Innovative Auto CEOs, CTOs, CIOs Must Grab the Connected Vehicle Opportunity: Gartner

Burney Simpson

All bets are off.

The communications technology of connected vehicles is reaching a level of sophistication where business and government leaders must begin to rethink transportation systems and the way citizens interact and travel, according to a new report from Gartner Inc. Vice President and Analyst Thilo Koslowski.

The report speaks to auto industry CEOs, CTOs, and CIOs, contending that connected, or autonomous, vehicles have entered their fourth and most innovative stage of development, or what Koslowski calls the Internet of Cars.

Governments can use “mobile devices to capture traffic information, pollution data and people movements to define smart cities. … (and society) will be able to offer mobility to everyone, regardless of age or mental and physical capabilities.” Vehicle accidents will be minimized, and some jobs may be eliminated while others grow.

There will be new opportunities for monetization such as “on-demand, driverless cars that are paid for by the trip (that) will compete with traditional ownership-centric approaches.”

LEADING THE CHANGE

Auto industry leaders can stay ahead of the game by taking steps for external and internal audiences, according to Koslowski.

• Understand that vehicles will become a type of digital ecosystem where a mix of businesses can market a variety of products and services. That means there will be new customers beyond the traditional driver-owner so consider collaborating with non-traditional partners that can deliver content and other experiences into the automobile.
• “Prepare your organization and partners to take advantage of real-time, connected-product and connected-customer insights that lead to consistent and integrated digital content and services offerings. … (C)apture real-time customer and product insights that can be shared across your internal and external stakeholders.”
• These new vehicles and new partners could mean a radically different auto industry.

The report ‘Master the Four Stages of Connected Vehicle Evolution to Lead the Renaissance of the Automobile’ lays out the overlapping stages of development that Koslowski introduced in 2009. Briefly, they are:

2000-2010 – Telematics with a focus on specific functional safety and security offerings;

2008-2018 – Device-to-Vehicle brought integration of mobile devices and cloud-based apps;

2012-2025 – Digital Lifestyle Convergence means the consuming, creating, and sharing of digital content while in the vehicle;

2014-2030 – Internet of Cars brings “cross-industry IoT opportunities for businesses, governments, societies and consumers, and lead(s) to the rebirth of the automobile.”

Koslowski notes that the stages are fluid and overlap, and individual firms and organizations may experience them in different ways.