The automotive industry is currently facing the dilemma of focusing on one of three things – keeping pace with digital innovations, developing fully automated driving features or making greener vehicles by means of electrification and fuel cells. This dilemma has grown as every device that we use today is evolving into a smart connected device, including vehicles that have transitioned from hardware-enabled to software-enabled in to being software-defined today. The Software Defined Car™ is about proactively managing vehicle software, security, and data. The automotive industry has to develop new revenue streams from these new connected devices and data-driven business models where existing value chains will be disrupted and new value chains will be created. Automotive OEMs will need to think about new revenue streams when automotive sales will only be an increasingly smaller portion of the new business models. These emerging trends lead to the generation of the automotive Co-X platform. This iTunes-like marketplace that requires a secure over-the-air (OTA) content delivery platform will serve end users or customers as they will eventually have more influence on the usage of vehicles and the monetization of data.
Key Take-Aways:
How to decouple digital innovation and services creation from physical assets?
How to enable the automotive Co-X platform using secure OTA content delivery from the cloud to the car?
How to create a new after-market revenue opportunity for OEMs and ecosystem partners through new applications?
2. 2www.movimentogroup.com
Industry Speaker Host Presenter
Follow me on
Mahbubul Alam
CTO & CMO
Movimento Group
Follow me on
Sushaiv Wadekar
AVP, Automotive ERS
HCL Technologies
Mahbubul Alam is an international entrepreneur,
technology and business executive with broad
management experience. A frequent author,
speaker and multiple patent holder, he currently
holds the position of CTO/CMO at Movimento, a
Delphi company, reinventing the company’s
technology and strategy. He has been honored
with the ‘2016 Bay Area CIO of the Year’ award
finalist by the Silicon Valley Business Journal and the
San Francisco Business Times.
Highly accomplished and successful
automotive advanced technology executive in
sales & business development. Over 25 years of
high level, senior executive experience with
OEM, tier one, tier two automotive direct sales,
as well as distribution and sales rep
management for corporate sales revenue and
margin growth.
6. 6www.movimentogroup.com
Automotive OEM Care Abouts
Software Complexity
Automotive
Cybersecurity
Disruption of
Value Chain
Lifecycle Software &
Data Management
from Cradle to Grave
Post-Sales Revenue
Accelerate
Product Development
7. 7www.movimentogroup.com
Automotive Solutions
Secure OTA Update &
Content Delivery from
Cloud to Cars
Ability for Proactive &
Contextual based
Software Update
Enable Direct Relation
between OEM and
Customer
Lifecycle Software &
Data Management
from Cradle to Grave
Ability to Add New
Features for Post Sales
Possibility of Enhancement
for Software Defined Car
Platform
9. 9www.movimentogroup.com
Embracing Open Innovation
Software Defined CarAutomotive Platform
Automotive Connected Services
Automotive
Market
Place
Co-ideation
Co-innovation
Co-creation
Co-development
Co-production
Co-investment
Co-fulfillment
Eco-System Partner Business Model
Co-investment
Co-ownership
Co-branding
Co-marketing
Co-monetization
Co-IPR
Co-liability
10. 10www.movimentogroup.com
Non Real-Time (days)
Urban Scale Vehicle Mobility
Real-Time (milliseconds)
270 27 2.7 1000K 100K 10K 1K 100 10 1
1
10
100
1K
10K
1M
10M
100M
Real-Time Analytics
Diagnostics &
Telematics
V2V/V2I
(Safety message)
Individual Vehicle Mobility
Value to OEM
Value to End-User
2020 Data Monetization Opportunity
Driving Experience
Usage, Style,
Insurance, Etc.
Contextual Services
Target Ads, Social, etc.
Warranty & Early
Recall Avoidance
Preventative/Proactive ADAS
Real-Time map
Driving Suggestion
(Regional)
Automated Driving
3D HD Map
Real-Time Comm. w Cloud
11. 11www.movimentogroup.com
APTIV Data Monetization Strategy
OEM / RETAIL / FLEET
PLATFORM
CUSTOMER
VEHICLE
Flow of Data Flow of Money
DATA CONSUMERS
• Vehicle information
database
• Multi-module OTA update
• Secure content delivery
• Big Data capture
• CT-EDGE data methods
• Highly configurable
acquisition logic
• Data Strategy alignment
with Business Value
• Fleet management
3RD PARTY DATA EXCHANGE
Unlock the turnkey monetization opportunities
externalinternal
APTIV
12. 12www.movimentogroup.com
Business Justification for OTA
Industry Relevance
Deploy by 2020
Disruptive Potential
OEM Benefits
25% 50% 75% 100%
Business Impact
New Value Creation
Improve OPEX
Revenue Potential
25% 50% 75% 100%
Existing Solution Providers Without Full Vehicle OTA
Tesla: Close Garden, Full OTA only Available for Own Vehicles
Android O: Open Platform, Only for IVI System
Car Play: Close Platform for Apple Eco-System, Only for IVI System
OTA Applicability
Process Automation
Connected Drive
Automated Drive
25% 50% 75% 100%
13. 13www.movimentogroup.com
Reduce OPEX Generate Revenue
• Avoid Software Warranty Cost
• Reduce Recall Expenses
• Rapid Cybersecurity Updates.
• Remote Diagnostics &
Troubleshooting
• Proactive Maintenance
• Free Time from Scheduling
• Hassel Free Maintenance
• No Loaner or Rental
• Faster Compliance
Create New Value
X X
• Cross-Sell Productivity and
Subscription Services.
• Up-Sell New Apps and Enhance
Vehicle Features/Value.
• Co-Sell Smart Mobility Services
with Partners.
• Monetize from Connected Car
Services
• Periodic Update of Map, Apps
and Content.
• Vehicle Personalization: Owned or
Car Sharing
• Reduce Citizen Productivity Loss
From Traffic Congestion
SDC Value Proposition
OEM/Tier-1
End-User
Government
10x 10x100x
• Improve Automated Driving
Experience
• Re-configure Vehicle Like
Smartphone
• Improve Direct Customer
Engagement
• Increase Brand Royalty
• Keyless Drive for Car Sharing
• Shopping Delivered to Car
• Connected Lifestyle
• Stay Current with Emerging
Regulations and Cyber Threats
• Better Oversight of Compliance
14. 14www.movimentogroup.com
Key Takeaways
We are in the era of the Software-Defined Car™.
The vision for 2020 is bright, but challenges are there.
Closed-loop architectures will change with Co-X.
Large range of data monetization opportunities.
The value proposition for Software-Defined Car™ is
huge and across all stakeholders.