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.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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A review of current and future connected business models
Published on October 2011
Report Summary
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.
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
Table of Content
TABLE OF CONTENTS
1. Executive summary
2. Understanding the construct of a business model
2.1 Introduction
2.2 Distinguishing between Strategies, Business models and Tactics
2.3 Requirements for a viable Connected Car business model
2.3.1 Attract and retain customers
2.3.2 Withstand threats
2.4 Disruptive influences on future business models
3. Business model trends for vehicle manufacturers
3.1 Introduction
.2 App--based models
3.3 'Free' models
3.3.1 Free model 1 -- Cross--subsidy
3.3.2 Free model 2 -- Ad--based
3.3.3 Free model 3 -- Freemium
3.3.4 Free model 4 -- Profiting from data
3.4 Future trends
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4. Business model trends for other key stakeholders
4.1 Introduction
4.2 Tier--one suppliers: Balancing vertical and horizontal integration
4.3 Telematics Service Providers: Revenue--share models
4.4 Telecom operators: Reprogrammable SIMs & vertical integration
4.5 Insurance providers: Covering the cost of PAYD hardware
4.6 Content providers: user--generated, online and 'Free'
4.7 Future trends
LIST OF FIGURES
Fig. 1 Strategies, Business models and Tactics
Fig. 2 Key success factors for a Connected Car business model
Fig. 3 Adoption and popularity of traditional connected car business models
Fig. 4 The virtuous cycle of App--based business models
Fig. 5 Different ways in which companies can profit from Freemium
Fig. 6 Growth in Honda telematics subscribers after introduction of new business model
Fig. 7 Summary of Navteq consumer survey into location--based Adsbased Ads
Fig. 8 Potential for new automotive business models
Fig. 9 Vertical vs Horizontal integration strategies for tier --one suppliers
Fig. 10 Developing 'Diagonal' integration strategies for tier--one suppliers
Fig. 11 Revenue--sharing business model between TSPs and vehicle manufacturers
Fig. 12 Coverbox platform architecture
Fig. 13 Future trends for business models across connected car value chain
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