Zero Dollar Car - Part 2: Rewriting the narrative in favor of the automotive industry

I’m not a car guy; I’m a software
guy and I work with cars.
Auto Captives Summit 2016
November 9, 2016

All rights reserved. @2016. Ellis & Associates. Slide 2 of 40
Open
Who am I?
I’m a developer.

Some Background

What are you worth (just your internet
traffic)?
Data Source: PrivacyFix, E&A 2013
Note – single desktop, does not include work
issued laptop, home laptop, mobile phones,
iPad_1, iPad_2 etc.
~$5,500

It is therefore no wonder Apple &
Google are doing what they are doing
in the car.
But what are they doing?

Chevy MyLink
Cadillac CUE
Kia UVO
Mercedes mBrace2
Toyota Entune
Audi Connect
GM OnStar
25+
Connected
Solutions

One solution, all vehicles

Chevy MyLink
Cadillac CUE
Kia UVO
Mercedes mBrace2
Toyota Entune
Audi Connect
GM OnStar
Toyota
Chevy
Kia
CadillacAudi
Mercedes
GM
X

Who’s next is any one with a digital life
mobile ecosystem, including …

Headlight
Rain
Wiper
Barometer
Traction Control
Microphone
Representative. Locations and specific sensors are meant to be descriptive.
Clock

38,300

Headlight
Rain
Wiper
Barometer
Traction Control
Clock
Microphone
Representative. Locations and specific sensors are meant to be descriptive.

Package 1 $ 6,000
Package 2 $ 4,000
Package 3 $ 7,000
Package 4 $ 4,000
Package N
Total: $ 60,000
Scenario One – Sensors @ Dealers

Package 1 $ 6,000
Package 2 $ 4,000
Package 3 $ 7,000
Package 4 $ 4,000
Package N
Total: $ 60,000

Base Price $ 40,000
Package 1 $ 3,000
Sub-total $ 37,000
Package 2 $ 2,000
Sub-total $ 35,000
Total $ -
Packages $ 60,000
Data Sales $ 40,000
Difference $ 20,000

Scenario Two – Ecosystem Subsidy
Base Price $ 27,500
Subsidy - Year 1 $ 5,500
Total $ -

First Connected Car: 1922 Chevrolet with Radio

First V2V Installation?

“A final prediction: The end of an era… As a result of this
changing competitive landscape, we fully believe that in 10
years, many of the major automakers will no longer be
around, at least not as independent companies… The
companies that thrive in the future will likely be those that
are nimble, future oriented—and prepared to invest innew
technologies, new talent, and new strategic alliances.“
KPMG SPECIAL REPORT Nov. 2015
“The Clockspeed Dilemma: What
Does it Mean for Automotive
Innovation?”
INSIGHTS
LOOKING AHEAD TOWARD 2025
73% of all interviewed executives rated
collaboration with other industries as the
best opportunity for industry growth as we
progress toward 2025
75% of all executives we spoke with
expect non-traditional industry participants
to have a key role in the automotive
ecosystem by 2025
PREPARDNESS FOR 2025
Only 19 percent of interviewed auto
executives describe their organizations as
prepared for challenges on the way to
2025; 71 percent as somewhat prepared;
and 10 percent as not prepared.
Exacerbating this limited readiness, just 33
percent said their organizations are
adaptable to face challenges, 59 percent
are somewhat adaptable and 8 percent are
not adaptable.
IBM INSTITUTE FOR BUSINESS VALUE Jan.
2015
“Automotive 2025: Industry Without Borders”
“The key question is: Do you sell carsor
do you sell mobility?” said Tim Ryan,
New York-based vice chairman of
markets and strategy for consultant
PricewaterhouseCoopers LLP. “If you
ignore these megatrends, you run the
risk of becoming irrelevant.”
BLOOMBERG Feb. 2014
“Woes of Megacity Driving Signal Dawn
of ‘Peak Car’ Era”
…in 10 years many of the
major automakers will no
longer be around…
…19% prepared for
challenges…71% somewhat
prepared…10% not prepared
…33% adaptable to face
challenges…59% somewhat
adaptable…8% not adaptable

Only the
paranoid
survive.

Vehicle data is the holy grail
and the way the automotive industry can
position itself to win against mobile
ecosystems.
So how to accomplish this?

OS Agnostic
QNX / Microsoft / VxWorks
Android / Linux / Integrity
iOS / Android
Windows / other
SmartDeviceLink (“SDL”)

OEM Participation in SDLOEM Participation in SDL

Growing SDL EcosystemEver Expanding SDL Ecosystem

Vehicle Data External Data Feeds Cool Features
MyKey
(Ford specific)
GPS
Speed
RPM
Acceleration
Braking
Oil Life
Tire Pressure
Courtesy – Scott Burnell, Ford Developer Program, BD
Current Weather Data
Live Traffic Data
IFTT-Ford Channel
(Connects Apps)
IF THEN
Kids Drive
Within 1 Mile of
Home/School/Work
Send Me SMS That
They Have Arrived
MyKey Reports More
Than 5 Speed or Belt
Alerts In 30 Days
Create a Reminder
in Gmail to Speak
to Child
Fuel Econ
Above/Below X
Post Smile/Frown on
Driver Social Graph
Oil Life Below X
Send Appointment
Request to
Saved Dealer
Temp Outside is
Above/Below X
@ 6AM
Precondition Vehicle
Traffic Congestion
on Route Home
Between 4:45 - 5 PM
Send SMS Reminder to
Take Alternate Route

SDL Advantages

Developer Opportunities with SDL

So what to do exactly?

1. Quickly expand the SDL vehicle data APIs
DIDResult
DTC
GetDTCs
GetVehicleData
HeadLampStatus
PRNDL
ReadDID
VehicleDataEventStatus
VehicleDataNotificationStatus
VehicleDataResult
VehicleDataStatus
VehicleType
WiperStatus

2. Outreach & Educate dongle companies

3. Outreach & Educate Organizations

This vehicle is known to the State of
California to contain recording
devices. Entering this vehicle means
you accept you have no privacy
within this vehicle.

Software is eating everything.
-- Marc Andreessen
Every company is now a software
company.
-- David Kirkpatrick

We can evade reality, but we cannot
evade the consequences of evading
reality.
-- Ayn Rand
May you live in interesting times.
-- Purported Chinese Curse

Thank You.

Zero Dollar Car - Part 2: Rewriting the narrative in favor of the automotive industry

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Editor's Notes