From Soumyaranjan Chaini
The future of the automobile is called Smart Mobility. The car of the future will be software-controlled. The Internet of Things (IoT) makes it networked and able to monitor not only the status of its own components and the safety of the environmental conditions (telematics), but also with other vehicles and with an increasingly intelligent road infrastructure (C-V2X) communicate. . These features become a must for all automobiles, and the exterior or body becomes a standard product.
The future change in the automotive industry will not be appropriate to the introduction of Industry 4.0. The car of the future will be an autonomous, electric, networked and shared vehicle. Under the paradigm of the 21st century, automobiles are constantly being redefined, expandable, and offer a variety of services based on the needs and desires of users.
When cars become more digital and software-oriented, they become dispensable. Function and function expansions, new functions, OTA bug fixes, switching to another platform or HMI will be seamless. Customers have access to multiple features and functions that can be activated with minimal or no physical intervention, and they can pay when they use it. Soumyaranjan Chaini
The possibilities are endless and everyone is still thinking about how and when these advances will come to fruition and bring unprecedented changes to the industry, the ecosystem, infrastructure and people’s lives.
Cars have moved from purely mechanical to mechatronics to digital (AECS) to everything on wheels. In the post-Covid-19 decade, cost and decision-making in the automotive sector will be driven by software platforms and the software will define the corresponding mechatronic parts.
New income opportunities
Businesses are moving from a “pay at the time of purchase” to a “pay at the time of use” revenue model for services, features, and even the entire vehicle. OEMs through their own marketplace or other third party companies are developing innovative ways to offer users choice, affordability, economic benefits, and other benefits. This is also helping automakers as the market grows as new consumers pay for every minute they use the car while providing a continuous source of income.
To enable the recurring revenue model, we first need a master application software from the OEM and an account must be created for each user, just like any other electronic smart gadget. A large number of services, applications and functions are provided through this master application, some of which are already active at the time of purchase and some of which can be activated if necessary at an additional cost.
Post-sale feature upgrade
When cars become more digital and software-oriented, they become dispensable. Function and function expansions, new functions, OTA bug fixes, switching to another platform or HMI will be seamless. Customers have access to multiple features and functionalities that can be activated with minimal to no physical intervention, and they can pay when they use it. This could be the primary source of recurring revenue for automotive OEMs and convenient for customers as well.
The next set of recurring income will come from consuming on-demand content such as games, films, comics, education and entertainment. We can bring our digital life into the car by mirroring the home entertainment system. Everything we consume via a mobile device or PC can be mirrored in a car, but with a better experience and higher quality. That will also cost.
App store and applications
The App Store is the cornerstone for the provision / use of digital services via any mobile device. Automobile manufacturers can have their own app store and proprietary applications with an in-app transaction function to provide value-added services to their customers. This will also help automakers capture a lot of critical customer information for a personalized experience and targeted advertising. This could lead to an entirely new source of income – advertising or in-car sales.
New business models
Newer business models such as subscription-based ownership, contextual on-demand service, OEM marketplace, mobility-as-a-service, ridesharing, robo-taxis are emerging from technology ecosystem-driven niche providers and market leaders. They offer several parallel ways of generating income.
The software-driven IoT model also helps identify problems early on and correct many of them remotely. This will save automakers a lot of money by avoiding massive product recalls. While this won’t generate any additional revenue, it would certainly have an impact on the bottom line. Savings can also be made in marketing budgets, as all customer experience, branding and loyalty campaigns could run via the vehicle equipment, the digital cockpit, the infotainment system)
Today’s automobiles are no longer like they were ten years ago, and the future is even more fascinating. Changes are rapid and even the lines between industries are blurring. The automotive companies are increasingly becoming technology companies with an unprecedentedly fast innovation cycle. The changes are faster, smarter, and for the better. With limitless possibilities, the automotive industry has aggressively adopted software and a digital-first approach. In the future, revenue will come from software and digital components and consumers will not have to pay large sums of money when purchasing. Now it remains to be seen what else a car can do and we are sure to be just getting started!
(Disclaimer: The author is Vertical Sales Leader – Hi-Tech, QuEST Global. Views expressed are personal)