ENGINEERING A D
RAD SERVICES

Telematics and Big Data: 
o o

Leveraging Technology to Minimize Driver Distraction and

Imp...
Table of Contents

Abstract 3
Telematics Features 3
Telematics Ecosystem 4
LTE — The Road Ahead 7
Telematics Usage Trends ...
Telematics & Big Data — Next Generation Automotive Technology |  3

Abstract

Vehicle telematics is the confluence of tech...
Telematics & Big Data — Next Generation Automotive Technology |  4

Telematics Ecosystem

  
  

   
     
  
   
  

Tele...
Telematics & Big Data — Next Generation Automotive Technology |  5

2. Infrastructure Support

Details:  These players are...
Telematics & Big Data — Next Generation Automotive Technology |  6

5. Data Storage Provider

Details:  These players will...
Telematics & Big Data — Next Generation Automotive Technology I 7

LTE impact:  With LTE,  apps will become more advanced ...
Telematics & Big Data — Next Generation Automotive Technology |  8

LTE Plans 1 AT&T I Verizon I Sprint
GM 2015 Models

BM...
Telematics & Big Data — Next Generation Automotive Technology |  9

done by paying an additional amount above the Connecte...
Telematics & Big Data « Next Generation Automotive Technology |  10

I Systems that are critical and have low traffic and ...
Telematics & Big Data - Next Generation Automotive Technology |  11

OEMs should build the cost of diagnostics and securit...
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Telematics and Big Data: Next Generation Automotive Technology

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This whitepaper explores the telematics ecosystem and the key players within it. It also delves into some challenges and road ahead for LTE technology and Big Data Analytics as two key enablers that will drive the success of telematics.

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Telematics and Big Data: Next Generation Automotive Technology

  1. 1. ENGINEERING A D RAD SERVICES Telematics and Big Data: o o Leveraging Technology to Minimize Driver Distraction and Improve Passengers’ infotainment Options 2 ) Ee"§'<"['3e"e""'riences
  2. 2. Table of Contents Abstract 3 Telematics Features 3 Telematics Ecosystem 4 LTE — The Road Ahead 7 Telematics Usage Trends 9 Big Data Analysis: Challenges Ahead 10 Author Info 11 © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  3. 3. Telematics & Big Data — Next Generation Automotive Technology | 3 Abstract Vehicle telematics is the confluence of technology, automotive systems, engineering and humans. This mix is used to carry out one or more of the below actions efficiently and effectively 1- To enhance driving conditions, 1- In navigation and information processing, 1- To boost safety of driver and passengers, or 1- Aid with in-car infotainment Vehicle telematics is rapidly undergoing significant evolution keeping in line with modern technological advancements. It is proving to be a win-win deal for everyone as 1- The OEMs can offer better features, 1- Drivers can be assured of complete safety, 1- Insurance companies can use telematics to authenticate validity of accident/ theft claims, and / ' Passengers can access numerous entertainment options. The growing push towards adoption of LTE 4G across geographies and technologies such as GPS, satellite — based tracking systems, the Internet and smart devices have further fuelled a sustained interest in vehicle telematics. In this whitepaper, we explore the telematics ecosystem and the key players within it. We will also look into some challenges and the road ahead for LTE technology and Big Data Analytics — two key enablers that will drive the success of telematics. Features The current telematics domain concentrates on providing infotainment options to the driver alone. The other passengers of the car have not been considered while designing telematics solutions. As technology merges the different players providing in-car infotainment, there is also a growing need to decrease such in-car infotainment options to the drivers (so that he or she can concentrate on driving) and spreading it to other passengers of the car (around 80% of the solutions can be distributed from driver to other passengers). The main reasons for such a paradigm shift is to ; - Enhance the driving experience ; - Tap into the large apps and content market presented by fellow car passengers / ' Improve the market standing of Original Equipment Manufacturers (OEMs) by propagating holistic in—car infotainment rather than focusing on the driver alone. © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  4. 4. Telematics & Big Data — Next Generation Automotive Technology | 4 Telematics Ecosystem Telecom Bandwidth Allocators Government Regulation I I Independent ‘ , ' Automotive ' I Communlcall Servers And Storage Providers I‘ Tethered I Mobile “ Devices / 1. Device Builder Details: Growing understanding about the benefits of consumer telematics systems has influenced the spurt of device builders. They are entrusted with developing the consumer telematics systems that takes into account attractive propositions such as safety, ease of use, security and entertainment in a cost effective mode. The main players here include Qualcomm, Nvidia and Broadcom. Product Strategy: Commodity player LTE impact: Tethered system or a standalone mobile system is being built with LTE communication. In the present times, these systems need to work seamlessly on 3G networks due to limited LTE coverage. Future: With growing LTE proliferation, there will be a need for transmitters and receivers that can work in multiple modes like 1 Tethered using the mobile phone of the customer 1- SIM based system with customer having the flexibility to change the Telecom Service Provider by changing the SIM. 1 Built in SIM provided by the OEM as part of the package. Samsung, Ericsson, ZTE, China Mobile as well as the Chinese and European governments have all announced their own 5G research initiatives. © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  5. 5. Telematics & Big Data — Next Generation Automotive Technology | 5 2. Infrastructure Support Details: These players are responsible for development and installation of communication towers to provide complete coverage across the country. Product Strategy: Commodity player LTE impact: Currently LTE is available only in major cities. Providing support and increasing coverage area is essential to increase adoption. Future: Improving area coverage and providing seamless connection in case of tethered systems will be a major challenge. Most LTE operators employ the existing 2G and 3G network operations. These networks generally offer wider and deeper coverage than LTE networks in the initial deployment phase. Offering LTE users the opportunity to use i. e. "fallback to” 3G systems is of major strategic importance. 3. Telecom Service Provider (TSP) Details: These players provide varying data plans depending on needs of the consumers and help maintain the communication network. They are involved in billing customers uniformly and ensuring seamless connectivity and services. Product Strategy: Niche, differentiated product LTE impact: Providing data package for LTE automotive communication and building collaborations with OEMs and government regulators. Tethered and standalone systems are being built and TSPs will need to come up with data plans for different customer segments. Future: Building relationship with OEMs to come up with packages for different car segments will become essential for these players to be relevant in the telecommunication sector. More and more clients will expect their TSP to have a communication package for their cars. 4. Governmentl Telecom Bandwidth Allocator Details: These players regulate the functions of TSP’s related to data plans and billing. They also allocate bandwidth according to set processes and drive overall growth and implementation of telematics. Product Strategy: Policy Players LTE impact: 4G LTE band has not been allocated yet in many countries. Government norms on the level and nature of infotainment acceptable in the car will shape the growth in this sector. Primary concern is that more options will lead to driver distraction and cause accidents. Governments are defining new rules to control this. Future: With new norms being defined by different countries, OEMs and third party software vendors will need to tailor their software for different regions. © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  6. 6. Telematics & Big Data — Next Generation Automotive Technology | 6 5. Data Storage Provider Details: These players will become inportant with the introduction of big data. With the large volumes of data generated at rapid pace, OEMs will look for outside vendors to help manage the data and draw meaningful insights to aid decision making. Product Strategy: Partially differentiated service LTE impact: To demonstrate the massive amount of data involved in this domain, we have Goog| e’s driverless vehicle which generates about I gigabyte of data every second. This sheer volume can be compared to mailing almost a quarter million plain text mails or uploading almost 120 high definition images. This will lead to emergence of data storage providers that can access, store and retrieve these chunks of data properly. Future: Big data storage and analysis providers will rule this market as OEMs will look for partners to help with this flood of data. Continental and IBM collaboration in this field is a testament of such kind of collaborations. 6. OEM Details: OEMs have their task cut out with multiple players pushing for 4G LTE implementation and 5G being touted as the next wave of advanced technology. Huawei expects 5G will be introduced by 2020. Safest estimate puts introduction of 5G in telematics by 2022. Product Strategy: Highly Differentiated LTE impact: 4G LTE will help OEMs work with over-the-air diagnostics and software updates. They will also help to provide road side assistance and remote driving of vehicles in case of accidents. OEMs will thus have greater infotainment options to help differentiate their cars from competition. Future: OEMs will need to build partnership with TSPs to ensure data packages exist for all segments of car providing tethered and dedicated communication plans are necessary. 7. 3"‘ Party Service Provider Details: Auto insurance players and infotainment framework builders come in this category. They need to deal with governmental and carrier requirements for global deployment. Product Strategy: Niche Players LTE impact: Collect driver information and conduct analytics to come up with custom made solutions Future: This sector will see strong growth with more and more vehicle information supporting newer business models. Having highly differentiated solutions will become essential in this sector. 8. Content Provider Details: App developers and players that develop content for infotainment systems in cars. Product Strategy: Niche Players © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  7. 7. Telematics & Big Data — Next Generation Automotive Technology I 7 LTE impact: With LTE, apps will become more advanced and stronger players with a greater understanding of car customer needs will capture market. With better government regulations, the app developers will have stronger norms governing their products. They will need to certify their products as safe for usage in cars. Future: Understanding customers segments and designing content as per the needs of the customer will be essential. LTE — The Road Ahead LTE will cover approximately 60% of the world's population by 2018. This will radically change the way in—car telematics evolves and is implemented. LTE—Advanced introduced in june 2013 is a market reality today. Though LTE is gaining significant ground in the developed markets, it will take around 10 to 12 years for LTE to make a global impact. Players like Ericsson and Huawei are already investing on 5G technology. Some of the key trends that will shape the LTE domain include Other ~ other 5” 4' Encrypted "‘ "W ' Encrypted 2m. 4' Software download & update I‘ Software download & update . Social networking 6*’ _ Social networking am. 5* , I , . , , -. _ . - Web browsing ‘ new. “‘ 7’-‘ 1 Web browsing 9"" Audio 9% ‘ Audio 2” ‘DM - Video '0" I Video “'5 File Sharing 25'. 1 File Sharing Source: Ericsson (/ une2013) Source: Ericsson (june2013) Mobile data traffic share by application type, 2012 Mobile data traffic share by application type, 2018 Traction from OEMs 1 Audi became the first OEM to offer an embedded LTE infotainment system when it provided the option in its S3 Sport back injuly and in its A3 line in November. Audi plans to offer its LTE-equipped A3 in the United States in early 2014. 1 BMW is offering an LTE hotspot module in all its cars in Europe. 1 General Motors, for its part, has announced that it would make AT&T-provided LTE available as a standard service in its cars in 2015. 1- IHS Automotive forecasts that the number of LTE-connected cars will reach 1.2 million in 2015 and thenjump to 16 million in 2017. © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  8. 8. Telematics & Big Data — Next Generation Automotive Technology | 8 LTE Plans 1 AT&T I Verizon I Sprint GM 2015 Models BMW Yes Yes Chrysler I Connect system Nissan Yes - Tesla Modem & distinct embedded SIM card Audi ‘ Yes Ford Sync with My ford touch also provides tethered solution. Honda Yes Hyundai Yes Kia Yes Toyota yes Hardware staying relevant Having a dual-core or quad-core processor in the head unit will help OEMs to be well-poised to go the next 5 or 10 years using on—air software upgrades. Periodic updates to the hardware will ensure that the apps stay relevant and are ready for the future. OEM and connectivity plans Driverless car is set to be the next stage of improved LTE and telematics penetration. However, with the explosion of telematics services and availability comes the challenge of adopting a common standard amongst all car brands. Currently GM integrates modems in its cars by collaborating with OnStar, which enables the need to be in constant communication with the vehicle. Ford, on the other hand, assumes that it is the drivers and passengers that will carry devices to enable connectivity through systems such as Bluetooth. There is also the scope of adding hardware components after a sale. For instance, PSA Peugeot Citroen has come up with a USB plug—in that provides an external microprocessor for adding a range of applications from your mobile device. Verizon has begun selling a $199 LTE device that plugs into a car's diagnostics connection. Complete access to the device features requires a Verizon service plan, which starts at $30 a month and a $5—a—month Delphi subscription. There is also a growing issue of who will pay for Internet usage in the car. Though it doesn't amount to much if used reasonably, it certainly adds up to the costs if the Internet is accessed constantly from the car's system. To address this point, the OEMs can include a reasonable Internet package when selling the car. For instance, BMW is collaborating with China Unicom for its Connected Drive service. This enables the driver and passengers to access news reports, social networks and carry out multimedia streaming. BMW has bundled in cost of a three year subscription with the selling price. If the user wants more Connected Drive services, then BMW has a flexible "mixed model communication tariff’ plan with China Unicom. If the user wants Internet access too, then this can be © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  9. 9. Telematics & Big Data — Next Generation Automotive Technology | 9 done by paying an additional amount above the ConnectedDrive services plan which BMW subscribes to. Training car dealers Sales turnover in an average dealership is 70% per year. Due to this, training the staff to appreciate telematics and LTE (and further sell it to customers) becomes a challenge. To address this issue, BMW is designing a comprehensive face-to-face and web-based holistic training program running for five working days. This program assists sales advisors and after—saIes advisors sell and support BMW Connected Drive. Consumer Awareness OEMs have along way to go in order to ensure that the customer has complete knowledge on car connectivity options. AutoTrader’s 2013 study found out that customers generally take 30 minutes for assessing a new car by test driving it. The same duration will be required to apprise customers unaware ofthe features and specialties of a connected-car services package. A casein point is BMW's strategy to introduce potential customers to the world of infotainment through telematics connectivity and then allowing them to pick and choose apps of their choice which is then integrated in BMW's app store. Fleet Management players In the United States, AT&T plans to discontinue 2G on Dec. 31, 2016 with other top network providers following suite by 2020. Interestingly, the U. S.-based customers are currently investing in older- generation telematics modules due to lower setup and maintenance costs. However gains from fuel efficiencies or route optimizations will quickly outweigh costs of maintaining older trucks and vans. For those with aging fleets, the decision to move to 3G or 4G is far less difficult. Their new vehicles will already be likely to incorporate advanced connectivity. Telematics Usage Trend Data Traffic c: ":'%‘: |en'i‘§gt? £n Criticality Market churn Safety systems Low Average Very High Low SOS duress Low Low High Low Security monitoring Low Low Average Average Track & recover Low Low Average Average Diagnostics Average Average Average Average journey reports Low Average Average Average PAYD insurance Low Low Low High Motoring information High High Low High Communication Average High Average High Entertainment High High Low Very High © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  10. 10. Telematics & Big Data « Next Generation Automotive Technology | 10 I Systems that are critical and have low traffic and market churn can be incorporated as a built in system. I Systems that are comparatively less critical and have higher traffic and/ or higher market churn can be incorporated as a plug in system using OBD port. I Systems that are for entertainment with significant market churn and data traffic can be developed as tethered systems. Big Data Analysis The remarkable inroads made by big data in extracting helpful insights has made it a good contender to be integrated with vehicle telematics systems and help in enhancing better market capture for the vehicle telematics industry. Some of the ways big data analysis can be used for meaningful decision making indude- 1. Understanding customer OEMs can gain significant insights from big data to understand how customers actually use their products. This will help them to tweak their offerings based on customer preferences. 2. Developing value-added services OEMs can start off by grouping their customers in different segment to see if a particular value-added service might appeal to a specific set of demographic. 3. Third-party monetization OEMs can also look to share voluminous data externally to generate newer revenue streams. A classic example here is collaborations with insurers who would like to collect a specific subset of data from cars — such as speed, time of driving, harshness of braking and cornering — to determine how drivers actually drive. 4. Remote Diagnostic and Software Updates OEMs can also use Big Data to remotely understand the issues in the car and provide timely software updates. if data from sensors are available at time of car breakdown, then the data could be analyzed and if software updates are needed then it can be done remotely. As is evident, there are various exciting avenues that big data can open up for the telematics industry. However there still remains a compelling question to be answered — Who will bear the increased costs to integrate big data within telematics? Since most of the data is being used by OEM should the customer be paying for this communication? Additionally, software updates will happen when the car is parked. In such cases, tethered system cannot be used as the customer would have taken the cell phone with him/ her. These are just some of the initial challenges that the telematics industry will have to address before looking to utilize the prowess of big data Cisco recently estimated that the value of OEMs driven big data will be around $300 per vehicle per year, with much of that value coming from lower warranty costs and improved app design. In the same analysis, Cisco also concluded that Big Data will help drivers save an upward of $500 a year thanks to better navigation and smarter routing. © 2013, HCL Technologies. Reproduction Prohibited. This document is protected under Copyright by the Author, all rights reserved.
  11. 11. Telematics & Big Data - Next Generation Automotive Technology | 11 OEMs should build the cost of diagnostics and security services into the price of the new car, while subscription model to be followed in aftermarket. Leverage other revenue streams, such as | ocation—based advertisements. Big Data Analysis: Challenges Ahead Big Data requires significant investment long before new revenue streams and cost savings start to kick in. High volume storage is yet another challenge. There are loads of data warehouse and analytics companies out there — Teradata, IBM and Aster Data, to name a few. But they add to the overall costs. Privacy of customer is also an important issue. These problems need to be sorted before Big Data starts playing a major role in vehicle telematics systems. Author Info Bijoy Alokkan HCL Engineering and R&D Services Vaishakh Nair HCL Engineering and R&D Services This whitepaper is published by HCL Engineering and R&D Sen/ ices. The views and opinions in this article are for informational purposes only and should not be considered as a substitute for professional business advice. The use herein ofany trademarks is not an assertion of ownership of such trademarks by HCL nor intended to imply any association between HCL and lawful owners of such trademarks. For more information about HCL Engineering and R&D Services, Please visit http: //www. hc| tech. com/ engineeringrdrservices Copyright@ HCL Technologies All rights reserved. Hello, I'm from HCL’s Engineering and R&D Services. We enable technology led organizations to go to market with innovative products and solutions. We partner with our customers in building world class products and creating associated solution delivery ecosystems to help bring market leadership. We develop engineering products, solutions and platforms across Aerospace and Defense, Automotive, Consumer Electronics, Software, Online, Industrial Manufacturing, Medical Devices, Networking and Telecom, Office Automation, Semiconductor and Servers & Storage for our customers. For more details contact: ers. info@hcl. com Follow us on twitter: http: //twitter. com/ hclers and our blog http: //www. hc| tech. com/ bIogs/ engineering-and-rd-services Visit our website: http: //www. hcltech. com/ engineering-services/

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