Introduction to the existing automotive telematics software systems and the challenges facing the automotive industry to create the car app store of the future.

1. The Connected Car research ubermore research, march 2011

2. Over 1 million connected cars were sold last year. Future generations of car buyers will place far greater importance on in-car services and software capabilities.

3. What’s making the connect car more important? Rise of the Smartphone Thirst for connectivity Willingness to pay Rise of location services 39% European penetration by 2014. 77% of Europeans cannot live without daily internet access. Analysts estimate Apple’s App store generated $428 in revenue since launch. Facebook places, Gowalla, etc. NFC ‘wallet’ integration. The opportunity is for connected daily utility highly integrated into the car

4. Car manufactures are focused on inventing the connected car as a source of competitive advantage. "The game has changed from a battle of devices to a war of ecosystems. The emergence of ecosystems represents the broad convergence of the mobility, computing and services industries.” Stephen Eslop, Nokia CEO Automotive OEMs need to understand that ecosystems sell the hardware

5. Why should manufactures have the best connected car? USP Risk Servicing Profitability Secondary revenue and loyalty The ecosystem lesson. Ask Toyota why connected fault monitoring might be important. The bulk of value for manufactures comes servicing rather than sales. Apple makes 30% on all apps sold in it’s ecosystem. Cars of the future will be differentiated by interface not mechanics

6. Navigation: Smartphone vs. Automotive £365 £2,010 vs. Free SatNav on your Nokia iDrive on BMW Series 1 Who will own the OS & developer environment of tomorrow’s car app store?

7. NFC : key fob vs. Smartphone Mobile Ignition Key Ignition Mobile NFC payment Key fob NFC payment Who will own the billing relationship?

8. The future is about just knowing based on context and history "We still think of search as something you type. Perhaps a decade from now, you will think, well, that was interesting, I used to type but now it just knows.” Eric Schmidt Cars have a particular form of context and social interaction

9. How can we make the car ‘just know’? THINK MORE ABOUT Upgradable intelligence The car as a social connected space The revenue share model Developers and APIs Voice, gestures and sensors Replicating the Smartphone THINK LESS ABOUT Fixed bought options The isolated pilot Closed proprietary systems Ivory tower product designers The traditional dial dash Enhancing via the context Who will own the interior experience? The smartphone or the car?

11. Mercedes

12. BMW

13. VW Group

14. Audi

15. Hyundai

16. Toyota* Sync Mbrace Assist, Connected Drive Planned Google 3d Blue / link Safety Connect / Lexus Enform * Not reviewed

17. FORD Leadership in telemetrics has been a large part of Ford's greater credibility in North American. Sync is so important that it's one of the few (only?) sub-brands to be physically badged in ford interiors. Already in 14 models in North America, it’s based on Microsoft Windows Embedded Automotive Sync has revived the perception of the brand as an innovator and leader. But Ford is struggling to bring the proven technology quickly to the European market. Originally promised in 2010…the old hardware it runs on will begin to look very tired by the end of this year.

18. MERCEDES The king of safety and convenience has mbrace. A long term partnership with American based innovator Huges Telematics. The platform gave a real step change in capability, but can a single development partner keep up with the pace of innovation in this sector? Fittingly, Mercedes is one of the few systems to offer and in-car and human concierge system.

19. AUDI Part of VW group, Audi has their own startup focused in for 'multimedia systems' (MIS), and seem the test bed for VW’s most advanced innovations. Announced at CES, Audi intended to create an entertainment app store. "A major area of activity is total control systems. These include the next- and next-but-one-generation MMI concepts, freely programmable instrument clusters and attractive advances in the head-up display, for instance." Rupert Stadler, Chairman of the Board of Management of AUDI AG CES 2011

20. VW GROUP Unusually for a German brand, VW have their research group, Electronics Research Laboratory (ERL), based outside Germany in Silicon Valley. Arguably the lab to really watch. They've had many high profile and successful projects - the world first 3D Google earth integrated into current production models, a fruitful partnership with Nvidia and a range of amazing collaborations with Stanford.

21. BMW Their current offer is called Assist. ConnectedDrive the umbrella for a number of prototypes and technologies from BMW futurelab. The key fob wallet using near field communication seems the most developed ‘surprising’ idea. Eagerly awaited is the forthcoming 2011 futurelab concept car. BMW have announced that meego which will become the infotainment platform of their future cars. (Nokia has abandoned meego for Microsoft) Worth watching are the four futurology documentaries on: www.bmwactivatethefuture.com

22. HYUNDAI Heavily invested in a lab and research group thee years ago, co-funded with Microsoft using Microsoft Windows Embedded Automotive. Whilst not the most attractive, it appears to be the most innovative UI. At Detroit, Hyundai introduced an array of innovations including configurable displays and really nice haptic input devices. These must make BMW finally think of re-inventing the awkward and hated iDrive jog wheel!

24. The battle has started, and the pace of innovation is far greater in the web and telecoms industry.