Smart Connected Vehicles: Driving to the Bottom Line!

Transcription

1 Smart Connected Vehicles: Driving to the Bottom Line! Andreas Mai, Director Smart Connected Vehicles June 23, 2015

2 The Panelists Frank Weith Chuck Link Andreas Mai General Manager Connected Services Chief Technology Officer (Retired) Director Smart Connected Vehicles Cisco Confidential 2

3 Connected Car is the biggest M2M / IoT Market for SPs and A Key Hub in the Wider Internet of Things Home Cloud Transit Health Grid LBS ITS Sources: June 2014, Telco Revenue Opportunities in Connected Cars Netcracker 360 & Cisco Internal Cisco Confidential 3

4 Internet of Cars: $700 Billion Benefits per Year Worldwide Benefits from Connecting Road Vehicles Per Year [$ Billion] $700 Billion Worldwide Benefits Society Safety: V2V to address 80% of crashes Congestion: V2I to increase road and intersection throughput, CO 2 reduction Lower traffic/road/toll operation costs Vehicle User Lower operation & insurance cost Less time stuck in traffic, more productivity Lower data cost Internet of Cars Service Providers Cyber security: Cloud supported protection B2B2C service platform: to integrate E-2-E experiences, e.g., navi + traffic + parking +LBS Infotainment & Productivity Apps Auto OEM/OES Remote diagnostics: to reduce warranty cost (>50% electronics) Secure OTA-Update: of >100 electronic control units to reduce recall cost Connected CRM/ VRM: to increase customer stickiness and service revenue Source: Cisco IBSG Automotive and Economics Practices, 2011 Note: Core Regions NA, EU, AP, Excl. 22% $1,400/ vehicle & 67% penetration of vehicle population Cisco Confidential 4

5 New Business Models: Connecting the Mobility Value Chain Cost Core Vehicle Energy UBI Connectivity LBS ITS Services From Building Cars to Selling Travel Time Well Spent Roads Modes Value Source: Cisco Smart Connected Vehicle, 2014 Cisco Confidential 5

6 IoE: Smart Network Connects, Detects, Collects, Protects, and Acts Network of Things Internet of Things Enterprise Internet Public Internet City Cameras Traffic Lights Vehicles Meters Medical Devices Retail Consumer Devices Banking Oil & Gas Automotive Healthcare Public Sector Search Business Applications Company-Specific Analytics Browsing Applications Friends & Family Likes & Hobbies Content Consumed Secure Network Data Exchange Source: Cisco Systems, 2013 Cisco Confidential 6

7 Cisco + Partner Solutions Scalable Modular Platform to Capture Value of IoE Vehicle Home City Transport Retail Dealer Utility Insurance Health Factory Business Continuity & Optimization Cisco Digital Business & Application Enablement Service Exchange Service Grid Contact Center Process Automation Collaboration Interactive Experience Internet of Things Cloud Connect API Business Integration Business Insights Data Virtualization E-2-E Security Management Cisco ONE Network Automation Cloud Orchestration Policy/Intent (ACI) Cisco Infra Data Center WAN Access Mobility Fog Cisco Client + ConMan Data Security Cisco Confidential 7

8 Five Major Layers of End-2-End IoE Security Security Company è Industry è X-Industry? Security Operations Center Report Update Advanced Vehicle Security Source: Cisco Systems, 2015 Security Cloud Secure IoT Enterprise Secure Service Exchange Platform Value Cisco Confidential 8

9 Global Mobile Data Traffic Drivers By 2019: More Mobile Users Billion 5.2 Billion 192 Exabytes = 192 x Bytes = 65 Trillion images = 6 Trillion video clips More Mobile Connections Faster Mobile Speeds 7.4 Billion 1.7 Mbps 11.5 Billion 4.0 Mbps More Mobile Data per Month 0.6 GB 4.4 GB Source: Cisco VNI Global Mobile Data Traffic Forecast, Cisco Confidential 9

10 Off-Loading Data and Switching Is Key to Improve Experience and Contain Cost HOME ROAD OFFICE Home Security & Automation 3G/LTE WLAN Media DSRC City Mesh Hotspot Cable / DSL Source: Cisco IBSG Automotive 2011 Switching Ethernet / LAN Cisco Confidential 10

11 Trends Driving The Telematics End-Game for SPs Best Cost/ Quality Switching MSP 1 MSP 2 MSP n Global/ Soft SIM 3G/ LTE OTT WiFi/ DSRC Split Billing Automaker B2B2C PF Apps+Content New Device on Existing Plan Identity Management Source: Cisco Systems, 2015 Plan1 Plan 2 Plan n Cisco Confidential 11

12 Strategic Control Point: B2B2C Platform That Delivers Better Connected Vehicle Experiences Visteon, Bosch Partmakers Sub-Systems GM, Daimler Automakers Voice/ Data AT&T, Onstar SPs Services Google Services Repairpal Services Applications Apple Applications Zubie Applications Experiences Experiences Experiences Connected Vehicle B2B2C Platform Cisco Confidential 12

13 Better Control or Share Value Creation and Market Access? Need New Innovation & Business Models Value Creation Market Access Technology Cost Customer Data Control Share Price From Building Cars to Selling Travel Time Well Spent Value Automakers SPs Insurers The Valley Source: Cisco Smart Connected Vehicle, 2014 Cisco Confidential 13

14 Q&A: Service Provider Strategies to Compete in the hypercompetitive Internet of Cars Market Top technology challenges for automakers and service providers? Customer ask: Automatic switching to best quality / best cost network? Is 4G enough to manage the Internet of Cars data avalanche? Who naturally owns what piece of the Internet of Cars pie? Who will win the race for the future personal mobility business? Cisco Confidential 14

15 Polls: Your Opinion Counts 1. Will 4G be sufficient to transport ALL data to and from connected vehicles? Yes No 2. Who will win the race for the future personal mobility business: Automakers Service Providers The Valley Cisco Confidential 15

16 Thank you.