Unlocking the full potential of OEMs with telematics

‘When compared to other industries, such as consumer electronics, the automotive industry moves relatively slowly. Historically, for the incumbent automotive OEMs, there has been a five-year development cycle for new vehicle introduction and a two-year cycle for limited platform upgrades. Initiatives like Software Defined Vehicles (SDV) are focused on addressing these long development cycles with more efficient use of R&D and reuse of vehicle platforms; however, in general, for the broader market, the SDV has not yet arrived. That said, emerging Chinese automotive OEMs who have been able to design EVs starting from a clean sheet of paper appear to be able to reduce the design cycle from five years to two years.’

Robert Bielby, TechArena

The Automotive Industry has a deserved reputation for its robust, dynamic, and highly sought after supply chain. When I was first involved (NAVTEQ Maps, Tier 1 supplier) there was an accepted five-year cycle in Platform evolution. No longer. And digitalization (broad term: IoT, blockchain, data analytics etc etc) a key part. And most certainly changing ways of thinking and looking at things. Some consensus on key trends:

• Connectivity
• Electrification
• Sustainability
• Global vs Local (dare I mention the T word(s)?)

For Telematics Solutions Providers (TSPs), whose expertise runs the full gamut from stolen vehicle tracking through diagnostics to usage-based insurance, the apparent opportunities in moving from Aftermarket to Supplier require considerable evangelism, testing, pilots and improvement, and flexibility and patience! All of which are both necessary and positive.

I have fond memories of the NAVTEQ Toyota team, lead by my friend Rich Shuman, spending weeks and hours and days and nights to create and deliver a mapping solution as a first Tier 1 in that category. Certainly, three of the trends identified above can be supported by TSPs. Our birthright is in sensors and signals; data science led innovation in driver behaviour analysis and coaching, in claims fairness and efficiency, and now in a view on greener driving.

To quote Taiichi Ohno, Father of the Toyota Production System (TPS):

‘If you are going to do TPS you must do it all the way. You also need to change the way you think. You need to change how you look at things.’

So let’s do more, and let's do it better and faster! Let’s change ways of looking and thinking, and create accelerated digitalization for the benefit of businesses and drivers and indeed our planet.