Driving Disruption In The Automotive Industry


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Technology has always had a strong relationship with the auto industry but it’s only recently that the full potential of this partnership is being realized. We are now seeing a new generation of cars on our roads that offer a new and enhanced driving experience.

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Driving Disruption In The Automotive Industry

  2. 2. TECHTALK - DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRYTechnology has always had a strong relationship with the auto industry but it’s onlyrecently that the full potential of this partnership is being realized. We are nowseeing a new generation of cars on our roads that offer a new and enhanced drivingexperience.By Sam McCloy and Jonathan ShinglerBack in the 1980s, many relished that hour years. Alongside this, governments are waryevery week when they ’d switch on the TV of new technology integration, introducingprogram ‘Knight Rider’ to watch ‘The Hoff’ drive legislation to limit technology usage in order toaround in a black sports car. Not only did the limit driver distraction. Finally, adverse economiccar look good, but it could speak with the driver, conditions have inhibited development beyondpinpoint locations using satellite technologyand drive itself to those locations. It also let thedriver communicate with colleagues via video THE INCREASINGconferencing and advised on the coolest placesto hang out. A truck that acted as a central base ROLE THAT THEcould track the car’s movements and process the LATEST SMARTPHONE,data (known as telematic information) to adviseon optimum driving style, driver and car health. NOTEBOOK AND HOMEThe Hoff was also given local intelligence to help ENTERTAINMENThim to save the girl from the bad guys. It certainlyoffered an exciting sci-fi vision of what a car may TECHNOLOGIES AREbe able to do in the future. And some recent, PLAYING IN CONSUMERS’interesting developments could see some of thesefantasies become a reality. LIVES ARE DRIVING CHANGE IN THE AUTOMOTIVETech adoption to dateMuch of the technology just mentioned has INDUSTRYbeen around for a while but has taken a longtime to be adopted by automakers. So what has the normal chassis/body/engine refreshes. Techbeen stopping them? A key reason is product adoption has been largely limited to iPod anddevelopment lifecycles. Car templates (particularly Bluetooth integration, and is usually thrown inthe internals) only get refreshed every 6-10 as an afterthought.GfK 2012
  3. 3. TECHTALK - DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRYHowever, things are changing. The increasing Telematics: getting to know the driverrole that the latest smartphone, notebook and Meanwhile, integration of telematic information inhome entertainment technologies are playing cars is starting to happen, as demonstrated by thein consumers’ lives are driving change in the showcasing of Ford’s Evos car in late 2011. Cloud-automotive industry. Consumers now expect to based connectivity, coupled with automated andhave such technologies integrated seamlessly customized system calibration enables the carinto their cars. Consequently, to stay competitive,automobile manufacturers must anticipate suchconsumer technology needs to help them ‘future- TO STAY COMPETITIVE,proof’ the latest models, and through that toinstigate a long-overdue shake-up of the industry. AUTOMOBILE MANUFACTURERSThe rise of infotainmentInfotainment is an area where such changes are MUST ANTICIPATE SUCHoccurring. Car companies are forming partnerships CONSUMER TECHNOLOGYwith innovative technology brands. For example,Audi is using NVIDIA’s latest mobile quad-core NEEDS TO HELP THEMTegra 3 processors and Sierra LTE modules to ‘FUTURE-PROOF’ THEpower its in-car systems. The possibility ofintegrating these technologies with Android or LATEST MODELS, ANDWindows Mobile-based operating systems opens THROUGH THAT TOa whole new world of in-car application services. INSTIGATE A LONG-Obviously, Apple and Google have had plenty OVERDUE SHAKE-UP OFof success with their App Stores and the tablet THE INDUSTRYmarket has widened application remits to makemore use of larger screens. These changes willnaturally evolve within the automotive industry to recognize the driver, monitoring his or heras apps are developed to specifically meet driver driving style, as well as basic health informationand passenger needs. This will help to provide such as the heart rate. All of this telematic data isseamless transitions from home to car to work, transmitted and saved to the cloud via 3G or 4G/and back again. Software and app upgrades can LTE connectivity which is embedded in the vehicle.also be used to help disrupt the long 6-10 year As such, the car can ‘get to know’ the driver overcar development cycles. time, adjusting its set-up to match the driver’sGfK 2012
  4. 4. TECHTALK - DRIVING DISRUPTION IN THE AUTOMOTIVE INDUSTRYstyle, mood and health, and to provide optimum speed control). This does, in some respects, gosafety throughout the journey. Location-based against the 20th century image of the car offeringservices may also be included to monitor not only a sense of freedom. Although the reality of carthe driver, but also the environment (for example ownership has long moved away from that notion,automatic switching to electric from gas when it is still used by many car advertisers.moving from highway to city areas). So, with the possibility of telematics being used as a means of further control by insurance INSURANCE COMPANIES companies and governments, it remains to be seen how it will impact the industry, and whether CAN ALSO USE THE that will ultimately be a positive or a negative for DATA IN AGGREGATE TO consumers. With all this in mind, new technology needs to be carefully managed as it becomes SEGMENT DRIVERS MORE integrated into cars, and the ability to ‘opt-in’ will EFFECTIVELY, AND TO very likely play a role in this.BETTER TIER THEIR RATES Looking aheadACCORDING TO DRIVER AGE, On the whole, convergence of the technology and automotive industries offers some exciting GENDER AND SITUATION possibilities with developments in infotainment and sophisticated integration with consumerTelematics is also becoming a powerful tool for all lifestyles as well as communications. Nevertheless,sorts of new business and public sector models. as real-time tracking data become readilyIt has already been adopted in the insurance available, governments, regulatory bodies, andsector where some companies offer ‘black-box’ insurance companies will be able to control driversolutions to track drivers over time. This is seen behavior further. Whatever happens next, thereas a ‘foolproof’ method of keeping premiums will inevitably be a period of adjustment, anddown. Insurance companies can also use the data ultimately, the driving experience is likely to bein aggregate to segment drivers more effectively, radically altered by the end of the decade.and to better tier their rates according to driverage, gender and situation. For further information, please contact:Other applications for telematics include fleet Sam McCloy, sam.mccloy@gfk.com ormanagement and traffic optimization (including Jonathan Shingler, jonathan.shingler@gfk.comGfK 2012