Ever since the first Model-T rolled off the assembly line in Detroit, we have had an insatiable love affair with our cars. Today, the automotive industry acknowledges that we are at an inflection point—a once-in-a-century transition that will rethink, redesign and reimagine the connected vehicles of tomorrow. The successful management of data generated by these vehicles—to enhance user experience and create new revenue channels for OEMs—will be imperative on the road ahead.
Data is not the new oil—it has far more variety and value. This idea was one of many dynamic topics spotlighted at this year’s Reuters Events: Car of the Future 2021. The two-day virtual conference, which ran from June 14-15, put renewed focus on all the technologies driving the biggest changes in automotive. Alongside industry leaders and experts, Cubic Telecom CEO Barry Napier shared valuable insights on how to monetise connected vehicle data successfully. Here’s what unfolded…
‘Car of the Future’
By 2030, connected-car data could add $400 billion in value for industry players. The world’s biggest tech giants including Apple, Microsoft and Tesla continue to dominate this arena, generating enormous revenues off the back of user data. As the automotive industry’s most influential players continue to encroach on this space, they must recognise the opportunity in using data intelligently and follow suit to maintain competitive advantage. Today’s market is rapidly evolving alongside shifting consumer habits, opening up opportunities for automotive OEMs to innovate and cash in for a bigger slice of the pie.
The industry is in the early stages of a new era that will bring data management and monetisation to the forefront—with 5G the ultimate game changer. Software-designed (and defined) vehicles will connect people to the cloud and vice versa, opening up new opportunities to create user-centric experiences representing value—to the customer, to traditional OEMs, and to third-party service providers like Cubic Telecom who possess the technical know-how to extract value from all this rich data.
Driving customer loyalty
Everyone can remember their first car—it’s a piece of nostalgia that is almost universal. In order to regain brand loyalty in an increasingly competitive arena, the challenge now for vehicle manufacturers is to deliver highly personalised experiences for a new class of driver. Driven by digital transformation strategies that answer changing market needs, substantial improvements in the industry’s value chain must be addressed—and it must happen quickly in order to edge out rivals. So, how can automotive OEMs harness the power of the data they collect to upgrade business models for a digitised future? Cubic Telecom offers a software solution that answers many of the industry’s most pressing needs.
Data that works intelligently
Cubic Telecom has made significant steps with its connected software and analytics solutions over the past decade, experiencing rapid growth and building partnerships with influential vehicle manufacturers like Volkswagen and CNH Industrial. With PLXOR, its out-of-the-box data classification service, Cubic offers visibility for OEMs to understand the needs of their customer base, top to bottom.
On the edge of tomorrow
What awaits drivers on the road to the future? At the forefront will be a more integrated and seamless experience made possible by software-defined connected vehicles—offering near limitless potential to customise new products and services. One intriguing example is the transformation of cars into credit cards on wheels, with in-vehicle payments made through cloud platforms for food, parking, fuel and more. By 2023, transaction payments made through a vehicle will total $1 billion, up from less than $100 million in 2020, according to Gartner. That’s a tenfold increase, highlighting the incredible potential for OEMs to create new revenue models. The pulse of this growing ecosystem will be the data flowing in and out of the car. At Cubic Telecom, we provide the data required to offer the right connected services, optimising the driver experience for an industry on the verge of great transformation.
Find out how Cubic Telecom’s PLXOR solution allows vehicle manufacturers to use data intelligently