The Internet of Everything will expand markets and will spawn businesses valued at US $ 14 Trillion. Key areas of innovation will be the automotive and intelligent transportation systems industries. Studies show that each connected vehicle can create $1,400 in benefits each year. Key stakeholders like automotive manufacturers and suppliers, mobile, telematics and infotainment service providers, and insurance companies and governments recognize the benefits of connecting vehicles, and are designing new business and technology architectures to get a piece of the big connected vehicle pie. This presentation shows potential win-win business and technology architectures that could help accelerate the broad deployment of vehicle connectivity through cross-industry partnerships.

1. ITS World Congress 2014:
New Partners, Innovation & Business Models
Andreas Mai, Director Smart Connected Vehicles
September 2014

2. Andreas Mai
Director Smart
Connected Vehicles
Dr. Chris
Borroni-Bird
VP Strategic
Development
Tim Yerdon
VP Design,
Marketing and
Connected
Services
James Buczkowski
Henry Ford Technical
Fellow & Director
Electrical & Electronics
Systems Research &
Advanced Engineering
Kevin Link
General Manager
Telematics China
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3. Data
Processes People
Things
UBI
Source: Cisco Smart Connected Vehicle, 2014
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4. Devices
Infrastructure Clouds
API
API
Inter-Company
On-Premise Intra-Company
Processes
Social
Collaboration
API
API
Applications
Data
API
API
Integration
Security
API API
Cloud
Source: Cisco Smart Connected Vehicle, 2014
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5. Mobility
Value Chain
Travel
Experience Assurance
Autonomous
2020
Auto !?" Tech
Personal
Public
Hybrid
X-Change
Source: Cisco Smart Connected Vehicle, 2014
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6. Worldwide Benefits from Connecting Road Vehicles Per Year [$ Billion]
$700 Billion
80
160
210
250
Worldwide Benefits
Society
§ Safety: V2V to address 80% of crashes
§ Congestion: V2I to increase road and
intersection throughput, CO2 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
Note: Core Regions NA, EU, AP, Excl. 22% RoW, @ $1,400/ vehicle & 67% penetration of vehicle population
Source: Cisco IBSG Automotive and Economics Practices, 2011
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7. B2C
B2B
Cost Reduction Gross Margin Cost Avoidance
Source: Cisco Smart Connected Vehicle, 2014
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8. Autos
Tier-1s
Startups
Dealers
Insurance Government
MSPs
Source: Cisco Smart Connected Vehicle, 2014
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9. Business Business Customer Business
X-Change
Data 4 Value:
What data?
With whom?
What price?
Customer
Source: Cisco Smart Connected Vehicle, 2014
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10. PAYD TSP EV Clearing ITS And more…
IoC
Services
Network
RSU
NewCo
OBU
NewCo
Build & Operate
WiFi + DSRC Network
to Monetize Off-Load,
ITS & LBS Services
Subsidize OBU Upgrade
For Right to Monetize
Data & CV Services
Source: Cisco Smart Connected Vehicles Team, 2012
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11. DSRC
Hotspot
Mobile
SP Off-Load ITS: Toll, Traffic, Park, ++
NewCo
(PPP?)
3G/LTE WiFi
Build/ Operate
WiFi + DSRC
Network
$ for Off-Load $ for ITS-Services
City Mesh/ Enterprise WLAN
Government/
States/ Cities
Road/ Parking
Infrastructure
Source: Cisco Smart Connected Vehicles Team, 2012
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12. U.S. Roadside Equipment (RSE)
PPP Revenue Model [US$ Million]
CapEx P&L
Initial Total 5 Year RSE
Investment (10 Depr.) 6,261 626
Repair/ Replacement 616 62
Operating Expenses 440
Subtotal RSE Cost 1,128
Hypothetical Margin 100% 1,128
Revenue Required to Fund
“RSE Business” 2,256
Per Mile Per Month
1/10th
=
Source: Vehicle-Infrastructure Integration (VII) Initiative, Benefit-Cost Analysis, Version 2.3, US-DOT, 2008 Cisco IBSG Automotive, 2011
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13. (Partial) Cash-out
Infrastructure
ROA Users
Assets
City/ State/ Federal
ROA
Investment
ROI
ROA
Smart
Road
Fee
Big
Data
Service
Fee
REITS
Funding
Outsource Infrastructure
Operators
Service Fee
Big Data
Smart Road Fee
ITS
Operators
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14. OBU
NewCo
$$
$$$
Full
Service
Platform
B2B
OBU
NewCo
Auto
OEM $
Basic
OBU
$ for OBU
Automotive OEM
Aftermarket
B2B Services
$ B2B Fees
OBU
$$$ for OBU
Suppliers
B2B Services
$ B2B Fees
B2C
$$
Source: Cisco Smart Connected Vehicles Team, 2012
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15. Core
…
Vehicle Energy UBI LBS Modes
Connectivity ITS Services Roads Context
From Building Cars to Selling Travel Time Well Spent
Source: Cisco Smart Connected Vehicle, 2014
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16. Autonomous Collaboration / Standards
Highly accurate maps & location
Cyber security
Big data management, analytics
Compute performance
Vehicle connectivity performance
Vehicle network performance
Actuators/ HMI experience
Algorithms for detection & decision
Sensors and sensor fusion
Source: Cisco Smart Connected Vehicle, 2014
Collaborate
Partner
Buy (M&A)
Build
Location
Competition/ Proprietary
HMI
Innovation Leaders
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17. Technology Autonomous
Highly accurate maps and location
Cyber security
Big data management, analytics
Compute performance
Vehicle connectivity performance
Vehicle network performance
Actuators/ HMI
Algorithms for detection & decision
Sensors and sensor fusion
Core
…
Innovation Models Business Models
§ Build
§ Buy (M&A)
§ Partner
§ Collaborate
§ …
§ B2B & B2C
§ Data 4 Value
§ Cost Reduction
§ Cost Avoidance
§ …
Vehicle Energy UBI LBS Modes
Connectivity ITS Services Roads Chain
From Building Cars to Selling Travel Time Well Spent
Source: Cisco Smart Connected Vehicle, 2014
Value
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18. Andreas Mai
Director Smart
Connected Vehicles
Dr. Chris
Borroni-Bird
VP Strategic
Development
Tim Yerdon
VP Design,
Marketing and
Connected
Services
James Buczkowski
Henry Ford Technical
Fellow & Director
Electrical & Electronics
Systems Research &
Advanced Engineering
Kevin Link
General Manager
Telematics China
© 2014 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18

19. Thank you.