Focusing on the 3 business model However complex the connectivity ecosystem may appear, the future of this technology will depend on a simple equation — how participants can create a sustainable connected car business, grounded in collaboration, with ROI being generated for players throughout the value chain and end customers. Participants focused on where current develop sustainable business models. bottlenecks are holding up progress Having realized that they are not equipped throughout the ecosystem and how these to make a business out of technology can be cleared. Building on the consensus by themselves, some are partnering achieved at the previous roundtables, with technology-focused companies and they agreed on the need for a much more coming to terms with the impact this has collaborative environment, with players on their previously protective business across the value chain participating and models. Others are developing new ways innovating on shared platforms through an for their vehicles to be connected at a open-source approach. lower cost by offering customers different Well represented at the roundtable, OEMs connectivity packages — at the point of sale highlighted the high cost of investing in and throughout the economic lifetime of a embedded modules, and the pressure they vehicle. are under to justify those investments to What emerged is that notwithstanding all the business. They emphasized that as the discussion around business models customer-facing organizations, they have and the need for increased collaboration, to generate tangible revenues from their participants stressed how important it will connectivity offerings, but in the current be to keep the customer at the front and scenario, their dealership networks are still center of all initiatives. However, flexibility not sufficiently incentivized to push or sell is a core concern her as well. Consumers these offerings at point of sale. want a wider choice and connectivity, However, although still a “sticking” point, and offerings must be configured to increased open collaboration between provide this. Additional benefits will flow OEMs and other value chain participants by enabling dealers to sell this as an is likely. This will be driven by the need incremental cost and actively engage them for partners to share the huge IT costs in connectivity at point of sale, so they can involved in creating modular and flexible play their part in creating an experience connectivity offerings. throughout the lifecycles of vehicles. Flexibility is emerging as a key theme, with OEMs adopting various routes to 6 | The quest for telematics 4.0