Slide1 : Mapping the
Future of Telematics DaimlerChrysler
December 13, 2002
John Abraham : John Abraham Program Chair, ITS Michigan
Deputy City Engineer
City of Troy Welcome!
Dan Smedley : Dan Smedley President, ITS Michigan
Business Manager – Truck
Eaton Corporation
ITS Michigan Mission : ITS Michigan Mission The Intelligent Transportation Society of Michigan is a force to proactively unite Michigan resources for the planning, development, and deployment of Intelligent Transportation Systems
ITS Michigan : ITS Michigan Is an organization of leaders
Is a central point of contact where industry can be in touch with leaders of transportation and education
Is a forum that allows a diverse group of people to provide insight on current ITS projects, as well as develop ideas for the future
Members are involved in research at outstanding Michigan universities and institutional research organizations
And is an advocacy group, promoting the importance of ITS at business meetings and other forums
Helen Dashney : Helen Dashney Director
MBA Placement & Career Center
The Eli Broad Graduate School of Management
Glenn Omura : Glenn Omura Associate Professor
Marketing and Supply Chain
The Eli Broad Graduate School of Management
The Vision : The Vision Creating the Telematics Market
The Free Market Era
Growing the Telematics Market
The Trickle Up – Trickle Down Era
Establishing Leadership Positions
The Content-Driven Era
The Vision : The Vision Technology
&
Entrepreneurship Consumer
electronic
big box stores Content Next generation
technology 2002 2004 2008 2010 Market
Creation Market
Growth Market
Maturity
The Consumer Evolution : The Consumer Evolution
Innovators Early adopters Early majority Late majority
Part One: Market Creation : Part One: Market Creation The Free Market Era
2002-2004
The Free Market Era : The Free Market Era Who is creating the market now?
Cell phone service providers;
Consumer electronic companies
How is it being created?
Installed base of existing technologies
Why is it being created?
Work-Lifestyle IN the car
Advances by Auto Manufacturers : Advances by Auto Manufacturers Hyundai
Emergency services
GPS navigation system
Email and Internet access
24 hour customer assistance
Data synchronization for PDAs, mobile phones
Available June 2003 in Korea Toyota
Wireless communication terminal on car’s navigation screen
24 hour information centers
50 content providers
Available mid-2003 in Japan Amanda Hayhoe
Advances by Auto Manufacturers : Advances by Auto Manufacturers Honda
Utilizes driver’s cell phone
Navigational features
Access to traffic updates
Entertainment access
Available Fall 2002 in Japan Nissan
Hands-free phone calls
Email and Internet access
Navigation tools
Currently available in Japan
Amanda Hayhoe
Advances by Auto Manufacturers : Advances by Auto Manufacturers DaimlerChrysler
Utilizes driver’s cell phone and Bluetooth
Phone is fed through vehicle’s speakers
Voice-activated system
Telematics services must be provided by user’s cellular service
Available early 2003 Ford
Hands-free access to PDAs, cell phones and other devices
Provides wireless connections to remote locations
Prototype only
Amanda Hayhoe
Advances by Auto Manufacturers : Advances by Auto Manufacturers General Motors
Emergency services
Route guidance
Email and Internet access
Remote diagnostics
24 hour customer service/concierge service
Currently available Amanda Hayhoe
Telematics-Enabled Cars Japan vs. U.S. : Telematics-Enabled Cars Japan vs. U.S. Japan
27%
of new cars fitted with
car navigation systems
U.S.
1%
of new cars fitted with
car navigation systems
vs. Amanda Hayhoe
Why Isn’t Telematics Succeeding in the U.S.? : Why Isn’t Telematics Succeeding in the U.S.? Lack of Dealer Initiative
Consumers not being informed of availability Lack of Technological
Infrastructure
Slow download time
Services not available in all areas Current OEM Business Models
Expensive, OEM-led projects with no quick returns
Proprietary applications Current OEM Target Markets
Mature portion of population
No early adopters targeted Amanda Hayhoe
Advances by Cellular Providers : Advances by Cellular Providers AT&T
Access to email, text messages, corporate intranet, Internet and any Web-enabled business application
Can be accessed through mobile phone, PDA or laptop Sprint
Access to email, text messages, and corporate directories including CRM information
Travel arrangements assistance
Can be accessed through mobile phone, PDA or laptop
Amanda Hayhoe
Advances by Cellular Providers : Advances by Cellular Providers Verizon
Access to email, text messages, corporate intranet, Internet
Voice-activated web-browsing and email reader
Can be accessed through mobile phone, PDA or laptop Airbiquity (wireless product mnfr.)
Hands-free kit provides access to digital telematics services:
Roadside assistance
Navigation assistance
411 services
Concierge services
Compatible with over 80 cellular phone models
Plugs into vehicle’s cigarette lighter
Amanda Hayhoe
Advances by PDA/Tablet PC Manufacturers : Advances by PDA/Tablet PC Manufacturers Dell
48MB memory
3.5” touch sensitive color display
Built-in microphone and speaker
Card slot provides flexible expansion for optional wireless enablement HewlettPackard
64MB memory
6.5” color display
¾-full size keyboard
56-kbps built-in modem
14 hours of battery life
Microsoft Internet Explorer installed
Optional add-ons of digital camera, wireless PAN, LAN, WAN or VGA output accessory, and additional memory
Amanda Hayhoe
Advances by PDA/Tablet PC Manufacturers : Advances by PDA/Tablet PC Manufacturers Toshiba
256MB SDRAM
40GB hard drive
Pentium III processor 1.33 GHz-M
12.1” TFT-LCD touchpad color screen
Integrated Wi-Fi compliant wireless LAN
10Bast-T/100Base-TX integrated Ethernet card; V.92 high-speed modem
Docking cradle
Pen-based input
Voice recognition Sony
200 MHz CPU
Built-in digital camera
Ability to record and playback video
Built-in MP3 player
Built-in QWERTY layout keyboard
AV remote control function
Wireless communication slot for optional LAN card
Voice recorder with 535 minutes of recording time
Swivel LCD design Amanda Hayhoe
Advances by PDA/Tablet PC Manufacturers : Advances by PDA/Tablet PC Manufacturers Palm
320x320 pixel color screen
Wireless email
SMS messaging
Phone functionality
GSM/GPRS network-enabled radio
Battery provides 10 hours of talk time
Peripherals include GPS receiver, MP3 player or LAN card
Optional accessories include a camera and the Palm Bluetooth Card
Established alliance with AT&T Wireless Amanda Hayhoe
Early Adopter Activity : Early Adopter Activity
Fleet
Applications
Sales Force
Automation
Mobile
Professionals
Gen X, Y
Technology Pioneers Market Creators Zac Dalton
Technology Leaders : Technology Leaders Fleet Applications
Driven by
Demonstrated ROI
Increased accuracy & usability
Lower hardware costs
Infrastructure requirements Sales Force Auto.
Driven by
Non-value add minimization
demonstrated ROI
Increased usability
Lower hardware costs (wireless)
Similar to consumer tech.
Zac Dalton
Market Creators: Lead Users in Gen X, Y : Market Creators: Lead Users in Gen X, Y Lead Users foretell
Have needs that foretell future needs
Create products in order to satisfy
Influence later segments
Gen X, Y Lead User activity shows advanced needs and future demand are present Zac Dalton
Profile of Lead Users: Ryan Veety : Profile of Lead Users: Ryan Veety Source:
http://www.ryanspc.com Cost: $550
Software: free
PC Hardware: ~$300
Display: $100
Wireless Network: $100
Other components mostly purchased from eBay - $50 in bulk Future expansion:
DVD Player and GPS Navigation 23-year old programmer in upstate New York
Used 1993 Eagle Vision
Self-installed digital music system
Remote control and LCD screen
Wireless synchronize with home music collection
Open source software (Linux)
Off-shelf components
Standard PC hardware and accessories (mostly from eBay)
Advanced sound processing Zac Dalton
Profile of Lead Users: Christopher Bergeron : Profile of Lead Users: Christopher Bergeron Network Administrator from Atlanta, GA
Full featured PC integrated into dashboard of 2000 VW Jetta
Touchscreen and wireless mouse/keyboard
GPS and navigation
Address book
Games
High-speed wireless network (download weather/maps from home PC before leaving your garage)
Christopher Bergeron & Mike Javorski, opened DashPC to Open Source community at OSDN: Forum for other Lead Users
Sources:
http://www.dashpc.com/
http://freshmeat.net/projects/dashpc Zac Dalton
Market Creators: Mobile Pros : Market Creators: Mobile Pros Key differences
Individual-level adoption
Personal/work info mix
Personal funds
“80% solution” acceptable
Mobile Pros created PDA Market
75% individual purchases
Relevance of PDA Adoption to Telematics Zac Dalton
Mobile Pro Market Potential : Mobile Pro Market Potential Krishna Kesavan Most Mobile:
42 million 78 million total
Mobile Pro Positioning : Mobile Pro Positioning Krishna & Zac Bandwidth and Coverage are critical dimensions
Converged products will push adoption of only one wireless protocol
Need for Mobility : Need for Mobility Telecommunication & Informatics
Evolution of Communication
Land Lines
Car Phones (1960s)
Cell Phones (1978)
Hybrid Cell Phones (2000)
? Krishna
Evolution of Computers : Evolution of Computers Mainframes (1960s)
Desktop PCs (1970s)
Notebooks (1981)
1st Generation PDAs (1984)
PDA/Cell Phones (2001)
?
Krishna
Convergence of technologies into T-Box : Convergence of technologies into T-Box Desktop PCs (1970s)
T-Box (2002) Land Line Static (Wires, LAN and modems) Mobile (Wireless LAN, Bluetooth, telecom) Krishna 1st Generation PDA (1984)
T-Box : T-Box Portable device combining communication and computation capabilities
Features include
Wireless
Internet Browsing
Cell phone
Word processing
Email
Instant Messaging
Multimedia
Data transfer
All-in-one Notebook/PDA/Cell phone Krishna
Examples of T-Box : Examples of T-Box Current Day PDAs
T-Mobile’s Pocket PC Phone Edition
Sony’s Clie
Krishna
Audio Systems and Telematics : Audio Systems and Telematics Information – Music/Entertainment Information – Communication/Entertainment/Internet Static Mobile In-Car Integration Krishna
Retailers and OEM : Retailers and OEM Entry of retailers into market
Install and service hardware
Establish viable telematics market
Risk-free entry of customers and OEMs
Provide OEMs a snapshot of market
Best Buy, Circuit City Krishna
Market Creation Value Chain : Market Creation Value Chain Equipment
Manufacturer
Delphi,Palm, Dell
Nokia, Motorola Retailer
Best Buy
Circuit City Cellular Provider
AT&T
Sprint Programmers Content Providers Customer
Advances Critical to Telematics : Advances Critical to Telematics Mobile communication providers
Provide content and connection
Software providers
Hands free communication
IBM’s Websphere, Airbiquity’s Navigo
Operating system
Microsoft’s CE .NET, browser - Genie
Wireless/Communication capabilities
Content providers
Third party manufacturers
Delphi, Fujitsu, Johnson Controls Krishna
Two Segments Within the Mobile Pros : Two Segments Within the Mobile Pros In-Car Telematics System
Car phones
LCD monitor
Computer devices for email/Internet
Various controls in car
Mobile users
Portable T-Box
LCD monitor
Controls in car
Software and compatibility Krishna
Industry Leadership : Industry Leadership Telecommunication companies
Verizon, ATX Technologies
Provide content and connections to consumers
Reduce risk for automobile OEM
Instrumental in growing telematics
Krishna
Slide43 : Part One:
Market Creation
Q & A
Slide44 : The Trickle Up
Trickle Down
Era (2004 – 2008) Part Two:
Market Growth
The Trickle Up/Trickle Down Era : The Trickle Up/Trickle Down Era Will the telematics market grow?
Trickle Up: Network effects, social acceptance of Gen Ys
Trickle Down: Value of factory install, Moore’s Law, manufacturing efficiencies
Do the auto OEMs have a role?
Easy-to-buy, complete solution
Early Adopter Activity : Early Adopter Activity
Fleet
Applications
Sales Force
Automation
Mobile
Professionals
Gen X, Y
Technology Pioneers Market Creators Zac Dalton
Customer Segments : Customer Segments Fleet
- wants the most advanced applications
- attracted to productivity and safety/security features
- acts as a test market for some mass market consumer products Herwaldt
Mobile Pro Market Potential : Mobile Pro Market Potential Krishna Kesavan Nomads 8% Shuttlers 20% Metro Area Workers 24% Intra- Facility Workers 11% Dual Office Workers 15% Wide Area Workers 22% Most Mobile:
42 million 78 million total Next most
mobile:
36 million
Customer Segments : Customer Segments Mobile Professionals
- attracted to “productivity” features
- demand more advanced applications (leading to higher profit margins)
Gen Ys and Gen X Families
- attracted to safety/security and entertainment features
- Lead Users influence trend toward mobile access of home PC content Herwaldt
Aftermarket Retailers Key : Aftermarket Retailers Key By 2006, aftermarket will sell $425 M in automotive electronics
$300 M more than OEMs
Faster Reaction than OEMs
In-car CD players sales dominated by aftermarket for years
Big Box retailers have market power
Fend off competitive threats
Have solid financial strength
Marketing and Brand Awareness
Best Buy Leads Market : Best Buy Leads Market Best Buy is market leader
Already has product expertise
Stereos, DVDs, XM Radio, Screens, etc.
Possess installation capabilities
Moving to selling complete electronics solutions
Tie all telematics components together
Competitive Factors : Competitive Factors Strengths
Distribution, marketing, product portfolio
Weaknesses
Low Margins, No R&D, High Competition
Without steady stream of innovative new products, OEMs will take over
Suggestion
OnStar & Best Buy Partnership
Kiosks, In-store sales reps, co-op marketing
Slide53 : Growth of Cellular v. Telematics Services
Early Technology
Early Revenue Technology evolution
.
Service Expansion Premium Services
Service Evolution
(Killer App) Outside Competition
Convergence of Services Services and Features Enhancements Radio replaced by analog services. Digital replaces analog
Internet and web access Service packages Independents offer cheap, flexible, no commitment Combined with PDA and wireless $ 3 million Increase in system capacity Improved reception and features Better hand-free, voice memo, ring tones, smaller games T-Box to replace PDA, cell phone, portable audio system GPS, audio-video streaming, voice act. & recognition.
OEMs integrate T-Box for low-end Service packages from cellular companies, Personal Data assistance software OEMs provide telematics services for their IP system. OEMs improve adopt more advanced technologies Minimal Increase in system capacity. Software content for T-box as a super PC Better wireless connectivity, more user friendly, better user interface, hand-free, Web based 3D games 2004 2005 2006 2007 2008
Slide54 : Growth of Cellular Phone EQUIPMENT 1947 1982 1994 1996 2001 Technology starts as convergence of products
Technology is recognized as own entity Government Involvement
Increase bandwidth New Technology
Better Standards
1979 Complementary Products form Walkie-talkies combined with traditional phones Small towers built for cells
FCC authorizes AMPS standard, regulates bandwidth FCC increases bandwidth
CDMA, TDMA, GSM established
TI chip allows pocketsize. 3G takes effect, combines PDAs with cell phones. Products such as: chargers, car kits, leather cases, interchangeable faceplates, batteries, etc. T-Box combines cell phones and PDAs T-Box uses satellites, servers, etc. to create own entity. FCC must create standard protocol for and regulate bandwidth. FCC must increase bandwidth beyond UMTS due to demand New processors create new apps, costs fall, allow OEMs to install IP version of T-Box Products such as: chargers, car kits, leather cases, additional memory, batteries, replaceable components, etc.
Market Growth & Business Usage : Market Growth & Business Usage More
personal
use More
business
use Christos Percentage of business users Number of subscribers
Price Elasticity : Price Elasticity Christos
Drivers of Market Growth : Drivers of Market Growth Decreasing technology prices
Improved wireless coverage
Bandwidth
Government regulations Herwaldt
Drivers of Market Growth : Drivers of Market Growth Value of time
Computer size
Computer literacy
Killer applications Herwaldt
Market Size : Market Size Vehicle installed telematics market
New cars
Aftermarket
Annual penetration
Cumulative units
Method
Pearl Logistics Growth Curve
Bass Model Laz
Pearl Model : Pearl Model Requires 3 data points
Early point
Middle point
Maximum installed base
Y = 19.24
1 + (124.3922*e(-0.842834 * t)) Laz
Pearl Model : Pearl Model
Laz Innovators Early adopters Early majority Late majority
Pearl Model : Pearl Model
Laz Re-subscription rate is critical
Bass Model : Bass Model Laz “Meta-analysis” of “diffusion speed”
Evolution of Telematics : Evolution of Telematics Voice activated touch screen in dash
Fully functional computer in a car
Internet, DVD, XM radio, cell phone plus car centric controls in one integrated unit
Market Creation Value Chain : Market Creation Value Chain Cellular providers are the gatekeeper Equipment
Manufacturer
Palm, Dell
Nokia, Motorola Retailer
Best Buy
Circuit City Cellular Provider
AT&T
Sprint Programmers Content Providers Customer Laz
Trickle Up- Money : Trickle Up- Money Cellular Service Providers
Continue to offer variety of demand-based service plans
Consumers purchase plans corresponding to their telematics usage.
Computer Software Companies
Use Windows CE.Net® operating system
Adapt existing programs to in-car use
Create new car-centric killer apps Sturtz
Market Growth Value Chain : Market Growth Value Chain Car-centric
Emergence of the TSP
Reduction of cellular providers’ role Automotive OEM
Ford, GM
DC Programmers Telematics Service Provider (TSP) Equipment
Manufacturer
Visteon, JCI,
Nokia, Motorola Cellular Provider
(Connection only) Content Providers Customer Value Added Services
911
car location Laz
Trickle Down- Money : Trickle Down- Money Automotive OEMs
Alliance with TSPs to share monthly service fees
Additional revenue from post-purchase add-ons
TSPs
Monthly service fee $8.50 per vehicle Sturtz
Trickle Down- Money : Trickle Down- Money Automotive OEM
$1 per month revenue share
Aftermarket Costs : Aftermarket Costs per unit cost
Clarion JoyrideTM system $3999.97
Less mark-up (operating
expenses / net sales) ($92.27)
Installation (by Best Buy) $149.99
Total: $4057.69
Meinka
Discount Timeline : Discount Timeline High tech products carry price premiums
Average price drops to 54% after one year 07/31/00 through 09/30/02 Pentium III 866 MHz Processor Meinka
Quantity Discounts : Quantity Discounts Market growth will allow significant quantity discounts in the future
Average discount for quantity of 100 is 33% Meinka
Aftermarket Costs in 2006 : Aftermarket Costs in 2006 JoyrideTM price (12/02) $3999.97
Less mark-up ($92.27)
Timeline discount (46%) ($1797.54)
Quantity discount (33%) ($696.35)
Installation $149.99
Total: $1563.80 Meinka
Automotive Costs : Automotive Costs per unit cost
Capital equipment $7.40
Manpower $2.46
Component $545.00
Total: $554.86
Total cost if production began today (12/02)
Based on production quantity of 250,000 Meinka
Automotive Costs in 2006 : Automotive Costs in 2006 Original cost of $554.86
Includes quantity discount
Timeline discount applies to material only
Materials cost $495.00
Timeline discount (46%) ($267.30)
Other costs $59.86
Total: $327.16 Meinka
2006 Cost Analysis : 2006 Cost Analysis Cost to aftermarket: $1563.80
Cost to auto OEM : $ 327.16
Significant room for auto OEM premiums
Current price of upgrade to 6-disc CD changer & MACHTM audio system to Ford Taurus: $530
Similar pricing for telematics package would allow markup of 62% Meinka
Slide77 : Part Two:
Market Growth
Q & A
Slide78 : Part Three:
Market Maturity The Content-Drive Era
(2008 +)
Market Maturity : Market Maturity What is the mission of auto OEMs in the new tech environment?
Appeal of continuous revenue streams
Can the auto OEMs make any money?
Arm’s length coalitions
2008 Telematics Landscape : CONTENT CAR-CENTRIC SERVICES Commodities 2008 Telematics Landscape Maria Garcia
The car as a service platform : The car as a service platform Will the OEMs remain in the driver’s seat? Maria Garcia
Future “non-factors” : Future “non-factors” Trends in 2008 Technological
advances of
“in-car”
Data
processing Prices of
Hardware
and
Software Wireless
Bandwidth,
new satellite
offerings
and
3G Maria Garcia
Changing Success Drivers : Changing Success Drivers Once the original drivers are commoditized, the keys will be content and services Profits Commodity Line Maria Garcia
Evolution follows cable TV : Provide services
where the driver
is unable to
access them Evolution follows cable TV Enhance broadcast
signals in areas with
reception problems New capabilities
beyond broadcast
content
discovered New applications
beyond emergency
responses and
enhanced
cellular phone Telematics hardware,
software and
communications
becomes
commoditized
Alternative content
available:
digital services,
CD quality audio,
telephone,
satellite radio,
infotainment, etc. Maria Garcia TV hardware
and
communications
becomes
commoditized Alternative content
available:
digital services,
ISP service,
and pay-per-view
movies and events
Growth of cable programming networks : Growth of cable programming networks Source: FCC Annual Report on the Status of Video Competition (various years) Maria Garcia
2008 Telematics Landscape : CONTENT Car-Centric SERVICES Streaming
Audio Infotainment Telecom
Services Diagnostics Safety Navigation Advanced Driving Car Specific Commodities Voice Recognition 2008 Telematics Landscape Commodities Shane Lovellette
Commoditized Hardware : Commoditized Hardware Hardware manufacturers will compete as cost leaders and marketing innovators
55% of new cars will have a built-in telematics terminal by 2007
Lear, Johnson Controls and other Tier 1s
US Telematics hardware will be $20 B (2007)
Clarion, Philips, Motorola
Satellite radio (XM) already available from Sony, Alpine, Pioneer and Delphi
Shane Lovellette
Hardware will be commoditized : Hardware will be commoditized In only 4 years, CD-player radios grew from 57% to 92% in new vehicles Source: J.D. Power & Associates Audio Quality ReportSM Shane Lovellette
3G Communications : 3G Communications Next generation of mobile communications
Enhanced capacity, quality and data rates
Concurrent usage of services
“Connects” wireless with Internet
Initially a differentiator
By 2010:
28% of the 2.25 billion mobile cellular subscribers in US will be in 3G
$30 USD / month Avg. Rate Per User (ARPU) Shane Lovellette
Communications : Communications GSM precursor of 3G
an open, evolving & non-proprietary system
high-quality mobile voice and data services
= Network
upgrade path to
3G Shane Lovellette
Communications Commodities : Communications Commodities Shane Lovellette
3G Services Framework : 3G Services Framework Content
Connectivity
(Internet) Personal People Connectivity Location Mobility Information and Content (Non-Voice), Always-on, IP based Voice Access Focused Approach Portal Focused Approach Mobile specialized services Source: Telecompetition Inc. Shane Lovellette
Other Eventual Commodities : Other Eventual Commodities Satellite Communications
Satellite increasing the offering of wireless broadband
DirecTV, Starband
Voice Recognition Software
Current lack of standard
ATT, IBM, Avaya, Motorola, Lucent voiceXML
Text to Speech Capabilities
Potential applications: voice response systems and email reading
Microsoft, Motorola, and IBM Jon Kissau
Operating Systems : Operating Systems Microsoft Windows Automotive - Leading operating system for telematics services by 2008
built on Windows CE
provides the .NET framework
support for Bluetooth enabled devices
Is flexible
Microsoft’s automotive o/s already offered in 12 models produced by five OEMs Jon Kissau
Portal Focus Approach : Portal Focus Approach Telematics an extension of the mobile portal
Mobile network operators will benefit from the cumulative 3G market opportunity:
> $1 trillion over the next decade
Key players:
Content and service providers
Content aggregators portal focus model Jon Kissau
Mobile Portal Content Offering : Mobile Portal Content Offering Safety Security -
Remote unlock,
vehicle tracking Emergency
response Navigation GPS route
guidance Location based
services Real time traffic
reports Car-Centric Remote engine
tuning Engine
performance
downloads Preventative
maintenance
diagnostics Infotainment Download
audio books Streaming
video/games Music on
demand and satellite radio Basic Personalized
news, weather,
stock quotes Email/ voicemail
access Concierge Personal
access to live support Jon Kissau
Content becomes Key Driver : Content becomes Key Driver Telematics evolution resemble Cable TV evolution
Also parallels Internet, computers and mobile communications
Content is King
Both audio and visual media applicable
Sole differentiator
Enhances driving experience
Innovative
content Wayne Lown
2008 Telematics Landscape : CONTENT Car-Centric SERVICES Streaming
Audio Infotainment Telecom
Services Diagnostics Safety Navigation Advanced Driving Car Specific Commodities 2008 Telematics Landscape Content Wayne Lown
Current Content Competition : Current Content Competition Mobile phone companies now competing on content differentiation
On-phone games and ring tones
Graphic downloads and photographic capabilities
“AT&T #121” portal content service
Aggregation of content-on-demand powered by TellMe
Mobile Internet brings vast content to PDAs
Internet sites – Aggregated through AOL & MSN
PDA specific – Aggregated through “Handango” Wayne Lown
Introducing RaVo : Introducing RaVo Customized audio and video streaming
Integrated with telematics for easy use
Entrepreneurs more content and services
Overwhelming amount of content available
Built from TSP network
Wayne Lown
RaVo Consortium DNA : RaVo Consortium DNA Competitive edge over established wireless and Internet companies
Pool individual investments and risk
The airline industry created Orbitz
Cable competitors launched PrimeStar
The Virgin Group has competencies with content and communications
DoubleClick has advertising management
Wayne Lown
RaVo – Streaming Content Flow : RaVo – Streaming Content Flow Virgin & OEMs
free $ Content Database RaVo Audio Video adSertion Filter Wayne Lown
Content Niches : Content Niches Targeted Advertising
Ravo’s “adSertion”
Prime exposure for OEM marketing efforts
Audio Translation Software Provider
Improve global business communications
Powered by Mulinex, Bertelsmann Telemedia
Wayne Lown
Service Niches : Service Niches Audio Based Sales Force Automation
Increase productivity of sales people
Verbal data entry
Location Based Services
GPS-driven directory, advertising and commerce functions
Revenues expected to grow from $5 million in 2002 to more than $167 million in 2006
Jack Behar
Telematics Landscape in 2008 : CONTENT Car-Centric SERVICES Streaming
Audio Infotainment Telecom
Services Diagnostics Safety Navigation Advanced Driving Car Specific Commodities Telematics Landscape in 2008 Car-Centric Services Jack Behar
Slide106 : Consortium of OEMs
Outsourced satellite activation center
Customer service and billing network
Proprietary access to vehicle’s CPU
Dynamic ordering functionality Introducing CarStar Jack Behar
CarStar Model : CarStar Model Jack Behar
CarStar’s Objectives : CarStar’s Objectives Keep in close contact with customers
Optimize vehicle performance
Increase familiarity with premium OEM services and products
Generate supplemental revenue flow including targeted advertising revenue Jack Behar
Slide109 : CONTENT Car-Centric SERVICES Streaming
Audio Infotainment Telecom
Services Diagnostics Safety Navigation Advanced Driving RaVo CarStar Car Specific MCommerce Directory Commodities Jack Behar
Market Maturity : Market Maturity What is the mission of auto OEMs in the new tech environment?
Appeal of continuous revenue streams
Can the auto OEMs make any money?
Arm’s length coalitions
Slide111 : Part Three:
Market Maturity
Q & A
Exhibits : Exhibits
More Ryan Veety Pictures : More Ryan Veety Pictures Copyright 2002 Ryan Veety
http://www.ryanspc.com/carmp3
More Chris Bergeron Pictures : More Chris Bergeron Pictures Copyright 2002 Christopher Bergeron
http://www.dashpc.com