Foreword 1 To gain more insight into the strategic • Sustainable connected car priorities facing stakeholders, EY’s business models Global Automotive, Telecommunications • What is not working in the ecosystem? and Insurance Centers recently brought together more than 30 senior • Moving toward a more open decision- makers from across the environment connectivity ecosystem. • Making the value chain more effi cient This was the third in our series of and effective connectivity roundtables. The last time • Addressing the data imperative we were in Detroit, just over a year ago, we discussed the relevance of the • Globalizing the connectivity ecosystem value proposition and sources of ROI • Who should run the global connectivity for connectivity, looking at issues such agenda? as pricing, the role of dealers in the connectivity ecosystem and how best to • How should regional services operate? ensure that all participants in the value • What are the bottlenecks chain are incentivized to play their part. preventing growth? We also looked at the different entities in the value chain, their core competencies At both the local and the global levels, a and the importance of collaboration as a high priority is to fast-track commitment means of accelerating innovation. to a more collaborative approach. The At our subsequent roundtable in Munich, challenges and complexities are, quite we continued the debate, focusing simply, too great for any one constituency on the challenges facing adoption of in the ecosystem to “go it alone.” New connectivity — particularly those arising approaches to partnerships, shared from silos in development and across all business models and data-sharing are key indicators, not just in the ecosystem, urgently needed. Until now, OEMs, but in organizations as well. We also talked key drivers of the entire industry, have about the need for greater transparency sheltered behind a protective business and collaboration across the ecosystem, model mindset. Are there now signs that the potential value of data and the fact these mindsets are beginning to change? that few, if any, stakeholders are equipped On the consumer side, as we have pointed with the right metrics and tools to measure out at previous roundtables, there the benefi ts connectivity can provide. continues to be a lack of understanding around what services people want, and The latest event, held in Detroit, examined whether/how they will be prepared to pay the business model for connectivity. It was for these. Where data is concerned, more clear that changes are needed to remove needs to be done to overcome privacy- existing bottlenecks and drive wider related hurdles and encourage users to adoption, with a focus on generating ROI “opt in.” Looking ahead, the data privacy for customers and participants in the value regulations scheduled to be introduced in chain as well. We also looked at approaches Europe next year mean that packaging and to globalizing connectivity and realized usage of customer data will become even that a primary challenge is achieving a more challenging than before. balance between global connectivity and In the following pages, we summarize local deployment, particularly where data the key fi ndings of our roundtable and transfer and licensing issues are involved. highlight the opportunities and challenges During a day of far-reaching debate, we that lie ahead for all players in the brainstormed ideas in these two key areas: connectivity marketplace. The quest for telematics 4.0 | 3