• Like
13 03-28-scv-its-advisory-cisco-perspective-f
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

13 03-28-scv-its-advisory-cisco-perspective-f

  • 211 views
Published

The Internet of Cars: A Catalyst to Unlock the Societal Benefits of Transportation

The Internet of Cars: A Catalyst to Unlock the Societal Benefits of Transportation

Published in Automotive , Technology , Business
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
211
On SlideShare
0
From Embeds
0
Number of Embeds
0

Actions

Shares
Downloads
15
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide

Transcript

  • 1. Cisco ConfidentialCisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group 1Andreas MaiDirector Product Management Smart Connected VehiclesMarch 2013A Catalyst to Unlock SocietalBenefits of Transportation
  • 2. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 2
  • 3. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3170 Years Ago:Invention of the Telegraph100 Years Ago:Invention of the Radio70 Years Ago:First general purposeelectronic computer40 Years Ago:First Internetconnection20 Years Ago:World Wide WebTodayIntelligently Connecting People, Process, Data, and Things2003:0.5B ConnectedDevices2005:IP Traffic:29 exabytes2005:First Smartphone2008:Video Traffic:21 exabytes2010:7B ConnectedDevices2010:0.5B Smartphones2012:25M Connected Cars2011:90M Smartmeters
  • 4. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5Internet ofEverythingDigitize the WorldConnecting:• People• Process• Data• ThingsConnectivityDigitize Access toInformation• Email• Web Browser• SearchImmersiveExperiencesDigitize Interactions(Business & Social)• Social• Mobility• Cloud• VideoNetworkedEconomyDigitize BusinessProcess• E-commerce• Digital SupplyChain• CollaborationBusinessandSocietalImpact
  • 5. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6The Internet of EverythingDeeper Insights forGreater DecisionMakingEmpower People/ IncreaseEfficiencyCreate and Expand NewMarkets and ServicesCreate Better Experiences to BuildBetter Relationships
  • 6. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7Pervasive ComputingSmart GridIntelligent TransportationNetworkedElectricSmartSource: Cisco IBSG Automotive 2011Internetof Cars
  • 7. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8Where is the Money?Car Manufacturers Navigation POI / LBS Social Media X-Mode Travel AssistFinance Infotainment Productivity PAYD Insurance ITS ManagementVehicle Telematics Service Providers Car Apps Car Rental/Share Road Pricing/VMTOEM Car Care AftermarketCar CareOnline Business Energy Producers Road/Parking Ops
  • 8. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9Society Fewer crashes Lower traffic/road/tolloperation costs CO2 reductionVehicle User Lower insurance Lower operation cost Less time stuck intraffic, more productivityInternet of CarsService Providers Traffic guidance, navigation,emergency services “Google on wheels,”PAYD insurance,location-based servicesAuto OEM/OES Lower service/warranty costs New profit pools Architectural savings$ 550$420$300$160Benefits per vehicle, per yearSource: Cisco IBSG Automotive and Economics Practices, 2011
  • 9. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10Safety andSecurityOperationalEfficiencyTravelExperienceRevenueGenerationRunning Transportation onNetworked InformationTransportation Services Delivered by TechnologySource: Cisco IBSG Automotive, 2011
  • 10. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 11Eco-Drive and On-Board Safety & Driver AssistInsurance Incentivized Driver Behavior (PHYD)V2V Safety & Driver AssistSmart Road Pricing/ VMT TaxV2I & Local Dynamic Traffic ManagementConnected Cybernetic Traffic Management2010 2025SmartConnectedSafety&CongestionManagementSource: Cisco IBSG Automotive 2011
  • 11. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12THE “Savior-App”: Strategic Asset for the Entire CarInsurance Value Chain PAYD, PHYD, MHYDUsage &Behavior10% - 30%PremiumsCrashPrevention Vehicle and driver health monitoring Safest-route ADAS + V2V + V2I 20% - 35%of Crashes eCall/ ACN Virtual Black Box Driver vitals to first respondersFast & CorrectResponse5% -15%SavingsClaims & CostContainment Investigation costs Fraud prevention and reduction (~80%) Stolen vehicle tracking / location 30% - 80%SavingsSavings per connected vehicle and year:$280 for insurance/ owner + $100 for society Pay as you speed Virtual violation detection and notification Automated paymentConnected LawEnforcement20% - 30%SavingsSource: OctoTelematics, Cisco IBSG Automotive 2010
  • 12. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13U.S. Roads:4,000,000 Paved Road Milesx $6,800,000 Price per Mile= $27,000,000,000,000 Assets$100,000,000,000 Fuel Tax + Tolls= 0,4% Return on Assets“Depreciated” over 250 YearsSource: An Analysis of the Current Investment Trend in the U.S. Toll Road Sector, MIT, 2008, Cisco IBSG Automotive 2011
  • 13. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14Smart Road Pricing / Vehicle-Miles-Traveled TaxCongestionOccupancyRoad TypeTime of DayWeightSpeedCO2EmissionsFuel EconomySource: Cisco IBSG Automotive 2011
  • 14. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 15Connectingthe Value ChainExtended Designand Supply ChainTravel Experience &Location-Based ServicesDistribution andService NetworkCONNECTEDwithin the carCONNECTEDto personal devicesCONNECTEDaround the carMarketing, Advertising,CRMCONNECTEDto the cloudSource: Cisco IBSG Automotive, 2011
  • 15. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17Source: Cisco IBSG Automotive, 2010On-DemandBundled PackagesPricing OptionsMicro PaymentsInvestmentTotal Mobility Cost OptimizerDynamic Travel Time OptimizerConnected Safety & SecurityB2C & B2B/G Service PlatformInfotainment/ ProductivityConnected Vehicle CareService OptionsBuyLeasePay per SW defined FeatureSubscriptionPay per Use or UpgradePay per Mile or MinuteLOWHIGHFlexibility
  • 16. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18Source: Web Research, 2011Mobility On-DemandSmart Parking
  • 17. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 19TripOrigin$High Demand +Low Vehicle Stock= Low Drop-off Price$Low Demand +High Vehicle Stock= Low Pick-up price$$$Low Demand +High Vehicle Stock= High Drop-off PriceTripDestinationCheapestTrip Route?Source: Kent Larson, MIT, Meeting of the Minds, Boulder 2011$$$High Demand +Low Vehicle Stock= High Pick-up Price
  • 18. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20Passenger Vehicle Stock(Millions)Reduce Cost toWorld Average of 24%Source: EIU Data, Cisco IBSG Automotive 2010Transportation & Communication Cost(Percent of Personal Income)58%54%50%43%42%BrazilIndiaThailandChinaMexico17%15%15%15%14%12%United KingdomGermanyFranceItalyJapanUnited StatesMature MarketsEmerging MarketsToday 202013%7501,75059%
  • 19. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21UsersGrow the number of mobile revenue-generating subscriptionsUsesFind more things users can do with theirmobile devicesUsageDrive the frequency with which people usemobile data servicesSource: Cisco IBSG 2011Artificial IntelligenceUbiquitous ConnectivityM2M NetworkPervasive Computing
  • 20. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22ProductivityCar AppsService Providers  OBU paid via two-year plan “Kindle model” B2B co-funding Value added service kick-back Comes with car Basic plan for “free” Data & services for premium Pre-installed X months for free Click to purchaseX-Mode Travel Assist Online BusinessPOI / LBSSocial MediaInfotainmentNavigation
  • 21. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23“Big Data” (U.S. Estimates)PAYD EV Clearing And more…ITSTSPSource: Cisco IBSG Automotive 2012 Remote Diagnostics Connected vehicle care Navi + traffic Driver behavior Driver vitals Vehicle vitals eCall/ ACN Virtual Black Box Vehicle recovery Available station Reservation Charge amount Price + payment Smart grid data Cybernetic trafficmanagement Crash prevention Smart road pricing Infotainment B2B/G serviceplatform Smart LBS Meshed maps 300 M vehicles 7,000+ variables 24,000 for EVs Per day/ second 100 M drivers 100 trips/ month 500+ variables Per second < 5 M EVs < 5 M homes < 400 k public CS 500+ variables Per minute 15-45 M on route 2.5 M traffic lights 2 M cameras Billions of sensors 100+ use cases 500+ var. each Per millisecond 300 M drivers /passengers 5 M enterprises 100+ use cases 100+ var. each Per second
  • 22. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 24TabletNon-SmartphoneLaptopSmart Connected VehicleE-Book Reader1082661,5452,5762,8804,2236,942Average Traffic Per Mobile Device Type 2017 [MBs/ Month]Source: Cisco Networking IndexM2MSmartphone635250250210200Infotainment/ProductivityNavi/ LBSConnected Vehicle CareB2B/G Service PlatformSafety/ ITS
  • 23. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25Cisco Confidential 2520174X total2012Source: Cisco VNI Global Mobile Data Traffic Forecast, 2012–2017
  • 24. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 26Cisco Confidential 26• 46 X all Mobile IP traffic generated in 2010• 30 trillion images (e.g., MMS or Instagram)• 3 trillion video clips (e.g., YouTube)134 exabytes isequal to:Source: Cisco VNI Global Mobile Data Traffic Forecast, 2012–2017
  • 25. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 28FCC Technology Assessment:Validate to the satisfaction of all stakeholders that Wi-Fidoes not cause unacceptable interference to ITS operationCan 5 GHz band be sharedwithout causing harmfulinterference to primarylicensed users ITS?500+companiesSpectrum is expected to remain exclusive tothe primary licensed usersNoFoundation for innovationand faster deploymentYes
  • 26. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 29Cable / DSL Ethernet / LAN“Switching”3G/LTE WLANHomeSecurity &AutomationMedia DSRC HotspotCity MeshHOME OFFICEROADSource: Cisco IBSG Automotive 2011
  • 27. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 30ITS TelematicsConnects Vehicles & Roads V2X security requirement Smart road pricing/ VMT Better traffic management Better road management= Less crashes Less congestion Less fuel and pollution Compensate fuel tax erosionPrivate Sector LeadGovernment LeadConnects Vehicles Connected safety & security Connected vehicle care B2B/G service platform/ PAYD Dynamic navigation/ LBS Infotainment/ productivity= Better Crash “Safety” Better user experience Higher profitabilitySource: Cisco IBSG Automotive, 2011EnterpriseGradeNetwork
  • 28. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 31Source: Cisco Transportation
  • 29. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 32GovernmentAgenciesTraffic Mgt.Road PricingParking Ops.Road Ops.Safety/ SecurityApplicationsPublic Private CustomersScaleSource: Cisco Smart Connected Vehicles Team, 2013…Business
  • 30. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 33RegionsInsuranceEV Clearing…ITSTSPIndustriesCaptive Entire Industry CustomersScaleSource: Cisco Smart Connected Vehicles Team, 2013
  • 31. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 34OperationInfrastructureVehiclePublic CloudSubscription-based ServicesPrivate (OEM) CloudData Center/Virtual ServersEnterprise CloudEnterprise Video, Voice, DataV2V Communication (802.11p)V2I/Upstream Communication (Wi-Fi, 3G/4G, 802.11p, etc.)ServicesElectrical Charging NetworkCharging Stations, Other ServicesMobile SP 1Mobile SP 1Energy Service Providers(Smart Grid)Mobile WiFi OffloadWi-Fi Hotspots,802.11u, 3G/4GConsumer NetworkHome/Dealership Wi-Fi Hotspots, FemtocellsMobile SP 1Mobile SP 1Communications ServiceProviders, “Fog”VNOPolicy Enforcement, Security, Flow-basedManagement, DPI, QoS, …Software ClientDSRC RoadsideInfrastructure802.11p (V2I)
  • 32. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 36WHAT?ContentAppears LegitimateWHO?Domain Owner InformationWHERE?Server Hostedin UkraineWHEN?Domain RegisteredTwo Days AgoDynamic IPAddressHOW?
  • 33. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 37SensorBase Threat Operations Center Dynamic UpdatesWEB REQUESTS30B EMAIL MESSAGES100M WORLDWIDE TRAFFIC35%GLOBALLY DEPLOYED DEVICES700,000+DATA RECEIVED PER DAY1 TB
  • 34. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 38Threat Operations Center Advanced AlgorithmsCisco SensorBaseGlobal Context: Data Makes a DifferenceGlobalThreatTelemetryGlobalThreatTelemetry8:10 GMTAll Cisco Customers ProtectedBank Branchin ChicagoISP Datacenterin MoscowAd Agency HQin London8:03 GMTIPS Detects Hacker Probing8:07 GMTWeb Security DetectsNew Botnet8:00 GMTEmail Security DetectsCompromised ServerOEM ..OEM 2OEM 18:03 GMTIPS Detects Hacker Probing8:07 GMTWeb Security DetectsNew Botnet8:00 GMTEmail Security DetectsCompromised Server
  • 35. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 39IoCServicesRSUNewCoOBUNewCoNetworkPAYD EV Clearing And more…ITSTSPBuild & OperateWiFi + DSRC Networkto Monetize Off-Load and ITS & LBSServicesSubsidize OBU UpgradeFor Right to Monetize Data & CVServicesSource: Cisco Smart Connected Vehicles Team, 2012
  • 36. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 43U.S. Roadside Equipment (RSE)PPP Revenue Model [US$ Million]CapEx P&LInitial Total 5 Year RSEInvestment (10 Depr.)6,261 626Repair/ Replacement 616 62Operating Expenses 440Subtotal RSE Cost 1,128Hypothetical Margin 100% 1,128Revenue Required to Fund“RSE Business”2,2561/10th~3,000,000,000,000Per Month=Source: Vehicle-Infrastructure Integration (VII) Initiative, Benefit-Cost Analysis, Version 2.3, US-DOT, 2008 Cisco IBSG Automotive, 2011
  • 37. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 44Source: An Analysis of the Current Investment Trend in the US Toll Road Sector, MIT, 2008, Cisco IBSG Automotive 20111 Weighted average of price paid in EuropeTolling and Privatization Scenario for U.S. Highway System189,000Miles$6.8M1per MilexSelect Top 20% by Priority: High Congestion High Crash High Repair3,026971U.S. Highway Systems(Thousands of Miles)FederallyFundedNotFederallyFunded3,997= $1.3 Trillion20% Toll PPP
  • 38. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 45VehicleDeliver ServiceSource SellMakeDevelopTransform…Source: Cisco Smart Connected Vehicle 2013Integrate…EnergyService ProviderInfrastructureITSNew Services …Connect…
  • 39. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 46PAYDBottomLineRSE1/10thSource: Cisco IBSG Automotive 2012VMTOBUPolicy~$110 B+33% of U.S. CarsVehicleUserSocietyAutoOEMCV SPs$1.3T$20-30B U.S. Budget550,000 JobsFuel Tax Share4020~$60 B20% of U.S. RoadsInfra REITS1.3T 20%ITS15-20% Savings = $6-8 B
  • 40. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 47No One Can Do It AloneTogether We Can…InfrastructureGovernmentAutomotiveService ProviderInsurance ITSSource: Cisco Smart Connected Vehicle Team 2012
  • 41. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 48Thank you.
  • 42. © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 49 Executive Summary: A Business Case For Connecting Vehicles Government: A Catalyst to Unlock Societal Benefits of Transportation Carriers: Service Providers at a Crossroads Automotive: From Building Cars to Selling Travel Time Well-Spent Insurance: The Business of Preventing CrashesAndreas Mai: andmai@cisco.com