Drive Connected - Hughes Telematics, Inc

Editorial for Vision Zero International Magazine.

Being connected anywhere, anytime is what people crave. In fact, according to comScore, the number of mobile phone users in the United States alone, who used a mobile device to access news or information (excluding social networks), more than doubled from January 2008 to January 2009.(1) Constant connectivity and mobile Internet is the newest evolution in today's digital world. Last year, 117 million Chinese citizens used their phones to access the Internet, a 103% increase from the previous year.(2)

As this desire for connectivity has flourished, telematics, which is defined as the convergence of telecommunications and information processing, emerged as a means of becoming linked in to the digital society. As the evolution of connectivity progressed, telematics made the leap into the vehicle.

The vehicle is commonly referred to as the "fourth screen" for extending connectivity. The first three are the television, the computer, and mobile devices. Telematics in the vehicle creates the opportunity to continue connectivity by providing specific content and services that are relevant to drivers and passengers.

Vehicle connectivity is not new. Consumer telematics, or Telematics 1.0, was made readily available in the mid 1990's. Initially based largely on a platform of safety and security, telematics has evolved and is now entering the next phase of telematics, or Telematics 2.0. Comprising the solutions currently rolling out in the marketplace, Telematics 2.0 is built around a flexible architecture that can expand to accommodate the growing demand for content and mobile applications. Looking ahead, Telematics 3.0 is emerging on the cutting edge of technology as the next evolutionary step for the connected vehicle.

Telematics 3.0 leverages the services and content from Telematics 1.0 and 2.0, but in an environment largely based around cloud computing. Cloud computing, as defined by Gartner, Inc., is "a style of computing where massively scalable (and elastic) IT-related capabilities are provided 'as a service' to external customers using Internet technologies."(3) Telematics 3.0 focuses less on device and more on personalized content accessible anywhere and everywhere. Cloud computing enables real time delivery of personalized content and information over the Internet without the need for OEMs to investment in additional hardware infrastructure and software installations. Data and information are no longer stored on a particular device. Any connected device provides access. Synchronization is a thing of the past with Telematics 3.0.

With the anticipated success of cloud computing, Telematics 3.0 has the opportunity to redefine services that address many of the age old challenges such as device dependence, third party device integration, driver distraction and content synchronization. Telematics 3.0 is not a replacement, but rather a logical extension of the elements of Telematics 1.0 and 2.0.

Telematics 1.0

With the launch of services in the mid 1990's, telematics offered a platform largely based on safety and security. The benefits to the customer included piece of mind or an "insurance policy" to be protected from the unknown with services you would generally only need in case of an emergency or other problem.

The original telematics services included within 1.0 were based around proprietary OEM services, call centers and delivery platforms. Services common in the 1.0 roll out included automatic crash notification, roadside assistance, stolen vehicle tracking, door unlock and general concierge services. Telematics 1.0 was clearly successful as it saved lives, and the early pioneers began to educate consumers on the value of the connected vehicle.

The Telematics Service Provider (TSP) in Telematics 1.0 served an integral role in the design and execution of all services to the connected vehicle. The role of the TSP included working with the Telematics Control Unit (TCU) hardware provider to tightly engineer the integration of services within the vehicle. The execution of telematics services requires a well defined and secure set of commands between the TSP and the vehicle to ensure normal vehicle operations are not negatively impacted. With Telematics 1.0 the role of the TSP was focused on this integration, which is somewhat limited as the services provided are predominantly proprietary and defined by the OEM.

Although credited with pioneering the industry and demonstrating the ability of the connected vehicle, Telematics 1.0 posed limitations.

These Telematics 1.0 proprietary services were predominantly passive and did not engage the customer on a daily basis. As OEMs extended their service offerings to drive customer excitement and take rates, additional active services that provided daily utility were introduced. Such services included navigation, diagnostic reporting and personal calling programs.

Telematics 1.0 leveraged OEM proprietary services based on an embedded hardware device with a closed service environment dependent upon a customer subscription. Although successful at the time, the new generation of connected services needed more flexibility than a "one size fits all solution." This flexibility became the design mantra for Telematics 2.0.

Telematics 2.0

Over the last five years the world saw phenomenal growth in connectivity. According to Telematics Research Group, sales of OEM telematics systems grew from 1.8 million in 2003 to six million in 2008 and are expected to grow to almost 17 million by 2013.(4) The number of telematics-enabled vehicles in use also grew from six million in 2003 to 26 million in 2008.(4) The Internet and mobile applications saw a dramatic rise in usage as public demand for social networking emerged. Social networking and social influence marketing gave rise to the growth in smart phones and data-enabled devices, allowing consumers to stay connected and receive content on demand. Today, connectivity on the go is expected.

Leveraging the knowledge from Telematics 1.0, the next generation comprises a combination of services addressing the limitations of the first generation as well as captures the demands of the current and future connected societies. Telematics 2.0 offers many of the same services inherent in 1.0, but it is built on an advanced architecture allowing flexibility to seamlessly add third-party content, additional hardware devices and multiple call centers. As this architecture is developed, known as the Next Generation Telematics Architecture (NGTA), a variety of solutions and service offerings will be common among the OEMs.

NGTA represents a shift away from the proprietary telematics systems to a flexible platform that can bring new players and new services to the market faster, and at a lower cost. This allows OEMs to custom-tailor content and features with flexibility for future services and hardware selections. The architecture is based on four core principles: flexibility, scalability, adaptability and reliability. As a flexible telematics platform, it provides connectivity between multiple content providers, call centers and hardware providers.

The role of the TSP in Telematics 2.0 greatly expands as the complexity of service integration, vehicle integration and the need for a simple user interface increases. NGTA provides the architecture to support the addition of third party applications, services or hardware, but with such expansion the TSP must maintain the responsibility for the seamless and safe integration within the vehicle. Whether integrating complex navigation services or third party mobile applications or linking to OEM specific call centers, the customer experience must be consistently managed and engineered through the telematics operations systems to ensure safe and reliable delivery to the vehicle. This integration also includes coordination with the TCU supplier to ensure connectivity within the vehicle including a consistent user interface.

OEMs can select their own best-in-class providers to create a unique experience for their customers. NGTA builds on the tenet of connectivity and improves the driver experience by allowing for new content, Internet applications and service updates to be downloaded remotely via the telematics platform. The architecture also takes it one step further, allowing for global deployment with a single service offering that will meet the international needs of OEMs.

Telematics 2.0 leverages the flexibility offered by NGTA to provide a broader set of services and benefits to the connected vehicle. These services include the integration of nonproprietary content such as news, weather and sports feeds and popular social applications. This architecture will also better facilitate the integration of devices such as smart phones, allowing a safer experience for calling, emailing and messaging while in the vehicle.

While NGTA is currently being rolled out, the real test has yet to be assessed in the marketplace. However, there remain design elements that need further enhancement for consumer flexibility and convenience. Consumers are challenged with data synchronization and device dependency which is best addressed through cloud computing technologies, leading to the evolution into Telematics 3.0.

Telematics 3.0

The rapid acceleration of connected services and consumer adoption is driving Telematics 3.0, even as 2.0 is in the early stages of its roll out. The key benefit of Telematics 3.0 is the ability to provide customers with access to their information anytime, anywhere, using a simple device-independent interface. Imagine having music, photos, videos, calendar, address book, passwords and personalized content available seamlessly from the home to mobile device to the vehicle without requiring continuous synchronization, pairings, or painful software plug ins.

This all encompassing connectivity is made possible cloud computing.

Cloud computing builds upon the advances of Telematics 1.0 and 2.0, and extends additional benefits to the customer by eliminating device dependence. Driver distraction, synchronization issues with personal data and integration problems between third party applications and services will cease to exist. Access anywhere, anytime allows for seamless integration across multiple devices, and provides redundancy to prevent data loss.

Telematics 3.0 expands on the architecture developed in 1.0 and 2.0 and leverages contemporary technology such as cloud computing. The driver experience will be enhanced with the ability to access personal music, contacts, email and social networks without pairing devices or the need for executing demands to synchronize content. For example, going from the office or the home to the vehicle is a seamless experience allowing the driver to maintain connectivity.

The role of the TSP expands dramatically with the emergence of Telematics 3.0 as the technology becomes more virtual and the risks of service interruption increase. Like Telematics 1.0 and 2.0, the TSP's role continues to support service integration, vehicle integration and security management. With some data and applications residing off-board, i.e. in the cloud, the TSP's role expands to include managing the interface between on- and off-board computing. This multi-point communications management strategy requires not only content storage algorithms, but also the intelligence to efficiently manage the communications link. With this reliable and robust connection to the vehicle, automotive engineers will broaden their capabilities to remotely manage and maintain the growing lines of vehicle software. In summary, the importance of Telematics 2.0 developed NGTA increases dramatically for the TSP in Telematics 3.0.

Telematics 3.0 moves beyond previous generations to offer daily utility services, providing flexibility and enhancing the customer experience. It is the marriage between the virtual world and connected society. Both are inevitable, and the vehicle is the logical extension.

Impact on the Next Generation Car Buyer

The next generation of car buyers will expect connectivity and seamless integration. Less concern will be placed on the device used and more on the content provided. In this increasingly digital age, buyers will begin to place more emphasis on connectivity services versus vehicle brand. Telematics will become a buying criterion as these connectivity services evolve from an optional benefit to a necessity. Those OEMs that employ Telematics 3.0 will meet the demands of the next generation buyer; those that don't will be left behind.

References

(1) comScore Release on "Mobile Internet Becoming a Daily Activity for Many," http://www.comscore.com/press/release.asp?press=2752 (March 16, 2009).

(2) China Internet Network Information Center (CNNIC), "23rd Statistical Survey Report on the Internet Development in China," January 13, 2009.

(3) Gartner Research Release on "Gartner Says Cloud Computing Will Be As Influential As E-business," http://www.gartner.com/it/page.jsp?id=707508 (June 26, 2008).

(4) Telematics Research Group, "Telematics Forecast," November 2008.