© 2010 Trajectory Group • Confidential & Proprietary 1
The Connected CarComes in Many Flavors
Presented by Ralf Hug, Founder Trajectory Group
October 2010
Updated March 2011
© 2010 Trajectory Group • Confidential & Proprietary 2
INTRODUCTION
Ralf HugFounder & President
15 Years of Global Management
Experience
Expertise in Strategy Development,
Business Development, Marketing and
Product Management
In-depth Industry Experience in
Automotive, Telematics, M2M, GPS/LBS,
Wireless, CE and Connected TV
MBA University of Bayreuth, Germany
Past Management Positions at:
Business development and strategic
advisory services firm with the very
specific conviction to help companies
to stay on the trajectory of success
Services include:
o Management Advisory
o Marketing Strategy and Planning
o Inbound and Outbound Marketing
o Business Development
o Product Strategy and Launch
o Interim Management
Deep Industry Expertise in:
o Automotive /Telematics/M2M
o GPS/LBS/Wireless/Apps
o Content/Media/Services
o CE/Connected TV
TRACTECORY GROUP LLC
Trajectory [trə′jektrē]: Plotting a realistic path
towards achieving a target over a period of time
© 2010 Trajectory Group • Confidential & Proprietary 3
KEY QUESTIONSHow will the telematics market evolve in the next
3-5 years?
What telematics flavors exist that car companies
can choose from to deliver a connected vehicle
experience?
How will the telematics ecosystem change?
The Connected CarComes in Many Flavors
© 2010 Trajectory Group • Confidential & Proprietary 4
US TELEMATICS MARKET
22.30%
40%
79%
95%
25.50% 30%
62%
85%
0%
20%
40%
60%
80%
100%
2008 2010 2015 2020
Bluetooth Embedded
US Vehicle Sales Connectivity
Source: US DOT- Federal Highway Administration, Wards
Auto 2010, Automotive News 2011
Source: iSuppli April 2009
Automotive Recovery on its way
Mar 2011 SAAR of 13.4 million vehicle in
2011
China #1 in 2010: 18.06 million
Total registered vehicles: 250 Million
Vehicle Connectivity Penetration Rates
enjoying rapid growth
Connected Vehicle is reaching
mainstream
17.444 17.049 16.460
13.493
10.601
12.20013.400
0
2
4
6
8
10
12
14
16
18
20
2005 2006 2007 2008 2009 2010 2011F
© 2010 Trajectory Group • Confidential & Proprietary 5
CONSUMER VEHICLE PURCHASE DECISION
28%
29%
44%
54%
8%
8%
11%
15%
0% 10% 20% 30% 40% 50% 60% 70% 80%
I will include Telematics features
in my research when deciding which brand
and model to purchase.
I would spend more money on
a car with the right telematics features.
I would change models from what I originally
wanted in order to get the right telematics features.
I would change brands from what I originally
wanted in order to get the right telematics features.
Strongly AgreeAgreeSource: Airbiquity TU Detroit 2009
Does Telematics matter?
© 2010 Trajectory Group • Confidential & Proprietary 6
• OnStar service was available on vehicles produced by Acura, Audi, Isuzu, Subaru, Volkswagen
and as Lexus Link in the past
• Other telematics programs that have been discontinued are Ford Rescu, Jaguar Assist and Ford
Wingcast
OEM TELEMATICS ADOPTION
OEM System Launch
GM Onstar/MyLink 1996
Mercedes-Benz mbrace (TeleAid) 1999
BMW BMW Assist, ConnectedDrive 2002
Toyota/Lexus Safety Connect/Lexus Enform/Entune
2009
Ford Sync/MyTouch 2009
Smart Smart Drive App 2010
Kia UVO 2010
Audi Audi Connect 2010
Nissan/Infinity Nissan Connect / CARWINGS 2010
Hyundai BlueLink 2011
Fiat Blue&Me 2011
Honda/Acura Planned
Chrysler Planned
VW Planned
Saab IQon Planned
Telematics Programs
came a long way and are
here to stay!
© 2010 Trajectory Group • Confidential & Proprietary 7
KEY QUESTIONSWhat telematics flavors exist that car companies
can choose from to deliver a connected vehicle
experience?
The Connected CarComes in Many Flavors
© 2010 Trajectory Group • Confidential & Proprietary 8
THE MANY CONNECTED CAR FLAVORS
Embedded Module Handset Integration Terminal Mode/VNC
SmartPhone Head-unit
Embedded TCU
“Classic” Telematics Program
Focus on Safety & Security
Use of handset for tethering
Access to cloud services
Focus on Infotainment,
Productivity and Hands-free
calling
Mobile device applications are
presented on the vehicle„s
head-unit
Applications can be controlled
via the vehicle HMI
For Head Units without a
Graphical Display
Car Integration Kit
Specialty Apps
Embedded TCU
SDK with APIs to develop auto
specific apps
Safety, Diagnostics &
Infotainment
Vehicle App StoreApple's iPod Out
iPod Out enables the car to
display the familiar iPod
navigation menu in the
vehicle‟s main center display,
and control features using the
vehicle‟s controls.
Mini Connected
© 2010 Trajectory Group • Confidential & Proprietary 9
THE MANY CONNECTED CAR FLAVORS
Connected Head-Unit Connected PND
Roadside Assistance OBDII Module
Embedded Connectivity or
wireless USB to Cloud Services
Focus on Navigation,
Productivity and Infotainment
Portable Navigation Device
Integration
Embedded Connectivity to
Cloud Services
Focus on navigation relevant
dynamic content
OBDII interface solutions
Bluetooth or embedded
wireless module
Monitoring/Capturing vehicle
and driver performance
Aftermarket, Fleet and
Insurance apps
Standalone SmartPhone Apps
without car integration
Primarily Roadside Assistance
Service and Insurance Claim
Processing
Internet in the Car
Embedded Module
Content and Service
Aggregation utilizing built-in
Apps and Browser
Access to the Cloud and
Internet
Wifi Hotspot in Car
Aftermarket installed box
Provide Wifi hotspot in car for
connected devices
Focus on Internet browsing,
email, remote office
© 2010 Trajectory Group • Confidential & Proprietary 10
New mobility ecosystem will
change how most of us think
about mobility (Ownership,
Financing, transportation modes,
transportation-related services)
Development and demo of a
unique and user-friendly
framework for green electro-
mobility
THE MANY CONNECTED CAR FLAVORS
Insurance Telematics Aftermarket Telematics The Shop of Tomorrow
Embedded vs. OBDII approach
Devices can track simple or
very detailed driving behavior
Usage-Based Insurance (UBI) or
PAYD in market today
Aftermarket installed box
Embedded Connectivity
Optional CAN-bus access
Focus on specific niche or
vertical s (tracking, fleet, etc.)
Automotive Aftermarket
Industry Association (AAIA)
and an alliance of aftermarket
innovators built a remote
diagnostics and communication
solution for the independent
service industry
Mobility as a ServiceCar Sharing
Car2Go, Zipcar, Connect:
innovative urban mobility
solution for car sharing
Convenient and secure fully-
automated car rental process
Electric Vehicle
Embedded TCU
Primarily for battery monitoring
and related services
Mobile Companion App
© 2010 Trajectory Group • Confidential & Proprietary 11
THE MANY CONNECTED CAR FLAVORS
Vehicle to Vehicle (V2V) Vehicle to Infrastructure (V2I) Vehicle to Grid V2G
Allows vehicles to "talk" to
each other over dedicated short
range communication (DSRC),
a 5.9 GHz band
Motivation is safety and
avoiding accidents and traffic
congestions
Provide a communications link
between vehicles and roadside
infrastructure
Motivation is to increase safety,
efficiency, and convenience of
the transportation system
Infrastructure such as traffic
signals, toll stations, parking
systems, etc.
Describes a system in which
plug-in electric vehicles
communicate with the power
grid
Manage demand by either
delivering electricity into the
grid or by throttling the
charging rate
Autonomous Driving
More advanced systems
propose to simulate human
perception and decision-
making during steering of a car
via advanced computer
software linked to a range of
sensors such as cameras, radar
and GPS
ADAS
Advanced Driver Assistance
Systems
Various sensors such as
camera, radar, GPS, Maps
wireless
Examples: Curve warning, lane
departure warning, collision
avoidance, park assist
© 2010 Trajectory Group • Confidential & Proprietary 12
MULTIPLE OPTIONS FOR OFFERING TELEMATICS
EMBEDDED
PORTABLE
OFF
-BO
AR
D C
on
ten
t/C
lou
d S
erv
ices
ON
-BO
AR
D C
on
ten
t
PND Dock/ Integration
Head-Unit withInfotainment
PND
TCU
Smart Phone + apps
BT Interface
Connected PND
Connected Head-Unit
Wireless USB
USB
OBDII Module
© 2010 Trajectory Group • Confidential & Proprietary 13
KEY QUESTIONSHow will the telematics ecosystem change?
The Connected CarComes in Many Flavors
© 2010 Trajectory Group • Confidential & Proprietary 14
DISRUPTION OF THE TELEMATICS VALUE CHAIN
UserSales
Channel
Delivery
Platform
Telematics
Installer
Network
Provider
Content
Provider
Software
Developer
Hardware
Manufacturer
Co
nte
nt
Cre
ato
r
Co
nte
nt
Ag
gre
gato
r
Connectivity
Provider
Car
Manufacturer
and After-Sales
Installer
Telematics
Solution
Provider
Pri
vate
La
bel
Bra
nd
La
bel
Auto
Dealer and
Mobile
Retail
Outlets
Auto
Dealer and
Mobile
Retail
Outlets
-Regulatory Environment
Service
Enablers
Infrastructure
Provider
Trends/Disruptions to Value-Chain:
Changing role of “classical” TSP
New emerging End-to-End Solution Providers
Increased Vertical and Horizontal Integration
Handset/SmartPhone Integration
The rise of the Electric Vehicle
Automotive App Store coming to cars
Shift from safety- to infotainment-centric services
Handset Makers are (re-) discovering the car
New business models besides “subscriptions”
Content aggregators offering content “quasi free”
The complex Telematics Ecosystem and Value-Chain:
© 2010 Trajectory Group • Confidential & Proprietary 15© 2010 Trajectory Group • Confidential & Proprietary 15
Ralf Hug, Founder & President
TRAJECTORY GROUP LLC
Email: [email protected]
Cell Phone: +1 773 733 6913
Skype: ralf_hug
LinkedIn: www.linkedin.com/in/ralfhug
Slideshare: www.slideshare.net/ralfhug
Twitter: @ralfhug
Questions? Please contact me at:
© 2010 Trajectory Group • Confidential & Proprietary 16
TRAJECTORY GROUP CAPABILITIES
Marketing & Product Strategy
Telematics
Strategy
Partner & Business
Development
M2M
Auto App Store
Value Chain
Business Models
Connected Car
Connected Services
Navigation
MRD/PRD
Consumer Research
Product & Services Roadmap
Best-in-Class Marketing
Processes
Content AggregationGlobal
B2B and B2C MarketingBenchmarking
Content & Service
Providers
Retail, Dealer & Channel
Marketing
Content Monetization
Device/Smartphone Integration
Marketing Strategy &
Planning
Go-To-Market Planning
Prospecting
Sales Planning
Customer Introductions
Partnership Development
Relationship Management
Competitor Analysis
Value Proposition
Innovation Management
Fleet Insurance
Aftermarket
Auto OEMs
Wireless Carriers
Category Mgmt
Europe
© 2010 Trajectory Group • Confidential & Proprietary 17
TRAJECTORY GROUP CAPABILITIES
Inbound and Outbound
Marketing
Marketing Strategy and
Planning
Management Advisory
Offering an effective Marketing
Strategy, Planning and
Implementation Process focusing
on the demand generation
objectives and value creation
activities that deliver a clear
competitive advantage for your
business. Able to translate these
business objectives and overall
"Marketing Vision" into focused
activities in sales and marketing
with best-in-class processes.
Offering strategic and tactical
business planning services to
organizations and leverage
profound expertise in strategic
planning, product, marketing, and
business development to develop
innovative business and go-to-
market strategies that translate into
measurable results (revenue
growth and EBITDA
improvements).
Skilled translating company and
brand positioning into effective
marketing plan execution utilizing
the latest inbound and outbound
marketing communication tools as
part of an integrated marketing plan
that can span across the many
elements of the communications
mix such as advertising, PR, digital
media, SEO, Paid Search and the
latest social media tools (Twitter,
Facebook, LinkedIn, YouTube, etc.)
© 2010 Trajectory Group • Confidential & Proprietary 18
TRAJECTORY GROUP CAPABILITIES
Interim Management
Engagements
\
Product Strategy and
Launch
Business Development and
Partner Management
Broad experience and passion
developing market relevant and
competitive product portfolios that
best meet end- user needs, while
achieving and maximizing business
results. Use of proven concept to
market process (including
innovation process, customer
insight windows, MRD/PRD,
analytical tools) combined with
innovative go-to-market tools and
processes to successfully launch
products and services in the market
place.
Built and maintain an extensive
active network of highly targeted
and qualified business contacts
from years of direct engagement.
Active involvement in several social
networking activities on LinkedIn,
XING, Twitter, Facebook and
traditional industry events. Skilled
forging effective customer and
business partnerships that generate
revenue and profits. Managed
many B2B lead management and
B2C marketing campaigns and
programs penetrating existing as
well as new markets with innovative
tools and tactics.
If you are in need of a proven
heavyweight interim executive
manager to manage a period of
transition, crisis or change within
your organization able to provide a
fresh perspective, address a
specific skills gap or problem and
are able to concentrate on what's
best for the business with speed,
dedication and measurable ROI.
© 2010 Trajectory Group • Confidential & Proprietary 19
BONUS DOCUMENTS ON SLIDESHARE
Presentation:
“How to Break Out of the Commoditization Trap”
Article:
“To Find the Business Case for Telematics, Look Higher Up.”
http://slidesha.re/hkpRkW
Presentation:
“Envision Automotive App Stores – Key Questions”
http://slidesha.re/eWnh0n
http://slidesha.re/hvKezSCheck out Ralf Hug SlideShare Channel
http://slidesha.re/i8c2Ll