Automotive Telematics: And You Thought Cell Phones Were Cool
--(BUSINESS WIRE FEATURES)--For years, movies and television programs have highlighted the concept of receiving information in automobiles via high-tech computer gadgets -- from James Bond's cars to Batman's Batmobile and even George Jetson's 21st century vehicle.
The creative Hollywood idea of staying in touch while on the go is making its way into the mainstream automotive industry. The introduction of the 2002 BMW 7-Series with the iDrive telematics system is a clear indication that in just a few short years consumers can expect personal information to be delivered to them while in their cars.
The U.S. market has more than 210 million existing cars, and there are about 17 million sales of new cars each year. Industry analyst firm the Yankee Group estimates that by 2006, 50 percent of all new cars and 90 percent of luxury cars will have automotive telematics that keep people connected while in the car.
What is Automotive Telematics?
Automotive telematics is the use of computers and telecommunications to enhance the functionality of motor vehicles. Hewlett-Packard Company has refined that definition with a customer focus by stating that telematics is a service delivered to a car and to the consumer -- in this case, the travelers within a car. These drivers and passengers are an important audience for telematics considering North Americans spend altogether an estimated 26 billion hours per year in cars.
Telematics promises tantalizing benefits to the automobile consumer. Security and safety applications such as panic buttons, roadside assistance, automatic crash notification, stolen vehicle tracking and real-time traffic updates top the list of services that interest consumers the most.
But consumers also are seeking personal productivity tools -- hands-free wireless technologies that enable drivers to do such things as place phone calls, check e-mail and receive stock quotes. And, of course, personal entertainment devices also rank high on consumers' telematics wish lists.
Today, new models of minivans already offer in-car VCRs as an accessory. With telematics, imagine being able to download the kids' favorite movies from an Internet database rather than having to remember to rent several tapes from a video store and possibly incurring late fees because of a long road trip.
Automotive telematics technology also allows for an informed approach to alerting emergency services to attend a driver needing help. For example, airbag deployment usually indicates a problem, but airbag deployment in itself does not necessarily indicate an accident requiring emergency response. Telematics technology can be used to immediately verify whether the car had been moving before, or at the time of, deployment. Furthermore, it can alert call center personnel to attempt voice communication with the driver and passengers or it can analyze current traffic conditions in the vicinity of the car generating the alert.
Car manufacturers will also see benefits from telematics technology through analysis of vehicles out of the factory and on the road to building new avenues of customer relationships to reducing warranty costs.
The Convergence of Technology and Experience
All of a sudden, telematics technology moves the car into the mobile electronics services area, creating an industry convergence of consumer electronics, mobile communications and automotive markets. For this trend to take off, auto manufacturers and telematics service providers need a partner with a diverse market knowledge covering all of these areas.
Computer manufacturers such as HP have taken an active interest in the telematics market. Right now, HP's core competencies are at the center of what is required for telematics. HP's direct experience spans car-embedded software and appliances, such as mobile devices, vehicle diagnostics and back-office technologies -- including supply chain, customer relationship management and operating infrastructure.
Telematics is clearly an integral part of the future for consumers and auto manufacturers, holding the promise of exciting and profitable services based on technology advancement in electronics and next-generation electronic services.
About the Author
As general manager of HP's Automotive Business Unit, Mark Rahrig is responsible for global management of HP's corporate accounts in the automotive sector. More information about HP's telematics initiatives is available at http://www.hp.com/solutions1/extendedmanufacturing/auto.html.
