MakoLab at the
How did our connecting with the connected vehicle community go?
2nd Digital Revolution in Connected Cars, Munich
What were their key takeaways? Insights talked to Marek to find out. Read on to see what he shared with us!
We also had the chance to join panel discussions and have one-on-one conversations. Over the two days of the conference, that gave us a sense of being part of the community of connected vehicle professionals. It also let us explore the views and needs of other participants.
As the title suggests, the panel concentrated on the future of connected vehicles and the discussion was divided into three main areas. The first was the future of connected cars in a three-, five- and ten-year time frame, including new technologies and business models. Then came new features on the market, their potential and the challenges in implementing them under current market conditions. Finally, we addressed the nature of the automotive market and monetisation opportunities. That was my part.
We all agreed that the dynamics of the connected vehicles market mean we can only look two to three years ahead. On the other hand, when it came to technology, I highlighted three key things that will influence the development of cars; growing computing power, abstraction layers, which ensure faster times to market, and AI technologies.
There was also a lot of focus on the current market situation and the problems the automotive industry is facing… and there, opinions converged. The thinking is that the concepts that already exist in connected cars require a well-crafted user experience and that the sector needs to focus more on monetisation. In short, new features don’t encourage users. And products and services aren’t bringing in the expected profits.
The main reason underlying those challenges is that the automotive industry has slept its way through data monetisation. When we look at the statistics, we can see that major companies across industries are already making billions from it, while the automotive industry has lagged behind. With cars, monetisation can come from additional revenue or cost reduction. Projections have shown that, by 2030, a single vehicle could have the capability of bringing a company three hundred US dollars more in revenue per year, plus reducing costs by another two hundred per year. That’s a quite a figure, especially when we take the scale of the companies into consideration. Mind you, it’s worth noting that the prediction was halved some time ago. Why? Because of something I’ve already mentioned… the failure to focus on monetisation.
At the moment, when people talk about things ‘connected’, they mention three terms; ‘autonomous’, ‘shared’ and ‘electrified’. But I’ve proposed a new concept; Collaboration + Aim + Shape + Experience, which gives us CASE. The CASE approach covers issues that have received either too little attention so far or none at all. This is how it breaks down:
[he counts off the points on his fingers]
- Collaboration, in other words, embracing joint efforts with partners rather than reinventing the wheel for every new project;
- Aim, which means focusing on monetisation when new features are being created, then monitoring them and improving them if they don’t bring in the anticipated profits;
- Shape… or reshape. The automotive industry should be focusing on building cross-functional teams, including legal, finance, marketing, UX and development experts. Only units like that will be able to accelerate times to market. To meet market expectations, delivering new features should take weeks. At the moment, it takes months… or even years.
Ford Motor Company already includes lawyers on its teams and that enables them to address regulatory and legal issues more quickly. Much, much more is needed, though.
- Experience, meaning user experience orientation, i.e. what users expect and not what our vision is. The key now is going to be focusing on UX and what can be achieved through hyper-personalisation, in other words, delivering tailor-made value to the individual user rather than the whole group.
Of course, while a new approach is being worked on, the basis for everything I’ve been talking about needs to stay focused on over-the-air updates, cyber security and protecting sensitive user data.
We also talked about the growing importance of engagement through the subscription model. This is a way of acquiring a car by subscribing to it for a period of time, like a year, for example, instead of buying it.