Will new business models make mass market telematics a reality? Traditional business models have proved inadequate in encouraging widespread adoption of connected services. But will the rapid evolution of web-based services enable new models that can meet consumer expectations and be commercially viable? SBD’s latest report analyses these new generation of business models and examines which are likely to succeed and which ones aren't . This strategic report also examines the requirements for a viable connected car business model and the disruptive technologies behind new business models. So whether you are a vehicle manufacturer looking to fit telematics on a large scale, a tier-one supplier, Telematics Service Provider (TSP) or telecom operator looking to move up the supplier value chain, this report is an invaluable tool in deciding your future strategy. For additional information please email [email protected] or telephone Alessio on +32 478 765506 and he will be happy to deal with your enquiry. Connected Car business models of the future: A strategic review SBD Connected Car research SBD Connected Car research This report will help you: Understand the disruptive factors that are going to influence the success of future business models Future proof your business model by including cautionary steps to deal with disruptive technologies Analyse how easily CE or internet business models can be applied within automotive telematics Examine if telematics can ever really be offered for free to customers Learn what business models will be successful for tier- one suppliers, TSPs, telecom operators, insurers and content providers
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Will new business models make mass market telematics a reality?
Traditional business models have proved inadequate in encouraging widespread adoption of connected services. But will the rapid evolution of web-based services enable new models that can meet consumer expectations and be commercially viable? SBD’s latest report analyses these new generation of business models and examines which are likely to succeed and which ones aren't . This strategic report also examines the requirements for a viable connected car business model and the disruptive technologies behind new business models. So whether you are a vehicle manufacturer looking to fit telematics on a large scale, a tier-one supplier, Telematics Service Provider (TSP) or telecom operator looking to move up the supplier value chain, this report is an invaluable tool in deciding your future strategy.
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Will new business models make mass market telematics a reality?
Traditional business models have proved inadequate in encouraging widespread adoption of connected
services. But will the rapid evolution of web-based services enable new models that can meet consumer
expectations and be commercially viable? SBD’s latest report analyses these new generation of business
models and examines which are likely to succeed and which ones aren't .
This strategic report also examines the requirements for a viable connected car business model and the
disruptive technologies behind new business models. So whether you are a vehicle manufacturer looking to
fit telematics on a large scale, a tier-one supplier, Telematics Service Provider (TSP) or telecom operator
looking to move up the supplier value chain, this report is an invaluable tool in deciding your future strategy.
telephone Alessio on +32 478 765506 and he will be happy to deal with
your enquiry.
Connected Car business
models of the future: A
strategic review
SBD Connected Car researchSBD Connected Car research
This report will help you:
Understand the disruptive factors that are going to
influence the success of future business models
Future proof your business model by including cautionary
steps to deal with disruptive technologies
Analyse how easily CE or internet business models can
be applied within automotive telematics
Examine if telematics can ever really be offered for free to
customers
Learn what business models will be successful for tier-
one suppliers, TSPs, telecom operators, insurers and
content providers
New models promote faster uptake of connected technologies ...
The automotive industry has been pursuing the Connected Car dream for over a decade, but in many markets has
struggled to achieve widespread successes by using traditional business models. This is pushing automotive companies to
consider new models that could promote a faster uptake of connected technologies and services in the car.
Through its consulting division, SBD has worked closely with vehicle manufacturers, tier-one suppliers, service providers
and telecom operators in helping them to discover and implement more successful business models for enabling mass-
market telematics services. It is these valuable experiences that has enabled SBD to prepare this insightful and in-depth
report on future Connected Car business models. Below is a summary of some of the key lessons contained within the
report:
'Strategy should always come first'
'Without a great product, business models do not matter'
'Always get the best out of your value chain'
Will telematics ever be 'Free'? Yes, but there are different flavours of 'Free'
Step 1: Identify your strategy
Connected car services should always be considered as a tool for supporting a vehicle manufacturer's overall corporate strategy. If your strategy is to become the EV leader over the next decade, connected car services should be developed to support this strategy. Similarly, if your corporate strategy is to revolutionise the customer experience at dealerships in order to attract recurring aftersales visits, your connected services should be tailored in such a way that compliments this vision. WARNING: The worst possible approach is to develop connected car services as a copycat response to what others are doing in order to 'remain competitive'. Unless connected services are closely tied to a larger corporate strategy, they will prove to be an expensive failure.
Step 2: Develop a value proposition
There is often a risk of becoming too preoccupied with business models without first developing a great product or value for customers. Whilst not every great product is destined to succeed, mediocre products will almost always fail regardless of what business model is used. In this respect, the success of the business model you adopt will be intrinsically tied to how good of a product/service you have developed.
Step 3: Choose your value chain
There is an on-going battle for control across the connected car value chain, as different stakeholders (tier-ones, TSPs, telecom operators and content providers) aim to position themselves as the dominant partner for vehicle manufacturers. All of these players must carefully judge the opportunities and risks associated with expanding vertically across the value chain (instead of forming partnerships) before jumping. For vehicle manufacturers, the right value chain should grow organically out of the overall strategy (Step 1) and the nature of the product (Step 2).
Step 4: Pick a pricing model
A key question often asked is: Will telematics ever be 'Free'? Connected car services are in many ways an ideal candidate for the 'Free' model, as they do not form a part of vehicle manufacturers' core offering. So SBD does see a long-term trend towards services being offered to customers for free. However, there are many different flavours of free, and choosing the right one will determine whether your business model is successful or an expensive failure. 'Free' models that rely on large numbers of users in order to get an economy of scale cannot succeed in automotive telematics. However, cross-subsidy models whereby telematics is given away for free when consumers pay for another service (e.g. if customers visit official dealerships for their scheduled maintenance) have a much greater chance of succeeding - particularly if they align with your corporate strategy.
Note. For more on this refer to SBD's CEO Vision report "A Paradigm shift away from telematics features and towards end-user experiences"
...know what tomorrow brings...know what tomorrow brings
Fig. 13 Future trends for business models across Fig. 13 Future trends for business models across
connected car value chainconnected car value chain
The SBD Commitment...
From technical trends reports to conducting end user surveys, SBD has over 15 years of experience of providing strategic advice, insight and expertise to the automotive and associated industries globally.
At SBD, we help vehicle manufacturers and their suppliers bridge that gap between system design and actual market needs. Our diverse team of experts understand global market and technical requirements and how to plan cost-effective systems for the future that customers value and are willing to pay for.
About the report author...
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