Even the connected car hasn’t come to dominate the road yet, the concept of machine-to-machine (M2M), machine-to-infrastructure (M2C) has hit the mainstream in telematics industry. The topics of automobile telematics have been widely publicized – whether it is usage based insurance, cars with in-built infotainment system or safety features. The car manufacturers (OEMs) and technology companies are trying to distinguishing core offerings as it is more important than ever (Perraudin, 2013).
- Enhanced Safety Application
Customers are reluctant to pay for additional services in subscribe voluntary e-Call across Europe. The adoption rate has been improved due to the fact that E.U mandates e-Call to reduce accidents. It is a sign that relevant authorities are very serious about technologies that improve road safety. “Things like vehicle tracking and diagnostics, and roadside assistance aren’t widely known about at the moment, but once they are, people will come to expect them in their cars,” says Dominique Bonte, vice president and practice director at ABI Research.
Jack Bergquist, a senior analyst in automotive infotainment at IHS, adds that services like real-time traffic information, fuel pricing, weather updates, live POI (point of interest) searches and more accurate navigation are also “pretty central to the offering.” Another area that OEMs are providing to customers with connected customer relationship services, as these help build more direct relationship with customers. An Alert or message can appear on the dashboard to remind driver the next service or providing information for the nearest dealership.
- Target Niche Market
Usage Based Insurance is a great service for certain high-risk categories. It is not as beneficiary to an average driver. According to Bergquist, prices need to be maintained in order to maintain profit margins. One of the benefits of the connected car is that you can create a vehicle that is customized to individual needs; there are services in the safety and security, infotainment, road-side assistance, pre-heating/cooling that might appeal to some drivers.
- Ready for more platforms
Business is changing so rapidly that OEMs shouldn’t just commit to one platform without having the ability to refresh user experience. Smartphone integration can be invaluable to OEMs in terms of managing in-vehicle apps. Drivers can remove apps from the head unit by deleting the app on the phone. With in-vehicle connectivity, OEMs can also open themselves to more possibility of having a continuous upgrade without ever having to change the embedded hardware.
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Perraudin, F. (2013, October 1). Telematics and apps: Identifying trends from the trendy. Retrieved December 26, 2013, from Telematics Update : http://analysis.telematicsupdate.com/infotainment/telematics-and-apps-identifying-trends-trendy