Presentation at Automotive Leaders Summit on April 7, 2016
Connecting the automotive value chain from design through consumer information and vehicle usage
1. Cognitive IoT Platforms:
Connecting the automotive value chain from design through
consumer information and vehicle usage
Kal Gyimesi | Automotive Marketing Leader | IBM Watson IoT
2016 Automotive Leaders Summit | April 7, 2016
2. 2
Consumer’s experiences in their cars are transformed by
the Internet of Things
#1
By 2020, the connected
Car will be the
connected
application
cars will be connected in
2015 and fully packed
with sensor technologies
200million 350
By 2020, connected
vehicles will produce
of data per
second
MB
*http://www.gsma.com/newsroom/press-release/gsma-announces-the-business-impact-of-connected-devices-could-be-worth-us4-5-trillion-in-2020/
**http://www.gartner.com/newsroom/id/2970017
***http://press.ihs.com/press-release/country-industry-forecasting/big-data-drivers-seat-connected-car-technological-advance
3. 3
Programmable computing thrives
in prescribed, predictable
scenarios but is too limited for
the complex IoT landscape.
The IoT is a monumental data challenge.
Cognitive computing can keep up.
Cognitive systems aren’t
programmed. They learn from
virtually every interaction and
the surrounding context to
unleash the potential of the IoT.
4. 4
IoT has taken hold
What once seemed like
hyperbole, now seems
like understatement.
USD 1.7 trillion
in value added by the IoT to the
global economy in 2019.1
82 percent
of enterprise decision makers say IoT is
strategic or transformative to their enterprise.3
From 13 billion to 29 billion
Projected growth in connected devices by 20202
1 Business Insider, "The 'Internet of Things' will be the world's most massive device market and save companies billions of dollars," John Greenough, April 14, 2015.
2 IDC, Worldwide Internet of Things Forecast, 2015-2020, Doc #256397, May 2015.
3 IDC, “Internet of Things: New Worldwide Demand Side Research on Perceptions and Plans for Adoption 2015,” September 10, 2015,
5. 5
Proven value, immediate opportunity
Leaders are putting the physical world to
work and achieving results now.
Transforming
the customer
experience
Boosting
operational
efficiency
Disrupting
their industries
Sustaining the
environment
6. 6
Open Platforms
Inexpensive Sensors
Cloud
Computing Power
Big Data & Analytics
Mobility
Cognitive
Internet of Things (IoT)
All coming together to create a perfect storm…
Social
The rapid evolution of technology is creating excitement and questions around
what to do…we are in a point where dot.com stood in the 90’s
7. 7
Source: Modified from McKinsey Global Institute
Vehicle Manufacturing
and Safety
Optimize production, diagnose
safety and vehicle malfunctions on
the road
In-vehicle Digital
Services
Build new revenue streams and
loyalty from connected apps and
services
New Service &
Business Models
Deploy new business models extending
beyond the traditional industry
Fleet
Optimization
Remote monitoring and
optimization of fleets
IoT generates value with vehicles across four primary focus areas
8. 8
Data unlocks value opportunities Operate
Sell
Insure
Manage
Make
Procure
Manufacture
Ship
Experience
Learn
Configure
Socialize
Develop
Research
Design
Develop
Maintain
Monitor
Service
Optimize
Business Facing
(B2B)
Customer Facing
(B2C)
Primary Focus
Vehicle Manufacturing
and Safety
In-vehicle
Digital
Services
New Service &
Business Models
Fleet
Optimization
When it is shared across functions…
9. 9
Shifts in external forces are compelling ongoing transformation
Technology leads the way with consumer expectations close behind
What are the most important external forces
that will impact the industry today and in 2025?
Technology progress
Globalization
Economies/markets
Sustainability
Government
regulations
Consumer expectations
Corporate social
responsibility
Global labor force
Personal mobility
66%
55%
68%
47% 50%
41%
37%
35%
27%
20%
10%
46%
45%
13%
11%
10%
3%
9%
2014 2025
10. 10
Development teams are meeting the challenge with
Continuous Engineering platforms
Requirements
Design
…Software engineering is becoming a new competitive differentiator
Validation &
Verification
11. “The ‘anchor’ for products won’t be the physical
asset; it will be the digital entity – the product
plus all the information associated with it.”
COO, Automotive Manufacturer, Europe
16. 16
Outthink the competition with cognitive IoT
Cognitive IoT delivers insights once unknowable.
Businesses can benefit in five key areas:
Extending
expertise
Deepening human
engagement
Creating cognitive
processes and
operations
Infusing cognition
into products and
services
Enhancing
exploration and
discovery
18. 18
Kal Gyimesi
Automotive Marketing Leader
IBM Watson IoT
kalgyimesi@us.ibm.com
@kalgyimesi
Also follow,
@IBMAutomotive
Find the IBM Institute for Business Value
studies discussed today:
https://ibm.biz/Auto2025
https://ibm.biz/AutoConsumer