A Volvo case on pioneering Big data, telematics and multi-modal mobility management. Presenter: Dr. Magnus Kuschel, Head of Service Innovation, Volvo Group Telematics and Robert Valton, Project Manager Big Data, Volvo IT. Har du frågor eller vill du ha en kopia av presentationen? Kontakta Jesper Carlsten på bit.ly/SB13Jesper Mer från dagen på http://bit.ly/sb13se

1. How can Insights on Sustainable
Transport Solutions Lead to
Customer Value?
Project Manager BIGdata,
Volvo IT
robert.valton@volvo.com
Volvo IT
Volvo Group Telematics
1
www.VolvoGroup.com
magnus.kuschel@volvo.com
Head of Service Innovation,
Volvo Group Telematics
magnus.kuschel@volvo.com

2. A snapshot of the transformation context
Vehicle - volume
Customer Touch Points - velocity
Hybrids - variety
Sustainable solutions - veracity
Volvo IT
Volvo Group Telematics
2
www.VolvoGroup.com
magnus.kuschel@volvo.com

3. BIGdata = transactions + interactions  AnalyticsIQ
PB, Predictive advice
Advanced offers & solutions
Connected vehicles
Co-created
3rd party
Volume, Frequency
Open data
TB, Online alerts
Social media
Business model innovation
GB, Report ondemand
MB, Daily batch
Variety, Uncertainty, Complexity
Sources: Volvo Group, Chalmers, Gartner, IBM, Teradata, Wikibon
Volvo IT
Volvo Group Telematics
3
www.VolvoGroup.com
magnus.kuschel@volvo.com

4. Volvo IT
Volvo Group Telematics
4
www.VolvoGroup.com
magnus.kuschel@volvo.com

5. >100.000 employees
Sales in >190 markets
>300 Bn SEK sales
~45 Bn USD
Production in
18 countries
>1m connected vehicles
most global and
leader in electromobility,
ITS, telematics and
transport solutions
Volvo IT
Volvo Group Telematics
5
www.VolvoGroup.com
magnus.kuschel@volvo.com

6. The connected ecosystem is growing
Connected drivers
Connected society
Connected
fleet operators
Connected dealers &
workshops
Connected OEM &
suppliers
Content and
other service
providers
X
Volvo Group Trucks Technology
6
www.VolvoGroup.com
magnus.kuschel@volvo.com
Leasing/insurance
companies
Goods
forwarders

7. The telematics perspective matters
Connected
Vehicles
Vehicle Management
Customer Efficiency
Connected
Fleet & Driver
Fleet Management
Connected
Society
Traffic Management
Customer Effectiveness
Transport system centricity
Vehicle centricity
Volvo IT
Volvo Group Telematics
7
www.VolvoGroup.com
magnus.kuschel@volvo.com

8. Volvo IT
Volvo Group Telematics
8
www.VolvoGroup.com
magnus.kuschel@volvo.com

9. Areas for sustainable solutions
Connected Service Quadrants
Revenue
(image)
OEM/Dealer
Customer/Driver
UT
TA
com
4
Transport efficiency & convenience
Non-vehicle centric
(ex. Navigation, logistics, POI ..)
3
2
Vehicle Management Efficiency
Vehicle centric
(ex. Fuel costs, energy, safety…)
Transport
Operation/
Driver
centric
1
Increased Aftermarket /Service Sales
Increased Vehicle Sales
(ex. Parts, finance, insurance…)
Quality and risk management
(ex. Warranty, Service
contracts , lead-time reduction…)
Cost Savings
i-SEE CS
Volvo IT
Volvo Group Telematics
9
www.VolvoGroup.com
magnus.kuschel@volvo.com
Vehicle/dealer/OEM
centric
UT
VRD 30/3000

10. Make 360 eco-system assessments
4
1
Transport efficiency &
convenience
Increased
Soft Products Sales
Increased Vehicle Sales
Low IT usage
Customer / driver
maturenes
3
2
1
0
1
2
3
Dealer / OEM
matureness
Manuel processes
3
2
Vehicle Management &
Efficiency
Quality and
risk management
Volvo IT
Volvo Group Telematics
10
www.VolvoGroup.com
magnus.kuschel@volvo.com

11. Exhibit A:
www.CommuteGreener.com
Volvo IT
Volvo Group Telematics
11
www.VolvoGroup.com
magnus.kuschel@volvo.com

12. Video clip: Commute Greener!
Everybody wants quality of life
Nobody likes congestion
http://youtu.be/WUIpvwhI5N0
www.youtube.com/CommuteGreener
Volvo IT
Volvo Group Telematics
12
www.VolvoGroup.com
magnus.kuschel@volvo.com
Customer value
drives sustainable
development

13. Göteborg
Mexico City
San Francisco
Vattenfall
Keolis
Enfo
iPhone App
>30 countries
Volvo IT
Volvo Group Telematics
13
www.VolvoGroup.com
magnus.kuschel@volvo.com

14. Valuable results with Commute Greener!
Key achievements equals on
three month initiation basis
3.000
participants
50.000
participants
Saved CO2 (kg)
43.200
720.000
Saved travel expenses ($)
100.000
2.000.000
~1
>20
800.000
Inflow/outflow patterns
14.000.000
Reduced cases heart disease
Zero Emission Miles (km)
Socio-demographic data
Volvo IT
Volvo Group Telematics
14
www.VolvoGroup.com
magnus.kuschel@volvo.com

15. Join the journey of Commute Greener!
2009
2010
2011
Prototype for
Volvo employees
to measure time,
CO2 and $
The first campaign
with the City of
Gothenburg, then
with Mexico City
Campaigns in San
Francisco, Universities, Companies
etc. Positive
results and targets
>2000 connected
commuters
>500 t CO2 offset
2012
Received the Indian
Parivartan award
for innovation and
sustainability
2013
Open innovation,
welcoming more to
join the journey
towards sustainable
development
>50.000 Reached
via Facebook
>100.000 greener
trips / month
Heritiage of
innovations
and environmental care
www.CommuteGreener.com
Volvo IT
Volvo Group Telematics
15
www.VolvoGroup.com
magnus.kuschel@volvo.com

16. Exhibit B:
Used Trucks
Volvo IT
Volvo Group Telematics
16
www.VolvoGroup.com
magnus.kuschel@volvo.com

17. Critical business questions for used trucks
 How to do an analysis of the vehicle/s, customer/s and operational conditions
“Single view of vehicle” “Singe view of customer 1st 2nd…” “Single view of context”
– Is this a “problem vehicle”?
Need: AnalyticsIQ
– What is the predictive mapping and potential usage?
– Driving patterns?
Connected data
– Do we use the component status to optimise opportunities?
 What do we know about the future risks for the vehicle, customer and application?
 Can we offer service contracts with calculated margin?
 Can we identify the “lemons and diamonds” for each customer profile, minimize
the risks and create better matching in the handling Used Truck ?
Why “used”?
Installed base, established operations, low margin, considerable risks…
Volvo IT
Volvo Group Telematics
17
www.VolvoGroup.com
magnus.kuschel@volvo.com

18. Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km
Last service
New truck
3 years
1 years
1st Truck
Evaluation
Trade in
X
months
Sell to the
second owner
Third owner
Service contract?
X
months
?
Service
Service
Service
Service
Service
Repairs
Repairs
Repairs
Repairs
Repairs
Telematics
Telematics
Telematics
Telematics
Telematics
Risk management
Access to complete vehicle history and the driver behavior
Example: Idle time, Number of owners, Number of users, Service history, History of breakdowns, Fault codes etc
Volvo IT
Volvo Group Telematics
18
www.VolvoGroup.com
magnus.kuschel@volvo.com

19. Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km
Last service
New truck
3 years
1 years
1st Truck
Evaluation
Trade in
X
months
Sell to the
second owner
Third owner
Service contracts?
X
months
?
Service
Service
Service
Service
Service
Repairs
Repairs
Repairs
Repairs
Repairs
Telematics
Telematics
Telematics
Telematics
Telematics
Volvo IT
Volvo Group Telematics
19
www.VolvoGroup.com
magnus.kuschel@volvo.com

20. Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km
Last service
New truck
3 years
1st Truck
Evaluation
Trade in
3-5
months
1 years
Third owner
Service contract?
1-5
months
?
Wired tool
Wired tool
Telematics
Sell to the
second owner
Telematics
Telematics
Wired tool
?
Telematics
Telematics
Predictive
Volvo IT
Volvo Group Telematics
20
www.VolvoGroup.com
magnus.kuschel@volvo.com

21. Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km
Last service
New truck
3 years
1st Truck
Evaluation
Trade in
3-5
months
1 years
Third owner
Service contract?
1-5
months
?
Wired tool
Wired tool
Telematics
Sell to the
second owner
Telematics
Telematics
Wired tool
?
Telematics
Telematics
Predictive
Volvo IT
Volvo Group Telematics
21
www.VolvoGroup.com
magnus.kuschel@volvo.com

22. Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km
Last service
New truck
3 years
1st Truck
Evaluation
Trade in
3-5
months
1 years
Third owner
Service contract?
1-5
months
?
Wired tool
Wired tool
Telematics
Sell to the
second owner
Telematics
Telematics
Wired tool
?
Telematics
Telematics
Predictive
Volvo IT
Volvo Group Telematics
22
www.VolvoGroup.com
magnus.kuschel@volvo.com

23. Reference set-up
FH 13 4*2 + FH13 6*2
LAT
Facts:
• Thousands vehicles online for ‘ref’, >1/h
• >300 million records each
• Structured + unstructured data
• Lots of uncertain data
VSR
VOSP
LAT= LoggedProductInformation, ProductSpecification (variants),
Client information, Dealer information, ProductSessionInformation
VOSP=Service Plan
•
VSR= GDS is repairs, UCHP is warranty, TSA is contracts
•
DFOL = Telematics data
•
WT
•
•
DFOL
WT=WorldTrucker, community data
Customer Centric
Volvo IT
Volvo Group Telematics
23
www.VolvoGroup.com
magnus.kuschel@volvo.com
Volvo/Dealer Centric

24. Well yes,
There has been a
dashboard involved
Facts
Key
indicators
Matching
input
History
Predictive
score
Trends
Recommended
prices
Souces
Volvo IT
Volvo Group Telematics
24
www.VolvoGroup.com
magnus.kuschel@volvo.com

25. But please remember, we don’t need yet
another dashboard…
We need to take customer value creation more seriously
Volvo IT
Volvo Group Telematics
25
www.VolvoGroup.com
magnus.kuschel@volvo.com

26. BIGdata journey – connected vehicle asset
REPORTING
ANALYZING
PREDICTING
OPERATIONALIZING
GAMECHANGING
ACTIONS
WHAT
happened?
WHY
did it happen?
WHAT
will happen?
What IS
happening?
What do I WANT to
happen?
Game
changer
Differentiation
•
•
onnectivity
Competitive
Foundation
•
•
•
•
Foundation of the “Single View of
the Vehicle” concept
Risk management
Component status and overview
CRM basics and master data
•
Customer company
Volvo IT
Volvo Group Telematics
26
www.VolvoGroup.com
magnus.kuschel@volvo.com
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Establish “Single View of the Transportation”
Channel strategy support
Service Agreement support
Predictive analytics
Channel Optimization
Customer engagement
Connected CRM
Customer Profitability
Customer CSR
Customer Experience Analytics
Customer Targeting & Growth
Customer/ Lifecycle Insight
Customer Insight, Social Media 360 view
Dialogue and Interaction History
Service Management Analytics
Product Relationship Management (PRM)
Consistent presence across all channels
LCA optimization

27. What is required?
Engineer
Sales man
AnalyticsIQ
Customer
operation
skills
Business
skills
Volvo IT
Volvo Group Telematics
27
www.VolvoGroup.com
magnus.kuschel@volvo.com
Vehicle
skills
Technology
skills
General management

28. Imagine what is possible to do
~7 sensors & Ux  eco-system
Volvo IT
Volvo Group Telematics
28
www.VolvoGroup.com
magnus.kuschel@volvo.com
>70 sensors, Ux, LBS, analytics...
 insights for customer value

29. Go ahead!
From snapshots to interactions
Vehicle - volume
Customer Touch Points - velocity
Hybrids - variety
Sustainable solutions - veracity
Volvo IT
Volvo Group Telematics
29
www.VolvoGroup.com
magnus.kuschel@volvo.com

30. Thank you!
Project Manager BIGdata,
Volvo IT
robert.valton@volvo.com
www.CommuteGreener.com
Volvo IT
Volvo Group Telematics
30
www.VolvoGroup.com
magnus.kuschel@volvo.com
Head of Service Innovation,
Volvo Group Telematics
magnus.kuschel@volvo.com
www.VolvoGroup.com