How connectivity is creating value to the customer
Connected cars are not anything new. They have been around for over a decade. It’s what they can do now and will be able to do in the near future that is truly revolutionary. They are dramatically changing consumer expectations and behaviors, as well as the need for IT reinvention in the companies. Till now, the connected car has largely been focused on delivering content from infotainment networks and enabling dealers to access black boxes for diagnostics. The rise of the connected driver and the mobility customer is relatively new – and will be game-changing for those who are prepared.
Connected cars can deliver consumer benefits concerning convenience, safety, energy efficiency, entertainment, and information. They are no longer a premium car offering limited to Tesla, Mercedes Benz, BMW, and Audi, but are now part of mainstream brands such as Ford, VW, Toyota, Opel and Nissan. The OEMs are all working to evolve their brands from “car manufacturer” to “mobility provider.” Then eventually it’s all about data. Data is the basis for all connected car services, whether it is broadcast to the vehicle or collected from the various built-in sensors or devices in the car and even its surrounding environment. No automotive OEM wants to lose access to the customer and his data and to be reduced to a “data pipeline” for Apple and Google.
With the connected driver, there is a deeper integration of the customer-car-service relationship. The car functions as an app enabling the vehicle to obtain new functionality and service repairs via remote software uploads. The driver experience goes beyond the topics of driver distraction reduction and infotainment systems. New business models around renting downloadable connected service capabilities in the car versus permanently purchasing them become possibilities.
Mobility customers look across a variety of platforms and options for their transportation needs, which are often on-demand. Their choices may be the result of a rethinking of their relationship to their cars, seeing all options as equally likely: car ownership, two-way car sharing, one-way ride sharing, app-facilitated car pools, long distance buses, and even bike sharing.
Mobility Services offer on-demand, utility-driven choices in transportation that are tailored to meet specific customer needs. Digital companies and start-ups like Uber and Lyft are challenging the established automotive industry market, pushing new ways of driving.Strong competition leads to numerous new variations of Shared Mobility. Leaders in the automotive industry such as BMW, Daimler, and Ford have also moved into the world of mobility services with services such as BMW DriveNow and Ford Getaround. With its open platform, Moovel, Daimler is establishing a leadership position by combining different mobility options from which the customer can choose, ranging from public transportation over car and bike-sharing to taxi or even private transportation options.
The auto industry will be defined by more consumer-centric approaches to cars and mobility that are reflected in the entire value chain. Auto OEMs will need to find ways to derive and drive value from technology-fueled social forces such as the Sharing Economy and Social Network of Things. Only these manufacturers will stay in market, which are able to fully integrate a car into consumers’ lifes, seamlessly and adapted to their mobility needs.