Professor N. Venkat Venkatraman Boston University School of Management December 2008 Discussion Document GM OnStar in 2008...
Outline <ul><li>OnStar: the First Decade </li></ul><ul><li>Competitive Landscape [circa 2008] </li></ul><ul><li>What shoul...
What’s OnStar? (c) Venkatraman, 2008
OnStar: Background <ul><li>Founded in 1995 as a collaboration between: </li></ul><ul><ul><li>GM </li></ul></ul><ul><ul><li...
Scale of OnStar operations.. <ul><li>Monthly average of OnStar responses through June 2007 includes: </li></ul><ul><li>400...
OnStar in 2008: Two-tier of Services <ul><li>Safe & Sound ($199/year) </li></ul><ul><li>Directions & Convenience ($299/yea...
A Day in the Life of OnStar (c) Venkatraman, 2008
OnStar: Technology (c) Venkatraman, 2008 Partnership with Motorola
OnStar: Privacy and Trust (c) Venkatraman, 2008
Technology-enabled Services (c) Venkatraman, 2008
Does your car email you?  (c) Venkatraman, 2008
OnStar-MapQuest Partnership (c) Venkatraman, 2008 April 25, 2007
Turn-by-Turn Navigation (c) Venkatraman, 2008
Hands-Free Calling (with Verizon) (c) Venkatraman, 2008 Eyes on the Road; Hands on the Wheel
OnStar Command Center (c) Venkatraman, 2008
Outline <ul><li>OnStar: the First Decade </li></ul><ul><li>Competitive Landscape [circa 2008] </li></ul><ul><li>What shoul...
Sync: Ford-Microsoft Joint Initiative (c) Venkatraman, 2008
Sync: Integration with multiple devices (c) Venkatraman, 2008
Sync: Distinctive Features (c) Venkatraman, 2008
Sync: Accomplishments and Ambitions <ul><li>30,000 subscribers  in 2007. Target of 1 million by 2009 ( link ).  </li></ul>...
911 Assist & Vehicle Health Reports (c) Venkatraman, 2008
Peer-to-peer Sync network?  (c) Venkatraman, 2008
Nokia acquires Navteq <ul><li>Nokia acquires Navteq ( link ) </li></ul><ul><li>Nokia’s rationale for the acquisition </li>...
TomTom as a competitor? Partner? (c) Venkatraman, 2008
Many other players are jockeying to play… (c) Venkatraman, 2008
ATX Technologies: Competitor or Partner? (c) Venkatraman, 2008
Outline <ul><li>OnStar: the First Decade </li></ul><ul><li>Competitive Landscape [circa 2008] </li></ul><ul><li>What shoul...
Looking Ahead.. <ul><li>According to TRG Group, ‘monitored telematics’ will be a $4+ billion market with over 40 million u...
OnStar: Looking at the Second Decade… <ul><li>OnStar has been a leader in its first decade. The next decade looks more com...
So…What Next for OnStar? (c) Venkatraman, 2008
Lessons from this case (c) Venkatraman, 2008
Implications for You (c) Venkatraman, 2008
Digital Car Telematics
Digital Car Telematics
Digital Car Telematics
Digital Car Telematics
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Digital Car Telematics

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Digital Car Telematics

  1. 1. Professor N. Venkat Venkatraman Boston University School of Management December 2008 Discussion Document GM OnStar in 2008: Strategy for the Second Decade
  2. 2. Outline <ul><li>OnStar: the First Decade </li></ul><ul><li>Competitive Landscape [circa 2008] </li></ul><ul><li>What should OnStar do next? </li></ul>(c) Venkatraman, 2008 Note: Some images in the presentation have associated URLs for easy navigation. Please click on them for additional information online .
  3. 3. What’s OnStar? (c) Venkatraman, 2008
  4. 4. OnStar: Background <ul><li>Founded in 1995 as a collaboration between: </li></ul><ul><ul><li>GM </li></ul></ul><ul><ul><li>EDS </li></ul></ul><ul><ul><li>Hughes Electronics </li></ul></ul><ul><li>Launched at the 1996 Auto Show </li></ul><ul><li>Initially available on 1997 Cadillac Deville, Seville & Eldorado models </li></ul><ul><li>Now standard on all GM vehicles in USA and Canada </li></ul>(c) Venkatraman, 2008
  5. 5. Scale of OnStar operations.. <ul><li>Monthly average of OnStar responses through June 2007 includes: </li></ul><ul><li>400 stolen vehicle locations </li></ul><ul><li>1,000 air bag notifications </li></ul><ul><li>380 advanced automatic crash notifications </li></ul><ul><li>6,000 Good Samaritan calls </li></ul><ul><li>11,400 emergency calls </li></ul><ul><li>47,000 remote vehicle diagnostics </li></ul><ul><li>27,000 roadside assistance calls </li></ul><ul><li>50,000 remote door unlocks </li></ul><ul><li>353,000 routing calls </li></ul><ul><li>14,000,000 OnStar hands-free calls </li></ul>(c) Venkatraman, 2008 Source: OnStar
  6. 6. OnStar in 2008: Two-tier of Services <ul><li>Safe & Sound ($199/year) </li></ul><ul><li>Directions & Convenience ($299/year) </li></ul>(c) Venkatraman, 2008
  7. 7. A Day in the Life of OnStar (c) Venkatraman, 2008
  8. 8. OnStar: Technology (c) Venkatraman, 2008 Partnership with Motorola
  9. 9. OnStar: Privacy and Trust (c) Venkatraman, 2008
  10. 10. Technology-enabled Services (c) Venkatraman, 2008
  11. 11. Does your car email you? (c) Venkatraman, 2008
  12. 12. OnStar-MapQuest Partnership (c) Venkatraman, 2008 April 25, 2007
  13. 13. Turn-by-Turn Navigation (c) Venkatraman, 2008
  14. 14. Hands-Free Calling (with Verizon) (c) Venkatraman, 2008 Eyes on the Road; Hands on the Wheel
  15. 15. OnStar Command Center (c) Venkatraman, 2008
  16. 16. Reflections on the First Decade (c) Venkatraman, 2008 Listen to Chet Huber’s reflections in the podcast
  17. 17. Outline <ul><li>OnStar: the First Decade </li></ul><ul><li>Competitive Landscape [circa 2008] </li></ul><ul><li>What should OnStar do next? </li></ul>(c) Venkatraman, 2008
  18. 18. Competitive Landscape: [circa 2008] (c) Venkatraman, 2008
  19. 19. Sync: Ford-Microsoft Joint Initiative (c) Venkatraman, 2008
  20. 20. Sync: Integration with multiple devices (c) Venkatraman, 2008
  21. 21. Sync: Distinctive Features (c) Venkatraman, 2008
  22. 22. Sync: Accomplishments and Ambitions <ul><li>30,000 subscribers in 2007. Target of 1 million by 2009 ( link ). </li></ul><ul><li>Sync 2.0 update announced during the 2008 CES show by Bill Gates </li></ul>(c) Venkatraman, 2008
  23. 23. Ford Sirius Travel Link (c) Venkatraman, 2008 “ up-to-the-minute information and entertainment content through the vehicle's navigation system” Press release
  24. 24. 911 Assist & Vehicle Health Reports (c) Venkatraman, 2008
  25. 25. Peer-to-peer Sync network? (c) Venkatraman, 2008
  26. 26. Nokia acquires Navteq <ul><li>Nokia acquires Navteq ( link ) </li></ul><ul><li>Nokia’s rationale for the acquisition </li></ul>(c) Venkatraman, 2008
  27. 27. TomTom as a competitor? Partner? (c) Venkatraman, 2008
  28. 28. Many other players are jockeying to play… (c) Venkatraman, 2008
  29. 29. ATX Technologies: Competitor or Partner? (c) Venkatraman, 2008
  30. 30. Outline <ul><li>OnStar: the First Decade </li></ul><ul><li>Competitive Landscape [circa 2008] </li></ul><ul><li>What should OnStar do next? </li></ul>(c) Venkatraman, 2008
  31. 31. Looking Ahead.. <ul><li>According to TRG Group, ‘monitored telematics’ will be a $4+ billion market with over 40 million units in use by 2011 ( link ). </li></ul><ul><li>The same company estimates strong revenue growth for OnStar ( link ) </li></ul>(c) Venkatraman, 2008
  32. 32. OnStar: Looking at the Second Decade… <ul><li>OnStar has been a leader in its first decade. The next decade looks more complex and challenging. The technology landscape holds much promise but the competitive space is getting more complex with strong response from Ford (with Microsoft) and other third-party entities. </li></ul><ul><li>What should OnStar do to ensure that it continues to be a leader in North America? What new technology-enabled value propositions should they pursue? What alliances and partnerships may be required? What threats do they face? </li></ul><ul><li>What would you recommend? </li></ul>(c) Venkatraman, 2008
  33. 33. So…What Next for OnStar? (c) Venkatraman, 2008
  34. 34. Some Useful Links <ul><li>Telematics Update ( link ). </li></ul><ul><li>Telematics Research Group ( link ). </li></ul><ul><li>Hughes Telematics ( link ). </li></ul><ul><li>ABI Research (telematics blogs ). </li></ul><ul><li>Motorola Automotive ( link ). </li></ul><ul><li>Microsoft Automotive ( link ). </li></ul><ul><li>Microsoft-and-Fiat ( link ) </li></ul>(c) Venkatraman, 2008
  35. 35. Lessons from this case (c) Venkatraman, 2008
  36. 36. Implications for You (c) Venkatraman, 2008

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