The document discusses the roles of automotive startups and car manufacturers in delivering new digital services based on vehicle data analysis. It notes that startups currently collect driving data through OBD plugs or smartphone sensors to develop apps, while manufacturers want to control vehicle data access. Manufacturers recognize the market potential but currently struggle to establish open ecosystems. The document concludes that startups will continue leveraging extensive driving data to create new services, while manufacturers work to restrict OBD access and may establish a data marketplace to explore new opportunities through third party services.

1. Quan%fied Cars
An explora+on of the posi+on of ICT start-ups vs. car
manufacturers towards digital car services and sustainable
business models
C. Kaiser, A. Stocker, A. Festl, P. Mörtl, M. Glitzner
Virtual Vehicle Research Center, Graz, Austria
chris%an.kaiser@v2c2.at
G. Viscusi
EPFL-CDM(MTEI CSI), Lausanne, Switzerland
gianluigi.viscusi@epfl.ch

2. QuanCfied Cars
hEp://www.aegis-bigdata.eu/
NBM2017 -June, 21-22, 2017 - Graz, Austria Page 2
The aegis project has received funding from the European
Union’s Horizon 2020 research and innovaCon program under
grant agreement No 732189. The document reflects only the
author’s views and the Commission is not responsible for any
use that may be made of informaCon contained therein
Acknowledgement

3. QuanCfied Cars
Ques%on
Background and moCvaCons
What are the roles of start-ups vs.
car manufacturers in delivering
novel digital services and
sustainable business models built
on car opera+on data analysis?

4. QuanCfied Cars
“Architecture, FuncConing and Governance of Modern Enterprises”.- 8th April 2015 - Paris 4
Background and moCvaCons
Digi$zing as a technical process ‘‘of
conver$ng analog signals into a digital
form, ul$mately into binary digits
(bits)’’
Digitaliza$on as ‘‘a sociotechnical
process of applying digi$zing
techniques to a broader social and
ins$tu$onal contexts that render
digital technologies infrastructural’’
Digi%zing vs. digitaliza%on
Tilson D, LyyCnen K, Sørensen C (2010) Digital infrastructures: the missing IS research
agenda. Inf Syst Res 21:748–759

5. QuanCfied Cars Background and moCvaCons
Qua%fied Self and Quan%fied vehicles
NBM2017 -June, 21-22, 2017 - Graz, Austria 5
“The quan+fied self
is any individual engaged in the self-tracking of any kind
of biological, physical, behavioral, or environmental
informa+on.” (Swan 2013)
The behavioral paNerns of self-tracking can be transferred to cars
(and vehicles in general), which capture sensory data about
themselves and about their environment, thus becoming
‘Quan+fied Vehicles’ (Stocker et al., 2017).

6. QuanCfied Cars
6
Background and moCvaCons
“a system of interdependent ac$vi$es that
transcends the focal firm and spans its boundaries.
The ac$vity system enables the firm, in concert with
its partners, to create value and also to appropriate
a share of that value”
ZoG, C., Amit, R.: Business model design: an ac$vity system perspec$ve.
Long Range Plann. 43, 2-3, 216–226 (2010).
Business model as…

7. QuanCfied Cars
7
Background and moCvaCons
• Business Model Design
• Business Model ReconfiguraCon
Design Vs. Reconfigura%on
Source: Massa, L. & Tucci, C.L.. “Business Model InnovaCon.” In The Oxford Handbook of InnovaCon
Management, edited by Mark Dodgson, David M. Gann, and Nelson Phillips. Oxford Univ. Press., 2014.
doi:0.1093/oxfordhb/9780199694945.013.002.

8. QuanCfied Cars
n Automo%ve Industry
n Car manufacturers may use digital services to opCmize powertrain calibraCon for special usage behavior (e.g. in postal
delivery transport).
n Automo%ve engineers may improve the accuracy of driver models and tesCng for advanced driver assistance systems.
n Individual drivers
n Individual drivers may be empowered to assess their personal driving style and get improvement suggesCons to drive
more safely or economically friendly.
n Governmental authori%es
n Road traffic departments of ciCes can be empowered to make informed decisions based on their gained knowledge
about traffic pakerns, thereby increasing road safety and reducing driving emissions in urban environments.
n Various organiza%onal customers
n Insurance companies can provide new kinds of insurance contracts for safer drivers and will be provided with new
means to infer driving risks.
n Driving schools can be supported in supervising students based on digitally monitored driving styles, teaching them to
drive safer and economically friendly.
Background and moCvaCons
Stakeholders and their interest towards digital services
NBM2017 -June, 21-22, 2017 - Graz, Austria 8

9. QuanCfied Cars
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QuanCfied Car Start-ups
VALUE PROPOSITION: Unlimited car monitoring, zero fees. The
only connected car adapter with unlimited 3G included.

10. QuanCfied Cars
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QuanCfied Car Start-ups
VALUE PROPOSITION: Connect your car to Dash, to make driving smarter, safer, greener
and more affordable.

11. QuanCfied Cars
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QuanCfied Car Start-ups
VALUE PROPOSITION: The Leading Open Pla`orm for Connected
Cars

12. QuanCfied Cars
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QuanCfied Car Start-ups
VALUE PROPOSITION: Smartphone-powered road safety for
ci+es, fleets, and individuals.

13. QuanCfied Cars
Main data acquisi%on approaches
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QuanCfied Car Start-ups
n Branded hardware plug connected to the On-board diagnos%cs (OBD)-II interface.
n This allows them accessing certain car sensor data, e.g. speed.
n They may equip their devices with addi%onal sensors including GPS or accelerometer to
collect addiConal relevant data describing the movement of the car.
n Both plug and internet connec%vity are usually not free of charge.
n They produce a lock-in effect to the parCcular business model of a quanCfied car start-up
and are one way to safeguard revenues.
n Use of the sensors built into smartphones, e.g. GPS, accelerometer or luminance, to capture
data while driving.
n This makes smartphones suitable devices to track car trips, too.
n However, smartphones lack informaCon provided by car sensors including emission data
or rpm.
n Nevertheless smartphones have the advantage of an ‘always on’ connec%vity for event
extracCon and service provision.

14. QuanCfied Cars
Reasons why Original Equipment Manufacturers (OEMs) are currently struggling
to establish an ecosystem for apps and services (AutoMat, 2016)…
NBM2017 -June, 21-22, 2017 - Graz, Austria Page 14
n Brand-specific business approaches dominate, and as a consequence
there is a lack of brand-independent car lifecycle data.
n Focus on the individual customers, leading to privacy concerns,
n Few ideas exist on how anonymized car data can be used to establish
other services.

15. QuanCfied Cars
eeNews Automo%ve (2017) ‘German car industry plans to
close OBD interface’
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The posiCon of car manufacturers
“Instead, the data will be made accessible to interested
third par$es through a neutral server, and basically
under control of the automo+ve industry.”

16. QuanCfied Cars
…OEMs are interested in taking over the data provider role and to establish a car data
ecosystem: Data acquisi%on systems will be integrated into cars.
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The posiCon of car manufacturers
Access to vehicle generated data (Source: VDA, 2016)

17. QuanCfied Cars
‘Data protec%on principles for connected vehicles’ (VDA, 2014)
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The posiCon of car manufacturers
n Transparency: VDA members strive for adequate informaCon about the
data in connected vehicles and the use of these data.
n Self-determina%on: VDA members are striving to enable customers to
determine themselves the processing and use of personal data through
various opCons.
n Data-security: VDA members strive to implement the strong safety
culture in connected vehicles.

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Data categories in connected vehicles (Source: VDA, 2014)
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The posiCon of car manufacturers

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Concluding remark
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Conclusion and outlook
n US ICT start-ups
n adopt either an OBD-II interface plug or smartphone sensory to capture data
n create new services and business models based on analyzing large quanCCes of
car data
n German car manufacturers
n would have a direct access to car data - at least from a technical perspecCve.
n have become aware of the huge market which is at loose to the ICT industry.
n start to advance own projects and discuss restricCng the OBD-II interface.
n are seeking new opportuniCes and may establish a data market for third party
services.

20. Thanks for your aEen%on
….any ques%ons?