MicrosoftConnected Car Strategy & Solution

Kevin Kao 高啟原Senior Program ManagerMicrosoft C+E2016-10

Partnering with customers in their digital business transformation

Digital is disrupting

industry fundamentals

Products and

technologies

Autonomous cars

Electric vehicles

Business

models

Car sharing services

Pay-as-you-go insurance

Fleet management services

Connected cars

Smart

ecosystems

Smart cities

Smart homes

Smart infrastructure

Customer

expectations

New experiences

Sales and service relationships

Sources: McKinsey; Accenture; Corp Strat analysis

By 2030…

As a result,

automakers need to:

Industry is being transformed by a combination of

key technology and business model trends:

Connectivity

Autonomous Driving

Vehicle Sharing

1

3

2

~100% of new cars projected to be

connected, up from ~25% today

~32% of miles driven on new cars

will be in shared rides

~10-15% of new cars projected

to be fully autonomous

Transform into mobility

service providers with a suite

of integrated and intelligent

connected car services

Own AV technology to

provide mobility services and

preserve their market position

Invest in vehicle sharing and

fleet management services

to prepare for a world with

fully autonomous vehicles

The car industry is at a transformational moment…

Source: Accenture, McKinsey, IHS

TREND OVERVIEW KEY SUCCESS FACTORS FOR AUTOMAKERS

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Connected Car Share

Connectivity will be a key differentiator for customers when buying a car

Percentage of people willing to change car brands for

connectivity grew from 20% in 2014 to 37% in 2015

Mobility services:

Infotainment, predictive services and

customer engagement

Enabled by:

Mapping:

Location is a key anchor of mobility

services

Cloud and software platform:

Data ingestion, processing, and

storage

Data analytics

Digital services

As cars become connected, automakers will need to transition into mobility

service providersAutomakers will require a technology partner with cloud, analyticsand mappingcapabilities.

Connected Car & ADAS/autonomous cars driving car maker transformation

Car maker value chain in a profound transformationConnected Vehicle

Deep & continuous engagement

Mobility

Services

Insurance

Car Service

Parking

“take out the driver, take out the IC engine, take out the dealers, take out ownership … otherwise its business as usual“ – Adam Jonas, Auto industry analyst, Morgan Stanley

Comprehensive platform for vehicle & enterprise optimization

Car Users

Prospects & social networks

Customer intimacycontextual experiences | across devices

Lifecycle relationshipcrm | plm | scm | dms

Machine learningprediction | analysis

Cloud platform + Infrastructureglobal | scalable

Data is the new currency fueling transformation

10

Data

A CV services architecture with the Microsoft platform

IoT Agent

Linux, Windows, WinCE

Open Source C++, C#

Gateway

1011011100010110

Events

Alarms

Status

Data Ingestion

Event Hub & Service BusComplex Event

Processing

Stream Analytics

Tables

BLOBS

SQL Azure

HDFS

Data Lake

Azure Service Bus

Business

IntelligencePrediction Models

Machine Learning (Azure ML)Local Technician

Enterprise Business Processes

Remote Expert

Design & Engineering

Manufacturing & Supply Chain

Service & Maintenance

Customer Relationship

Microsoft Azure

Secure Comms

WiFi, Cellular

IoT Hub

Device Registry, Device Management

Predictive Maintenance Event

HD Insight (Hadoop)

Generate Prediction Models

External Data Sources

Data Mash Ups Data Factory

Training Models

ML Studio

ID

Leverage Microsoft Azure IoT

and Data Platform

“Nissan selects Microsoft

Azure to power Nissan

Telematics System”

“Ford develops new service

delivery network for its

vehicles powered by

Microsoft Azure”

“Microsoft to

Provide Cloud Computing

Services to BMW”

“Microsoft Azure Platform Is

Powering Delphi Connect

Connected Car Service”

“Harman and Microsoft to

Bring Driver Productivity to

the Global Automotive

Industry”

“Volvo Cars And Microsoft

Launch Wearable Voice

Control System For Your Car”

“IAV and Microsoft

Collaborate, Showcase Traffic

Safety Technology at CES”

“Toyota, Microsoft Team Up

on Connected-Car

Technologies”

Services:

Enable over-the-air software updates

Scheduled remote start

Vehicle finder

Vehicle status (fuel or charge level, tire pressure)

13

Through their Azure-powered Service

Delivery Network, Ford is bringing the

next generation of ownership

experiences to the global market to

make vehicle ownership simpler and

more engaging through connected

experiences.

With Microsoft:

Scale

Commitment to Secure

Global Operation

Data Management and Analysis

Services:

Connected Car Services

Driver Scoring, UBI, Parts Maintenance and Warranty

reduction, digital assistant, Smart home and Cites.

Dealer Retail excellence

End User Services for Toyota.

In Car Productivity

14

Toyota will leverage the power of data

science through Microsoft’s Azure

cloud technology to develop predictive,

contextual, and intuitive services that

help to humanize the driving

experience while pushing the

technology into the background.

With Microsoft:

Global Scale and Hybrid Cloud

Partnership

Data Management and Analysis

Services:

Talk to the Car remotely

Setting the navigation

Starting the air-condition

Locking the doors

Flashing the lights

Sounding the horn

And …. 15

Volvo is intent on making the car

experience as easy and convenient as

possible by utilizing the latest

technology in the most relevant and

inspiring ways. With voice control we

are only just beginning to scratch the

surface of what is possible with digital

assistant functionalities.

Services:

Connection to the vehicle remotely

Turn on and adjust air-condition

Set charging functions

In Car Productivity

Manage incoming text message via voice

Over-the-air POI updates

And ….16

Nissan selected Azure because of its

enterprise-grade security and

compliance. Microsoft was the first

major cloud provider to adopt the

world’s first international cloud privacy

standard, ISO 27018.

With Microsoft:

Enterprise-grade security and compliance

Friendly application development and integration

Data Management and Analysis

Global reach and scale

Partnership

Services:

Journey management

Smart Digital Assistant

Cortana

Calendar

Contact

Message

17

We are building this platform as a

foundation for our future services

and experiences… and Microsoft

Azure and Azure services gave us

the right tools.”

With Microsoft:

Enterprise-grade security and compliance

Data Management and Analysis

Global reach and scale

Partnership

Services:

Connected Your Car

Access your car from smartphone or computer

Receive alert on speeding, low battery, geo-fence

Get vehicle healthy before you go

Vehicle Tracking

Monitor your motion

Stay organized

Unchain your keys 18

“With Microsoft taking care of

maintaining the infrastructure,

we can focus on creating great

connected-car features and

providing exceptional support for

customers everywhere.”

With Microsoft:

Public Cloud Infrastructure

Data Management and Analysis

Global reach and scale

TCO