Volatile, Uncertain, Complex & Ambiguous
Much has been said about the Connected Car. Yet there are so many questions still surrounding the concept of the Connected Car and how it will deliver value to each stakeholder group within the Value Chain.
Firstly the Connected Car is operating in a volatile environment - there is change happening and the biggest change is embedded connectivity that will be included in vehicles as they roll off the production line. Therefore, impacting the business models of Telematics Service Providers (TSP) that depend on revenue from telematics hardware.
Volatility aside, the Connected Car Industry is uncertain. While we know that embedded connectivity is the way forward, OEM's are yet to confirm when this will happen and what geographical markets will take precedence. Despite this, industry players still need to persevere and continue to build capability and a product roadmap that will hold them in good stead to meet this challenge.
Above all, the Connected Car value chain is complex. It’s no longer dominated by aftermarket TSP’s. Telco’s and OEM’s also see the value in having market share in the sector to solve their own unique business challenges. Therefore, a “one size fits all” Connected Vehicle solution will not enable all these stakeholders to meet their business goals. Worse still in the OEM space, there is a high dependency on the dealer network to facilitate customer uptake. These dealerships are not prepared for this challenge.
Adding to these challenges is, the Connected Car Segment is ambiguous. There is no universal standard in respect to what defines the features of a solid connected car software solution. Different segments, need different features and functionality. There’s no clear winner yet, therefore it’s paramount that stakeholders define their goals and undertake the effort to assign the right resource to help them succeed