Smarter planet: Automotive


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

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Smarter planet: Automotive

  1. 1. George Mattathil -4/12/2011Let’s Build a Smarter Planet:Automotive © 2010 IBM Corporation
  2. 2. Building a smarter planet: AutomotiveThe 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. 3. Building a smarter planet: AutomotiveThe need for progress is clear.37 $120 $13million billion billionMetric tons of CO2 Annual cost of Cost of U.S.-basedemissions from vehicles in congested roadways in automotive warrantythe U.S. each year. the form of lost hours claims in 2008. and wasted gas in Japan alone. © 2010 IBM Corporation
  4. 4. Building a smarter planet: AutomotiveThe opportunityfor progress is clear.50% 20% less 90% reductionimprovement in traffic in vehiclefuel efficiency misdiagnosisSustainable vehicles: Traffic system: Efficient enterprise:Global supplier Stockholm, Sweden European OEMA global supplier recently The city cut traffic by IBM and a European OEMdeveloped a new hybrid 20%, lowered emissions implemented a new diagnostichydraulic system—which by 12% and reported system combining symptompromises dramatic fuel 40,000 additional daily probability with code analysis.savings and environmental users of public Warranty costs were reducedbenefits—to replace the transportation. significantly, while customerconventional drivetrain satisfaction increased—becauseand transmission. 90% of vehicle failures are diagnosed in a first-pass analysis in less than 15 minutes. © 2010 IBM Corporation
  5. 5. Building a smarter planet: AutomotiveTo meet the demands of today’s consumers, smart automotiveenterprises 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. 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. 7. Building a smarter planet: AutomotiveSmart automotive:Creating sustainable vehicles.SMART ISCreating advanced software for intelligentcontrol and power management in electricvehicles and hybrid powertrains.SMART ISCollaborating across industries todevelop an ecosystem that will enablewidespread electric vehicle usage. © 2010 IBM Corporation
  8. 8. Building a smarter planet: AutomotiveSmart automotive:Creating sustainable vehicles.Global supplier: Developed new fuel-savingtransmission component using software modelingand code generation tools to speed developmentand improve quality and safety.European collaboration project: Developing anintelligent infrastructure that will make possible thelarge scale adoption of electric vehicles poweredby sustainable energy. © 2010 IBM Corporation
  9. 9. Building a smarter planet: AutomotiveSmart automotive:Adapting business models with intelligent vehicles.SMART IS SMART ISLeveraging massive amounts of data to Bringing the power of connectivity intooffer high-quality services to drivers. the vehicle to help find parking, avoid traffic jams and locate convenient services tailored to user preferences.SMART ISIntegrating with intelligent traffic systemsto support congestion management andcarbon reduction initiatives. © 2010 IBM Corporation
  10. 10. Building a smarter planet: AutomotiveSmart automotive:Adapting business models with intelligent vehicles.Intelligent Driving Services Provider: Collects Fleetboard: Equipped fleet with telematics units reducinginformation 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’shappening on the roads.Stockholm, Sweden: An intelligent toll system inthe city center resulted in 20% less traffic, 40% loweremissions and 40,000 additional users of the publictransportation system. © 2010 IBM Corporation
  11. 11. Building a smarter planet: AutomotiveSmart automotive:Transforming the value chain.SMART IS SMART ISUsing advanced analytics and real-time Managing material flow throughtracking to integrate logistics across the the factory in real time to supportvalue chain. just-in-time manufacturing.SMART IS SMART ISCreating better service tools to diagnose Precisely identifying vehicles orproblems correctly the first time or to predict subassemblies containing defectivefailures before they occur. parts to enable more “surgical” recalls. © 2010 IBM Corporation
  12. 12. Building a smarter planet: AutomotiveSmart automotive:Transforming the value chain.Automotive OEM: Implemented RFID reusable Honda Italia: Implemented RFID Work incontainer management system to increase supply Progress tracking solution to improve productionchain visibility and efficiency. efficiency and quality.Automotive OEM: Implemented advance diagnostic Landmarks: Implemented an open, secure partssystem that reduced dealer misdiagnosis by more than tracking solution that enables parts traceability at90% and dealer diagnostics time from 1 hour to 15 all levels of the supply chain allowing moreminutes. precisely targeted recalls. © 2010 IBM Corporation
  13. 13. Building a smarter planet: AutomotiveTraditionally, automotive enterprises have partnered with relatedindustries and entities to varying degrees. Government Insurance Telecommunications Energy Automotive Electronics Financial services Academia © 2010 IBM Corporation
  14. 14. Building a smarter planet: AutomotiveToday’s smart automotive enterprise deepens these partnerships todrive new insights and capabilities - and connects this collaborativeecosystem directly to the consumer. © 2010 IBM Corporation
  15. 15. Building a smarter planet: AutomotiveThe result? A unique ability to deliver new value and improvedlifestyle 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. 16. Building a smarter planet: AutomotiveIBM’s solution strategy is aligned with the needs of theautomotive 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. 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. 18. Building a smarter planet: AutomotiveTrademarks and notes IBM Corporation 2011  IBM, the IBM logo and 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  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:  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