Updated presentation from TU-Automotive Japan http://www.tu-auto.com/japan/

1. The AUTOmobile becomes the autoMOBILE
How does the mobility revolution impact automotive business models?
Dr. Sebastian Wedeniwski
IBM Distinguished Engineer, CTO Automotive Industry

2. Three primary disruptors are causing industry boundaries to blur and
even disappear
Expect digital
engagement and
experiences
Can be compelled
to co-create
products and
strategy
Taps into
intelligent vehicle
capabili:es
Creates new offerings
via consumer-driven
requirements
Enables new paths
to enterprise
growth
Creates new
opportuni:es to
collaborate within
and outside
tradi:onal industry
borders
External Factors
Source: IBM Institute for Business Value: Automotive 2025 – Future trends and the transformation of the Automotive Industry

3. Agenda
Ø Consumers: Digital disruption into the physical world
Ø Mobility: The mobility revolution in the automotive industry
Ø Ecosystem: Inside, related, and beyond connected vehicles
Ø Critical business competencies in a globally transforming digital age

4. Customer experience: Do we LOVE our cars?
You’ve got to start with the
CUSTOMER EXPERIENCE and
work back toward the technology.
- Steve Jobs
“
”

5. Customer experience: Do we LOVE our cars?
You’ve got to start with the
CUSTOMER EXPERIENCE and
work back toward the technology.
- Steve Jobs
“
”
• Is buying a car a good customer experience today?
• Is car insurance a good customer experience today?
• Is car maintenance a good customer experience today?
• Is parking a good customer experience today?
• Is car trading a good customer experience today?
• …
This is the entry for other industries!

6. Connected Car Life Style
Consumer
Generation 2010 2020 Grown
up
Defines
Invent
Traditionalist
(born <1946)
Silent Generation
4% 1% Books Fax
Baby Boomers
(1946-1964)
Growth Economies
Generation
38% 22% TV PC
Generation-X
(1965-1976)
Tales for an Accelerated
Culture
21% 20% PC Mobile
Phone
Millennials
(1977-1997)
Digital Natives (Gen-Y)
37% 50% PC &
Internet
Google &
Facebook
Gen-2020
(born > 1997)
Hyper connected
0% 7% Mobile
Media
iPhone
Apps
The nature of the consumers is changing
OEM
The History
Historically the
Dealer-to-Consumer
relationship,
supported by the
Business-to-Dealer
relationship have
been the key
relationships in the
automotive industry.
The Opportunity
1. Digital technologies will
enable OEMs to establish a
much closer customer
relationship.
2. In addition the “Connected
Car” opens up new “Vehicle
to Consumer” (V2C) and
“Vehicle to Business” (B2V)
relationships.
DealerVehicle
B2D
D2CV2C
V2D
B2V
B2C

7. Agenda
Ø Consumers: Digital disruption into the physical world
Ø Mobility: The mobility revolution in the automotive industry
Ø Ecosystem: Inside, related, and beyond connected vehicles
Ø Critical business competencies in a globally transforming digital age

8. How has the car changed since 2007?
Too many improvements to summarize all…

9. How has the mobile, mobility and IoT changed since 2007?
The smartphone as the key to mobility!
iPhone (1st generation)
first released June 29, 2007
iPhone 6
first released Sept 19, 2014
Creating new products and business models!
Driving engagement and customer experience!
Accelerating advances in technology…!
are transforming every part of business!
Advanced analy2cs
Product lifecycle
Cloud
Pervasive
connec2vity
Embedded sensors

10. Mobility is getting from A to B
The “Amazon of Mobility” is a Network Ecosystem
Start
Preferences
• Time
• Costs
• Simplicity
• Comfort
• …
Use Case
• Business
• Leisure
• Shopping
• …
Travel
destination
One check-in … keep your personalities always with you … one payment

11. Agenda
Ø Consumers: Digital disruption into the physical world
Ø Mobility: The mobility revolution in the automotive industry
Ø Ecosystem: Inside, related, and beyond connected vehicles
Ø Critical business competencies in a globally transforming digital age

12. Personalized Experiences Example – Business Traveler Use Cases
Mobile
Devices
Avionics
Quick Service Restaurant
Integrated Resort
Car
Internet of Things
New Emerging Devices e-Token/ Cogni:ve Key
Digital Signage
POS
Connec:vity
Technologies
Content
Integra:on Triggers
Personaliza:on
Preferences • Brands • Lifestyle
Entertainment • Merchants
Ac:vi:es • Travel

13. IBM – Panasonic Cross Value Innovation for New Business Models
Internet of Things Automotive centric Ecosystem – B2B2C Customers & Collaboration Partners
• Autonomous Car for Car
Rental Apps with e-check
in/out at airports
• Integrated Dealership
Experience with KIOSK
and Intelligent Agents
• Car Centric e-payments
for QSR and Intelligent /
Personalized Offers
• Real Estate Agents Car
IoT Devices (w/ APIs)
Design & Development & Manufacturing
Capabilities
IoT Cloud Solutions
Design & Development & Manufacturing
Capabilities
Core Technologies
Vertical Domains
B2B2C Know-How
Inside-out Vehicle
Cognitive
Cloud
IBM Global Payment
Security Operation Center
Moving Object Map Analytics
Cognitive
Agent
Outside-in Vehicle
ADAS Component
Rear Seat Entertainment
Onboard Charging System
Electrification Components
Batteries
Cameras
Sensors
Navigation
Display Audio
Head up display
Smart Display
Cockpit System
• Contextual Personalized
Brand Life Style Content
Delivery at all IBM &
Panasonic B2B / B2B2C
touch points
• Integrated Parking &
e-payments
• Car Surround View User
Generated Content
• Car Centric Stadium Apps for
Tailgate and Parking type
events
• Fleet Solutions
Connected
Healthcare
• Health Presence
• Extended Care
• Pa:ent Media
Monitoring
• I-Services in HC
• Pa:ent Room of
the Future
• Extended Care
• City
Infrastructure
Mgt.
• Remote Expert
for Gov.
• Untethered
Employee
Connected
City
• Mobile Shopper
Experience
• Digital Signage
• KIOSK
• Smart Locker
• Remote Expert
• Demographic
• Untethered
Employee
• Store , Social,
Opera:onal
Analy:cs
Connected
Retail
• Interac:ve
Banking Kiosks
• Integrated
Remote Expert
Mobile Advisor
• Connected
Analy:cs for
Retail
Connected
Omni-
Channel
Connected
Solutions
Customer
Experience
Strategy
• Interac:ve POS
Kiosks
• Digital Content
Hub
• e-payments
• Connected
Analy:cs for
QSR
• Food / Logis:cs
• Security
Connected
QSR
• Brand Life Style
Personaliza:on
thru Panasonic
Connected
Screens
• Loca:on Based
Car Life Style
Services
• e-payments
• BIG DATA
• Security
Connected
Car/
Mobility
Driver Insights Vehicle Insights Infrastructure Insights

14. Agenda
Ø Consumers: Digital disruption into the physical world
Ø Mobility: The mobility revolution in the automotive industry
Ø Ecosystem: Inside, related, and beyond connected vehicles
Ø Critical business competencies in a globally transforming digital age

15. The value chain needs to be changed to implement it
Development Produc:on Sales
AVer-sales
support
Digitaliza:on of the industry:
A move from the AUTOmobile to the autoMOBILE
Core processes of the classic business model in the automotive industry
Procurement
& produc:on
Sales and
digital access
Digital
product
integra:on
Value-added
services
Core processes of the business model in the mobility industry
AUTOmobile in order to emphasize ‘Auto’ – the German word for car
AutoMOBILE to emphasize the mobility of travelling from one place to another

16. IBM IoT Automotive value is delivered in four foundational areas
Devices & Networks
Connect devices into platforms
Hardware, networking, and operating systems infrastructure
Industry Transforma:on
Evolve new business models and brain-inspired systems
autoMOBILE with IBM to evolve three different lifecycles in automotive with
their industry data curation
Applica:ons & Solu:ons
Mask complexity and reduce risks
PlaZorms Build and manage IoT solutions and ecosystems
Engineering and programming platforms
Infotainment Multimodal
travel services
Concierge
services
Vehicle health
diagnostics
Services as
yet unknown
Pay how you
drive insurance
Alternatives
to ownership
Commerce
services
Over the air Driver health
services
The Digital Innovation
Platform
IBM Bluemix

17. IBM Internet of Things for Automotive Vision “autoMOBILE with IBM”
Three different lifecycles are evolving
Development* Produc0on* Sales*
A5er6sales*
support*
Digitalisa0on*of*the*industry:*
A*move*from*the*AUTOmobile*to*the*autoMOBILE*
Procurement*&*
produc0on*
Sales*and*digital*
access*
Digital*product*
integra0on*
Value6added*
services*
Product:)
minimalis0c*travel*capsule*
*
Product)development:)
Raw*material*produc0on,*
manufacturing*of*basic*
parts,*assembly*
*
Manufacturing)type:)
Build*to*stock*
*
Focus)of)subsystems:)
Drive*system,*chassis,*
bodywork*
!
Business)domain:)
Physical*produc0on*&*
outbound*logis0cs*
Product:)
Travel*capsule*&*periphery*
*
Product)development:)
3D*printer,*
connect,*
replace*
*
Manufacturing)type:)
Build*to*order*
*
Focus)of)subsystems:)
Interior/equipment,*
electricals/electronics*
!
Business)domain:)
Sales*&*digital*access*
*
Product:)
autoMOBILE*
*
Product)development:)
So5ware*Defined*
Environment*
*
Manufacturing)type:)
Digital*copy*
*
Focus)of)subsystems:)
Communica0on*&*
entertainment,*
electr(on)ics*
!
Business)domain:)
Digital*product*integra0on*
&*value*added*services*
Industry-specific
Transformations
Applications &
Solutions
Platforms
Devices &
Networks
IoT for Automotive
Vehicle Insights Driver Insights Infrastructure Insights

18. Today, 89 business competencies in the automotive industry
Corporate'
leadership'
Research'&'
development'
Procurement'&'
inbound'logis1cs'
Produc1on'
Marke1ng'&'
communica1on'
Sales'&'
outbound'logis1cs'
Financial'service'
AAerBsales'
support'
Human'
resources'
Quality' Finance'&'controlling' Infrastructure'
Corporate'
support'service'
Leadership'
domain'
Core'business'
domains'
Administra,on'
domains'
Support''
domains'
Planning'&'
management'system'
Internal'control'
system'
Repor1ng'&'
indicators'
Accoun1ng,'financial'
statement'
Treasury'
Financial'market'
communica1on'
Goals,'values,'
principles'
Corporate'
strategy'
Business'&'process'
structure'
Integrity'&'law'
Risks'&'finance'
Safety'&'security'
Corporate'
documenta1on'
Environment'
HR'management'
&'process'
Human'resource'
policy'
HR'planning'&'
organisa1on'
Opera1on'
control'
Evalua1on'
Entry'&'exit'
Opera1on'&'
development'
Administra1on'&'
remunera1on'
Understanding'
of'quality'
Quality'planning'
Quality'
improvement'
Quality'
evalua1on'
Performance'
evalua1on'
Quality'
assurance'
Problem'and'error'
processing'
Quality'
documenta1on'
Planning,'
requirement,'change'
Research'&'preB
liminary''develop.'
Standard,'method,'
process'
Tes1ng'&'
valida1on'
Concept,'design,'
construc1on'space'
Development'&'
engineering'
Product'data'&''
documenta1on'
Procurement'
strategy'
Logis1cs'planning'&''
management'
Supplier'
rela1onship'
Supplier'
evalua1on'
Purchase'awarding'
'&'contract'
Produc1on'
supply'
Procurement'
op1misa1on'
Produc1on'planning'
&'management'
Equipment'
planning'
Produc1on'
assurance'
Series'prepara1on'
Manufacturing'
Assembly'&'
intralogis1cs'
Corporate'
communica1on'
Corporate'&'brand'
iden1ty'
Marke1ng'
concept'
Execute'
Control'
Direct'
Market'analysis'&'
success'evalua1on'
Marke1ng'
measures'
Edi1ng'&'
Proofreading'
Media'archive'
Produc1on'process'
&'simula1on'
Sales'strategy'
&'client'
Sales,'demand,'
stock'
Distribu1on'system'
Sales'performance'
Qualifica1on,'quote,'
contract'
Order'&'
distribu1on'
Acceptance'&'
documenta1on'
Distribu1on'
op1misa1on'
Financial'service'
strategy'
Guideline,'process,'
risk'
Evalua1on'&'
sustainability'
Performance'
measurement'
Financial'services'
contract'
Bank'&'credit'
Insurance'
Customer'voice'
Connected'vehicle'
Customer'&'vehicle'
data'
Product'monitoring'
Warranty'&'
goodwill'
Standard,'equipB
ment,'informa1on'
Loca1on'planning'
Facility'&'
site'safety'
Equipment'&'
supply'
IT'opera1ons'
Knowledge'&'ideas'
Law'&'regula1ons'
IT'development'&''
documenta1on'
Assistance'
IT'planning'
Project,'por[olio,'
process'

19. Corporate'
leadership'
Procurement'&'
inbound'logis1cs'
Phy.'produc1on'&'
outbound'logis1cs'
Marke1ng'&'
communica1on'
Sales'&'
'digital'access'
Financial'service'
Digital'product'intgr.'
&'value'added'servic'
Human'
resources'
Quality'
Finance'&'
Controlling'
Corporate'
support'service'
Infrastructure'
Leadership'
domain'
Core'business'
domains'
Administra,on'
domains'
Support''
domains'
Planning'&'
management'system'
Internal'control'
system'
Repor1ng'&'
indicators'
Accoun1ng,'financial'
statement'
Treasury'
Financial'market'
communica1on'
Goals,'values,'
principles'
Corporate'
strategy'
Business'&'process'
structure'
Integrity'&'law'
Risks'&'finance'
Safety'&'security'
Corporate'
documenta1on'
Environment'
HR'management'
&'process'
Human'resource'
policy'
HR'planning'&'
organisa1on'
Opera1on'
control'
Evalua1on'
Entry'&'exit'
Opera1on'&'
development'
Administra1on'&'
remunera1on'
Understanding'
of'quality'
Quality'planning'
Quality'
improvement'
Quality'
evalua1on'
Performance'
evalua1on'
Quality'
assurance'
Problem'and'error'
processing'
Quality'
documenta1on'
Planning,'
requirement,'change'
Procurement'
strategy'
Logis1cs'planning'&''
management'
Supplier'
rela1onship'
Supplier'
evalua1on'
Purchase'awarding'
'&'contract'
Produc1on'
supply'
Procurement'
op1misa1on'
Produc1on'planning'
&'management'
Equipment'
planning'
Produc1on'
assurance'
Engineering,'series'
prepara1on'
Manufacturing'
Assembly'&'
intralogis1cs'
Corporate'
communica1on'
Corporate'&'brand'
iden1ty'
Marke1ng'
concept'
Execute'
Control'
Direct'
Market'analysis'&'
success'evalua1on'
Marke1ng'
measures'
Edi1ng'&'
proofreading'
Media'archive'
Produc1on'process'
&'simula1on'
Sales'strategy'
&'client'
Sales,'demand,'
stock'
Distribu1on'system'
Sales'performance'
Qualifica1on,'quote,'
contract'
Order'&'
personalisa1on'
Acceptance'&'
documenta1on'
Distribu1on'
op1misa1on'
Financial'service'
strategy'
Guideline,'process,'
risk'
Evalua1on'&'
sustainability'
Performance'
measurement'
Financial'services'
contract'
Bank,'credit,'
payment'portal'
Insurance'
Customer'voice'&'
contact'
Network'
Ecosystem'
Customer'&'vehicle'
data'
Product'monitoring'
Warranty'&'
goodwill'
Standard,'equipB
ment,'informa1on'
Loca1on'planning'
Facility'&'
site'safety'
Equipment'&'
supply'
IT'opera1on'
Knowledge'&'ideas'
Law'&'regula1ons'
IT'development'&''
documenta1on'
Assistance'
IT'planning'
Project,'por[olio,'
process'
Vehicle'fleet'&'
mobility'service'
Technology'&'
development'
Research'&'preB
liminary''develop.'
Standard,'method,'
process'
Tes1ng'&'
valida1on'
Concept,'design,'
construc1on'space'
Development'
Product'data'&''
documenta1on'
Business competencies of the changing business architecture for the
autoMOBILE value chain
Primary focus on building up digital and mobility competencies

20. …further details
The Mobility Revolution in the Automotive Industry:
How not to miss the digital turnpike!
The Internet of Things, Cloud Computing, Connected
Vehicles, Big Data, Analytics – what does this have to
do with the automotive industry? This book provides
information about the future of mobility trends resulting
from digitization, connectedness, personalization and
data insights. The automotive industry is on the verge of
undergoing a fundamental transformation. Large,
traditional companies in particular will have to adapt,
develop new business models and implement flexibility
with the aid of appropriate enterprise architectures.
Transforming critical business competencies is the key
concept. The vehicle of the digital future is already here
–who will shape it?
http://www.springer.com/us/book/9783662477878
http://www.springer.com/de/book/9783662447826

21. Dr. Sebastian Wedeniwski
IBM Distinguished Engineer
CTO Automotive Industry
IBM Japan Ltd.
wedeniwski@de.ibm.com