Jaguar Land Rover faces three strategic challenges in creating a digitally rich connected car by 2018: addressing actor fragmentation between network operators, technology providers, and service providers; synchronizing vehicle and technology lifecycles given rapid changes; and adapting the user experience to drive return on investment and strengthen the Jaguar Land Rover brand. JLR needs to take the lead with its own connectivity plan rather than waiting for industry agreement, and take a bold, open, and agile approach to remain future-proof while meeting the needs of its growing consumer base.

1. STRATEGIC CHALLENGES
JAGUAR LAND ROVER FACES IN
CREATING
A DIGITALLY RICH CONNECTED CAR
2014-2018
Gilles Corby, 19 October 2012

2. Infotainment is reaching the limit of
2
what can be done in standalone mode
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AM/FM/DAB radio
RDS
CD/mp3 (hard disk)
AM/FM radio Sat-Nav
AM/FM radio RDS DVD
AM/FM radio Cassette Cassette Handsfree
First mass-produced car radio Cassette Auto-reverse CD (multi) BT, USB, Jack, iPod
1920s 1970s 1980s 1990s 2000s
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

3. Mobile data usage explosion provides
3
an opportunity for Infotainment
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Forecast Embedded Telematics revenues (Billion Euros)
Cost per MB v monthly data consumption,
Worldwide
2008 2009 2010 2011 2012 2015
Cost/MB 0.46 0.19 0.10 0.06 0.03 0.01
(USD)
MB/mth/smar 149 323 528 736 1041 3390
tphone
Source : Portio Research via Mobithinking
Source : SBD 2012
Internet access (Mercedes-Benz) Apps (Lexus 2013 GS350)
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

4. To seize this opportunity, JLR must
4
address 3 strategic challenges
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Actors fragmentation
Lifecycle synchronisation
UX to drive ROI
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

5. To seize this opportunity, JLR must
5
address 3 strategic challenges
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Actors fragmentation
Lifecycle synchronisation
UX to drive ROI
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

6. Connected car infotainment brings
6
together usually unacquainted parties
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Network
operators ? Car Makers
? ?
Technology Service
providers ? providers
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

7. Each party has a decent claim to
7
owning the user and their revenue
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They are using my network They are driving my vehicle
Network
Car Makers
operators
Who owns the user/driver ?
Technology Service
providers providers
They are using my system They are enjoying my content
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

8. Competitiveness within each party
8
increase the likelihood of turf war
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Vodafone v. Telefonica BMW v Toyota
Network
Car Makers
operators
Who builds the strongest
competitive advantage ?
Technology Service
providers providers
Broadcom v CSR Google Maps v Nokia Maps
Microsoft v Linux Android viOS ecosystem
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

9. This is a recipe for cacophony and
9
procrastination, can JLR be heard?
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BMW
Toyota Mercedes-Benz
Jaguar Land Rover
Network
GM
operators Renault-Nissan
Technology Service
providers providers
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

10. The way out is for JLR to get a plan
10
and drive on with it
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1. Make a plan
Jaguar Land Rover
infotainment plan
Network access decision 2. Milk what can be got from industry fora
 Digital security solution
 Integration with vehicle systems Network Car
 In-car connectivity operators Makers
 A/V functionality
Telematics content
 Ecosystem decision
 Vehicle service decision Technolog Service
 Hardware partner y providers providers
3. Confidently drive forward
jPod + iTunes was not born in GSMA
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

11. To seize this opportunity, JLR must
11
address 3 strategic challenges
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Jaguar Land Rover cannot wait for
stakeholders to agree. We must run with our
own plan
Lifecycle synchronisation
UX to drive ROI
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

12. To seize this opportunity, JLR must
12
address 3 strategic challenges
of 26
Jaguar Land Rover cannot wait for
stakeholders to agree. We must run with our
own plan
Lifecycle synchronisation
UX to drive ROI
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

13. The pace of technology evolution
13
increases risk for Jaguar Land Rover
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Inception Market Launch
Car : 5-7 years
3G 3.5G/HSPA 4G/LTE
iPhone* iPhone 3 iPhone3GS iPhone4 iPhone5
Angry Birds
Lack of visibility
* iPhones generate 46% of mobile data traffic (Source Chikita)
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

14. Lack of visibility makes technology
14
planning decisions trickier
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 Hardware decisions will affect fluidity
 CPU power
 Memory
 Interface
 Connectivity decisions will affect comfort of use
 Set up
 Data speed
 Quality of service
 Content decisions will affect consumer appeal
 Ecosystem
 Service provider
 Service content
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

15. To de-risk the situation Jaguar Land
15
Rover must be bold, open and agile
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 When you only have your best guess, go Large
 Remember predictions 1MB/s would be enough?
 Flip phones were still the rage 7 years ago
 Avoid getting locked in a specific technology
 Open standards guaranty continued access
 Check track record for backward compatibility
 Not all decisions have to be made today
 Beready for change
 Have fall-back options
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

16. JLR’s market footprint growth brings a
16
simplification factor
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JLR sales last 6 months
 80% sales in 4
5%
geographical 17%
21% China
Europe
segments UK
17% 21% North America
All other mkts
19% Asia Pacific
 57% in 3 countries,
China is getting bigger 5%
22%
Source : Jaguar Land Rover
17%
17%
 Land Rover Evoque 20%
30% units sales 20%
JLR sales last 12 months
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

17. The growth of the Chinese market will
have a lasting impact on
17
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developments
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

18. To seize this opportunity, JLR must
18
address 3 strategic challenges
of 26
Jaguar Land Rover cannot wait for
stakeholders to agree. We must run with our
own plan
To be future-proof Jaguar Land Rover must be
bold, open and agile, still being consistent with
our market
UX to drive ROI
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

19. To seize this opportunity, JLR must
19
address 3 strategic challenges
of 26
Jaguar Land Rover cannot wait for
stakeholders to agree. We must run with our
own plan
To be future-proof Jaguar Land Rover must be
bold, open and agile, still being consistent with
our market
UX to drive ROI
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

20. Infotainment must reinforce the
branded experience JLR has built
20
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over the years
style, Inspiring
performance, living the spirit of adventure
refinement,
prestige
affordability
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

21. The consumer base of Evoque is
21
likely to set the bar higher
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 Evoque customers are younger affluent early
adopters
 Used to smartphones, digitally savvy
 Technology is an enabler, not a wow factor
 Existing devices must integrate seamlessly
 Easyset up
 Synchronise content and selected functionality
 Be ready to keep the proposition at the cutting
edge
Non-intrusive upgrades, updates
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012
 Compatibility with the leading ecosystems

22. The reward for all this effort will be a
22
stronger customer loyalty
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 An augmented positive experience provides
additional reasons to stay with Jaguar Land Rover
 Reduce the pain of switching to a new vehicle by
easily transferring the content and services
 Technology cycles can drive the vehicle
replacement cycle down and increase sales.
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

23. To seize this opportunity, JLR must
23
address 3 strategic challenges
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Jaguar Land Rover cannot wait for
stakeholders to agree. We must run with our
own plan
To be future-proof Jaguar Land Rover must be
bold, open and agile, still being consistent with
our market
Adapting a user experience that breathes the
Jaguar Land Rover identity to the new consumer
base will provide a strong return on investment
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

24. One more thing …
Strategic challenges for Jaguar Land Rover in creating a digitally rich
24
connected car Gilles Corby - 19/10/2012

25. The connected car experience will
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impact the value chain, be prepared.
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Design &
Manufacturing Marketing Sales
Engineering
In-car Telematics interfaceNew processes Infotainment awareness Sales force training
New technologies Market specific Software Crisp and clear Customer introduction
New skills packages communication Customer support
New people Position as part of the
Prevent silo effect whole value proposition
Agile development
Strategic challenges for Jaguar Land Rover in creating a digitally rich
connected car Gilles Corby - 19/10/2012

26. Thank you
Strategic challenges for Jaguar Land Rover in creating a digitally rich
26
connected car Gilles Corby - 19/10/2012