Roland Berger_Heidingsfelder

Telematic‟s key challenges 1
The consumer challenge! • Acceptance of telematics in a vehicle per market segment
2
The smart/safe communication challenge! • Solve today‟s consumer problems • Manage distraction • Avoid further government regulations to manage distraction •…
1
Consumer demand will vary according to region and will predict „first hand‟ the success of telematics solutions
The consumer challenge
1.Smart and safe communication and information Prioritized end user needs 2.Safety and emergency support 3.Traffic and navigation support
3
The alliance web challenge! • Nobody can win this race alone! • Don‟t think in competitor categories • Select cooperation partners • Alliance web management •…
Telematics will provide opportunities to use the time effectively while driving a vehicle „anywhere anytime‟
Current and future telematics portfolio
Information • General news • Customized news • Points of interest Navigation and Traffic • Basic navigation • Dynamic navigation • Traffic information
Telematics
Will telematics primarily
become an important customer relationship tool?
… and/or a tool to improve our internal efficiencies?
How should these services
What are the most promising market segments? What are the consumer preferences? What kind of features and services will the consumer request? Should these services be provided by an independent service provider or as part of an alliance network?
The smart/safe communication challenge
The problem: driver distraction Federal safety regulators Federal safety regulators in most countries launched major investigation into cell phone usage when driving Some countries forbid drivers to use mobile phones at all Cell phone distractions have been compared to the risk posed by legal intoxication
• Perceived image
• Preferences for select services • Perceived value • Price sensitivity • Revenue erosion •…
Source: Roland Berger - Strategy Consultants 7 Document number / Revision date
M-Commerce • Banking • Shopping • Concierge services
Telematics
Non-car specific features
Mobile Communication • Mobile phones • PDAs
Safety/Emergency • Automatic airbag notification • Emergency call • Roadside assistance Service/Maintenance • Remote diagnostics • Warranty failure detection
2
The technology dilemma! • Vehicle connectivity • Embedded vs. mobile data • Existing device integration • Life cycle and innovation rate •…
3
The “man-machine interface” dilemma! • Smart in-vehicle integration • Screen(s) • Voice recognition
Worldwide end-user telematics revenues1) 2000-2010 [US$ bn]
49
+28.5 % p.a. 30
US
19 Europe 10 4 Japan
2002 2004 2006 2010
2000
Source: UBS Warburg
1) Excluding hardware; only incremental airtime
Telematics Success
Source: Roland Berger - Strategy Consultants 8 Document number / Revision date
2
Helping the consumer to deal with today‟s problems of „safe communication‟ needs to be a premier task
3 Document number / Revision date
Our research scenarios are also predicting a significant global market volume of more than US$ 25 bn by 2010
Worldwide end-user telematics revenues1) 2000-2010 [US$ bn]
• Commands/ menu tasking
• Ergonomics •…
Source: Roland Berger - Strategy Consultants 5 Document number / Revision date
More important is to first select the right focus for a successful overall telematics strategy
1.Traffic and navigation support 2.Safety and emergency support 3.Smart and safe communication and information
1.Traffic and navigation support 2.Smart and safe communication and information 3.Safety and emergency support
But the real key issues of telematics are not primarily growth, technology, MMI or infrastructure
Telematic‟s key dilemmas 1
The growth dilemma! • Number of subscribers • Monthly fee and/ or on-demand subscriptions
4ห้องสมุดไป่ตู้
The business model challenge! • Real benefits of telematics • Strategic goals and objectives • Revenue and profit pool opportunities and sharing • Telematics service branding •…
Telematics: The next big hype? Promise, Potential, and Risks
The Management Briefing Seminars – Session II Michael M. Heidingsfelder Partner and Executive Vice President Traverse City, August 6, 2001
+29.0 % p.a.
25 14 6 2
2000