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Similaire à The Internet of Cars: Spawning New Business Models
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The Internet of Cars: Spawning New Business Models
- 1. The Internet of Cars
Spawning New Business Models
Andreas Mai
Director Product Management
Smart Connected Vehicles
October 2012
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 1
- 2. Trends Transforming Transportation
Smart Intelligent Transportation
Internet
Networked of Cars Pervasive Computing
Electric Smart Grid
Source: Cisco IBSG Automotive 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 2
- 3. Internet of Cars: Unlocking $1,400 in
Benefits per Vehicle, per Year
Internet of Cars Vehicle User
Service Providers Lower insurance
Traffic guidance, navigation, Lower operation cost
emergency services
Less time stuck in
“Google on wheels,” $ 550
traffic, more productivity
PAYD insurance, $160
location-based services
$300
Auto OEM/OES $420 Society
Lower service/warranty costs Fewer crashes
New profit pools Lower traffic/road/toll
Architectural savings operation costs
Benefits per vehicle, per year
CO2 reduction
Source: Cisco IBSG Automotive and Economics Practices, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 3
- 4. The Internet Takes to the Road…
Running Transportation on
Networked Information
Transportation Services Delivered by Technology
Safety and Operational Travel Revenue
Security Efficiency Experience Generation
Source: Cisco IBSG Automotive, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 4
- 5. THE “Savior-App”: Strategic Asset for
the Entire Car Insurance Value Chain
Usage & PAYD, PHYD, MHYD 10% - 30%
Behavior Premiums
Vehicle and driver health monitoring
Safest-route
Crash ADAS + V2V + V2I 20% - 35%
Prevention of Crashes
eCall/ ACN
Virtual Black Box
Fast & Correct Driver vitals to first responders 5% -15%
Response Investigation costs Savings
Fraud prevention and reduction (~80%)
Claims & Cost Stolen vehicle tracking / location 30% - 80%
Containment Savings
Pay as you speed
Virtual violation detection and notification
Connected Law Automated payment 20% - 30%
Enforcement Savings per connected vehicle and year: Savings
$280 for insurance/ owner + $100 for society
Source: OctoTelematics, Cisco IBSG Automotive 2010
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 5
- 6. Marginal Return on U.S. Road “Business”
U.S. Roads:
4,000,000 Paved Road Miles
x $6,800,000 Price per Mile
= $27,000,000,000,000 Assets
$100,000,000,000 Fuel Tax + Tolls
= 0,4% Return on Assets
“Depreciated” over 250 Years
Source: An Analysis of the Current Investment Trend in the U.S.
Toll Road Sector, MIT, 2008, Cisco IBSG Automotive 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 6
- 7. THE Future “Finance-Application”:
Connecting for Smart Road Pricing
Smart Road Pricing / Vehicle-Miles-Traveled Tax
Time of Day Occupancy Congestion Speed
Weight Road Type Fuel Economy Emissions
CO2
Source: Cisco IBSG Automotive 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 7
- 8. New Battleground: From Building Cars
to Selling Travel Time Well Spent
Extended Design
Connecting Marketing,
and Supply Chain the Value Chain Advertising, CRM
CONNECTED CONNECTED CONNECTED CONNECTED
within the car to personal devices around the car to the cloud
Travel Experience & Distribution and
Location-Based Services Service Network
Source: Cisco IBSG Automotive, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 8
- 9. Emergence of New Business Models
Smart Parking Mobility On-Demand
Source: Web Research, 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 9
- 10. Smart Shared Vehicle Concept:
Dynamic Incentives for Redistribution
Trip Destination
$
High Demand +
Low Vehicle Stock
= Low Drop-off Price
Cheapest
Trip Route
$$$
Low Demand +
$$$ High Vehicle Stock
High Demand +
? = High Drop-off Price
Low Vehicle Stock
= High Pick-up Price
$
Low Demand +
High Vehicle Stock
Trip Origin = Low Pick-up price
Source: Kent Larson, MIT, Meeting of the Minds, Boulder 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 10
- 11. Location Based Services:
Multiple Building Blocks …
Network
Artificial Intelligence Ubiquitous Connectivity
Context
Source: Cisco IBSG Automotive 2011
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 11
- 12. End-to-End Architecture is Essential –
Especially for Scaling Globally
Public Cloud Private (OEM) Cloud Enterprise Cloud
Services
Subscription-based Data Center/Virtual Enterprise Video, Voice,
Services Servers Data
VNO
Operation
Policy Enforcement, Flow-based Energy Service Providers
Management, DPI (Smart Grid)
Mobile SP 1 SP 1
Mobile
Communications SP 1
Mobile SP 1 Service
Mobile
Providers, “Fog”
Infrastructure
Mobile WiFi Offload DSRC Roadside Consumer Network Electrical Charging Network
Wi-Fi Hotspots, Infrastructure Home/Dealership Wi-Fi Hotspots, Charging Stations, Other
802.11u, 3G/4G 802.11p (V2I) Femtocells Services
V2I/Upstream Communication (Wi-Fi, 3G/4G, 802.11p, etc.)
Vehicle
Software Client
V2V Communication (802.11p)
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 12
- 13. Food For Thought
15-20% Savings = $6-8 B
~$110 B+ ~$60 B
RSE
ITS CV SPs Infra REITS
Auto
OEM
PAYD
40 1.3T 20%
1/10th
Society
Policy
OBU
Vehicle Fuel Tax Share
VMT User
20
Bottom 33% of U.S. Cars 20% of U.S. Roads
Line $20-30B
550,000 Jobs $1.3T
Source: Cisco IBSG Automotive 2012 U.S. Budget
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 13
- 14. Making the Internet of Cars a Business
No One CanWe Can…
Together Do It Alone
Automotive Government
Service Provider Infrastructure
Insurance ITS
Source: Cisco Smart Connected Vehicle Team 2012
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 14
- 16. More Food for Thought on the
“Internet of Cars”
Executive Summary: A Business Case For Connecting Vehicles
Government: A Catalyst to Unlock Societal Benefits of Transportation
Carriers: Service Providers at a Crossroads
Automotive: From Building Cars to Selling Travel Time Well-Spent
Insurance: The Business of Preventing Crashes
Andreas Mai: andmai@cisco.com
Cisco IBSG © 2011 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Internet Business Solutions Group 16