Internet of Things (IoT) can enable new approaches to driving and potentially new business models. Indeed, while taxi drivers couldn’t see Uber coming, car manufacturers can see self-driving coming. Beyond Uber, connected cars may be the most familiar example of IoT related technology.
Connected cars, autonomous driving systems, artificial intelligence and cloud computing are driving huge changes for car manufacturers. IoT has had a hand in all of these.
IoT related technologies are going to redefine the automotive industry. Car manufacturers are now finding themselves operating in an environment where they need to keep an eye on the likes of non-traditional competitors like Tesla, Google and Apple. Two of these companies didn’t exist 20 years ago.
Potential new business models emerging from Internet of Things technology:
- A landscape of connected cars could lead to a significant uptake in autonomous vehicles. It can communicate with other vehicles, traffic management systems and sensors in the road to manage safety and optimise journey routes.
- IoT can and perhaps is turning car manufacturers into technology companies.
- Like the GE example, sensors in cars can create new services models. It will give owners a better understanding of how their vehicles are running and predict potential breakdowns.
- Internet-enabled sensors in cars can also monitor driver behaviour. So also, it can be used by insurance companies to charge more appropriate premiums.
- Car mobility data could be used by marketers to figure out ways to target drivers / passengers with personalised offers.
- Companies which have entertainment platforms, might make money from selling in car services and entertainment. This makes sense if passengers aren’t actively involved in driving and so can spend time on other pursuits.
- If a connected car can recognise that something is wrong, it can diagnose the issue. And then it can optimise the driving experience to manage the issue. For example, it could turn off air conditioning to conserve energy. It could also communicate with other cars around it to identify that there is a potential issue and also find the closest service centre.
In fact, a new connected landscape could lead to an end to car ownership altogether as more and more peer-to-peer services proliferate. In London at least, there are ZipCars in many neighbourhoods.
As well as new opportunities, car manufacturers will also need to think about software security and the risk of being hacked.
That changes the paradigm for tactical marketing in terms of producing communications not just about car performance and safety but also cyber security.
Source: e-consultancy (8 Dec)
