Automotive Academy Styria

Connected CarSearching for successful business models

Jurgen Moerman, CEO

GrazJune21st, 2012

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Founded 2009

Offices in NLD (Eindhoven/Best & Valkenburg) and USA, Ca (Santa

Rosa)

Tarriffic’s core competence can be summarized into 3 steps:

To develop soft-, hardware, and data management solutions for

1.generic devices (smartphones, tablets)

2.to interact with a closed environment

3.in a controlled way

Real time controlling

Connected House, Connected Car, Connected anything….

About ourselves

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To be successful tomorrowyou need to know the history of

Connected Car / Telematics

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Telematics: a troublesome history

First wave 1995-2000

Initiated by OEM’s

Technology driven

No channel strategy

Proprietary solutions

High development and production costs

High admin efforts at Point Of Sales

No business case for user or OEM

Low success rate

Abandoned by most OEM’s

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Telematics: a troublesome history

Second wave 2003-2010

Initiated by ‘Integrators’

Combine existing resources into 1 proposition for OEM’s

Proprietary solutions

Substantial development and operational cost

Users cannot choose content freely (package-deals)

Limited success rate

Rejuvenated via eCall initiative

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Telematics: a troublesome history

Third wave 2010->

Initiated by end-users

Proliferation of mobile high-speed internet

Everything has an IP address

Introduction smartphones

Low development cost

Low operational cost

Generic hardware

Users have free choice

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…meanwhilein the outside world…

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‣ iPhone introduction USA

‣ Revolution: complete turn-around in telephony & computing

2007: Revolution

Hardwaredriven

Softwaredriven100+ Nokia’s and SE’s

Focus on tech spec’sFunctionality embedded Non-upgradeableVery short life cyclesLack of continuity for user

OS determines user experienceFocus on customizationFunctionality is upgradeableHW life cycle 2+ yearsStability for user; migration within platform

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Consequence for mobile solutions

Hardware

Software

Old situation New situation

•Proprietary•Functionality from hardware

EmbeddedLimited upgradesClosed/no ecosystem

tablet smartphone

Generic

Functionality from softwareUpgradeableOpen ecosystem

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Smartphones accelerated Connected Car

But how to make money?

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Key Stakeholders Connected Car

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It’s a crowded marketplace

Stake-holder

s

Telco

ContentHW-SW

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Obstacles for success

Many stakeholders, esp. OEM’s, did not decide their role yet

Commoditization forces many companies to look ‘over the boundaries’

A market standard is needed to attract appealing content

Automotive industry is not capable of achieving this:

-Too many stakeholders

-Too much invested money, often in obsolete technology

-Too many different agenda’s

“…we will co-operate as long as our technology will win…”

Standard will likely come from ‘the outside’

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Who owns the data?

Essential element in current discussion

OEM’s think it belongs to them

Content providers think they at least should have access

EU thinks customers should be in control

Yet to be decided whether the customer can determine this freely

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Connectivity types

Embedded

Tethered

Smartphone

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What users want:

Their own customized environment; everywhere

Regardless of what car they drive

Appealing content

Free choice

Flexibility

Continuity along with platform evolution

No lessons learned

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The way forward

No mainstream standard = No Ecosystem = No Connected

Car

Include safety standards for user interface and system security

Listen to what users want

Smartphones will be an essential part

eCall and smartphones are the ‘pace-makers’

Successful solutions might be surprisingly uncomplicated

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Our Solution

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Thank You / Danke!

Any questions?