Car-as-a-service era is here

The Sync experience
Ford Sync is an early example of a next generation a connected software-driven dashboard or vehicle information and communications system. Ford offers Sync in four editions based on levels of features, bundled services and optional subscription plans as summarized below:

	Sync	Sync with Voice-Activated Navigation	Sync with MyFord	Sync with MyFord Touch
Handsfree calling	X	X	X	X
Entertainment
Voice-activated music search, Bluetooth audio streaming	X	X	X	X
Voice-activated radio tuning		X		X
HD Radio (pay per song)				X
Satellite radio (subscription)		X		X
Navigation	X	X	X	X
Subscription Services				X
411 business search, Personalized news, weather, sports, traffic alerts	X	X	X	X
Vehicle Health Report	X	X	X	X
Wifi hotspot				X

Ford Sync illustrates several strategies to grow revenues from a “platform + apps + services” approach. First, a single software product can be sliced and diced based on software features to create packages targeting specific consumer sectors. This helps Ford create Sync offers at different price points based on customer need and willingness to pay, without having to acquire manufacturing costs for a specialized hardware model for each need.

For example, the “wifi hotspot” is available in one package but not in others, allowing auto manufacturers to generate revenues from customers that care about such features without having to manufacture a hardware model. Second, you will note several services bundled in Ford Sync, some require a subscription, while others are part of a package. For example, vehicle health reports, which send engine diagnostic information to the Ford portal, are available in packages. Personalized traffic alerts and satellite radio, on the other hand, require a subscription plan. Lastly, features like HD Radio is available as a “pay per song” model, similar to iTunes. 

A “platform + apps + services” model allows an auto manufacturer endless possibilities for revenue. For example, consumers can have the option to pay for navigation maps for a short duration, such as a weekend trip, rather than paying a monthly subscription. Manufacturers can also offer entertainment, such as movies or video games, to rent for a weekend or a long trip. Additionally, manufacturers can offer a vehicle’s maintenance history in the cloud. This information will stay with the vehicle and can be passed along to a new owner. An example of this is in General Electric’s TRUEngine program which helps GE engine owners “maximize your asset's marketability and ensure it receives the full range of GE's world-class support. Through our online TRUEngine database, appraisers and buyers can quickly confirm an engine’s qualification status by Engine Serial Number (ESN).”

Ford has also partnered with an auto insurance provider to track and transmit mileage data, resulting in improved insurance rates for drivers. These creative services provide Ford with endless monetization opportunities and recurring revenues, in addition to an increase in customer loyalty for not only Ford, but for their entire network, such as their insurance provider partner.