In a mature industry such as automotive, which consistently looks to differentiate and drive new value at every turn, not every change needs to be disruptive. In fact, it doesn’t even need to change the way that automotive businesses exist, operate and generate revenue. We have a tendency to focus on the latest innovations, such as generative AI, Web 3.0, and the Metaverse and forget that value creation is also possible in less disruptive ways.
But this source of value creation will not be found within the confines of the existing industry. We are talking about exploring the boundaries of what is possible with the impossible. It’s only here - at the edge of the possible and impossible - that new value creation can be found.
In the past, hardware and manufacturing prowess were the sources of differentiation and value creation. We are thinking beyond this standard border. We believe that future battles in automotive will be fought around software, customer value, and data intelligence. Enter, telematics.
So what are vehicle telematics and how does it work?
Definitions are important, especially when dealing with complex subjects. Let’s break down what we mean by telematics. In simple terms, it is the integration of telecoms and informatics to gather, store, and transmit (vehicle) data. Telematics consist of various components, such as sensors and onboard diagnostic devices, which capture and can wirelessly transmit real-time data to a central server for analysis and interpretation.