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George Mattathil -
4/12/2011




Let’s Build a Smarter Planet:
Automotive




                                © 2010 IBM Corporation
Building a smarter planet: Automotive


The reality of living in a globally integrated world is upon us.



 Economic downturn and increased industry upheaval.
 Empowered consumers with rising product/service expectations.
 Complex and globally dispersed operations.
 Vehicles becoming digitally connected.
 Increasing awareness and regulation regarding sustainability.
 Growing role of emerging economies and markets.




The world is connected:
economically, socially and technically.



                                                                   © 2010 IBM Corporation
Building a smarter planet: Automotive


The need for progress is clear.




37                                      $120                     $13
million                                 billion                  billion
Metric tons of CO2                      Annual cost of           Cost of U.S.-based
emissions from vehicles in              congested roadways in    automotive warranty
the U.S. each year.                     the form of lost hours   claims in 2008.
                                        and wasted gas in
                                        Japan alone.




                                                                                  © 2010 IBM Corporation
Building a smarter planet: Automotive


The opportunityfor progress is clear.




50%                                     20% less                  90% reduction
improvement in                          traffic                   in vehicle
fuel efficiency                                                   misdiagnosis
Sustainable vehicles:                   Traffic system:           Efficient enterprise:
Global supplier                         Stockholm, Sweden         European OEM
A global supplier recently              The city cut traffic by   IBM and a European OEM
developed a new hybrid                  20%, lowered emissions    implemented a new diagnostic
hydraulic system—which                  by 12% and reported       system combining symptom
promises dramatic fuel                  40,000 additional daily   probability with code analysis.
savings and environmental               users of public           Warranty costs were reduced
benefits—to replace the                 transportation.           significantly, while customer
conventional drivetrain                                           satisfaction increased—because
and transmission.                                                 90% of vehicle failures are
                                                                  diagnosed in a first-pass analysis
                                                                  in less than 15 minutes.

                                                                                          © 2010 IBM Corporation
Building a smarter planet: Automotive


To meet the demands of today’s consumers, smart automotive
enterprises are driving an interdependent ecosystem that will…



          CREATE SUSTAINABLE                                             ADAPT BUSINESS MODELS
                    VEHICLES                                             WITH INTELLIGENT VEHICLES
          Apply new and emerging                                         Open new revenue streams and
     technologies to reduce carbon                                       attract customers with increased
   emissions through electrification    AUTOMOTIVE                       connectivity, new sensing
         and alternative fuels while    ENTERPRISE                       capabilities, improved safety
          ensuring recyclability and                                     mechanisms, active maintenance
    reducing environmental impact.                                       systems and more.




                                        TRANSFORM THE VALUE CHAIN
                                        Achieve greater operational efficiencies and
                                        support an increasingly global workforce as
                                        an integrated enterprise. Reduce fixed costs
                                        and increase flexibility.


                                                                                             © 2010 IBM Corporation
Building a smarter planet: Automotive




                                           +                +         =
                              An opportunity for automotive enterprises
                                   to think and act in new ways.


                             Create            Adapt business   Transform the
                             sustainable       models with      value chain.
                             vehicles.         intelligent
                                               vehicles.




                                                                                © 2010 IBM Corporation
Building a smarter planet: Automotive


Smart automotive:
Creating sustainable vehicles.


SMART IS
Creating advanced software for intelligent
control and power management in electric
vehicles and hybrid powertrains.




SMART IS
Collaborating across industries to
develop an ecosystem that will enable
widespread electric vehicle usage.




                                             © 2010 IBM Corporation
Building a smarter planet: Automotive


Smart automotive:
Creating sustainable vehicles.




Global supplier: Developed new fuel-saving
transmission component using software modeling
and code generation tools to speed development
and improve quality and safety.




European collaboration project: Developing an
intelligent infrastructure that will make possible the
large scale adoption of electric vehicles powered
by sustainable energy.



                                                         © 2010 IBM Corporation
Building a smarter planet: Automotive


Smart automotive:
Adapting business models with intelligent vehicles.


SMART IS                                       SMART IS
Leveraging massive amounts of data to          Bringing the power of connectivity into
offer high-quality services to drivers.        the vehicle to help find parking, avoid
                                               traffic jams and locate convenient
                                               services tailored to user preferences.




SMART IS
Integrating with intelligent traffic systems
to support congestion management and
carbon reduction initiatives.




                                                                              © 2010 IBM Corporation
Building a smarter planet: Automotive


Smart automotive:
Adapting business models with intelligent vehicles.




Intelligent Driving Services Provider: Collects           Fleetboard: Equipped fleet with telematics units reducing
information from a multitude of sources all the time,     operating costs ~5% through reduced fuel consumption,
including thousands of static sites, number plate         increased availability, lower labor charges and more.
recognition cameras, and 80,000 of their customers’
black boxes, providing real time information on what’s
happening on the roads.




Stockholm, Sweden: An intelligent toll system in
the city center resulted in 20% less traffic, 40% lower
emissions and 40,000 additional users of the public
transportation system.



                                                                                                   © 2010 IBM Corporation
Building a smarter planet: Automotive


Smart automotive:
Transforming the value chain.


SMART IS                                          SMART IS
Using advanced analytics and real-time            Managing material flow through
tracking to integrate logistics across the        the factory in real time to support
value chain.                                      just-in-time manufacturing.




SMART IS                                          SMART IS
Creating better service tools to diagnose         Precisely identifying vehicles or
problems correctly the first time or to predict   subassemblies containing defective
failures before they occur.                       parts to enable more “surgical” recalls.




                                                                                   © 2010 IBM Corporation
Building a smarter planet: Automotive


Smart automotive:
Transforming the value chain.




Automotive OEM: Implemented RFID reusable              Honda Italia: Implemented RFID Work in
container management system to increase supply         Progress tracking solution to improve production
chain visibility and efficiency.                       efficiency and quality.




Automotive OEM: Implemented advance diagnostic         Landmarks: Implemented an open, secure parts
system that reduced dealer misdiagnosis by more than   tracking solution that enables parts traceability at
90% and dealer diagnostics time from 1 hour to 15      all levels of the supply chain allowing more
minutes.                                               precisely targeted recalls.



                                                                                                   © 2010 IBM Corporation
Building a smarter planet: Automotive


Traditionally, automotive enterprises have partnered with related
industries and entities to varying degrees.



        Government
                                        Insurance




   Telecommunications


           Energy                                              Automotive


                     Electronics




                                          Financial services
                Academia




                                                                            © 2010 IBM Corporation
Building a smarter planet: Automotive


Today’s smart automotive enterprise deepens these partnerships to
drive new insights and capabilities - and connects this collaborative
ecosystem directly to the consumer.




                                                             © 2010 IBM Corporation
Building a smarter planet: Automotive


The result? A unique ability to deliver new value and improved
lifestyle experiencesthat meet consumers’ evolving needs.



                                                            Fewer manual
                                             New mobility   operations
                                                 models

                                                                       Increased safety

                                        Greener
                                        vehicles

                                                                            Alternative financing

                                          Better
                                         service

                                                                       Customizable
                                                                       options
                                            Responsible
                                           manufacturing    Connected
                                                            entertainment




                                                                                                © 2010 IBM Corporation
Building a smarter planet: Automotive


IBM’s solution strategy is aligned with the needs of the
automotive industry.

  AUTO ENTERPRISES ARE FOCUSED ON…                           IBM IS INVESTING IN…

                                           Automotive systems and software delivery platform
                                           Global delivery for joint software development centers
  Product development                      Product development integration framework
                                           PLM implementation and value realization
                                           Complex controller simulation
                                           Global distribution network optimization / inventory optimization
                                           Supply chain performance
  Supply chain and production              RFID solutions
                                           Manufacturing integration framework
                                           Enterprise Asset Management
                                           Plant launch services

  Channel management                     Dealer operations management
                                         Sales order and planning
                                         Advanced automotive banking
  Captive finance operations             Customer retention and OEM integration
                                         Regulatory reporting and risk management
                                           Vehicle prognostics and diagnostics
  Warranty and service                     Warranty analytics
                                           Global warranty claims processing
                                           Spare parts management
                                         Planning
  Telematics
                                         Secure Infrastructure
                                         Service Management
                                                                                                  © 2010 IBM Corporation
Building a smarter planet: Automotive


                                        We’ve only just begun to
                                        uncover what is possible on
                                        a smarter planet.
                                        The world will continue to become smaller,
                                        flatter and smarter. We are moving into the
                                        age of the globally integrated and intelligent
                                        economy, society and planet.
                                        To thrive on a smarter planet, we need a
                                        smarter automotive industry that supports
                                        a profitable and growing value chain.
                                        There’s no better time to start building. And
                                        there’s no better time to invest in creating
                                        the kind of industry we all need.

                                        Let’s work together to drive real
                                        progress in our world.




                                                                                     © 2010 IBM Corporation
Building a smarter planet: Automotive

Trademarks and notes


   IBM Corporation 2011

    IBM, the IBM logo and ibm.com are registered trademarks, and other company, product
     or service names may be trademarks or service marks of International Business
     Machines Corporation in the United States, other countries, or both. A current list of IBM
     trademarks is available on the Web at “Copyright and trademark information” at
     www.ibm.com/legal/copytrade.shtml
    Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel,
     the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo,
     Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and
     all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo,
     and UNIX are trademarks or service marks of others as described under “Special
     attributions” at: http://www.ibm.com/legal/copytrade.shtml#section-special
    Other company, product and service names may be trademarks or service marks of
     others.
    References in this publication to IBM products or services do not imply that IBM intends
     to make them available in all countries in which IBM operates.

                                                                                        © 2010 IBM Corporation

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Smarter planet: Automotive

  • 1. George Mattathil - 4/12/2011 Let’s Build a Smarter Planet: Automotive © 2010 IBM Corporation
  • 2. Building a smarter planet: Automotive The reality of living in a globally integrated world is upon us.  Economic downturn and increased industry upheaval.  Empowered consumers with rising product/service expectations.  Complex and globally dispersed operations.  Vehicles becoming digitally connected.  Increasing awareness and regulation regarding sustainability.  Growing role of emerging economies and markets. The world is connected: economically, socially and technically. © 2010 IBM Corporation
  • 3. Building a smarter planet: Automotive The need for progress is clear. 37 $120 $13 million billion billion Metric tons of CO2 Annual cost of Cost of U.S.-based emissions from vehicles in congested roadways in automotive warranty the U.S. each year. the form of lost hours claims in 2008. and wasted gas in Japan alone. © 2010 IBM Corporation
  • 4. Building a smarter planet: Automotive The opportunityfor progress is clear. 50% 20% less 90% reduction improvement in traffic in vehicle fuel efficiency misdiagnosis Sustainable vehicles: Traffic system: Efficient enterprise: Global supplier Stockholm, Sweden European OEM A global supplier recently The city cut traffic by IBM and a European OEM developed a new hybrid 20%, lowered emissions implemented a new diagnostic hydraulic system—which by 12% and reported system combining symptom promises dramatic fuel 40,000 additional daily probability with code analysis. savings and environmental users of public Warranty costs were reduced benefits—to replace the transportation. significantly, while customer conventional drivetrain satisfaction increased—because and transmission. 90% of vehicle failures are diagnosed in a first-pass analysis in less than 15 minutes. © 2010 IBM Corporation
  • 5. Building a smarter planet: Automotive To meet the demands of today’s consumers, smart automotive enterprises are driving an interdependent ecosystem that will… CREATE SUSTAINABLE ADAPT BUSINESS MODELS VEHICLES WITH INTELLIGENT VEHICLES Apply new and emerging Open new revenue streams and technologies to reduce carbon attract customers with increased emissions through electrification AUTOMOTIVE connectivity, new sensing and alternative fuels while ENTERPRISE capabilities, improved safety ensuring recyclability and mechanisms, active maintenance reducing environmental impact. systems and more. TRANSFORM THE VALUE CHAIN Achieve greater operational efficiencies and support an increasingly global workforce as an integrated enterprise. Reduce fixed costs and increase flexibility. © 2010 IBM Corporation
  • 6. Building a smarter planet: Automotive + + = An opportunity for automotive enterprises to think and act in new ways. Create Adapt business Transform the sustainable models with value chain. vehicles. intelligent vehicles. © 2010 IBM Corporation
  • 7. Building a smarter planet: Automotive Smart automotive: Creating sustainable vehicles. SMART IS Creating advanced software for intelligent control and power management in electric vehicles and hybrid powertrains. SMART IS Collaborating across industries to develop an ecosystem that will enable widespread electric vehicle usage. © 2010 IBM Corporation
  • 8. Building a smarter planet: Automotive Smart automotive: Creating sustainable vehicles. Global supplier: Developed new fuel-saving transmission component using software modeling and code generation tools to speed development and improve quality and safety. European collaboration project: Developing an intelligent infrastructure that will make possible the large scale adoption of electric vehicles powered by sustainable energy. © 2010 IBM Corporation
  • 9. Building a smarter planet: Automotive Smart automotive: Adapting business models with intelligent vehicles. SMART IS SMART IS Leveraging massive amounts of data to Bringing the power of connectivity into offer high-quality services to drivers. the vehicle to help find parking, avoid traffic jams and locate convenient services tailored to user preferences. SMART IS Integrating with intelligent traffic systems to support congestion management and carbon reduction initiatives. © 2010 IBM Corporation
  • 10. Building a smarter planet: Automotive Smart automotive: Adapting business models with intelligent vehicles. Intelligent Driving Services Provider: Collects Fleetboard: Equipped fleet with telematics units reducing information from a multitude of sources all the time, operating costs ~5% through reduced fuel consumption, including thousands of static sites, number plate increased availability, lower labor charges and more. recognition cameras, and 80,000 of their customers’ black boxes, providing real time information on what’s happening on the roads. Stockholm, Sweden: An intelligent toll system in the city center resulted in 20% less traffic, 40% lower emissions and 40,000 additional users of the public transportation system. © 2010 IBM Corporation
  • 11. Building a smarter planet: Automotive Smart automotive: Transforming the value chain. SMART IS SMART IS Using advanced analytics and real-time Managing material flow through tracking to integrate logistics across the the factory in real time to support value chain. just-in-time manufacturing. SMART IS SMART IS Creating better service tools to diagnose Precisely identifying vehicles or problems correctly the first time or to predict subassemblies containing defective failures before they occur. parts to enable more “surgical” recalls. © 2010 IBM Corporation
  • 12. Building a smarter planet: Automotive Smart automotive: Transforming the value chain. Automotive OEM: Implemented RFID reusable Honda Italia: Implemented RFID Work in container management system to increase supply Progress tracking solution to improve production chain visibility and efficiency. efficiency and quality. Automotive OEM: Implemented advance diagnostic Landmarks: Implemented an open, secure parts system that reduced dealer misdiagnosis by more than tracking solution that enables parts traceability at 90% and dealer diagnostics time from 1 hour to 15 all levels of the supply chain allowing more minutes. precisely targeted recalls. © 2010 IBM Corporation
  • 13. Building a smarter planet: Automotive Traditionally, automotive enterprises have partnered with related industries and entities to varying degrees. Government Insurance Telecommunications Energy Automotive Electronics Financial services Academia © 2010 IBM Corporation
  • 14. Building a smarter planet: Automotive Today’s smart automotive enterprise deepens these partnerships to drive new insights and capabilities - and connects this collaborative ecosystem directly to the consumer. © 2010 IBM Corporation
  • 15. Building a smarter planet: Automotive The result? A unique ability to deliver new value and improved lifestyle experiencesthat meet consumers’ evolving needs. Fewer manual New mobility operations models Increased safety Greener vehicles Alternative financing Better service Customizable options Responsible manufacturing Connected entertainment © 2010 IBM Corporation
  • 16. Building a smarter planet: Automotive IBM’s solution strategy is aligned with the needs of the automotive industry. AUTO ENTERPRISES ARE FOCUSED ON… IBM IS INVESTING IN…  Automotive systems and software delivery platform  Global delivery for joint software development centers Product development  Product development integration framework  PLM implementation and value realization  Complex controller simulation  Global distribution network optimization / inventory optimization  Supply chain performance Supply chain and production  RFID solutions  Manufacturing integration framework  Enterprise Asset Management  Plant launch services Channel management  Dealer operations management  Sales order and planning  Advanced automotive banking Captive finance operations  Customer retention and OEM integration  Regulatory reporting and risk management  Vehicle prognostics and diagnostics Warranty and service  Warranty analytics  Global warranty claims processing  Spare parts management  Planning Telematics  Secure Infrastructure  Service Management © 2010 IBM Corporation
  • 17. Building a smarter planet: Automotive We’ve only just begun to uncover what is possible on a smarter planet. The world will continue to become smaller, flatter and smarter. We are moving into the age of the globally integrated and intelligent economy, society and planet. To thrive on a smarter planet, we need a smarter automotive industry that supports a profitable and growing value chain. There’s no better time to start building. And there’s no better time to invest in creating the kind of industry we all need. Let’s work together to drive real progress in our world. © 2010 IBM Corporation
  • 18. Building a smarter planet: Automotive Trademarks and notes IBM Corporation 2011  IBM, the IBM logo and ibm.com are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at www.ibm.com/legal/copytrade.shtml  Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under “Special attributions” at: http://www.ibm.com/legal/copytrade.shtml#section-special  Other company, product and service names may be trademarks or service marks of others.  References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. © 2010 IBM Corporation