Imagine the possibilities of an on-line community of more than 100 million communications-enabled
vehicles and users on the roadway at the same time, all connected to the internet in a rolling MESH network. Such a network would create unprecedented opportunities
for convenience, safety, entertainment, information, advertising, service delivery, communications, and research.
Transitioning From Roadside to Roadway
Assistance
An early and broad definition of Telematics is the remote communication between
systems and devices. Over time, this has evolved to refer to an emerging market for communications, entertainment and information
(InfoTainment) services delivered to the motor vehicle via wireless technology. The initial testing and implementation of
the US DOT “Vehicle to Infrastructure Interface Program” (VII) is the major force predicted to lead to the emergence of a variety of new and exciting Telematics
systems and services with implementation predicted as early as 2012. The existing Telematics services offered by automotive
manufacturers are relatively limited and primarily focused on delivering safety and security with very questionable VII compatible
migration paths.
The Vehicle to Infrastructure Interface – What is it … really?
The VII is a cooperative public-private joint venture between the USDOT, the
automobile industry, and State DOT’s designed to integrate on-board units (OBU’s) with roadside units (RSU’s),
forming a new communication network and infrastructure. When fully deployed in
North America,
the VII will consist of more than 375,000 RSU’s linked real-time in a 802.11s MESH canopy. When connected to an estimated 120,000,000
motor vehicle on-board units, the system will constitute a pervasive, device agnostic, Peer-to-Peer (P2P) network driven by
an Instant Messaging (IM) system for motor vehicles and government roadway operators based on Wi-Fi and DSRC protocols.
The New Automotive Telematics Business Model
The historic business model of the automotive industry and the design environment
associated with it are going through a rapid change. The increasing number of on-board Telematics and computer systems is
forcing an upgrade in electrical systems from 12V to an SAE recommended 42V and the industry towards an in-car technology revolution. Traditionally the automotive model has featured long time scales from design concepts to production.
Such efforts were almost exclusively supported by in-house competencies and resources. This no longer works for the automotive
OEM in the age of the digital car. As “connected vehicle” and “wireless
car” prototypes begin rolling out, auto manufactures will need to form outside partnerships to help meet the Internet
connectivity and application integration challenges for consumer electronic devices (CED’s) and other increasingly important
capabilities. Such partnerships will assist the automotive manufacturers to develop, manufacture, market and support their
Telematics systems and service offerings. As this new Telematics automotive business model takes hold, Telematics Service
Providers (TSP’s) will need to evolve with it.
Smart-Traveler’s Telematics Concierge Model
The evolution of the automotive Telematics business model and the related service
requirements will drive automotive services providers to develop advanced customer service concepts. These concepts will be
web-based portals such as Smart-Traveler’s ATIS featuring “roadway” assistance service offerings, which
is the next generation in motorist assistance beyond today’s roadside services. Smart-Traveler’s Telematics Concierge
Model will integrate the solutions of upscale independent automotive service centers, motor clubs, content providers, and
wireless communications operators. The Telematics Concierge Model utilizes location-based
delivery systems and the digital dispatch-based instant message service provider (iMSP) capability. This concept will extend
from the vehicle driver’s home desktop to his vehicle-based web portal through the Smart-Traveler Telematics Concierge
and back.
The development of an integrated solutions offering will enable an Advanced Traveler Information Systems (ATIS) from Smart-Traveler to provision a suite of new InfoTainment services
to vehicles/consumers anywhere on the roadway moving at speeds up to 90 MPH vs.
a stationary vehicle on the roadside as in the current motor club or independent
service center model. This defines and changes the whole paradigm and ushers in a new ‘upscale service center’
that has the capability to be in “constant contact” and one that leverages a “connected vehicle” and
a connected community of vehicles, service centers and drivers anytime … anywhere.
The complexity of on-board hardware and software solutions will require Advanced Vehicle Information Systems (AVIS) that can offer complete life cycle asset management of the car for
the automotive OEM, their dealer network, independent service centers and vehicle owners. Such a system would assist in enabling
24x7x365 trained support and maintenance to help manage the customer and vehicle. This will require secure data management
on the front-end and the communications capability on the back end for the distribution of data as authorized and needed by
various consumers of the data.
The main tasks included on the ATIS
vehicle/consumer side will be to connect the Telematics system to the service network and deliver the services and content.
On the Advanced Vehicle Information System (AVIS)
automotive OEM side, main tasks will include aggregating disparate data sources, billing, and customer relationship management
functions.
The concept and strategy take into consideration the Telematics ecosystem and
the technological advancements and consumer interests associated with it. Smart-Traveler’s
Telematics Concierge is designed to address the ATIS (in particular off-board navigation and real-time traffic management/InfoTainment
needs of the consumer) and the AVIS/Customer Relationship Management (CRM) needs of the automotive OEM’s, dealers and
service centers. This solution will build upon the traditional roadside assistance
safety services and backroom capabilities already in place with current OEM Motor Club models.
Thinking beyond the provisioning of Telematics services, imagine the creation
and implications of an on-line community of more than 100 million Telematics-enabled vehicles and users on the roadway at
the same time, all connected to the internet in a rolling MESH network. Currently, even the most advanced motor club members
are not linked together in an on-line community, nor are their vehicles. The combination of Telematics and the web-based Smart-Traveler
system could accomplish both. The ability to stay in “constant contact” via the iMSP capability will make this
traveler community part of the “live web” whether the user is in the vehicle or not. The Smart-Traveler site can
extend to the member’s desktop, vehicle, cell phone, or virtually any device on any communications network and back
again. The central idea is to harness and harvest the “collective intelligence” resulting from the integration
of three key components, the vehicles, the roadways and the users. This intelligence is used to empower drivers and outside
Telematics partners and facilitate the creation of a truly collaborative and intelligent traveler web-site. The site will
feature a host of services based on the resulting content for the shared community that will help drive traffic to the site
and help sustain the business and revenue model.
Similar web-site concepts to what we describe herein, generically referred to
as Web 2.0 are among the most heavily trafficked sites (MySpace) on the web. Variations of the concept are now impacting business
and have become known corporately as Enterprise 2.0. In the
corporate world this trend has already demonstrated the ability to flatten organizational boundaries between managers and
employees as well as between the company and its partners and customers. Under our proposed solution, automotive OEM’s
could private label their own Smart-Traveler Motor Club as a means to gain access to the Telematics generated community. They
could create member specific “my car” pages on the site that serve as an on-line “asset management”
service that provides a holistic profile of the customer’s vehicle including a service history record, contract management
with renewal and payment notifications and options, depreciation calculators etc. The member in turn could add a photo of
the vehicle to the profile and post it to the on-line classified listings should they decide to sell it on their own, share
info with auto dealer on-line to explore trade-in options, purchase auto insurance or register a vehicle on-line. The four basic tenants of the Smart-Traveler web site and concept; community, content, collaboration and
communications are all in evidence in the examples sited above.
Partnering Strategy
Partnering and outsourcing for vehicle services providers is of strategic importance
at this time and will need to become a core competency to survive and successfully transition from roadside to roadway assistance services. Currently, Telematics is fast becoming a revolutionary force that will, over the
next five years and beyond, create significant changes in the automotive business models of many industries in North America including roadside assistance, independent service centers and auto insurance. The traditional
services for roadside assistance providers could be in danger of being “bundled out” by TSP’s offering the
same or similar capabilities plus the new generation Telematics services.
Upscale independent auto service and insurance
firms could soon be looking at a different business model based on a number of factors, including the safety and security
benefits of VII implementation and usage-based insurance programs. Once deployed, Collision Avoidance Systems and Automatic
Collision Notification systems are forecasted to reduce accidents by as much as 50 percent and save thousands of lives annually
according to National Transportation Safety Board (NTSB), greatly reducing liability and claims paid, while forcing a recalibration
of the pricing models for vehicles equipped with Telematics capability.
Go to market strategies will need to be reconsidered as the impact of Telematics
enables vehicle usage metering (roadway tolling) and insurance policies based on usage.
The break down of traditional channels offers new advertising opportunities and allows for more direct communication
and access to the consumer at the automobile point-of-sale and throughout the life cycle of the vehicle. A converged marketing
plan and bundled service plan offered though a Telematics partnership will provide protection and leverage in a newly-aligned
market for both auto insurers, roadside assistance provider’s and independent service centers.
The acceptance of Telematics Concierge concepts
in the form of subscription contracts could increase exponentially over time as it becomes viewed as a basic need vs. a luxury,
and as certain cost off-sets are realized by both consumers and the auto industry. The innovative component of Telematics
could very well be what ultimately creates the off sets that pay the subscription bill for the consumer, drives membership
and simultaneously attracts the advertising revenue.
