The AUTOmobile becomes the autoMOBILE: How does the mobility revolution impact automotive business models?

The AUTOmobile becomes the autoMOBILE How does the mobility revolution impact automotive business models?

Dr. Sebastian Wedeniwski IBM Distinguished Engineer, CTO Automotive Industry

Three primary disruptors are causing industry boundaries to blur and even disappear

Expectdigitalengagementandexperiences

Canbecompelledtoco-createproductsandstrategy

Tapsintointelligentvehiclecapabili:es

Createsnewofferingsviaconsumer-drivenrequirements

Enablesnewpathstoenterprisegrowth

Createsnewopportuni:estocollaboratewithinandoutsidetradi:onalindustryborders

ExternalFactors

Source: IBM Institute for Business Value: Automotive 2025 – Future trends and the transformation of the Automotive Industry

Agenda

Ø  Consumers: Digital disruption into the physical world Ø  Mobility: The mobility revolution in the automotive industry

Ø  Ecosystem: Inside, related, and beyond connected vehicles Ø  Critical business competencies in a globally transforming digital age

Customer experience: Do we LOVE our cars?

You’ve got to start with the CUSTOMER EXPERIENCE and work back toward the technology. - Steve Jobs

“”

Customer experience: Do we LOVE our cars?

You’ve got to start with the CUSTOMER EXPERIENCE and work back toward the technology. - Steve Jobs

“”

•  Is buying a car a good customer experience today? •  Is car insurance a good customer experience today? •  Is car maintenance a good customer experience today? •  Is parking a good customer experience today? •  Is car trading a good customer experience today? •  …

This is the entry for other industries!

Connected Car Life Style

Consumer Generation 2010 2020 Grown

up Defines Invent

Traditionalist (born <1946) Silent Generation

4% 1% Books Fax

Baby Boomers (1946-1964) Growth Economies Generation

38% 22% TV PC

Generation-X (1965-1976) Tales for an Accelerated Culture

21% 20% PC Mobile Phone

Millennials (1977-1997) Digital Natives (Gen-Y)

37% 50% PC & Internet

Google & Facebook

Gen-2020 (born > 1997) Hyper connected

0% 7% Mobile Media

iPhone Apps

The nature of the consumers is changing OEM

The History Historically the

Dealer-to-Consumer relationship,

supported by the Business-to-Dealer

relationship have been the key

relationships in the automotive industry.

The Opportunity 1. Digital technologies will enable OEMs to establish a much closer customer relationship. 2. In addition the “Connected Car” opens up new “Vehicle to Consumer” (V2C) and “Vehicle to Business” (B2V) relationships.

Dealer Vehicle

B2D

D2C V2C

V2D

B2V B2C

Agenda

Ø  Consumers: Digital disruption into the physical world Ø  Mobility: The mobility revolution in the automotive industry Ø  Ecosystem: Inside, related, and beyond connected vehicles Ø  Critical business competencies in a globally transforming digital age

How has the car changed since 2007? Too many improvements to summarize all…

How has the mobile, mobility and IoT changed since 2007? The smartphone as the key to mobility!

iPhone (1st generation) first released June 29, 2007

iPhone 6 first released Sept 19, 2014

Creating new products and business models!

Driving engagement and customer experience!

Accelerating advances in technology…!are transforming every part of business!

Advancedanaly2csProductlifecycleCloudPervasiveconnec2vityEmbeddedsensors

Mobility is getting from A to B

The “Amazon of Mobility” is a Network Ecosystem

Start

Preferences •  Time •  Costs •  Simplicity •  Comfort •  …

Use Case •  Business •  Leisure •  Shopping •  …

Travel destination

One check-in … keep your personalities always with you … one payment

Agenda



Personalized Experiences Example – Business Traveler Use Cases

MobileDevices

Avionics

QuickServiceRestaurant

IntegratedResort

Car

InternetofThingsNewEmergingDevices

e-Token/Cogni:veKey

DigitalSignage

POS

Connec:vityTechnologies

ContentIntegra:on Triggers

Personaliza:onPreferences•Brands•LifestyleEntertainment•Merchants

Ac:vi:es•Travel

IBM – Panasonic Cross Value Innovation for New Business Models

Internet of Things Automotive centric Ecosystem – B2B2C Customers & Collaboration Partners

• Autonomous Car for Car Rental Apps with e-check in/out at airports

• Integrated Dealership Experience with KIOSK and Intelligent Agents

• Car Centric e-payments for QSR and Intelligent /Personalized Offers

• Real Estate Agents Car

IoT Devices (w/ APIs)Design & Development & Manufacturing

Capabilities

IoT Cloud SolutionsDesign & Development & Manufacturing

Capabilities

Core Technologies

Vertical Domains B2B2C Know-How

Inside-out VehicleCognitive

Cloud

IBM Global Payment Security Operation Center

Moving Object Map Analytics

Cognitive Agent

Outside-in Vehicle

ADAS ComponentRear Seat EntertainmentOnboard Charging SystemElectrification ComponentsBatteriesCamerasSensorsNavigation

Display Audio Head up displaySmart DisplayCockpit System

• Contextual Personalized Brand Life Style Content Delivery at all IBM & Panasonic B2B / B2B2C touch points

• Integrated Parking & e-payments

• Car Surround View User Generated Content

• Car Centric Stadium Apps for Tailgate and Parking type events

• Fleet Solutions

ConnectedHealthcare

•  HealthPresence•  ExtendedCare•  Pa:entMedia

Monitoring•  I-ServicesinHC•  Pa:entRoomof

theFuture•  ExtendedCare

•  CityInfrastructureMgt.

•  RemoteExpertforGov.

•  UntetheredEmployee

ConnectedCity

•  MobileShopperExperience

•  DigitalSignage•  KIOSK•  SmartLocker•  RemoteExpert•  Demographic•  Untethered

Employee•  Store,Social,

Opera:onalAnaly:cs

ConnectedRetail

•  Interac:veBankingKiosks

•  IntegratedRemoteExpertMobileAdvisor

•  ConnectedAnaly:csforRetail

ConnectedOmni-Channel

Connected Solutions

Customer Experience

Strategy

•  Interac:vePOSKiosks

•  DigitalContentHub

•  e-payments•  Connected

Analy:csforQSR

•  Food/Logis:cs•  Security

ConnectedQSR

•  BrandLifeStylePersonaliza:onthruPanasonicConnectedScreens

•  Loca:onBasedCarLifeStyleServices

•  e-payments•  BIGDATA•  Security

ConnectedCar/

Mobility

Driver Insights Vehicle Insights Infrastructure Insights

Agenda



The value chain needs to be changed to implement it

Development Produc:on Sales AVer-salessupport

Digitaliza:onoftheindustry:AmovefromtheAUTOmobiletotheautoMOBILE

Core processes of the classic business model in the automotive industry

Procurement&produc:on

Salesanddigitalaccess

Digitalproduct

integra:on

Value-addedservices

Core processes of the business model in the mobility industry

AUTOmobile in order to emphasize ‘Auto’ – the German word for car

AutoMOBILE to emphasize the mobility of travelling from one place to another

IBM IoT Automotive value is delivered in four foundational areas

Devices&NetworksConnect devices into platforms Hardware, networking, and operating systems infrastructure

IndustryTransforma:onEvolve new business models and brain-inspired systems autoMOBILE with IBM to evolve three different lifecycles in automotive with their industry data curation

Applica:ons&Solu:onsMask complexity and reduce risks

PlaZorms Build and manage IoT solutions and ecosystems Engineering and programming platforms

Infotainment Multimodal travel services

Concierge services

Vehicle health diagnostics

Services as yet unknown

Pay how you drive insurance

Alternatives to ownership

Commerce services

Over the air Driver health services

The Digital Innovation Platform

IBM Bluemix

IBM Internet of Things for Automotive Vision “autoMOBILE with IBM” Three different lifecycles are evolving

Development* Produc0on* Sales* A5er6sales*support*

Digitalisa0on*of*the*industry:*A*move*from*the*AUTOmobile*to*the*autoMOBILE*

Procurement*&*produc0on*

Sales*and*digital*access*

Digital*product*integra0on*

Value6added*services*

Product:)minimalis0c*travel*capsule*

*Product)development:)

Raw*material*produc0on,*manufacturing*of*basic*

parts,*assembly**

Manufacturing)type:)Build*to*stock*

*Focus)of)subsystems:)Drive*system,*chassis,*

bodywork*!

Business)domain:)Physical*produc0on*&*outbound*logis0cs*

Product:)Travel*capsule*&*periphery*


3D*printer,*connect,*replace*

*Manufacturing)type:)

Build*to*order**

Focus)of)subsystems:)Interior/equipment,*electricals/electronics*

!Business)domain:)

Sales*&*digital*access**

Product:)autoMOBILE*


So5ware*Defined*Environment*

*Manufacturing)type:)

Digital*copy**

Focus)of)subsystems:)Communica0on*&*entertainment,*electr(on)ics*

!Business)domain:)

Digital*product*integra0on*&*value*added*services*

Industry-specific Transformations

Applications & Solutions

Platforms

Devices & Networks

IoT for Automotive

Vehicle Insights Driver Insights Infrastructure Insights

Today, 89 business competencies in the automotive industry

Corporate'leadership'

Research'&'development'

Procurement'&'inbound'logis1cs'

Produc1on'Marke1ng'&'

communica1on'Sales'&'

outbound'logis1cs'Financial'service'

AAerBsales'support'

Human'resources'

Quality' Finance'&'controlling' Infrastructure'Corporate'

support'service'

Leadership'domain'

Core'business'domains'

Administra,on'domains'

Support''domains'

Planning'&'management'system'

Internal'control'system'

Repor1ng'&'indicators'

Accoun1ng,'financial'statement'

Treasury'

Financial'market'communica1on'

Goals,'values,'principles'

Corporate'strategy'

Business'&'process'structure'

Integrity'&'law'

Risks'&'finance'

Safety'&'security'

Corporate'documenta1on'

Environment'

HR'management'&'process'

Human'resource'policy'

HR'planning'&'organisa1on'

Opera1on'control'

Evalua1on'

Entry'&'exit'

Opera1on'&'development'

Administra1on'&'remunera1on'

Understanding'of'quality'

Quality'planning'

Quality'improvement'

Quality'evalua1on'

Performance'evalua1on'

Quality'assurance'

Problem'and'error'processing'

Quality'documenta1on'

Planning,'requirement,'change'

Research'&'preBliminary''develop.'

Standard,'method,'process'

Tes1ng'&'valida1on'

Concept,'design,'construc1on'space'

Development'&'engineering'

Product'data'&''documenta1on'

Procurement'strategy'

Logis1cs'planning'&''management'

Supplier'rela1onship'

Supplier'evalua1on'

Purchase'awarding''&'contract'

Produc1on'supply'

Procurement'op1misa1on'

Produc1on'planning'&'management'

Equipment'planning'

Produc1on'assurance'

Series'prepara1on'

Manufacturing'

Assembly'&'intralogis1cs'

Corporate'communica1on'

Corporate'&'brand'iden1ty'

Marke1ng'concept'

Execute'

Control'

Direct'

Market'analysis'&'success'evalua1on'

Marke1ng'measures'

Edi1ng'&'Proofreading'

Media'archive'

Produc1on'process'&'simula1on'

Sales'strategy'&'client'

Sales,'demand,'stock'

Distribu1on'system'

Sales'performance'

Qualifica1on,'quote,'contract'

Order'&'distribu1on'

Acceptance'&'documenta1on'

Distribu1on'op1misa1on'

Financial'service'strategy'

Guideline,'process,'risk'

Evalua1on'&'sustainability'

Performance'measurement'

Financial'services'contract'

Bank'&'credit'

Insurance'

Customer'voice'

Connected'vehicle'

Customer'&'vehicle'data'

Product'monitoring'

Warranty'&'goodwill'

Standard,'equipBment,'informa1on'

Loca1on'planning'

Facility'&'site'safety'

Equipment'&'supply'

IT'opera1ons'

Knowledge'&'ideas'

Law'&'regula1ons'

IT'development'&''documenta1on'

Assistance'

IT'planning'

Project,'por[olio,'process'

Corporate'leadership'

Procurement'&'inbound'logis1cs'

Phy.'produc1on'&'outbound'logis1cs'

Marke1ng'&'communica1on'

Sales'&''digital'access'

Financial'service'Digital'product'intgr.'&'value'added'servic'

Human'resources'

Quality'Finance'&'Controlling'

Corporate'support'service'

Infrastructure'

Leadership'domain'

Core'business'domains'

Administra,on'domains'

Support''domains'

Planning'&'management'system'

Internal'control'system'

Repor1ng'&'indicators'

Accoun1ng,'financial'statement'

Treasury'

Financial'market'communica1on'

Goals,'values,'principles'

Corporate'strategy'

Business'&'process'structure'

Integrity'&'law'

Risks'&'finance'

Safety'&'security'

Corporate'documenta1on'

Environment'

HR'management'&'process'

Human'resource'policy'

HR'planning'&'organisa1on'

Opera1on'control'

Evalua1on'

Entry'&'exit'

Opera1on'&'development'

Administra1on'&'remunera1on'

Understanding'of'quality'

Quality'planning'

Quality'improvement'

Quality'evalua1on'

Performance'evalua1on'

Quality'assurance'

Problem'and'error'processing'

Quality'documenta1on'

Planning,'requirement,'change'

Procurement'strategy'

Logis1cs'planning'&''management'

Supplier'rela1onship'

Supplier'evalua1on'

Purchase'awarding''&'contract'

Produc1on'supply'

Procurement'op1misa1on'

Produc1on'planning'&'management'

Equipment'planning'

Produc1on'assurance'

Engineering,'series'prepara1on'

Manufacturing'

Assembly'&'intralogis1cs'

Corporate'communica1on'

Corporate'&'brand'iden1ty'

Marke1ng'concept'

Execute'

Control'

Direct'

Market'analysis'&'success'evalua1on'

Marke1ng'measures'

Edi1ng'&'proofreading'

Media'archive'

Produc1on'process'&'simula1on'

Sales'strategy'&'client'

Sales,'demand,'stock'

Distribu1on'system'

Sales'performance'

Qualifica1on,'quote,'contract'

Order'&'personalisa1on'

Acceptance'&'documenta1on'

Distribu1on'op1misa1on'

Financial'service'strategy'

Guideline,'process,'risk'

Evalua1on'&'sustainability'

Performance'measurement'

Financial'services'contract'

Bank,'credit,'payment'portal'

Insurance'

Customer'voice'&'contact'

Network'Ecosystem'

Customer'&'vehicle'data'

Product'monitoring'

Warranty'&'goodwill'

Standard,'equipBment,'informa1on'

Loca1on'planning'

Facility'&'site'safety'

Equipment'&'supply'

IT'opera1on'

Knowledge'&'ideas'

Law'&'regula1ons'

IT'development'&''documenta1on'

Assistance'

IT'planning'

Project,'por[olio,'process'

Vehicle'fleet'&'mobility'service'

Technology'&'development'

Research'&'preBliminary''develop.'

Standard,'method,'process'

Tes1ng'&'valida1on'

Concept,'design,'construc1on'space'

Development'

Product'data'&''documenta1on'

Business competencies of the changing business architecture for the autoMOBILE value chain Primary focus on building up digital and mobility competencies

…further details

The Mobility Revolution in the Automotive Industry: How not to miss the digital turnpike!

The Internet of Things, Cloud Computing, Connected Vehicles, Big Data, Analytics – what does this have to do with the automotive industry? This book provides information about the future of mobility trends resulting from digitization, connectedness, personalization and data insights. The automotive industry is on the verge of undergoing a fundamental transformation. Large, traditional companies in particular will have to adapt, develop new business models and implement flexibility with the aid of appropriate enterprise architectures. Transforming critical business competencies is the key concept. The vehicle of the digital future is already here –who will shape it?

http://www.springer.com/us/book/9783662477878 http://www.springer.com/de/book/9783662447826

Dr. Sebastian Wedeniwski IBM Distinguished Engineer CTO Automotive Industry IBM Japan Ltd. [email protected]