W001 - World Visions
Orario 09.30 – 13.00
Sala 4
TECHNOLOGIES, PARTNERSHIPS & BUSINESS MODELS
Developing new value-added services in the navigation markets
3. Automotive Industry
Challenges
• Traditional car business model under threat
• Future alternative business models unclear
4. New rules in Europe ‐ 2003
Block Exemption is gone
– Any vehicle distributor can sell any brand
– Any vehicle workshop can do warranty work on
any brand (if fulfills certain standards)
– Information access to all players
Spares and services
approx. 70% of the profit
5. What happens?
TIER1 New players ‐ wholesalers
14,000 workshops Consolidating the
141 Countries market
6. Consequence
• Less visits at dealers
– First owner
– Second, Third owner
• Less feedback from vehicle status
• Reduced brand loyalty
OEM lose the customer relation
and thus loyalty
14. Internet driven
Services
• Attractive applications are key to success
• I‐Phone business model – revenue sharing was a
winning factor – today adopted by more suppliers
• Market penetration attracts developers (Nokia 41%,
I‐Phone 11%, TomTom?%)
• Need marketing channel – App stores
• Applications needs big volume to give big business
• Car centric services not enough volumes
• Car OEMs have to accept consumer services
16. Conclusions
• Services
– Not always safe to consume
– Not always easy to use
• Business model
– Small market
– Same consumer want one subscription
– Drive bandwidth – restrictions
– Low income for all parties
17. Safe/Secure services
• ECall*
• BCall
• Lock/ unlock door
• Immobilizer
• Honk the horn
* EC –all new cars in Europe must have eCall from 2014
i.e. a telematics platform will be in the cars by default.
29. Summary
Car manufacturers
• Probably few Internet based car adapted services ‐
low income
• Safe and security services are functions ‐ difficult
to charge for
• Controlled ownership services are Marketing Tools
– no income
• Internal business case is a huge profit maker and
decisive for the car manufacturers survival