Keynote alcatel lucent-jan2709_ttdcp_iz


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Keynote to Alcatel Lucent internation Business Development Group on HD Traffic and personal experiences working with OEM's.

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  • Over 400 dedicated software engineers; 18 years expertise in mobile software – 13 years in navigation. All core technologies are developed in-house: software, route planning, friendly user interface, HD Traffic, IQ Routes, Map Share, access to online content, map production, hardware design… Car navigation fulfills a real and fundamental need TomTom made car navigation attractive, easy, available and affordable Research has proven that our products save time, save miles, ease workload, reduce stress, and increase safety Tests show our a ward-winning portfolio of products to be preferred over others and our brand to be the most trusted brand in the category We are the leading car navigation company in the world as digital navigation becomes mainstream for millions of car drivers
  • In the long run we believe every car will have some sort of navigation The question is when we get there and what kind of navigation
  • Increasing US market share Differentiate the TomTom brand Smart advertising Improve product mix Strengthen shop floor presence Consolidate European market share Leverage TomTom ’ s brand strength Differentiate through unique technologies (IQ Routes, HD Traffic) Channel consolidation – retailers are rationalising their product offering
  • Our technology can be used in differnt applications By getting selling it through different channels we monetise our investments and build industry standards
  • We monitor sectors within the network. We use temporary (random key) identifiers, which are saved for an hour
  • Keynote alcatel lucent-jan2709_ttdcp_iz

    1. 1. TomTom HD Traffic Over the Top Or Business As Usual? If you have any inquiries regarding the content of this presentation, please contact Ivar Zantinge on phone: +31 646 055 072 or email: Alcatel-Lucent Seminar, Rijswijk, January 27 , 2009 Ivar Zantinge, Director Business Development
    2. 2. Agenda <ul><li>TomTom Introduction </li></ul><ul><li>TomTom HD Traffic </li></ul><ul><li>TomTom Live Services </li></ul><ul><li>Learnings for OEMs </li></ul>
    3. 3. Agenda <ul><li>TomTom Introduction </li></ul><ul><li>TomTom HD Traffic </li></ul><ul><li>TomTom Live Services </li></ul><ul><li>Learnings for OEMs </li></ul>
    4. 4. TomTom Group milestones World ’s leading provider of portable navigation devices 1991 1994 1996 1998 2000 2002 2004 2006 2008 > 3,500 employees Selling in all continents PND Market share: Europe ~ 50% | USA > 20% First navigation software launched Founded Acquisition of Tele Atlas Acquisition of Applied Generics (later HD Traffic) Acquisition of Datafactory (later TomTom WORK) Company focused on car navigation Introduced the Portable Navigation Device Launch 1 st connected PND
    5. 5. TomTom ’s products
    6. 6. Over 500 million cars on the road in Europe and North America alone Penetration level Europe* & North America (% of cars with some sort of navigation) % * Western Europe An under penetrated market
    7. 7. Q3 2008 - Volume TomTom Q3 2008 - Value Q3 2008 - Volume Q3 2008 - Value (Q3 ’ 07: 43%) TomTom (Q3 ’ 07: 44%) Q3 2008 - Volume Q3 2008 - Value TomTom TomTom (Q3 ’ 07: 20%) (Q3 ’ 07: 37%) (Q3 ’ 07: 17%) (Q3 ’ 07: 39%) TomTom TomTom Market share Europe North America Australia
    8. 8. TomTom Current Events <ul><li>Our world today - brutal facts </li></ul><ul><ul><li>TomTom lowered the forecast for 2008 three times already (in April ‘08, October ’08 and January ‘09) </li></ul></ul><ul><ul><li>The 2008 results are not to the level that we expected </li></ul></ul><ul><ul><li>Continued uncertain economic climate and limited consumer spending </li></ul></ul><ul><ul><li>Decrease of revenue against increase of operational costs in 2008 </li></ul></ul><ul><ul><li>We need to align costs with revenue trend </li></ul></ul>
    9. 9. Strategy – adding value by providing relevant features to car drivers <ul><li>We strive to add relevant benefits for car drivers putting them back in control of their journey </li></ul><ul><li>Getting car drivers to their destination faster and safer minimising the time spent in the car </li></ul><ul><li>From a ‘ don ’ t get lost ’ device to an everyday travel companion </li></ul>
    10. 10. The TomTom Group <ul><li>Automotive </li></ul><ul><li>B2B  </li></ul><ul><li>Car industry </li></ul><ul><li>Car industry suppliers </li></ul><ul><li>Mobile </li></ul><ul><li>B2B  </li></ul><ul><li>Operators </li></ul><ul><li>Handset manufacturers </li></ul><ul><li>WORK </li></ul><ul><li>B2B  </li></ul><ul><li>Commercial fleets </li></ul><ul><li>Tele Atlas </li></ul><ul><li>B2B  </li></ul><ul><li>PND </li></ul><ul><li>Automotive </li></ul><ul><li>Mobile </li></ul><ul><li>Internet </li></ul><ul><li>GIS </li></ul><ul><li>TomTom </li></ul><ul><li>B2C  </li></ul><ul><li>Retail </li></ul><ul><li>Consumers </li></ul>Dynamic Content & Publishing Shared Technologies
    11. 11. Dynamic Content & Publishing core processes customers / end users / communities customers / end users / communities Acquire Assemble Validate Publish Community Input Dynamic Content & Publishing 1 2 3 4 Dynamic Content Partners Tele Atlas PND Automotive Mobile WORK
    12. 12. Superior routing in 4 steps 1 2 4 s 3 IQ Routes
    13. 13. Best routes – IQ Routes: The first fact based routing system <ul><li>Real speeds are required for optimal navigation experience </li></ul><ul><ul><li>Western Europe has 8 million km of roads </li></ul></ul><ul><ul><li>North America has 11 million km of roads </li></ul></ul><ul><li>How TomTom does it? </li></ul><ul><ul><li>We have measured real speeds per road segment for over 2 years </li></ul></ul><ul><ul><li>Our navigation community contributes </li></ul></ul>Drive like a local with IQ Routes!
    14. 14. 500 million speed measurements per day 200 billion speed measurements to date! by customers driving 15 billion kilometres and visiting every spot 2,000 times on average
    15. 15. Agenda <ul><li>TomTom Introduction </li></ul><ul><li>TomTom HD Traffic </li></ul><ul><li>TomTom Live Services </li></ul><ul><li>Learnings for OEMs </li></ul>
    16. 16. TomTom LIVE Services HD Traffic <ul><li>New standard in traffic information! </li></ul><ul><ul><li>High coverage and accuracy </li></ul></ul><ul><ul><li>Also covers secondary roads, ramps, exits and junctions </li></ul></ul><ul><ul><li>Updated every 3 minutes </li></ul></ul><ul><li>Accurate and reliable time of arrival </li></ul><ul><ul><li>even in a very dynamic environment </li></ul></ul><ul><li>Know traffic on your route </li></ul><ul><ul><li>and the alternatives </li></ul></ul><ul><li>High quality </li></ul><ul><ul><li>Unprecedented innovative new data sources </li></ul></ul>
    17. 17. HD Traffic Coverage RDS TMC Coverage
    18. 18. HD Traffic: how it works <ul><li>We analyse signalling data within the carrier network with our proprietary software and algorithms </li></ul><ul><li>Mobile devices of mobile customers are used as anonymous floating car data probes </li></ul><ul><li>Devices with HD Traffic regularly upload current position to our servers, therewith acting as live floating car data </li></ul><ul><li>Our systems fuse all data sources into real time travel times on all roads and send HD Traffic to end users </li></ul>
    19. 19. Superior Coverage Coverage HD Traffic Coverage RDS-TMC x10
    20. 20. HD Traffic: how it works 1 Sector of cell is monitored, mobile phone is picked up and analyzed and gets a unique ID. Signal can derive from vehicle on top road, road 1 or road 2
    21. 21. HD Traffic: how it works 2 Mobile signal is picked up in next sector and connected to previous one via unique ID. Signal can still derive from both vehicle on road 1 or road 2, but top road is excluded
    22. 22. HD Traffic: how it works 3 Mobile signal is again picked up in other sector and connected to previous one via unique ID. Signal can still derive from both vehicle on road 1 or road 2
    23. 23. HD Traffic: how it works 4 Signal is again picked up in other sector and connected to previous one via unique ID. Signal can now only derive from vehicle riding on road #1. Average speed road 1 can now be calculated
    24. 24. General architecture HD Traffic
    25. 25. HD Traffic: current roll out status <ul><li>Live in The Netherlands since Feb 08 with over 65.000 activations </li></ul><ul><li>Q4 2008: added UK, Germany, France, Switzerland </li></ul><ul><li>2009: US, Belgium, Spain, Italy and other countries </li></ul>
    26. 26. Agenda <ul><li>TomTom Introduction </li></ul><ul><li>TomTom HD Traffic </li></ul><ul><li>TomTom Live Services </li></ul><ul><li>Learnings for OEMs </li></ul>
    27. 27. TomTom LIVE Services Enhancing your experience
    28. 28. Growth through services Increase ASP LIVE services rollout in Europe and US Grow services revenue Stimulate replacement UK, Germany, France and Switzerland in Q4 ‘08 From 35K subscriptions now to 1 million end 2009 Services will go mainstream Strong growth of # of subscriptions
    29. 29. Agenda <ul><li>TomTom Introduction </li></ul><ul><li>TomTom HD Traffic </li></ul><ul><li>TomTom Live Services </li></ul><ul><li>Learnings for OEMs </li></ul>
    30. 30. The HD Traffic Puzzle: learnings for OEMs <ul><li>Personal experiences with OEMs based on the HD Traffic case: </li></ul><ul><li>OEMs have forgotten how to innovate and are merely cannibalizing on their own innovations </li></ul><ul><li>OEMs have become defensive, lazily leaning on their carrier relations, and are thus holding back their own entrepreneurial drive </li></ul><ul><li>Even in their own core business OEMs are losing the game as new innovative companies are entering the market with significantly cheaper solutions </li></ul><ul><li>Alcatel-Lucent: embrace strategic change to gain competitive advantage </li></ul>
    31. 31. Q U E S T I O N S