Digital Services in the Automotive Industry

U ntil recently, the automotive industry has been primarily dominated by a few giant original equipment manufacturers (OEMs). However, car manufacturers are now being challenged by the software and service industries. Apple and Google have released car platforms that leverage mobile service platforms customized for navigation, infotainment, and communication, and that provide intelligent, personalized, and contextual driving experiences. Tesla and Faraday Future debuted a futuristic car that is greener, embraces advances in IT, and provides a better user experience. Countless startups with different business models have also been actively innovating and adopted by the market, such as Uber, Waze, and Mojio. Faced with challenges from new players in the automobile segment, OEMs are strategically investing more in digital services and new business models, shifting focus from traditional hardware platforms toward software and service platforms, from improving the incar driving experience toward engaging in the user’s daily life, and from onboard and local computing toward scalable cloud computing with machine learning and the Internet of Things (IoT). For example, Toyota has just established Toyota Connected to develop the connected car. Ford uses big data to rapidly accelerate its car development and innovation. GM uses big data gathered from its fleet of cars to develop 360-degree customer profiles. As Figure 1 shows, BMW has launched a personal mobility companion, called BMW Connected, which supports and learns your routine mobility needs and is powered by the Open Mobility Cloud, an intelligent, continuously learning platform built using Microsoft Azure. This vision represents an intelligent, contextual, highly personalized world of digital services that integrate the vehicle seamlessly into the user’s life. These trends are exciting and have great potential to disrupt the automotive industry and improve our lives.