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Telematics Service Providers The evolving role of Automotive Systems Integrators CON612-154 November 2015 REPORT SAMPLE

Telematics Service Providers - SBD Automotive · PDF file• KPI Testing • Cyber Security ... Telematics Service Providers ... MNO Management Verizon network only for Hyundai. Protocols

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Page 1: Telematics Service Providers - SBD Automotive · PDF file• KPI Testing • Cyber Security ... Telematics Service Providers ... MNO Management Verizon network only for Hyundai. Protocols

Telematics Service ProvidersThe evolving role of Automotive Systems Integrators

CON612-154November 2015

REPORT SAMPLE

Page 2: Telematics Service Providers - SBD Automotive · PDF file• KPI Testing • Cyber Security ... Telematics Service Providers ... MNO Management Verizon network only for Hyundai. Protocols

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

Our Intelligence &Insight Services

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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.

About SBD

For questions or

comments, please

contact one of our

representatives:

Europe

Alessio Ballatore

[email protected]

+44 (0)1908 305 107

North America

Jeffrey Hannah

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Page 3: Telematics Service Providers - SBD Automotive · PDF file• KPI Testing • Cyber Security ... Telematics Service Providers ... MNO Management Verizon network only for Hyundai. Protocols

Introduction to this report

Welcome to SBD’s latest report about Telematics Service Providers (TSPs).

TSPThe 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.

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Main menu

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

Click here to learn how the role of the TSP is likely to change

Reference section for service & characteristic definitions

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The evolving role of the TSP

Page 6: Telematics Service Providers - SBD Automotive · PDF file• KPI Testing • Cyber Security ... Telematics Service Providers ... MNO Management Verizon network only for Hyundai. Protocols

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, 3rd 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 3rd 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.

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Comparing TSP capabilities

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TSP Capabilities

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 SERVICES & CHARACTERISTICS TSP PROFILES OEM SCENARIOS

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TSP comparison

Geographical Coverage

B2C ServiceManagement

Consumer Services

Content Integration

MNO Management

Protocols

OEM Internal Services

CustomisedServices

Data Monetisation

Interoperability

Experience

Scale

Click logos to navigate

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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.

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Covisint - Services

TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS

Services shown in grey are either not currently operated or considered a strength

Covisint have long OEM experience in identity & access management services and have more recently expanded their role to cover broader systems integration through an API-enabled implementation platform.

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Covisint - Characteristics

TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS

Rating Comments

Geographical CoverageServices are only operated in the US.

B2C Service ManagementDemonstrated capability to integrate to 3rd parties who manage B2C.

Consumer ServicesFocus is on integration to consumer services rather than direct dev & ops.

Content IntegrationThis is Covisint’s area of focus.

MNO ManagementVerizon network only for Hyundai.

ProtocolsGood protocol management experience through access mgmt.

OEM Internal ServicesCovisint’s API-based platform enabled Hyundai to switch TSPs relatively easily.

Customised ServicesCovisint’s custom integrations are based upon modular platforms.

Data MonetisationNot a key focus in automotive.

InteroperabilityProven ability to integrate with existing systems – replaced incumbent TSP.

Experience‘Full spectrum’ TPS services limited to 1 OEM.

ScaleGood scale for back-end authentication services.

Key Strengths

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

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OEM scenarios

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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.

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Out-sourcer

TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS

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.

Geographical Coverage

B2C Service Management

Consumer Services

Content Integration

MNO Management

Protocols

OEM Internal Services

Customised Services

Data Monetisation

Interoperability

Experience

Scale

The Scenario Key TSP Characteristics Potential Partners

Example OEMs

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Definitions:Services &Characteristics

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OEM Data

Centre

Dealer

Management

System

DriverCar

3rd parties

OEM/Dealer

CRM/

VRM

Data

Gateway

Billing

Management

Service

Management

Data

Sharing

Clouds

Content

Provision

Clouds

API Interfaces

Dis

pa

tch

er

TCU

Telecom

M2

M

Inte

rfac

e

OEMPortal

DealerPortal

Call

Centers

Ca

ll

Ce

ntr

e

Inte

rfac

e

Customer

Portals

https://www.oem.com

Use

r P

ort

al

Inte

rfac

e

S’p

hone

App

Store

Content

management

Primary

TSP

Roles

A system in the vehicle that manages the sending and

receiving of data to the vehicle. TCU is a general term,

which can include:

• 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

• Hybrid systems that have an embedded NAD but rely

on an external SIM (e.g. via Bluetooth SAP or a twin

SIM)

TCU – Telematics Control Unit

(Continental TCU)

TCU

TCU – Telematics Control Unit

Back to Comparing TSP capabilities (services)

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WEAK STRONG

Geographical Coverage

B2C Service Management

Consumer Services

Content Integration

MNO Management

Protocols

OEM Internal Services WHY DOES IT MATTER?

Customised Services

Data Monetisation

Interoperability

Experience

Scale

Geographical Coverage

TSP CHARACTERISTICS TSP PROFILES OEM SCENARIOS

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.

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.

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.

Back to Comparing TSP capabilities (characteristics)

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Contact Us

Feedback Bespoke Consultancy

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 hands-on 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.

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.

To provide feedback on this report or discuss consultancy, please contact us:

Email: [email protected]: +44 (0)1908 305101