The focus of connected services by car manufacturers lately has been building out the connected services suite. The next transformation of services won’t be in the services themselves but in the business models of offering the services. If the car is to become a true consumer internet device, it will require real internet style monetization models. In this talk, Mark Thomas, head of connected car product marketing for Cisco Jasper, explores internet monetization models, the infrastructure needed to monetize internet style and also learn about the vocabulary a vehicle knows when it’s an always on connected IoT device.

1. Connected Cars as the next great
consumer electronics device
Mark Thomas
Global Head of Connected Car Product Marketing
© 1992–2016 Cisco Systems, Inc. All rights reserved.

2. 2
Connected Cars: The next great consumer device
Connected Cars are the next great consumer
electronics device
Personal computers
connect to the Internet
Dotcom
revolution
Phones connect
to the Internet
Smartphone
app revolution
Vehicles connect to
the Internet
Connected Car
revolution
http://www.slideshare.net/CiscoJasper/iot-now-from-
things-to-outcomes

3. 3
Embedded connectivity is key for connecting cars
Access to device hardware enables disruption
Smartphone app disruption
Access to hardware
• Fingerprint reader (finance)
• GPS location (maps)
• Motion tracking (fitness)
• Graphics hardware (gaming)
• Camera (social)
Works offline
• Always available
Yahoo Mail  SnapChat
Flickr  Instagram
Mapquest  Waze
Connected Car disruption
Access to hardware
• Airbag (safety)
• GPS location (insurance)
• Door locks (car sharing, app
unlock)
• Mechanicals (maintenance)
• Battery level (charging mgmt)
• Sensors (hazard reporting)
Works “offline”
(phone not in car)
• Always available (Security)
New connected car services

4. 4
Services by optimal connectivity type
Infotainment
• Music and playlists
Wi-Fi
• Car Hot Spot
(better antenna)
Communications
• Phone calls
• SMS
Security
• Break in detection
• Tracking/slow down
Safety
• Ambulance call
• Crisis assist
Maintenance
• Diagnostics
• Firmware OTA
E-vehicle
• Reserve station
• Auto-payments Insurance
• Pay as you drive
• Pay how you drive
Remote monitoring
• Door unlock
• Engine start
Concierge services
• Human assistance
• Ecommerce
Embedded
Connection
Navigation
• Turn by turn directions
• Traffic alerts
• Last block, multi-modal
• Parked vehicle locator
Web Browsing
(while parked)
• News, stocks, reviews
Smartphone
Services by optimal connectivity type

5. 5
• Cars are app ecosystems
• Connectivity for consumer and OEM
• OEM pays data bill
• Subscriptions max at 10-15% take rates
• Internet business models needed
Connected Car has unique IoT requirements

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Service portfoliominimal complete
Wave 1
Safety and Security
Subscription
Internet
Monetization
Wave 2
Music
Navigation
Concierge
OEM diagnostics
WiFi Hotspot
Complete services
portfolio
Wave 3
App stores
Business model
innovation
Business model
sophistication
Shifting from services to monetization

7. 7
Offer: Music + Data
Model: 3rd party subscription
Offer: In car insurance
Model: Bounty. Data cost
recovery, markup.
Offer: Book discovery,
purchase, listen including
data
Model: Bounty, revenue
share, data cost recovery

8. 8
Internet monetization increases complexity
Offers & Services
Business
Models &
Payer
Relationships

9. 9
Service platform requirements
Split
billing
Automation
Service level
controls

10. 10
Vehicles Operator Networks Enterprise Backend
Connected
Vehicle
Systems
IT Systems
IoT Service
Lifecycle
Services Platform

11. 11
Vehicles Operator Networks Enterprise BackendServices Platform
Connected
Vehicle
Systems
IT SystemsControl Center

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What will my car have
to say to other IoT
things?
“
”

13. 13
CARS ARE CONTEXT
Cars are context
Destination Entered, calculated,
recommended
Person state
Calculated (tired),
hungry, bored
Vehicle state
Engine, tire pressure, CAN
bus, air bag incident
Location state
Road, current speed,
road hazard
Person activity
Identity, music,
destination context
Cloud based ideas (food,
saved places)
Entertainment streaming,
friend destination/ETA
Real-time route changes
Undetectable immediate
hazards, parking spot
Service bulletins, remote
state changes (unlock)
Person
Location
Vehicle

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Connected Car: a constant dialog
Context
Person,
Location,
Vehicle
Arrival time (triggers heat)
Route (reminders)
Location (arm/disarm)
Destination and ETA
Podcast. Mood.
Road conditions, weather
(wipers), pothole.
Destination, pollution
Published Context: Consumed Context:
House reminders that
are route aware.
(milk)
Same. Ride requests.
Meet ups.
Vehicle status.
Destination. Usage.
Service advisory,
firmware, lock/unlock
(OnStar like functions)
Same.
Parking, traffic,
impending closures,
pollution, fees
Connecting with:
Home
Friends/Family
Other drivers
Auto manuf.
Cities

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Enabling the revolution
Traffic: Probes Airbag incident Driver re-assessment
Insurance: Car, driver,
annual mileage
Per mile, hard stop
(most accurate
billing)
Driver re-assessment
(new driver behavior)
Context changes behavior
Report Predict Influence

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Connecting cars…
is just the beginning

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Thank you