cars, marketing, and it
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TRANSCRIPT
technology, marke0ng, and the future of the car market
Carl Benz Academy Nathan Garre:, PhD
slides available on h:p://profgarre:.com
Crea0ve Commons by-‐sa 2.0.
Why does an IT guy have something to say about cars?
How much code does this car have? Linux: 10m Windows: 50m Boeing 787 Avionics: 6.5m F-‐35 Avionics: 6m $10 per line of code
Source: h:p://www.germancarforum.com/community/threads/modern-‐luxury-‐vehicles-‐claimed-‐to-‐feature-‐more-‐soXware-‐than-‐a-‐fighter-‐jet.28387/ Source: h:p://spectrum.ieee.org/green-‐tech/advanced-‐cars/this-‐car-‐runs-‐on-‐code
SoXware has cost implica0ons
• SoXware is 10-‐15% of electronics cost.
• Half of warrantee costs involve electronics
Year Cost of Electronics
1970 5%
2005 15%
Current Hybrids 45%
Current Premium 35-‐40%
2020 Gas 50%
2020 Hybrids 80%
Source: h:p://spectrum.ieee.org/green-‐tech/advanced-‐cars/this-‐car-‐runs-‐on-‐code/0
SoXware has security implica0ons • Trusted network
• Accessible through: • Radio / MP3 • OBD-‐II Connector • Tire sensors • OnStar • Bluetooth • Telema0cs • Applica0ons
• Control
• Readouts • Crash ECU • Brakes • Wipers • Airbags
Source: h:p://arstechnica.com/security/2010/05/car-‐hacks-‐could-‐turn-‐commutes-‐into-‐a-‐scene-‐from-‐speed/ Source: h:p://www.autosec.org/pubs/cars-‐oakland2010.pdf
SoXware has control implica0ons
SoXware has sales channel implica0ons
• What do dealers add?
Source: h:p://www.cbpp.uaa.alaska.edu/afef/consumer-‐distribu0on-‐channel-‐chaffey.JPG
SoXware has luxury implica0ons
• What do dealers add?
SoXware has data gathering implica0ons
• “Black Box” laws in US
How does this change automobile marke0ng?
360 Approach
Integrated Digital
Campaign
Influencer (Blogger)
Consumer via Social Media
Tradi0onal Celebrity
Tradi0onal Print, TV, & Radio
Tradi0onal Events
WWW & Net Adds
Is this what engagement look like?
h:p://www.you
tube
.com
/watch?v=JG8
pzVD
YgNQ
h:p://www.you
tube
.com
/results?search_
query=coke
Or is it this?
h:p://www.you
tube
.com
/watch?v=h
KoB0
MHV
BvM
Where are your influencers?
© 2012 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
More Internet Shopping = Less Control For OEMs and Dealers (US)
Sources: J.D. Power and Associates/Compete Inc.’s, 2011 Website Performance ToolSM and J.D. Power and Associates 2011 Manufacturer Website Evaluation StudySM (MWES)
17
2.4
3.74.2
1.82.5 2.7
1
2
3
4
5
Non-AIU
'sAIU
's
Submitt
ers
# of Dealers Shopped
# of Brands Considered
39%
63%
79%
0%
25%
50%
75%
100%
DealerSites
OEMSites
ThirdPartySites
Perc
ent V
isiti
ng
Buyers Visiting an Auto Site (≤ 6 months before purchase)
Number of Brands and Dealers Shopped
Where are your influencers?
• Who are the influencers?
• Blogs?
• Forums?
• Pro/Am
See h:p://www.useit.com/alertbox/par0cipa0on_inequality.html
h:p://advrider.com/
h:p://upload.wikimedia.org/wikipedia/commons/thumb/1/13/BMW_R1200GS_track.jpg/800px-‐BMW_R1200GS_track.jpg
h:p://upload.wikimedia.org/wikipedia/commons/thumb/5/5d/BMW_R1200GS_fully_ki:ed.jpg/541px-‐BMW_R1200GS_fully_ki:ed.jpg
h:p://www.advrider.com
/forums/show
thread.php?t=681994&page=20
h:p://www.advrider.com/forums/showthread.php?t=681994&page=115
Where do your customers go when they have problems?
• Dealer?
• Friends?
• Internet / Youtube?
• Q&A?
What is their mo0va0on?
• Enable them to actualize themselves with your brand
• Social goals – Admired – Adored – Respected
Consumer à Community
1. Social media means opening up the company brand to risk.
We paved the prairies, we deforested the hills We strip-‐mined our mountains, and sold ourselves for oil To bring you this beau0ful machine, so you can finally drive to see what's leX out of wilderness, and now that we're here We can't get out of the car. America 2006 -‐ the ul0mate padded cell
Consumer à Community
1. Social media means opening up the company brand to risk. – Don’t suppress nega0ve feedback; learn from it
2. Shared ownership with consumer
Consumer à Community
1. Social media means opening up the company brand to risk. – Don’t suppress nega0ve feedback; learn from it
2. Shared ownership with consumer
3. Openness to republishing/re-‐using content – Fan page for Louis Vui:on – Louis Vui:on “Art of Travel”
What can you do with a F.B. Page?
Heinz Ketchup Louis Vui:on
Conclusion
© 2012 J.D. Power and Associates, The McGraw-Hill Companies, Inc. All Rights Reserved. J.D. POWER AND ASSOCIATES PROPRIETARY AND CONFIDENTIAL—FOR INTERNAL USE ONLY
Customer Understanding Specific performance levels for shopping,
financing, and servicing interactions
People Hiring
Training Compensating
Retaining
“Software” Systems
Processes Culture Attitude
“Hardware” Facility
Tech Tools CI
Business Case CSI-Related Margins, Incentives (Intrinsic, Extrinsic)
Measurement
Shopper, Buyer, Service Tracking, Auditing
Product Quality APEAL Price
Goal Brand and Business Growth
through Customer Experience Excellence
1
2
3 3 3 3
4
Experience Excellence: An Organization View
Everything begins with quantitative definition of the customer interactions that create delight
Products must provide personnel a strong point of differentiation—other than price—upon which to engage customers
Systems must support personnel meeting customer time, knowledge, value, …, needs
Must measure what matters to customers in a way that matters to dealers—business case of delight
ROI for pursuing excellence must be clear to capture (and keep) dealers, field, and other personnel “hearts and minds” so they adopt and maintain the right attitudes
People must be able to consistently meet the variety of customer time, knowledge, and value needs
Hardware must support personnel meeting customer time, knowledge, and overall experience requirements
IT & Marke0ng
• Recognize IT’s increasing impact
• Understand shiXs in a 360 approach 1. Increased risk 2. Shared ownership 3. Unauthorized re-‐use
• Learning from customer engagement