Connected Cars: Traditional Automobile Industry’s Strive for Relevance
A connected car is an intelligent motor vehicle with in-built internet accessibility, which enables it to interact with a host of objects, such as – smartphones and wearables, city infrastructure such as smart parking and traffic signaling systems, surrounding motor vehicles, home/office automation devices, cloud infrastructure, etc.
The traditional automotive industry is ripe for disruption over the next few years as the sector undergoes rapid transition from existing infotainment systems towards semi-autonomous driver assistance systems, and ultimately, leading to fully driverless technology. This fundamental change calls for a rapid shift in business models of automobile companies from producers and sellers of dumb metal boxes to providers of complete mobility services. The disruption opens up new digital opportunities for automobile companies to explore in the following areas:
1. Customer relationship: Traditional automobile manufacturers can use distributed sensing platform to remotely monitor cars physically located at customers’ site. This helps manufacturers bypass dealers and establish …show more content…
New business models and partnerships: Customers’ rising preference towards ride-sharing would gain momentum as connected driverless cars come into the mainstream (as it eliminates a major cost component i.e. driver’s salary). Declining desire for car ownership calls for innovative offerings by auto companies such as mobility-as-a-service. For an annual subscription fees, they can offer their customers access to a range of vehicles to suit their varying transportation needs ranging from business to leisure travel all-round the year. Auto manufacturers can also partner with ride sharing majors (such as Uber, etc.) and offer customized products such as - easy leasing terms for their drivers, tailor-made in-car apps for the entire fleet, testing grounds for them to enter new ride-share markets,
A connected car is an intelligent motor vehicle with in-built internet accessibility, which enables it to interact with a host of objects, such as – smartphones and wearables, city infrastructure such as smart parking and traffic signaling systems, surrounding motor vehicles, home/office automation devices, cloud infrastructure, etc.
The traditional automotive industry is ripe for disruption over the next few years as the sector undergoes rapid transition from existing infotainment systems towards semi-autonomous driver assistance systems, and ultimately, leading to fully driverless technology. This fundamental change calls for a rapid shift in business models of automobile companies from producers and sellers of dumb metal boxes to providers of complete mobility services. The disruption opens up new digital opportunities for automobile companies to explore in the following areas:
1. Customer relationship: Traditional automobile manufacturers can use distributed sensing platform to remotely monitor cars physically located at customers’ site. This helps manufacturers bypass dealers and establish …show more content…
New business models and partnerships: Customers’ rising preference towards ride-sharing would gain momentum as connected driverless cars come into the mainstream (as it eliminates a major cost component i.e. driver’s salary). Declining desire for car ownership calls for innovative offerings by auto companies such as mobility-as-a-service. For an annual subscription fees, they can offer their customers access to a range of vehicles to suit their varying transportation needs ranging from business to leisure travel all-round the year. Auto manufacturers can also partner with ride sharing majors (such as Uber, etc.) and offer customized products such as - easy leasing terms for their drivers, tailor-made in-car apps for the entire fleet, testing grounds for them to enter new ride-share markets,