impact of big data on automotive industry
TRANSCRIPT
Impact of Big Data on Automotive IndustryExplicit Annual Savings of About $800 per vehicle
Sarwant Singh, Senior Partner & Practice Director
Niranjan Manohar, Program Manager
Automotive & Transportation
10 December 2013
A Joint Presentation with
Jamyn Edis
Co-founder and CEO of Dash Labs, Inc.
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Today’s Presenters
Niranjan Manohar
Program Manager,
Frost & Sullivan
Sarwant Singh
Senior Partner and Practice Director,
Frost & Sullivan
Jamyn EdisCo-Founder and CEO
Dash Labs, Inc.
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Agenda
No. Topic Page
1 Global Data Traffic and Big Data Market Revenue Potential 4
2 Connected Cars Accelerating Big Data Opportunities 5
3 Why Big Data in the Car Industry – The Business Case 6
4 Impact of Big Data on Vehicle Pricing 7
4 Key Societal, Technology and other Challenges for Big Data Implementation 8
5 Where it can Help - Big-Data Features and Services 9
6 Big Data Explicit Savings from a Vehicle 11
7 Snapshot on Dash Labs 12
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Source: Frost & Sullivan analysis
Global Data Traffic in Zettabytes, 2010-2025 Global Big Data Market in $ Billion, 2010-2025
2010 2020
2025
2015
$3.56
$87.85
$122.6
$47.37
2010 20202015
1.2
34.1
100.2
7.6
Global Data Traffic and Big Data Market Revenue Potential, Global, 2010 - 2025
20252025
Global Data Traffic and Big Data Market Revenue PotentialDigital content is doubling every 18 months – most of the data in the world today has been created in the last two years alone
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Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis.
Connected and Non-Connected Cars, North America and Europe, 2013 and 2020
� As of 2013 Frost & Sullivan expects less than 2 percent of vehicle data to be useful for monetization
� Meaningful data sets is expected to grow from 10MB to 5GB in an average connected car by 2017/2018
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2014 2015 2016 2017 2018 2019
Un
its
(M
illi
on
)
Connected Car Non Connected Cars2020
~34.0–34.5 million
2013
~8.5–9.0 million
Connected Cars Accelerating Big Data Opportunities ~35 Million vehicles in 2020 will make available relevant data sets for OEM’s to assimilate and convert them into actionable insights
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Digital Leads
Warranty Costs Reduction, Predictive Maintenance
User & Dealer Satisfaction
Internet Aggregators
Advanced Mobility services, Dynamic Navigation and Parking
Product Performance Analysis, Production and Supply Chain
Images and logos are only for representation Source: Frost & Sullivan analysis.
Why Big Data in the Car Industry – The Business Case Key driver for implementing a three pronged big data (internal, external and connected) strategy is the billion dollar cost savings it can provide OEMs/year, and new revenue generation opportunities it can generate across the industry eco system
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Foray of internet aggregators could lead to OEM/Dealer’s losing control over the potential flow of information which plays a crucial role during the consideration and purchase decision of customers.
Transparent Pricing on New CarsPricing Analysis made available by country, state, city or even local dealership
Digital Profiles of Used Cars
Electronic tagging of used cars, creating history and profiling
Profiles are segmented by leveraging several data points to obtain a deeper understanding of the customer.
Disruptive Influence that Big Data can have
Big Data Helping Create New Services
Highest and lowest price of a car for the same specification will be brought down by at least 5 to 10 percent.
Mystery Shopping Jobs of Pricing Analysts Influencing Customer Decisions
Impact of Big Data on Vehicle PricingTransaction pricing to become transparent as internet aggregators enter the market, vehicle pricing transparencies is expected to disrupt dynamics of the industry
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Key Societal, Technology and other Challenges for Big Data Implementation Harnessing relevant and prioritized vehicle and user data are key answers to industry challenges
Understanding the customer from the web (car vs. lifestyle preferences) – Customer Analytics
and CRM
The need for better data quality – High data transfer cost per
vehicle for downloading information
Whose benefitting from the ecosystem – Monetizing data and
sharing value amongst ecosystem partners
Big Data: Relevant & prioritized information – What data you process
and what data you don’t
Shortage of skill set for data analytics and data governance– Data Scientists
Data privacy issues on the type of data being shared – Government limitations
and driver concerns
Images and logos are only for representation Source: Frost & Sullivan analysis.
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OEM
Product Planning
OEM Warranty &
Aftersales/Dealers
Connected Services Providers
Fleet Related Services
OEM
Marketing
Component Failure Prediction
Optimizing Vehicle Performance
Apps & HMI Usage Analytics
Feature Demand by Regions
Demand Sensing –Production Scheduling
Dynamic Parts Pricing
Predicting Recall Scenarios
Proactive Diagnostics
Feature Packaging (Option/Std)
Tailored Auto Financing
Used Car Valuation
Parts Inventory Management
Service Contracts Upselling
Targeted Digital Marketing
Social Media Usage Analytics
Brand Loyalty Analytics
Cross Brand Ownership Analytics
Deals & Rebates
Product Feature Campaigning
EV Related Services
Crowdsourced Traffic + Parking +
Weather
Traffic Management
Road Infrastructure + Public Transport
Multimodal Journey Planning
Disaster Management
Eco-Driving + Driver Training
Usage-Based Insurance
Fleet Optimization
Dynamic Route Planning
Freight Pricing
Driver Behavior Analysis
Asset Tracking
Prognostics
Forward Looking Innovative ServicesCurrent Services which will benefit
from Big Data
Where it can Help - Big-Data Features and Services A successful crowd sourced product offering like Waze which was lapped up by Google for $1 billion (without a revenue model) is a classic example of big data success
Source: Frost & Sullivan analysis.
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Services/FeaturesExisting-
EvolutionaryFuture –
RevolutionaryImpact Example Activity
Multimodal Journey Planning
X ModerateEmbark App, California
Disaster Management X High Toyota, Japan
Door to Door Mobility X Moderate Daimler Moovel
EV Related Services X Low Ford, GM, Tesla
Crowdsourced Traffic + Parking + Weather
X High Inrix, USA
Eco-Driving + Driver Training
X High Fiat EcoDrive
Automated On-Demand Taxi
X Low Google (2020)
Driver behavior Based Insurance
X Moderate Citroen/Vauxhall
Prognostics X High Volvo Trucks
Fleet Productivity X High Volvo Trucks
Driver Training X Moderate None
Source: Frost & Sullivan analysis.
Examples of Big-Data & Connectivity Features and ServicesToyota is using its big-data traffic service in Japan as a more hotspot type service to help in times of disasters to guide traffic to safe spots
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• Reduction in insurance premiums after UBI
• High quality of LBS services
• Reduction in infrastructure development cost
• Smart parking and other public use cases
• Reduction in congestion using big data
• Reduction in warranty costs
• Reduction in product development costs
• Reduction in recall related expenses
• Increased aftersales revenues
OEM
Infrastructu-re /
Society
Vehicle Users
Service Providers
Big Data Explicit Savings from a VehicleFrost & Sullivan expects an annual savings of ~$700—800 per from leveraging Big Data
DRIVE SMART
@dashmobile
@dashmobile@dashmobile
SAFETY
SAVINGS
SOCIAL
BOS
LA
DETSF NY
CHI
HOU
DEN
@dashmobile
KC
‘AUTOMOTIVE GRAPH’
@dashmobile
DASH
PLATFORM
@dashmobile
WINNER - ‘APPS FOR VEHICLES’CHALLENGE
WINNER - BMW ‘FUTURE MOBILITY’CONTEST
WINNER - FORD ‘FUEL APP’ CHALLENGE
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For Additional Information
Jamyn Edis
Co-Founder and CEO
Dash Labs, Inc.
1.857.540.9790
Niranjan Manohar
Program Manager
Automotive & Transportation
(+91) 44 6681 4002
Sarwant Singh
Senior Partner
Automotive & Transportation
+44 (0) 207 915 7843