Connected vehiclePer Adamsson

DirectorVolvo Group Telematics - WirelessCar

2 2010-12-08

Video

Telematics made easy

Volvo Group Telematics

We connect vehicles and deliver customer value through services and integration

• Founded 1999 as a Joint Venture between Ericsson, Telia and AB Volvo• Today owned 100% by the Volvo Group through Volvo IT • 100 % focus on telematics enabled services (no device development) • Global sites - Europe, Americas, Japan, India and China• ~300 resources• Target customers - The Volvo group companies and car manufactures (OEM’s)

Volvo Volvo Group Telematics -

Volvo Group Telematics

Product & service offering portfolio

Platforms & components

Integrations / customer specific development

Tailor-made solutions and integration

Business consulting

Managed service

En bra bild

Volvo Group Telematics

The “connected vehicle” business growth

0

50

100

150

200

250

300

350

400

450

500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Service delivery in +50 countries, on 4 continents, 1,2 million connected vehicles and growing 4% monthly

Pay as you drive solution

Volvo LINK / Sentry – North America Truck Operation

CareTrack - Volvo Construction Equipment

Dynafleet / OptiFleet – Volvo Trucks, Renault Trucks

Connected Drive – BMW

Volvo On Call – Volvo Cars

UD-Infcormation Services – UD Trucks

Fleet management

ITS4Mobility – Volvo Bus

Audi Connect

Commute Greener – AB Volvo Turn

over

Volvo Group Telematics

A growing connected eco-system

Connected society

Connected dealers & workshops

Connected drivers

Connected OEM &suppliers

Connected fleet operators

Leasing/insurance companies

Goods forwarders?

Content and other service

providers

Volvo Group Telematics

Collaboration, open systems and integration is a key issue!If it fails, it might look like this...

Volvo Group Telematics

Telematics becoming standard fitment– rapid population growth of connected vehicles

Volvo Trucks NA - 2007

VCE EUD/NA/Asia - 2009

Volvo Group Telematics

1Increased Aftermarket /Service

SalesIncreased Vehicle Sales

(ex. Parts, finance, insurance…)

2Quality and risk management

(ex. Warranty, Service contracts , lead-time reduction…)

3Vehicle Management Efficiency

Vehicle centric(ex. Fuel costs, energy, safety…)

4Transport efficiency & convenience

Non-vehicle centric(ex. Navigation, logistics, POI ..)

Revenue(image)

Cost Savings

Customer/Driver Vehicle manufacture /Dealer

Connected Service QuadrantsThe service values

Vehicle/dealer/OEM centric

Driver&

transport operation

centric

Volvo Group Telematics

Vehicle management

Driver timemanagement

Security/safetyservices

DynamicService Planning

Remote diagnostics

Remote SW updates

Navigation &traffic info.

Infotainment(Internet)

Messaging / Social media

Breakdownservices

Vehicle/fleet operator Driver / passengersOEM / dealerworkshops

Goods / people owner/forwarder

CO2 reporting

Goods tracking

Authorities /road operators

Finance / insurancecompanies

Security/safetyservices

Vehicle management

Security/safetyservices

…

Pay-as-you-drive solutions

Traffic, transport management

Driver security(e-call)

Transport management

Services composition per segment Illustrative

OEM services (vehicle centric)

Partner services (3rd party services & aftermarket solutions)

Traffic management

Vehicle management

Volvo Group Telematics

Pay as you drive solution

Volvo LINK / Sentry – North America Truck Operation

CareTrack - Volvo Construction Equipment

Dynafleet / OptiFleet – Volvo Trucks, Renault Trucks

Connected Drive – BMW

Volvo On Call – Volvo Cars

UD-Infcormation Services – UD Trucks

Fleet management

ITS4Mobility – Volvo Bus

Audi Connect

Commute Greener – AB Volvo

Smart phones devicesOpen platform

App

Transforming from partly closed solutions to a hybrid of closed and open solutions

Vehicle integrated & closed-Vehicle centric

Existing

App App

AppApp App

Existing

Partly

closed

solutions/platformsVehicle integrated

Open platformIn

development

App App AppApp

Volvo Group Telematics

1Increased Aftermarket /Service

SalesIncreased Vehicle Sales

(ex. Parts, finance, insurance…)

2Quality and risk management

(ex. Warranty, Service contracts , lead-time reduction…)

3Vehicle Management Efficiency

Vehicle centric(ex. Fuel costs, energy, safety…)

4Transport efficiency & convenience

Non-vehicle centric(ex. Navigation, logistics, POI ..)

Revenue(image)

Cost Savings

Customer/Driver Vehicle manufacture /Dealer

Example 1: Remote diagnostics - Volvo Trucks NA

Volvo Group Telematics

Change of Repair Process

Breakdown Tow Dealerrepair

Dealer issue

Repair process

Fault Code

Volvo Technical Support use the data delivered in real time by Volvo Link to evaluate the vehicle issue before truck comes in for service.

Repair instructions are sent to dealers before the vehicle arrives for service.

Error #1112

Volvo Group Telematics

1Increased Aftermarket /Service

SalesIncreased Vehicle Sales

(ex. Parts, finance, insurance…)

2Quality and risk management

(ex. Warranty, Service contracts , lead-time reduction…)

3Vehicle Management Efficiency

Vehicle centric(ex. Fuel costs, energy, safety…)

4Transport efficiency & convenience

Non-vehicle centric(ex. Navigation, logistics, POI ..)

Revenue(image)

Cost Savings

Customer/Driver Vehicle manufacture /Dealer

Example 2: Mobile apps - Volvo Cars

Volvo On Call – Mobile app integration

SOS/Emergency (e-call) Automatic/manual Breakdown assistance (b-call) Remote door unlock Car alarm alert Stolen vehicle tracking Remote control functions

Lock doors

Car locatorRemote Heater Start

Fuel to empty tank

Warnings

Volvo Group Telematics

Important areas to consider

1. PROCESSES - Users and its related processes in the eco-system

2. VALUE - customer/user values (cost/revenue/image)

3. PARTNERS - make & buy

4. END-2-END INTEGRATION – quality assurance

5. COST – GSM roaming data costs

Volvo Group Telematics