The Future of Mobility: Intelligent and Interconnected ... · • Connected vehicles • E-mobility...

On behalf of:

WHITE PAPER

Lead analyst:

Joachim Hackmann

PAC Germany, October 2018

The Future of Mobility:

Intelligent and Interconnected.

The Path Forward: Complex.

The Future of Mobi l i ty – Copyright CXP Group, 2018 2

TABLE OF CONTENTS

INTRODUCTION ..............................................................................................3

PAC COMMENT: ENABLING TECHNOLOGIES – AN INVISIBLE INGREDIENT THAT IS CRITICAL

TO SUCCESS ...................................................................................................................................4

MANAGEMENT SUMMARY .................................................................................6

CONNECTED VEHICLES: THE STARTING POINT FOR DIGITAL AND DATA-

DRIVEN MOBILITY ...........................................................................................7

PAC COMMENT: T-SYSTEMS EN ROUTE TO “AMAZONIZING” MOBILITY? ............................................. 11

AUTONOMOUS DRIVING – TACKLING IMMENSE COMPLEXITY IN SMALL

STEPS .......................................................................................................... 13

PAC COMMENT: PLATFORM MANAGEMENT – T-SYSTEMS HAS EXPERIENCE WITH TOLL

COLLECT ..................................................................................................................................... 17

E-MOBILITY: IT’S ALL ABOUT INDIVIDUAL ENERGY MANAGEMENT ........................ 19

PAC COMMENT: TELEKOM AS A CHARGING INFRASTRUCTURE OPERATOR? A SURPRISING

MOVE .......................................................................................................................................... 21

SHARED MOBILITY: THE OEM AS A SERVICE PROVIDER WITHIN ITS OWN

ECOSYSTEM.................................................................................................. 22

PAC COMMENT: SHARING CONCEPTS REQUIRE INTEGRATED MOBILITY SERVICES .............................. 25

SMART CITIES AND SMART LOGISTICS: MORE EFFICIENCY AND

SUSTAINABILITY ............................................................................................ 26

PAC COMMENT: T-SYSTEMS IS A TOP PROVIDER IN THE AREA OF SMART TRANSPORT .......................... 28

SUMMARY: THE MOBILITY OF THE FUTURE WILL BE SMART, COMPLEX AND

INTEGRATED ................................................................................................ 29

APPENDIX .................................................................................................... 32

DISCLAIMER, RIGHTS OF USE, INDEPENDENCE AND DATA PROTECTION ............................................ 32

ABOUT T-SYSTEMS ........................................................................................................................ 33

ABOUT PAC .................................................................................................................................. 34


The Future of Mobility:

Intelligent and Interconnected.

The Path Forward: Complex.

Joachim Hackmann,

Principal Consultant – Digital CX & IoT

September 2018

INTRODUCTION

Advances in mobility have reached new heights. Having centered previously on means of

transport capable of ever-increasing speeds, distances and passenger comfort, the main

focus of future efforts will be greater intelligence. Modern technology will make t he ways

that people reach their destinations more flexible, environmentally friendly and needs -

oriented.

This development is particularly apparent when it comes to the multi -modal transportation

of people, which combines all manner of means. These range f rom rental (e-)bikes, self-

driving vehicles, buses, trains, and airplanes to inter -modal solutions from car sharing com-

panies, OEMs and other mobili ty service providers. Ultimately, i t i s a question of defining

mobil ity as a service (MaaS).

Fierce competi tion regarding this business model has already broken out among an ex-

tremely diverse set of parties. In PAC’s view, the most important of these are the global

digital corporations (e.g., Apple and Google), the automobile manufacturers that oper-

ate around the world and, as a result of their close customer contacts, global and local

telecommunications providers and transportation service providers such as public

transport companies.

In cooperation with T-Systems, PAC has structured the complexity of this topi c and defined

five application cases relating to mobil ity as a service (MaaS):

• Connected vehicles

• E-mobil ity

• Shared mobil ity

• Autonomous driving

• Smart cities/smart logistics

For this white paper, PAC held more than a dozen expert discussions with represe ntatives

of cities, start-ups, suppliers, OEMs, research insti tutions, T -Systems, and Deutsche Tele-

kom AG. The paper presents the results in consolidated form and aligns them with the

portfol io of T-Systems and Deutsche Telekom AG (hereinafter referred to as Telekom).


PAC COMMENT: ENABLING

TECHNOLOGIES – AN INVISIBLE INGREDIENT

THAT IS CRITICAL TO SUCCESS

However, before we delve deeper into the individual areas of applica-

tion, we would l ike to address a remarkable and recurrent finding from

the interviews we conducted: the people we spoke to did not want to

talk about technology.

We could have predicted this, really, since we spoke with managers

from business areas, from product development and from strategy

boards. Nevertheless, we were intent on finding out their opinions on

technologies in areas l ike connectivity, security, the cloud and man-

agement platforms.

But the recurring message from the conversations was: the technolog-

ical basis must be established and functioning in a secure, rel iable

manner.

Our discussion partners were much more interested in talking about

new business models, new services and new products. Here, you could

truly sense their interest in innovations and their enthusiasm for new

developments.

But what does the lack of interest in the aforementioned technologies

mean for T-Systems? Are i ts offerings being marginalized into insignifi-

cance?

We believe the opposite is the case. For years, PAC’s analyses have

been emphasizing the importance of enabling technologies for digital

transformation in all industries and application scenarios.

Connectivity, security, platforms and cloud computing are key ena-

bling technologies in the T-Systems and Telekom portfol io. The abil ity

to offer all of this from a single source and integrate i t into the cus-

tomer’s ICT/systems landscape is an important attribute of T -Systems,

as this is the only way to ensure digital services that are secure and

reliable. After all , one thing is also clear: people responsible for busi-

ness (like our discussion partners) only start talking about enabling

technologies when they cause problems or fai l .


Fig. 1: Connected vehicles – market development software and IT services

Over the coming years, PAC expects a sharp increase in demand

for software and IT services related to connected vehicles in

Germany.


MANAGEMENT SUMMARY

The competition for mobile customers will be determined based on ac-

cess to data because analyzable information about usage behavior is

the key to tailor-made mobil ity services. Internet companies and pro-

viders of telecommunications and mobili ty services can access infor-

mation relating to mobile devices (today, these are usually

smartphones). OEMs, for their part, have secured access to automobile

data. The question of ownership, however, remains open: who has sov-

ereignty over these data?

The competition will be fought wi th a wave of innovations. Meanwhile,

i t i s clear to all those involved that they cannot compete effectively

alone; the mobili ty services of the future will incorporate a diverse

range of business models, processes, platforms and technologies.

Digital technologies and agile methods are essential i f the vision of

user-friendly, convenient mobili ty services is to be brought to l ife. Sen-

sors, big data analytics, 5G, WLAN, cloud and edge computing (as well

as digital , mobile customer interfaces) are some exampl es from the

area of technology. Agile development, DevOps and design thinking

are among the methods used for digital projects.

Cross-industry ecosystems are required in order to offer and operate

suitable infrastructures, mobile apps, applications, service s, and busi-

ness processes. Only complete integration will allow future concepts

to be realized which will completely redefine mobil ity (among other

areas). For instance, basic transport could be operated as a service,

which would give passengers the option to pay extra for greater com-

fort, a shorter journey, guaranteed punctuality, or environmental

friendliness.

Complex and diverse business models are emerging. Traditional OEMs

and suppliers need to re-orientate themselves without neglecting their

current business in the process. Cities need to digitize their infrastruc-

ture to make inner-city passenger transport and deliveries more envi-

ronmentally friendly. Scores of service providers, start -ups and digital

groups will bring enti rely new services to the market, putting pressure

on the traditional top dogs.

T-Systems supplies end-to-end solutions, and its parent company pro-

vides corresponding expertise in the mass processing of (invoicing)

data along with a modern network infrastructure. T -Systems in turn can

draw on extensive expertise in the automotive field, direct access to

the required enabling technologies (cloud, security, 5G) and extensive

knowledge and partnerships in the areas of platforms and analytics.


CONNECTED VEHICLES:

THE STARTING POINT FOR

DIGITAL AND DATA-DRIVEN

MOBILITY

The connected vehicle is no longer a futuristic vision. I t has already

taken to our streets with names l ike COMAND Online, Mercedes me,

BMW ConnectedDrive or Audi connect. In addition, vendor-independ-

ent retrofi t options such as the Digital Drive solution from T -Systems are

also available for connecting older vehicles. These matchbox-sized de-

vices collect data through an OBD2 interface in the car and transfer i t

via SIM card. Users can control and process this data with an app.

OEM solutions provide functions such as Internet access in cars, stream-

ing services, location-based recommendations, navigation, and tech-

nical status displays (ti re air pressure, oi l level, charging status of e -

vehicles, etc.). Some manufacturers supplement these services with

premium concierge services.


THE SOFTWARE DEFINES THE VEHICLE

The solutions available today are far from ful ly exploiting the potential

at hand and l iving up to related plans and visions, however. These vi-

sions include trucks driving in convoys (or “platooning”, as the experts

call i t) in which they are virtually interl inked, which enables them to

drive autonomously behind the leading vehicle to reduce fuel con-

sumption and allows their drivers to take breaks. With “see-through”

functions, cars use the cameras of vehicles ahead of them to recog-

nize hazards earl ier. Vehicles can also coordinate their driving maneu-

vers amongst themselves by means of multi -directional car-to-car com-

munication.

OEMs and suppliers are particularly interested in data on vehicle wear,

including as a means of arranging preventative repair appointments

with owners, for instance. In the future, digitization will penetrate ever

further into the core areas of vehicles – as software begins to deter-

mine their properties and functional scope, for example. These are re-

ferred to as software-defined vehicles.

“Technology is already available for software-

defined vehicles that enable drivers to activate

certain functions and pay for them based

on use – for example, when they use streaming

services in the car or automatically charge tolls

to their bank accounts.”

Jörg Tischler, Vice President of Connected Mobility,

Customer Solutions at T-Systems

CONNECTED CARS NEED SENSORS, CONNECTIVITY,

DATA AND A HIGH LEVEL OF SAFETY

OEMs and tier-one suppliers are already working on improving the mass

processing of data on their platforms in order to establish digital mar-

ketplaces on the basis of this data. Notable examples are BMW Car-

Data and Bosch Caruso. Independent content providers can use these

marketplaces to offer local, customer-specific services (fuel price

comparisons, guidance to charging stations, advertisements for sales

campaigns, etc.). “The greatest challenge in setting up such market-

places is the variation in the vehicles. There are no uniform architec-

ture or standardized data models,” says the development director for

connected cars at a large German OEM, explaining his observations

to PAC.


WHERE STANDARD SOLUTIONS REACH THEIR LIMITS

Cloud-based standard solutions exist for such platforms, for example

the AWS Connected Vehicle Solution or the Microsoft Connected Ve-

hicle Platform; however, since the platforms affect a company’s core

business on a profound level, they are often developed individually on

the basis of private cloud installations. One possibil ity would be for

standard platforms to provide functions that do not promise competi-

tive advantages, but are nonetheless necessary (for example to

open/close doors). For the foreseeable future, many components re-

lating to connected vehicles will nonetheless rely on manufacturer -

specific development and integration tasks.

“Our development partners are required

to understand the business aspects.

It is important to have an overview of the entire

distributed system, from connectivity to the

content provider.”

Development director for connected cars

at a global OEM

CONNECTIVITY AND SECURITY ARE CRITICAL UNDER-

LYING TECHNOLOGIES

Of course, the basis for networked cars is end-to-end network availa-

bil ity. Generally, the performance of the current LTE network is suffi-

cient. However, should the aforementioned more extensive plans for

connected cars be realized, 5G functions would be required for certain

application cases. The new mobile communications standard provides

increased bandwidth, lower latency times and precise positioning

down to the centimeter. Moreover, 5G network management supports

the definition of logical user groups. “Viewing 5G simply as a new wire-

less interface ignores a host of advantages over LTE. 5G can implement

enti rely new online features which are extremely useful , especially for

connected cars, autonomous driving and new mobility services,” em-

phasizes Prof. Dr. Johannes Springer, head of the 5G program for the

automotive sector at Deutsche Telekom.

IT security will be a particularly important component. Hackers in the

USA have already demonstrated in the past how they can hijack cars

from a distance and control them remotely – a worst-case scenario for

every driver and car manufacturer. To ensure that this is not repeated

(or never occurs in the fi rst place), OEMs and their suppliers are focus-

ing a huge amount of effort and energy on developing new security

solutions and operating secure cloud and IT environments. However, IT

security is not the only issue. Securely programmed software that

leaves no potential doorways open for attack is also required.


Data for the mobility of the future

The competition surrounding connected cars is also a competition for access to data. The auto-

mobile manufacturers are in the best position here because – provided the drivers in question have

agreed – they have access to extremely detailed information on vehicle profi les, hist ories, statuses

and driving behavior. Other market participants have to gain access via the ODB2 interface (which

provides less detailed data) or can at least track driving behavior and movement profi les via

smartphones.

Meanwhile, the EU wants to make data access easier in order to improve competition among

service providers in the area of networked vehicles. In a strategy paper, the European Commission

writes that i t considers the OEMs’ current implementations for what are known as “extended vehi-

cle data platform servers” to be insufficient for fair and unhindered competition. I t can therefore

be assumed that the European Commission wil l recommend that the EU make it easier to access

vehicle data for commercial and non-commercial purposes.

Even then, however, the issue of data handling will remain delicate, difficult and complex. For

example, the starting point for data protection legislation is that the customer has given consent,

which places strict l imits on the processing of personal data. Furthermore, the new General Data

Protection Regulation stipulates transparency and an obligation to provide information when sav-

ing personal data, which in turn will result in extensive investments in data governance at compa-

nies.

For the moment, the peak of complexity arises from the fact that the vehicles are manufactured

for the international market and – as a source of data – are thus subject to different legislations.

This is one of the reasons why OEMs are currently cautious when it comes to actu ally collecting

data.


PAC COMMENT: T-SYSTEMS EN ROUTE TO

“AMAZONIZING” MOBILITY?

In PAC’s recently published RADAR “C&SI for IoT Solutions in Europe

2018” and the separate sub -section “Connected Vehicles”, T -Systems

and Deutsche Telekom AG (DTAG) together were ranked in the top

category, “Best in Class”. T -Systems/DTAG earned this distinction

thanks to their above-average marks for expertise and market strength

in consulting, as well as for the integration of connected vehicle pro-

jects. This strong result should not come as a surprise. After all , T -Sys-

tems is anchored in the German automobile industry l ike no other IT

service provider due in part to strategic partnerships with companies

such as BMW, Daimler and MAN.

Fig. 2 Deutsche Telekom/T-Systems’ ranking in the PAC RADAR C&SI for IoT

Solutions in Europe 2018 – sub-section “Connected Vehicle”

Deutsche Telekom and T-Systems performed above average in the PAC

RADAR shown above. The evaluation was based on expertise and mar-

ket strength in consul ting and system integration (C&SI) in the field of

connected cars. In the following evaluation cri teria, Deutsche Telekom

and T-Systems even achieved a ranking that was far above the average

(reflected by their lead of more than 0.5):

• Strategic focus and activities in this IoT segment

• Number of consultants in Europe in this IoT segment

• Current customer access and relationships in this IoT segment

• Number and quality of customer references and l ighthouse projects

in this IOT segment

• Revenue in the area of IOT C&SI in Europe in this IoT segment


Another reason for their excellent result is the combined strengths of T -

Systems and Telekom. They bring volume business in telecommunica-

tions together with the industry expertise of a B2B provider whose core

competencies include fast and agile implementation of digital pro-

jects and integration of enabling technologies as part of end -to-end

solutions. The two companies’ collaboration with strategic partners

from the automobile industry has already resulted in innovations such

as the Mercedes me Adapter and BMW’s Hotspot Drive.

But the connected vehicle is not simply an intelligent means of

transport; above all , i t is the basis for data-based business models. To-

day we can only imagine all the things that are possible, and their

actual implementation will certainly usher in completely new and sur-

prising services and offers. The basis for this will be data analysis and

interpretation.

Against this background, T -System’s plan to align i tself with neutral

thi rd-party providers by means of a platform for trading mobil ity data

makes perfect sense. The particularly interesting thing about a neutral

platform of this kind is that i t can bring data sources together and is

not bound to individual brands or modes of transport. This would, for

example, allow the implementation of recommendation engines for

mobil ity that would be similar to Amazon’s purchase suggestions. Cer-

tain behavioral patterns and l iving si tuations would result in specific

recommendations – for mobil ity services as well as for car purchases,

as acquiring one’s own car will continue to play a key role for the fore-

seeable future.


AUTONOMOUS DRIVING –

TACKLING IMMENSE

COMPLEXITY IN SMALL STEPS

In Germany, there are a number of trial routes and test si tes where

experience is already being gathered with self -driving vehicles. At the

end of 2017, the city of Munich tested a battery -operated, self-driving

shuttle bus, and the city of Hamburg has plans to perform a test in the

near future with networked buses that are to reach speeds of up to

50 km/h. In the Bavarian town of Birnbach, an autonomous bus from

Deutsche Bahn has been added to the local public transport options.

Although it is a huge hit with technology experts, after some initial in-

terest i t is now simply ignored by many citizens: the bus drives at around

3 to 4 km/h, making it slower than the average pedestrian. In other

words, it is a good test object, but has achieved only l imited ac-

ceptance as a means of transport. Such test projects are aiding OEMs

and suppliers as they work to recognize and resolve unexpected l imi-

tations.

“You can’t research all the causes of potential

errors in a lab. Eventually, you have to perform

practical tests with self-driving vehicles.

Even after five million virtual test kilometers,

you might not run into some trivial, every-day

problems.”

Head of strategic sales for autonomous driving

at a supplier


At the same time, OEMs and suppliers are developing numerous inno-

vations in the area of commercial vehicle fleets. Distance control and

parking assistance systems are just two examples of incremental im-

provements towards autonomous driving, which provide level -two au-

tomation on the five-level SAE scale. Fully autonomous driving requires

level-five automation.

INVESTMENTS IN THE BILLIONS AND NEW

TECHNOLOGY PARTNERSHIPS

These new features aim to provide greater comfort when driving. Fully

automated driving, on the other hand, can result in new business po-

tential , for example when driverless mobili ty services start being used

in both the national and international transport of goods and passen-

gers. This also explains the massive investments being made in this seg-

ment.

• According to reports, Google has already spent at least 1.1 bil-

l ion dollars on i ts Waymo project, which is now operating as an

independent company.

• At the beginning of 2017, Ford announced that i t was investing

a bil l ion dollars in the start-up Argo AI, which was founded by

former Google and Uber employees.

• Intel, meanwhile, took over the company Mobileye for 15 bil -

l ion dollars in order to develop a platform for autonomous driv-

ing.

The l ist continues with companies such as GM, Uber, Daimler, Samsung,

and Bosch, which are in competition with one another, but frequently

cooperate as well. An example of this is the Autonomous Driving Cam-

pus in Unterschließheim (near Munich), where BMW is working on self -

driving cars together with Intel , Fiat/Chrysler and other specialists. The

Munich-based BMW group has announced that i ts iNext model will en-

ter series production in 2021. I t will be electric and capable of driving

autonomously on freeways in accordance with SAE level three.

AUTONOMOUS DRIVING PLACES GREATER TECH-

NICAL DEMANDS ON VEHICLES

In essence, self-driving cars are simply supercharged connected vehi-

cles. After all , the technical requirements self -driving cars need to

meet in order to reach the maximum automation level are immense.

Currently, OEMs are primarily focusing on upgrading the on -board in-

tell igence and sensors in vehicles to enable them to respond to unex-

pected traffic si tuations within a few mil liseconds. In the worst case,

an incorrect decision here could result in injury to the people involved.

However, the l imits of this procedure become most apparent in ad-

verse weather conditions: today’s sensors cannot handle rain, snow or

fog. Here, centralized cloud infrastructures are to offer assistance by


giving vehicles access to information regarding road conditions. Tesla

is considered the pioneer in this approach.

At the same time, access to centralized data always has the disad-

vantage of longer latency times, which are unsuitable precisely when

it comes to real -time requirements. Although the future mobile com-

munications standard 5G will be able to close this gap in many si tua-

tions by guaranteeing reliable quality with regard to latency times and

bandwidth, not even an assured quali ty of service (QoS) can help defy

the laws of physics – even with 5G, the latency times are simply too

long for certain real -time requirements.

Fig. 3 The six levels of autonomous driving (AD)

Level 0/ No automation The driver drives independently.

Level 1/Assistance systems The driver can partially rel inquish control , for example to distance

control systems.

Level 2/Partial automation Functions are comparable to an autopilot system; the driver must

be able to intervene at all times.

Level 3/Conditional The vehicle can handle si tuations automation independently; the driver

does not need to be able to intervene at all times.

Level 4/High degree of AD The car drives autonomously; the driver can sleep depending on the

weather, available map material and road conditions.

Level 5/Full automation The vehicle drives autonomously.


AUTONOMOUS DRIVING REQUIRES INTELLIGENT

INFRASTRUCTURES

Against this background, i t is increasingly becoming clear that auton-

omous driving in accordance with SAE levels four and five wil l not be

possible without decentralized sources of information. “Take a look at

China. The self-driving cars there are equipped with very l i ttle intelli-

gence. Instead, i t is the infrastructure that is intelligent,” points out the

development director for connected cars at a major German OEM. The

concept of an intell igent infrastructure builds on the notion that ful ly

autonomous vehicles must also be able to respond to external factors.

So why not collect and pass on information right where disruptive fac-

tors (such as animals on the road or black ice around the next corner)

actually happen? If necessary, this could be a supplement to a vehi-

cle’s on-board sensors, which have a l imited range.

EDGE COMPUTING: INTELLIGENCE IS FOUND

ON THE ROADSIDE

Another key technology in this context is referred to as edge compu-

ting. Here, the idea is to install tiny data centers at useful intervals

along the roadside, where they use their sensors to observe road and

weather conditions, traffic and mobile objects in their surroundings,

and then provide the resulting data to nearby vehicles. Some of this

data is analyzed and transferred directly on-si te, while other infor-

mation is correlated with central data. This al l sounds rather complex

and expensive, but i t doesn’t have to be: “This could involve plug -and-

play boxes with a few sensors, intelligence and connectivity, which

could easi ly be installed along the side of the road. If the boxes were

to be mass produced, the price would also be attractive,” says Man-

zoor Ahmed Khan, director of the Competence Center “Network & Mo-

bil ity” (CC NEMO) at the DAI Laboratory in Berl in and project lead for

the test installation DIGINET-PS, which is currently testing edge compu-

ting on a 3.7-ki lometer stretch including two traffic circles in the heart

of Berlin.

“For fully automated driving, we need another

level of decision-making.

Edge infrastructure slots in between

central cloud intelligence and the decentralized

intelligence in the car.”

Dr. Manzoor Ahmed Khan,

Director of the Competence Center “Network &

Mobility” (CC NEMO) at the DAI Laboratory in Berlin


PAC COMMENT: PLATFORM

MANAGEMENT – T-SYSTEMS HAS EXPERIENCE

WITH TOLL COLLECT

Right now, there is probably no technical project in the automobile

industry more challenging than autonomous driving because i t requires

the integration and management of almost every digital technology.

PAC believes T-Systems to be very well -positioned in this segment. The

company has distinctive experience in the automobile industry, has

proven its implementation expertise in integration projects, and has an

extensive portfol io in the area of enabling technologies. For the time

being, however, we wil l only be delving deeper into a few significant

points:

Core competency – connectivity: In our estimation, autonomous driv-

ing requires fast and reliable communication networks. As previously

mentioned, connectivity is assumed to be a commodity that is availa-

ble at all times. The options available with 5G go beyond this by facili -

tating positioning down to the centimeter, short latency times and im-

proved management functions. Thanks to their mobile communication

competencies and expertise in the area of 5G, T -Systems and Telekom

are suitable partners for ensuring rel iable connectivity. The group is

significantly involved in numerous national and pan-European test

si tes.

Core competency – platform management: It is therefore only logical

for T-Systems to be involved as a core partner in the edge computing

test si te DIGINET-PS in Berl in as well , which involves the use of 5G as a

key communication technology. Another aspect is not quite as obvi-

ous, but no less significant: edge computing requires the abili ty to man-

age large quantities of devices. Should the vision of intelligent road

infrastructure based on edge devices be realized, this will result in a

complex architecture consisting of central cloud installations, decen-

tralized edge-computing devices and mobile vehicles, al l of which will

generate, process, compress and transfer data. Thanks in no small part

to i ts experience with the German truck toll system Toll Collect, T -Sys-

tems has the expertise required for such complex platform manage-

ment.

Core competency – security: In addition to fast and reliable data pro-

cessing, a central issue for self -driving cars is security. Autonomous ve-

hicles must be ful ly protected against unwanted remote access by

hackers and able to identi fy themselves clearly and without misu nder-

standings. I t must also be possible to determine their position in a way

that is absolutely reliable and secure against manipulation. According

to PAC’s ranking, T-Systems is number one among German security IT

service providers. In PAC’s opinion, the company took important steps


towards achieving this status by consolidating i ts security expertise into

a business unit and adopting a “secure by design” approach.

Fig. 4 Deutsche Telekom/T-Systems’ ranking in the PAC RADAR C&SI for IoT

Solutions in Europe 2018 – sub-section “Smart Transport”

The above PAC RADAR shows the evaluation for Deutsche Telekom and T -

Systems in the area of smart transport. This was another area in which we

analyzed the group’s expertise and market strength in consulting and s ys-

tem integration (C&SI) and found it to be above average. Deutsche Tele-

kom and T-Systems achieved a ranking that was far above the average

(reflected by their lead of more than 0.5) in the following evaluation cri te-

ria:

• Strategic focus and activities in this IoT segment

• Strategic investments in this IoT segment in the past 24 months

• Standardized services in this IoT segment

• Balance of standardized services and software

• Current customer access and relationships in this IoT segment

• USP in this IoT segment

• Number and quality of customer references and l ighthouse projects in

this IOT segment

• Revenue in the area of IOT C&SI in Europe in this IoT segment

• Perception as a top service provider in this IoT segment


E-MOBILITY:

IT’S ALL ABOUT INDIVIDUAL

ENERGY MANAGEMENT

In 2010, the German federal government set the target of putting one

mil lion electric cars on German roads by 2020. It is now clear that this

target will not be reached: as of the beginning of January 2018, fewer

than 54,000 e-cars had been sold. The success of electric cars or e-

mobil ity is primarily determined by three factors: private or public

charging infrastructure, battery range, and the price of the vehicles at

hand. “As a city, we can only influence the charging infrastructure,

which is where we have begun our preliminary work. There are currently

250 charging stations in Munich, and by 2020 we aim to have 550 sta-

tions within the city’s l imits,” reveals Georg-Friedrich Koppen, head of

the Mobili ty section in the Bavarian capital’s Department of Urban

Planning and Building Regulation. Cities are promoting the electri fica-

tion of transport to improve air quali ty.

Fig. 5 Number of electric vehicles registered in Germany (excluding hybrid vehicles)

Source: Kraftfahrtbundesamt (Federal Motor TransporAuthority)

The number of electric vehicles is continuously increasing, but is sti l l a long way from the

federal government’s target of one mill ion electric vehicles by the year 2020. This growth

may gain momentum, however, as German OEMs are set to bring a host of new electric

vehicles to the market over the coming two years.


ALL OEMS ARE FOLLOWING SPECIFIC PLANS

The automobile manufacturers’ motives are generally comparable:

they need to meet EU requirements regarding average fleet consump-

tion, and e-mobili ty helps with this. In addition, these companies are

under pressure due to Tesla’s success and the diesel scandal. While

many suppliers are afraid of the success of electromobili ty because

the majori ty of the components of vehicles with combustion engines

(such as gears, drives or couplings) will no longer be required, OEMs

are driving the development of e-vehicle fleets forward. According to

the German Association of the Automotive Industry (VDA), German

manufacturers plan to bring up to 100 new e-models to the market over

the next three years and extend their range to 500 ki lometers. Daimler

has announced the electric SUV ECQ for 2019, BMW plans to start serial

production of the i4 in 2020 and Porsche’s e -sports car Mission E will be

on German roads from 2019.

E-MOBILITY IS ALSO A QUESTION OF ENERGY AND

BILLING MANAGEMENT

Beyond the technical demands of battery technology and efforts to

maximize range, e-mobili ty also sti l l faces a number of challenges in

the area of digital technology. For one thing, thanks to their image, e -

vehicles currently represent the absolute peak of mobile innovation

and therefore usually integrate many of the connected car functions

described above. In addition, that connectedness provides drivers

with access to key services.

OEMs are working on platforms for convenient energy and bil l ing man-

agement, for example. These guarantee optimized route planning

based on the existing charging infrastructure, which ensures that e -

cars can be recharged when necessary. Payment is largely automatic

and independent of the provider. This task may sound manageable as

long as you only use charging stations. But i f induction loops buil t into

the road are also used to charge batteries during journeys or at red

l ights, the system must be capable of bill ing for very small sums as well.

Furthermore, many e-buses will be integrated into traffic as self -driving

vehicles.

“We want to occupy the last-mile niche and

provide requirements-based mobility.

One possible scenario is for commuters and

visitors from elsewhere to change to electric

car-sharing vehicles or buses on the outskirts

of the city.

All combustion engines would stay outside.”

Stefan Steeger, Head of Business Development

at e.GO Digital GmbH


PAC COMMENT: TELEKOM AS A CHARGING

INFRASTRUCTURE OPERATOR?

A SURPRISING MOVE

From PAC’s perspective, e-mobility (with the exception of develop-

ments in battery technology) is primari ly a challenging management

task. The core element on the road to successful e -mobilization is en-

ergy management. No driver, carrier or transport service provider

wants to be stranded on an isolated road with a dead battery. By the

same token, every driver would welcome individual route optimization

based on range calculations and charging infrastructure. Many e -mo-

bil ity users in business settings would probably even be will ing to pay

for i t.

Where is the nearest charging station? Are charging spaces free and

is i t possible to reserve one? Are there any alternatives? How can the

car veri fy i tself? And how is bi ll ing handled?

To be able to answer such questions, a diverse range of complex tasks

need to be integrated into a platform. PAC believes that T -Systems and

Telekom would be able to draw on their ski lls and experience in setting

up and operating IoT management platforms for this purpose. Particu-

larly if the charging infrastructure is realized through induct ion – for

instance while waiting at a red l ight – a partner will be required that

has mastered the secure mass bill ing of very small amounts (including

the authentication services required) for a large number of different

suppliers.

A further Telekom initiative that PAC finds surprising, but also interesting

involves plans to assemble a charging infrastructure by incorporating

large numbers of the gray distribution boxes found on the sides of

roads. This project is being led by the Telekom subsidiary Com-

fortcharge, which builds, operates and markets the charging stations.

There, electric vehicles can either be “refueled” using charging cards

from cooperating partners or on an ad-hoc basis. In the latter case,

bil l ing takes place via common cashless payment methods (PayPal,

Visa and Mastercard credit cards). This is a remarkable initiative that

will certainly benefit the spread of e-mobili ty. T-Systems, in turn, can

gather experience in energy and bil l ing management within i ts own

supply network.


SHARED MOBILITY:

THE OEM AS A SERVICE

PROVIDER WITHIN ITS

OWN ECOSYSTEM

Providers positioning themselves through car sharing

The largest car-sharing services in Germany right now are Car2Go

by Daimler and DriveNow by BMW. Recently, the two joined forces

to save operating costs and establish a stronger front against po-

tential mobil ity start-ups (such as Uber or Lyft). Daimler’s successful

taxi booking app MyTaxi and the mobili ty platform Moovel will also

be integrated into this future joint venture.

The VW Group has announced that emission-free mobil ity services

will be among the offerings made available on i ts digital platform

We starting next year. Audi, for i ts part, has for some time been test-

ing the mobili ty service Audi on demand, which provides vehicles to

customers based on their requirements. For instance, there a re easy-

to-park compact cars for trips into town, powerful SUVs for adven-

ture weekends, or spacious station wagons for family outings.

The current user figures (see graph) do not justi fy the commitment.

However, car-sharing services allow OEMs to gather experience and

occupy the market in preparation for a future in which the demand

for mobili ty services will outpace the rate at which cars are pur-

chased.


There are already sharing services and offers for the short -term rental

of bicycles and electric scooters in most major cities. These are often

used as a means of reaching public transport, but also as a replace-

ment for buses and trains in areas not covered by such services.

Against this background, it makes sense that Deutsche Bahn offers

both rental bikes and car-sharing services (Fl inkster) in many cities, and

many municipali ties maintain their own rental bike offers. However, the

municipali ties have no plans to extend this sharing to cars. Instead,

they are integrating car-sharing services into their mobile apps and

mobil ity platforms. I t is clear, after all , that both municipal transport

companies and Deutsche Bahn want to gain and increase thei r direct

access to customers.

“Today innovations are still developed,

designed and examined in a laboratory before

being integrated into cars three to five years

later. In the future, we will have to constantly

observe how the customer journey is

changing.”

Kay Freiland, Automotive Partner at Detecon

Fig. 6 Current use of car sharing in Germany

The questionnaire was based on a survey by the Federal Ministry of

Transport and Digital Infrastructure. I t shows comparatively limited

use of car-sharing services in German households, but also indicates

vast potential . In places where availabili ty is particularly good (i .e.

in large cities), 14 % of households already use such services.


PREMIUM OEMS SHOULD ALSO BE IN A POSITION

TO OFFER PREMIUM SERVICES

However, they face strong competition here, as the new business mod-

els of large OEMs also focus on mobil ity as a service. The aim is to make

provisions for a time when customers will buy fewer cars and increas-

ingly want to reserve individual mobili ty services. “In the past, the en-

gineers decided on innovation topics and put the main emphasis on

technical services. In the future, the focus wil l be on customer prefer-

ences and the customer experience – which mobil ity services and

what level of comfort do they want?,” explains Kay Freiland, automo-

tive partner at Detecon International GmbH. “Over the next few years,

OEMs must succeed in substantiating their premium image not just fo r

hardware – the car i tself – but also when it comes to mobil ity services.

This includes first-class services and extensive offers.”

A COMPLEX TECHNOLOGY LANDSCAPE IS EMERGING

BEHIND THE CUSTOMER INTERFACE

In the future, shared mobility wil l be a component of multi -modal mo-

bil ity as a service (MaaS) concepts. The first thing that will be decided

is the competition for the customer interface, where access must be

modern, simple, convenient and secure. The overall concept must in-

tegrate solutions for the customer experience (mobile apps, etc.),

data storage and analysis (cloud, SaaS), fleet management (mobili ty

platforms), security (identity management, data protection, IT secu-

ri ty), and connectivity (LTE, 5G, WLAN).

Above all, however, i t wil l also be necessary to adapt the business

models of OEMs and other market participants to changing mobili ty

requirements. Customer data must be consolidated, saved and evalu-

ated; revenue streams and invoicing processes redesigned; and IT

landscapes (on the back- and front end) made more agile and flexi-

ble – to name just a few tasks.


PAC COMMENT: SHARING CONCEPTS

REQUIRE INTEGRATED MOBILITY SERVICES

BMW and Daimler’s decision to merge their sharing services is a sign

that running a profi table business in this area is next to impossible on

one’s own. In the shared mobili ty business, service quali ty, data anal-

yses and a modern customer interface and approach – al l of which

are areas of expertise that the OEMs had not anchored in their core

business unti l now – are essential to success. Up to this point, automo-

bile manufacturers have primari ly positioned themselves as hardware

vendors. In the future, they wil l also have to define and prove them-

selves as software companies, data analyzers and, above all , service

companies. Mobili ty must become a promise of greater comfort, en-

tertainment and reliabili ty.

This also requires new ecosystems in order to design and integrate new

mobil ity services. For this purpose, OEMs must involve suppliers, but at

the same time position themselves as THE preferred and trusted partner

for mobil ity customers – with a modern customer interface; a con-

sistent, tai lored form of customer outreach; and of course, a single,

transparent invoicing model.

In PAC’s opinion, T-Systems and Telekom would be ideal implementa-

tion partners in this segment, as they already have the necessary ex-

pertise. Some examples in this regard include their agile development

methods, which are required for implementing a customer interface;

and their invoicing and platform management solutions, which are es-

sential for establishing and operating a partner ecosystem. Last but not

least, knowledge of the automobile sector is required in order to realize

the integration into companies’ core processes. In this re gard, PAC be-

l ieves T-Systems to be one of the most renowned providers on the Ger-

man market.


SMART CITIES AND SMART

LOGISTICS: MORE EFFI-

CIENCY AND SUSTAINABILITY

I f we view the topic of smart cities through the lens of mobil ity, digital

innovations primari ly aim to reduce private transport and make it more

environmentally compatible. This includes commuter traffic, trips to the

inner city, and delivery traffic. In the past, traffic planners concen-

trated their efforts on helping vehicles enter and exit cities more

smoothly. They also expanded public local transport to be able to

move more people at once. Future efforts will increasingly rely on sup-

plementary intelligent mobili ty services that integrate vehicles, e -mo-

bil ity and shared mobili ty.

“More efficient logistics is key to climate

protection. With digital technologies,

up to 30 percent of emissions can be eliminated

by optimizing people’s individual driving

habits, route selection and the intermodal mix

of trips, for example, and consistently making

use of electric means for the last mile.”

Ralf Willenbrock, Product Manager for Logistics at

T-Systems and Member of the Supervisory Board of

ERTICO – I.T.S. Europe.


INTELLIGENT INFRASTRUCTURES ARE EMERGING

SLOWLY

Intell igent infrastructures are required for better control of traffic flows

and autonomous vehicles. For example, people searching for a park-

ing space account for an estimated 20 to 30 percent of the total traffic

in inner cities. Intelligent parking solutions could sign ificantly reduce

such traffic and the emissions i t produces.

However, municipalities are reluctant to invest in edge solutions such

as intelligent sensors and roadside communication boxes to promote

autonomous driving. Their modernization efforts concentrate on digit-

izing existing systems such as traffic lights or lighting masts. In combi-

nation with connected and self -driving cars, this makes i t possible to

optimize driving methods (for instance by adjusting a green phase)

and thereby reduce energy consumption.

HAMBURG PORT: A PERFECT EXAMPLE OF SMART

CITY AND SMART LOGISTICS

“The port of Hamburg is a good example of how different initiatives

can dovetail. Since the operator company Hamburg Port Authority

(HPA) has no space to expand, i t needs to come up with a more intel-

l igent way to handle containers between sea and land transport to

manage future growth. Here, one area the HPA is focusing on is truck

transport. The goal is to reduce the length of time that a truck spends

on the port’s premises,” says Ra l f Wil lenbrock, product manager for

logistics at T-Systems. One measure that has been implemented is the

provision of alternative parking spaces outside the city; from there,

trucks can be guided to the port in time for loading and unloading.

The truck drivers either receive their assigned time slots via their

smartphones or the HPA temporari ly provides the required digital de-

vices. The HPA is now also testing the potential of 5G for networking

sensors and traffic l ights.

EU FUNDING PROJECTS FOR MORE EFFICIENT

LOGISTICS

The HPA is also involved in the EU-funded AEOLIX project (Architecture

for EurOpean Logistics Information eXchange). AEOLIX aims to create

a cloud-based logistics ecosystem, ensure transparency along the en-

ti re supply chain, and thus enable more sustainable and efficient

goods transport throughout Europe. T -Systems is also a partner of the

AEOLIX project.


PAC COMMENT:

T-SYSTEMS IS A TOP PROVIDER IN THE AREA

OF SMART TRANSPORT

Over the next few years, the vision of smart cities and intelligent logis-

tics will become reali ty with the aid of digital technology, provided the

partners involved do not lose sight of their shared goal. One thing this

will require, however, is investments in the digital equipment of the in-

frastructures in question. Another important factor is knowledge of

which technologies and processes are actually useful and necessary

on the road to smart cities and efficient logistics.

The services and experience T-Systems and Telekom have in this seg-

ment are manifold. As a telecommunications group, they are well ac-

quainted with expanding, modernizing and operating infrastructures.

One example of this is the smart parking solution Park and Joy, which

maps every step of the parking process in one app and delivers precise

predictions of where on-street spaces will l ikely be available thanks to

installed sensors.

This happens to be an area that also involves the edge computing in-

frastructure T-Systems is working on with the DAI Laboratory in Berl in,

among other partners. The company is now considering enhancing this

infrastructure to provide a kind of service hub where local partners and

other stakeholders wil l have the opportunity to market their offers and

services (trips to restaurants, low fuel prices, etc.).

T-Systems is also involved in numerous research projects relating to

smart logistics – SYNCHROLOG for dynamic slot booking, for example,

which is an area in which the company can also gain valuable experi-

ence. In PAC’s estimation, this wil l also enable T -Systems to draw on

findings from previous implementation and integration projects in the

area of transport.

T-Systems’ and Telekom’s above -average market strength and exper-

tise in the smart transport segment have been proven many times. In

the PAC RADAR C&SI for IoT Solutions in Europe 2018 – Smart Transport,

we assessed the group and awarded them the “Best in Class” ranking,

not least based on the high quantity and quality of their customer pro-

jects.


SUMMARY: THE MOBILITY OF

THE FUTURE WILL BE SMART,

COMPLEX AND INTEGRATED

Our discussions with experts have shown that companies, municipali-

ties and organizations are working on a host of special application

cases that are increasingly merging and exhibiting a number of com-

mon features.

1. MOBILITY SERVICES ARE CONVERGING

The central focus for the foreseeable future will be on networked and

increasingly self-driving vehicles. Cars will communicate with the intel-

l igent infrastructure and be integrated into new, intermodal mobil ity

services. E-mobili ty will help make deliveries and passenger traffic eco-

logical and efficient.

2. NOTHING IS POSSIBLE WITHOUT ENABLING

TECHNOLOGIES

The most important basic technologies for these developments are:

• Reliable and fast mobile communications networks for both

close-range (narrow band, WLAN, LPWAN) and wide-area

(LTE, 5G, GPS systems) applications

• Cloud solutions for central data storage and -processing,

for instance with analytical and AI tools

• IT security, data protection and identity management are

absolutely essential . After all, people are being transported

and their personal (or person-related) data is being pro-

cessed.

3. PLATFORMS PROVIDE THE BASIS FOR MANAGING DATA

AND PARTNERS

Data platforms ensure unobstructed access to information on factors

l ike traffic flows and weather or road conditions. Management plat-

forms transform data analyses into suitable actions (by guiding e -cars

along the charging station infrastructure, for example).

4. A POSITIVE CUSTOMER EXPERIENCE IS THE KEY TO

SUCCESS

Digital , mobile customer interfaces create a positive mobil ity experi-

ence. Last but not least, the overall picture – i .e. the ful l process chain,

including all the integrated technologies – must meet the highest se-

curity demands. After all, mobili ty as a service is all about transporting

people.


T-SYSTEMS AND DEUTSCHE TELEKOM PROVIDE

TECHNOLOGY AND PROCESS EXPERTISE

In PAC’s opinion, when developing and implementing complex pro-

jects of this kind, companies should choose a partner that already has

expertise throughout the enti re technological stack, experience in op-

erating and managing platforms and ecosystems, and knowledge of

the special characteristics of the automobile industry, including its

complex supplier and partner relationships. PAC believes that T -Sys-

tems and Telekom clearly satisfy these requirements. In the area of en-

abling technologies, T-Systems and Deutsche Telekom have a product

range that no other provider in Germany can match. Evidence of their

experience in the automotive field can be seen in numerous projects

with strategic partners such as BMW and Daimler.


LIST OF FIGURES

Fig. 1: Connected vehicles – market trend in software and IT services ...............................................5

Fig. 2 Deutsche Telekom/T-Systems’ ranking in the PAC RADAR C&SI for IoT Solutions in

Europe 2018 – sub-section “Connected Vehicle” .................................................................... 11

Fig. 3 The six levels of autonomous driving ........................................................................................ 15

Fig. 4 Deutsche Telekom/T-Systems’ ranking in the PAC RADAR C&SI for IoT Solutions in

Europe 2018 – sub-section “Smart Transport” ........................................................................... 18

Fig. 5 Number of electric vehicles registered in Germany (excluding hybrid vehicles) .................... 19

Fig. 6 Current use of car sharing in Germany .................................................................................... 23


APPENDIX

DISCLAIMER, RIGHTS OF USE, INDEPEND-

ENCE AND DATA PROTECTION

This study was created on behalf of T -Systems.

You can obtain more information at www.pac-online.com.

Disclaimer

While the contents of this study were compiled with the greates t pos-

sible care, we cannot guarantee their correctness. The appraisals and

evaluations herein reflect our state of knowledge as of September 2018

and can change at any time. This applies in particular, but not exclu-

sively, to statements regarding the future. The names and designations

appearing in this study may be registered trademarks.

Rights of use

This study is protected by copyright. Any reproduction or transfer to

thi rd parties, even as excerpts, requires explicit prior consent. The pub-

l ication or distribution of tables, graphics, etc. in other publications

must also be approved in advance.

Independence and data protection

This study was created exclusively by Pierre Audoin Consultants (PAC).

The commissioning party had no influence on the data analys is or cre-

ation of the study.

The participants surveyed in the study were assured that their details

will remain confidential . No statements can be traced to individual

companies and no individual survey data was transferred to the com-

missioning party or other third parties. All participants were chosen at

random. There is no relation between the creation of the study and

any customer relationships that may exist between those surveyed and

the party that commissioned this study.

http://www.pac-online.com/


ABOUT T-SYSTEMS

With si tes in more than 20 countries, 37,900 employees, and external

revenue of 6.9 bill ion euros (2017), T -Systems is one of the world's lead-

ing Europe-based, vendor-independent providers of digital services.

T-Systems is a partner i ts customers can rely on as they progress towards

digital transformation. The company provides integrated solutions for

business customers. A subsidiary of Deutsche Telekom, T -Systems pro-

vides everything from a single source: the secure operation of legacy

systems and conventional ICT services, support in transitioning to

cloud-based services (including international networks, tai lored infra-

structure, platforms and software), and new business models and inno-

vation projects in the Internet of Things.

T-Systems can provide all this thanks to i ts global reach in fixed-network

and mobile communications, i ts highly secure data centers, a compre-

hensive cloud ecosystem built around standardized platforms and

global partnerships, and its abil ity to offer the best possi ble security.

For more information, please visi t

www.telekom.com

https://www.telekom.com/en/company/topic-specials

https://www.telekom.com/en/company/topic-specials/connected-

mobil ity

https://www.telekom.com/en/company/topic-specials/transport-and-

logistics

Contact:

Deutsche Telekom AG

Corporate Communications

Tel .: +49 (0)228 181 – 49494

E-mail: [email protected]

Jörg Tischler

T-Systems International GmbH

Connected Mobili ty

Tel .: +49 (0)151 55286090

E-mail:

[email protected]

http://www.telekom.com/

https://www.telekom.com/en/company/topic-specials

https://www.telekom.com/en/company/topic-specials/connected-mobility

https://www.telekom.com/en/company/topic-specials/connected-mobility

https://www.telekom.com/en/company/topic-specials/transport-and-logistics

https://www.telekom.com/en/company/topic-specials/transport-and-logistics

mailto:[email protected]


ABOUT PAC

Founded in 1976, Pierre Audoin Consultants (PAC) has been part of CXP

Group – the leading independent European market research and con-

sulting firm for the software, IT services and digital transformation in-

dustry – since June 2014.

We provide our customers with extensive support services in evaluat-

ing, selecting and optimizing their software solutions; evaluating and

selecting IT service providers; and optimizing their sourcing and invest-

ment strategies. CXP Group also accompanies ICT decision -makers on

their path to digital transformation.

Finally, CXP Group assists software and IT service providers with quan-

ti tative and qualitative analyses and provides strategic and opera-

tional advice on optimizing their go-to-market approach. Public insti -

tutions also place their trust in our studies when developing their IT

guidelines.

With 40 years of market experience, 17 branches in eight countries

worldwide, and 140 employees, CXP Group supports more than 1,500

ICT decision-makers per year, the operational divisions of both major

and medium-sized companies and their respective providers. CXP

Group is made up of three companies: Le CXP, BARC (Business Appli-

cation Research Center) and Pierre Audoin Consultants (PAC).

DCX & IoT at PAC

Our “Digital _Customer Experience & Internet of Things” practice fo-

cuses on market data, research and consulting relating to digital cus-

tomer experiences, the Internet of Things and digital workspaces. You

can find more information at https://www.pac-online.com/digital-en-

terprise-and-iot.

The PAC Innovation Register contains hundreds of application exam-

ples from real-world IoT scenarios which have been selected, de-

scribed, categorized and evaluated by PAC analysts. I t is free to use

here: https://www.pac-online.com/innovation-register-landing.

For more information please visi t www.pac-online.com.

PAC news: www.pac-online.com/blog

Follow us on Twitter: @CXPgroup_DE

PAC GmbH

Holzstr. 26

80469 Munich, Germany

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[email protected]

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