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Cogntiive IoT Platforms

Presentation at Automotive Leaders Summit on April 7, 2016

Connecting the automotive value chain from design through consumer information and vehicle usage

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Cogntiive IoT Platforms

  1. 1. Cognitive IoT Platforms: Connecting the automotive value chain from design through consumer information and vehicle usage Kal Gyimesi | Automotive Marketing Leader | IBM Watson IoT 2016 Automotive Leaders Summit | April 7, 2016
  2. 2. 2 Consumer’s experiences in their cars are transformed by the Internet of Things #1 By 2020, the connected Car will be the connected application cars will be connected in 2015 and fully packed with sensor technologies 200million 350 By 2020, connected vehicles will produce of data per second MB * ** ***
  3. 3. 3 Programmable computing thrives in prescribed, predictable scenarios but is too limited for the complex IoT landscape. The IoT is a monumental data challenge. Cognitive computing can keep up. Cognitive systems aren’t programmed. They learn from virtually every interaction and the surrounding context to unleash the potential of the IoT.
  4. 4. 4 IoT has taken hold What once seemed like hyperbole, now seems like understatement. USD 1.7 trillion in value added by the IoT to the global economy in 2019.1 82 percent of enterprise decision makers say IoT is strategic or transformative to their enterprise.3 From 13 billion to 29 billion Projected growth in connected devices by 20202 1 Business Insider, "The 'Internet of Things' will be the world's most massive device market and save companies billions of dollars," John Greenough, April 14, 2015. 2 IDC, Worldwide Internet of Things Forecast, 2015-2020, Doc #256397, May 2015. 3 IDC, “Internet of Things: New Worldwide Demand Side Research on Perceptions and Plans for Adoption 2015,” September 10, 2015,
  5. 5. 5 Proven value, immediate opportunity Leaders are putting the physical world to work and achieving results now. Transforming the customer experience Boosting operational efficiency Disrupting their industries Sustaining the environment
  6. 6. 6  Open Platforms  Inexpensive Sensors  Cloud  Computing Power  Big Data & Analytics  Mobility  Cognitive  Internet of Things (IoT) All coming together to create a perfect storm…  Social The rapid evolution of technology is creating excitement and questions around what to do…we are in a point where stood in the 90’s
  7. 7. 7 Source: Modified from McKinsey Global Institute Vehicle Manufacturing and Safety Optimize production, diagnose safety and vehicle malfunctions on the road In-vehicle Digital Services Build new revenue streams and loyalty from connected apps and services New Service & Business Models Deploy new business models extending beyond the traditional industry Fleet Optimization Remote monitoring and optimization of fleets IoT generates value with vehicles across four primary focus areas
  8. 8. 8 Data unlocks value opportunities Operate Sell Insure Manage Make Procure Manufacture Ship Experience Learn Configure Socialize Develop Research Design Develop Maintain Monitor Service Optimize Business Facing (B2B) Customer Facing (B2C) Primary Focus Vehicle Manufacturing and Safety In-vehicle Digital Services New Service & Business Models Fleet Optimization When it is shared across functions…
  9. 9. 9 Shifts in external forces are compelling ongoing transformation Technology leads the way with consumer expectations close behind What are the most important external forces that will impact the industry today and in 2025? Technology progress Globalization Economies/markets Sustainability Government regulations Consumer expectations Corporate social responsibility Global labor force Personal mobility 66% 55% 68% 47% 50% 41% 37% 35% 27% 20% 10% 46% 45% 13% 11% 10% 3% 9% 2014 2025
  10. 10. 10 Development teams are meeting the challenge with Continuous Engineering platforms Requirements Design …Software engineering is becoming a new competitive differentiator Validation & Verification
  11. 11. “The ‘anchor’ for products won’t be the physical asset; it will be the digital entity – the product plus all the information associated with it.” COO, Automotive Manufacturer, Europe
  12. 12. ©2015 IBM Corporation Greater personalized in-vehicle experiences Moving from intelligent and intuitive to self-enabling
  13. 13. ©2015 IBM Corporation Consumers show a high level of interest for the self-enabling vehicle with self-healing rating the highest Self-healing Self-socializing Self-driving Self-learning Self-configuring Self-integrating What self-enabling vehicle capabilities would interest you in the future? Extremely/Very interested 80% of industry executives felt comprehensive connected vehicle services will be a key differentiator by 2025 55% 44% 44% 48% 48% 44% 59% 55% 54% 54% 51% 49% Global USA
  14. 14. ©2015 IBM Corporation Information services had the highest consumer interest while location- based services were the least desired Information Entertainment Commerce Health Concierge Education Location-based What mobility services would interest you in the future - things you can do from the car? 69% of industry executives listed “creating of new services based offerings” as a top growth strategy in the next 10 years Extremely/very interested 53% 45% 41% 34% 41% 30% 55% 47% 46% 46% 44% 38% Global USA 31%35%
  15. 15. ©2015 IBM Corporation Alternative mobility options Consumers will explore as they look for the most cost effective and efficient ways to get around Public transportation integration Multi-model integration Car Sharing On-demand ride sharing Peer-to-peer rental What mobility modes would interest you in the future - ways to get around? Alternative methods of transportation are increasing in importance as consumers reduce their dependence on the personal car Extremely/very interested 71%Personal Vehicle Ownership 33% 27% 32% 29% 29% 45% 40% 39% 36% 34% Global USA
  16. 16. 16 Outthink the competition with cognitive IoT Cognitive IoT delivers insights once unknowable. Businesses can benefit in five key areas: Extending expertise Deepening human engagement Creating cognitive processes and operations Infusing cognition into products and services Enhancing exploration and discovery
  17. 17. ©2015 IBM Corporation While one third of the companies overall feel they will adapt to the challenges of 2025, less than one in five feel they are prepared now Companies who feel they are prepared for 2025 Prepared Suppliers (14%) OEM (23%) Dealers (33%) The pace of change is no longer controlled by this industry
  18. 18. 18 Kal Gyimesi Automotive Marketing Leader IBM Watson IoT @kalgyimesi Also follow, @IBMAutomotive Find the IBM Institute for Business Value studies discussed today: