How can Insights on Sustainable Transport Solutions Lead to Customer Value? - IBM Smarter Business 2013

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A Volvo case on pioneering Big data, telematics and multi-modal mobility management.
Presenter: Dr. Magnus Kuschel, Head of Service Innovation, Volvo Group Telematics and Robert Valton, Project Manager Big Data, Volvo IT.

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How can Insights on Sustainable Transport Solutions Lead to Customer Value? - IBM Smarter Business 2013

  1. 1. How can Insights on Sustainable Transport Solutions Lead to Customer Value? Project Manager BIGdata, Volvo IT robert.valton@volvo.com Volvo IT Volvo Group Telematics 1 www.VolvoGroup.com magnus.kuschel@volvo.com Head of Service Innovation, Volvo Group Telematics magnus.kuschel@volvo.com
  2. 2. A snapshot of the transformation context Vehicle - volume Customer Touch Points - velocity Hybrids - variety Sustainable solutions - veracity Volvo IT Volvo Group Telematics 2 www.VolvoGroup.com magnus.kuschel@volvo.com
  3. 3. BIGdata = transactions + interactions  AnalyticsIQ PB, Predictive advice Advanced offers & solutions Connected vehicles Co-created 3rd party Volume, Frequency Open data TB, Online alerts Social media Business model innovation GB, Report ondemand MB, Daily batch Variety, Uncertainty, Complexity Sources: Volvo Group, Chalmers, Gartner, IBM, Teradata, Wikibon Volvo IT Volvo Group Telematics 3 www.VolvoGroup.com magnus.kuschel@volvo.com
  4. 4. Volvo IT Volvo Group Telematics 4 www.VolvoGroup.com magnus.kuschel@volvo.com
  5. 5. >100.000 employees Sales in >190 markets >300 Bn SEK sales ~45 Bn USD Production in 18 countries >1m connected vehicles most global and leader in electromobility, ITS, telematics and transport solutions Volvo IT Volvo Group Telematics 5 www.VolvoGroup.com magnus.kuschel@volvo.com
  6. 6. The connected ecosystem is growing Connected drivers Connected society Connected fleet operators Connected dealers & workshops Connected OEM & suppliers Content and other service providers X Volvo Group Trucks Technology 6 www.VolvoGroup.com magnus.kuschel@volvo.com Leasing/insurance companies Goods forwarders
  7. 7. The telematics perspective matters Connected Vehicles Vehicle Management Customer Efficiency Connected Fleet & Driver Fleet Management Connected Society Traffic Management Customer Effectiveness Transport system centricity Vehicle centricity Volvo IT Volvo Group Telematics 7 www.VolvoGroup.com magnus.kuschel@volvo.com
  8. 8. Volvo IT Volvo Group Telematics 8 www.VolvoGroup.com magnus.kuschel@volvo.com
  9. 9. Areas for sustainable solutions Connected Service Quadrants Revenue (image) OEM/Dealer Customer/Driver UT TA com 4 Transport efficiency & convenience Non-vehicle centric (ex. Navigation, logistics, POI ..) 3 2 Vehicle Management Efficiency Vehicle centric (ex. Fuel costs, energy, safety…) Transport Operation/ Driver centric 1 Increased Aftermarket /Service Sales Increased Vehicle Sales (ex. Parts, finance, insurance…) Quality and risk management (ex. Warranty, Service contracts , lead-time reduction…) Cost Savings i-SEE CS Volvo IT Volvo Group Telematics 9 www.VolvoGroup.com magnus.kuschel@volvo.com Vehicle/dealer/OEM centric UT VRD 30/3000
  10. 10. Make 360 eco-system assessments 4 1 Transport efficiency & convenience Increased Soft Products Sales Increased Vehicle Sales Low IT usage Customer / driver maturenes 3 2 1 0 1 2 3 Dealer / OEM matureness Manuel processes 3 2 Vehicle Management & Efficiency Quality and risk management Volvo IT Volvo Group Telematics 10 www.VolvoGroup.com magnus.kuschel@volvo.com
  11. 11. Exhibit A: www.CommuteGreener.com Volvo IT Volvo Group Telematics 11 www.VolvoGroup.com magnus.kuschel@volvo.com
  12. 12. Video clip: Commute Greener! Everybody wants quality of life Nobody likes congestion http://youtu.be/WUIpvwhI5N0 www.youtube.com/CommuteGreener Volvo IT Volvo Group Telematics 12 www.VolvoGroup.com magnus.kuschel@volvo.com Customer value drives sustainable development
  13. 13. Göteborg Mexico City San Francisco Vattenfall Keolis Enfo iPhone App >30 countries Volvo IT Volvo Group Telematics 13 www.VolvoGroup.com magnus.kuschel@volvo.com
  14. 14. Valuable results with Commute Greener! Key achievements equals on three month initiation basis 3.000 participants 50.000 participants Saved CO2 (kg) 43.200 720.000 Saved travel expenses ($) 100.000 2.000.000 ~1 >20 800.000 Inflow/outflow patterns 14.000.000 Reduced cases heart disease Zero Emission Miles (km) Socio-demographic data Volvo IT Volvo Group Telematics 14 www.VolvoGroup.com magnus.kuschel@volvo.com
  15. 15. Join the journey of Commute Greener! 2009 2010 2011 Prototype for Volvo employees to measure time, CO2 and $ The first campaign with the City of Gothenburg, then with Mexico City Campaigns in San Francisco, Universities, Companies etc. Positive results and targets >2000 connected commuters >500 t CO2 offset 2012 Received the Indian Parivartan award for innovation and sustainability 2013 Open innovation, welcoming more to join the journey towards sustainable development >50.000 Reached via Facebook >100.000 greener trips / month Heritiage of innovations and environmental care www.CommuteGreener.com Volvo IT Volvo Group Telematics 15 www.VolvoGroup.com magnus.kuschel@volvo.com
  16. 16. Exhibit B: Used Trucks Volvo IT Volvo Group Telematics 16 www.VolvoGroup.com magnus.kuschel@volvo.com
  17. 17. Critical business questions for used trucks  How to do an analysis of the vehicle/s, customer/s and operational conditions “Single view of vehicle” “Singe view of customer 1st 2nd…” “Single view of context” – Is this a “problem vehicle”? Need: AnalyticsIQ – What is the predictive mapping and potential usage? – Driving patterns? Connected data – Do we use the component status to optimise opportunities?  What do we know about the future risks for the vehicle, customer and application?  Can we offer service contracts with calculated margin?  Can we identify the “lemons and diamonds” for each customer profile, minimize the risks and create better matching in the handling Used Truck ? Why “used”? Installed base, established operations, low margin, considerable risks… Volvo IT Volvo Group Telematics 17 www.VolvoGroup.com magnus.kuschel@volvo.com
  18. 18. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1 years 1st Truck Evaluation Trade in X months Sell to the second owner Third owner Service contract? X months ? Service Service Service Service Service Repairs Repairs Repairs Repairs Repairs Telematics Telematics Telematics Telematics Telematics Risk management Access to complete vehicle history and the driver behavior Example: Idle time, Number of owners, Number of users, Service history, History of breakdowns, Fault codes etc Volvo IT Volvo Group Telematics 18 www.VolvoGroup.com magnus.kuschel@volvo.com
  19. 19. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1 years 1st Truck Evaluation Trade in X months Sell to the second owner Third owner Service contracts? X months ? Service Service Service Service Service Repairs Repairs Repairs Repairs Repairs Telematics Telematics Telematics Telematics Telematics Volvo IT Volvo Group Telematics 19 www.VolvoGroup.com magnus.kuschel@volvo.com
  20. 20. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1st Truck Evaluation Trade in 3-5 months 1 years Third owner Service contract? 1-5 months ? Wired tool Wired tool Telematics Sell to the second owner Telematics Telematics Wired tool ? Telematics Telematics Predictive Volvo IT Volvo Group Telematics 20 www.VolvoGroup.com magnus.kuschel@volvo.com
  21. 21. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1st Truck Evaluation Trade in 3-5 months 1 years Third owner Service contract? 1-5 months ? Wired tool Wired tool Telematics Sell to the second owner Telematics Telematics Wired tool ? Telematics Telematics Predictive Volvo IT Volvo Group Telematics 21 www.VolvoGroup.com magnus.kuschel@volvo.com
  22. 22. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1st Truck Evaluation Trade in 3-5 months 1 years Third owner Service contract? 1-5 months ? Wired tool Wired tool Telematics Sell to the second owner Telematics Telematics Wired tool ? Telematics Telematics Predictive Volvo IT Volvo Group Telematics 22 www.VolvoGroup.com magnus.kuschel@volvo.com
  23. 23. Reference set-up FH 13 4*2 + FH13 6*2 LAT Facts: • Thousands vehicles online for ‘ref’, >1/h • >300 million records each • Structured + unstructured data • Lots of uncertain data VSR VOSP LAT= LoggedProductInformation, ProductSpecification (variants), Client information, Dealer information, ProductSessionInformation VOSP=Service Plan • VSR= GDS is repairs, UCHP is warranty, TSA is contracts • DFOL = Telematics data • WT • • DFOL WT=WorldTrucker, community data Customer Centric Volvo IT Volvo Group Telematics 23 www.VolvoGroup.com magnus.kuschel@volvo.com Volvo/Dealer Centric
  24. 24. Well yes, There has been a dashboard involved Facts Key indicators Matching input History Predictive score Trends Recommended prices Souces Volvo IT Volvo Group Telematics 24 www.VolvoGroup.com magnus.kuschel@volvo.com
  25. 25. But please remember, we don’t need yet another dashboard… We need to take customer value creation more seriously Volvo IT Volvo Group Telematics 25 www.VolvoGroup.com magnus.kuschel@volvo.com
  26. 26. BIGdata journey – connected vehicle asset REPORTING ANALYZING PREDICTING OPERATIONALIZING GAMECHANGING ACTIONS WHAT happened? WHY did it happen? WHAT will happen? What IS happening? What do I WANT to happen? Game changer Differentiation • • onnectivity Competitive Foundation • • • • Foundation of the “Single View of the Vehicle” concept Risk management Component status and overview CRM basics and master data • Customer company Volvo IT Volvo Group Telematics 26 www.VolvoGroup.com magnus.kuschel@volvo.com • • • • • • • • • • • • • • • Establish “Single View of the Transportation” Channel strategy support Service Agreement support Predictive analytics Channel Optimization Customer engagement Connected CRM Customer Profitability Customer CSR Customer Experience Analytics Customer Targeting & Growth Customer/ Lifecycle Insight Customer Insight, Social Media 360 view Dialogue and Interaction History Service Management Analytics Product Relationship Management (PRM) Consistent presence across all channels LCA optimization
  27. 27. What is required? Engineer Sales man AnalyticsIQ Customer operation skills Business skills Volvo IT Volvo Group Telematics 27 www.VolvoGroup.com magnus.kuschel@volvo.com Vehicle skills Technology skills General management
  28. 28. Imagine what is possible to do ~7 sensors & Ux  eco-system Volvo IT Volvo Group Telematics 28 www.VolvoGroup.com magnus.kuschel@volvo.com >70 sensors, Ux, LBS, analytics...  insights for customer value
  29. 29. Go ahead! From snapshots to interactions Vehicle - volume Customer Touch Points - velocity Hybrids - variety Sustainable solutions - veracity Volvo IT Volvo Group Telematics 29 www.VolvoGroup.com magnus.kuschel@volvo.com
  30. 30. Thank you! Project Manager BIGdata, Volvo IT robert.valton@volvo.com www.CommuteGreener.com Volvo IT Volvo Group Telematics 30 www.VolvoGroup.com magnus.kuschel@volvo.com Head of Service Innovation, Volvo Group Telematics magnus.kuschel@volvo.com www.VolvoGroup.com

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