP which is a good fit for one OEM may not be a suitable selection for another OEM, depending upon their current/legacy services, target markets, in-house IT capability and regional focus among other considerations. This section of the report aims to describe some typical OEM scenarios, and to suggest TSPs who might be suitable partners to the OEM in each of those scenarios. The list of scenarios is not exhaustive, nor is the list of candidate TSPs. The intention is to illustrate the TSP characteristics which are most appropriate for each scenario.
Out-sourcer TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS The Scenario Key TSP Characteristics Potential Partners The OEM wishes to outsource a variety of non-core services to the TSP, most often B2C, customer care, subscription management etc, where there is either insufficient in-house resource to manage these services, or they are not a core focus for the OEM. It is likely that the OEM will be looking for a TSP with strong evidence of experience and scale if they re to be entrusted with managing services on the OEM s behalf. Example OEMs Geographical Coverage B2C Service Management Consumer Services Content Integration MNO Management Protocols OEM Internal Services Customised Services Data Monetisation Interoperability Experience Scale
Definitions: Services & Characteristics
M2M Interface Call Centre Interface Dispatch er User Portal Interface S phone TCU Telematics Control Unit Back to Comparing TSP capabilities (services) 3 rd parties Car TCU Data Sharing Clouds TCU Telematics Control Unit Content management OEM Portal CRM/ VRM Content Provision Clouds A system in the vehicle that manages the sending and API Interfaces receiving of data to the vehicle. TCU is a general term, which can include: App Store Systems that have an embedded Network Access Device (NAD) and an embedded SIM chip Systems that do not have embedded connectivity, but rather connect via the user s mobile phone Data Service Billing Hybrid systems Gateway that have Management an embedded Management NAD but rely on an external SIM (e.g. via Bluetooth SAP or a twin Telecom SIM) TCU Primary TSP Roles Dealer Portal (Continental TCU) https://www.oem.com Customer Portals Call Centers Driver OEM Data Centre Dealer Management System OEM/Dealer
Geographical Coverage TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS Back to Comparing TSP capabilities (characteristics) Geographical Coverage B2C Service Management Consumer Services Content Integration MNO Management Protocols WEAK A weak TSP will not be able to offer services to OEMs across key territories. Where the TSP provides additional geographical coverage via partners rather than directly, consideration should be made for consistency and reliability of services across regions. STRONG A TSP with strong geographical coverage will have a proven track record of operating services in all regions where the OEM wants to offer them. As well as the key markets of USA, Europe and China, the TSP may have operations either directly managed or through partners in South America, Russia, Middle East, Far East & Australia. A TSP with strong geographical coverage will be able to offer core services uniformly across territories. OEM Internal Services Customised Services Data Monetisation Interoperability Experience Scale WHY DOES IT MATTER? A TSP who only has regional rather than global coverage may be a good choice for an OEM prefers to divest control of outsourced services to the NSC or internal stakeholder responsible for a given region: The local stakeholder may find that the local TSP knows their market well. However, as the OEM s objectives become more global, there are disadvantages to having different regional TSPs. Development, operational and maintenance costs will typically be reduced overall if the OEM has a global TSP.
Contact Us Feedback SBD has over 20 years experience in providing strategic advice, insight and expertise to the automotive and associated industries globally. We ve been involved in the Connected Car since the emergence of the telematics industry through handson consulting & implementation projects with OEMs and their partners. We ve used this accumulated knowledge to provide our insight into the evolving role of TSPs described within this report. If you d like to discuss the report or follow up on specific areas, please contact us. To provide feedback on this report or discuss consultancy, please contact us: Email: info@sbd.co.uk Phone: +44 (0)1908 305101 Bespoke Consultancy In addition to publically-published studies, SBD also offers customer-specific consultancy that can be tailored to your individual needs, such as: Strategic Consultancy SBD s consultancy services can support your market positioning goals, competitive assessment, SWOT & product roadmap planning. Cyber-Security Assessment SBD s security consultants are experienced in evaluating end to end security design, threat modeling, attack testing and countermeasure planning. Partner Selection There are dozens of choices to make when selecting service providers, integrators, platforms and suppliers. SBD can help with full lifecycle, from RFQ to service launch.