Connecting vehicles will create the Internet of Cars, transform the automotive industry, enable big data infomediaries, and spawn new businesses. Management Briefing Seminars, Traverse City August 5, 2013

1. Cisco ConfidentialCisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Internet Business Solutions Group 1
Management Briefing Seminars
Andreas Mai
Director Product Management Smart Connected Vehicles
August 2013

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 3
170 Years Ago:
Invention of the Telegraph
100 Years Ago:
Invention of the Radio
70 Years Ago:
First general purpose
electronic computer
40 Years Ago:
First Internet
connection
20 Years Ago:
World Wide Web
TodayIntelligently Connecting People, Process, Data, and Things
2003:
0.5B Connected
Devices
2005:
IP Traffic:
29 exabytes
2005:
First Smartphone
2008:
Video Traffic:
21 exabytes
2010:
7B Connected
Devices
2010:
0.5B Smartphones
2012:
25M Connected Cars
2011:
90M Smartmeters

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The Internet of Everything
Deeper Insights for
Greater Decision
Making
Empower People/ Increase
Efficiency
Create and Expand New
Markets and Services
Create Better Experiences to Build
Better Relationships

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Show me the Money!
Society
 Fewer crashes
 Lower traffic/road/toll
operation costs
 CO2 reduction
Vehicle User
 Lower insurance
 Lower operation cost
 Less time stuck in
traffic, more productivity
Internet of Cars
Service Providers
 Traffic guidance, navigation,
emergency services
 “Google on wheels,”
PAYD insurance,
location-based services
Auto OEM/OES
 Lower service/warranty costs
 New profit pools
 Architectural savings
$ 550
$420
$300
$160
Benefits per vehicle, per year
Source: Cisco IBSG Automotive and Economics Practices, 2011

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Vehicle
Deliver ServiceSource SellMakeDevelopTransform…
Source: Cisco IBSG Automotive 2011
Integrate…
Energy
Service Provider
Infrastructure
ITS
New Services …
Connect…

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Connecting
the Value Chain
Extended Design
and Supply Chain
Travel Experience &
Location-Based Services
Distribution and
Service Network
CONNECTED
within the car
CONNECTED
to personal devices
CONNECTED
around the car
Marketing, Advertising,
CRM
CONNECTED
to the cloud
Source: Cisco IBSG Automotive, 2011

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Consumers Trade Personal Data for Savings, Safety, and a Personalized Experience
LBS
would share height/weight, driving habits and
entertainment preference for a more custom
driving experience
65%
would allow driving habits to be monitored to
save on insurance/ service maintenance
74%
Source: Cisco Systems, 2013

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Cost Drivers
(Data)
Value Drivers
(Gross Margin)
Data and Gross Margin per Vehicle per Year by Service [GB/ $]
Source: Workshops with multiple automotive manufacturers, Cisco Smart Connected Vehicles Team, 2012
> $ 200/ Vehicle/ Year
Connected Vehicle Care
Safety & Security/ ITS & ADAS
Infotainment & Productivity
3rd-Gen Navi & LBS
B2B/G Service Platform
18 GB Data
Automotive
can
control
Who
will
Control?

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“Big Data” (U.S. Estimates)
Source: Cisco IBSG Automotive 2012
 300 M vehicles
 7,000+ variables
 24,000 for EVs
 Per month/ day/ minute
 100 M drivers
 100 trips/ month
 500+ variables
 Per trip/ second
 < 5 M EVs
 < 5 M homes
 < 400 k public CS
 500+ variables
 Per charge
 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
UBI EV Clearing And more…ITSTSP
 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 traffic
management
 Crash prevention
 Smart road pricing
 Infotainment
 B2B/G service
platform
 Smart LBS
 Meshed maps

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Action can be taken through
network control points: Security,
Policy, QoS, Routing, Fog, etc.
Context can be detected by the
network: Location, Identity,
Presence, X-Platform, etc.
Applications
Friends & Family
Likes & Hobbies
Content Consumed
Browsing
Search
Public
Internet
Healthcare
Banking
Retail
Business Applications
Company-Specific Analytics
Oil & Gas
Automotive
Public SectorEnterprise
Internet
Secure Network
Data Exchange
Network of
Things
Vehicles
Meters
Medical Devices
Traffic Lights
City Cameras
Consumer Devices
Internet of
Things

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Expanded
Data Scope
Enriched
Output
Trusted
Relationship
Wave 1
Wave 2
Wave 3
Data
Plane
Control
Plane
Customer
Plane
Ecosystem
Sensing
Market Maker
Siloed
Reporting
Data Keeper
Intra-company
Action
Conditional Use
Increasing Challenges

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Creates malware
on the ADAS
Exposes OBU and
starts sending
many bad packets
Sends a super-packet
Malware created in car’s
communication gateway
Enterprise Web OEM Roadside GridHome
Audio/ Video DiagnosticsTelematics ADAS ….
The car is disabled
or destroyed
Unauthorized packets
are sent
OBU

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Enterprise Web OEM Roadside GridHome
Audio/ Video DiagnosticsTelematics ADAS ….
Secure Car
Gateway
(SCG)
Advanced ECU Level Security
Security
Intelligence
Operations
Vehicle Threat Defense Update
Vehicle Misbehavior Detection
Vehicle Threat Report

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OperationInfrastructureVehicle
Public Cloud
Subscription-based Services
Private (OEM) Cloud
Data Center/Virtual Servers
Enterprise Cloud
Enterprise Video, Voice, Data
V2V Communication (802.11p)
V2I/Upstream Communication (Wi-Fi, 3G/4G, 802.11p, etc.)
Services
Electrical Charging Network
Charging Stations, Other Services
Mobile SP 1Mobile SP 1
Energy Service Providers
(Smart Grid)
Mobile WiFi Offload
Wi-Fi Hotspots,
802.11u, 3G/4G
Consumer Network
Home/Dealership Wi-Fi Hotspots, Femtocells
Mobile SP 1Mobile SP 1Communications Service
Providers, “Fog”
VNO
Policy Enforcement, Security, Flow-based
Management, DPI, QoS, …
Software Client
DSRC Roadside
Infrastructure
802.11p (V2I)

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Solve Environmental Challenges Thrive in Smart Communities
Drive Safe and Smart Achieve Greater Energy Efficiency
Live Enriched, Healthier Lives
Redefine Work Models
… and drives
CONNECTED
within the
car
CONNECTED
to personal
devices
CONNECTED
around
the car
CONNECTED
to the
cloud

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Traverse City

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Thank you.