Car-as-a-service era is here

Detroit eyes Apple model
Electric car manufacturers like BMW have also embraced these ideas as they’ve partnered with car charging networks like Coulomb Technologies. The dashboard of these cars feature services such as maps of charging stations, and include an option to reserve a charging spot at each station. We predict that in the future, drivers would be able to record and store their driving profiles in the cloud and download them to any vehicle they choose to drive, just as a smartphone records roaming history. In addition, drivers would be able to log into their car and receive the correct seat adjustment, thermostat settings, radio channels, games, and more. 

Internet connectivity anywhere, anytime in cars is the key enabler for “platform + apps + services” models. As Gartner* points out, “A connected vehicle experience provides the opportunity to move beyond a vehicle-sale-centric business model and toward a variety of monetization opportunities focused on the sum of the automobile ownership, driving experience and user-related aspects.”

The transition to a software-driven business provides tremendous opportunity for automotive manufacturers to grow revenues. So how do you make the transition? In our experience, a software-driven business transformation will require auto manufacturers to:

1. Re-think product packaging and business models based on how consumers want to use cars and related apps and services. As the Ford Sync ex-ample illustrates, car manufactures will need to segment their customers more and create tailored “platform + apps + services” offerings at different price points.
2. Track and manage entitlements. Every driver and car could be configured differently based on the device platforms (e.g. dashboard system), related apps and services. Layered on top are the different ways drivers might have purchased apps and services, ranging from try-before-you-buy, subscription models, freemium models, pay-by-use, outright purchases and so on. All this can become quite complicated very quickly, but tracking and managing consumer entitlements is an essential prerequisite to making “plat-form + apps + services” real.  
3. Automate the entire app, device platform and entitlement life cycles. These life cycle processes include: app installation and activation; subscription management; firmware and app updates; device platform provisioning, configuration management, device monitoring and remote management; app upgrades and other changes to entitlements. Internet connectivity is a key enabler for automation of firmware and software updates, as it is for data uploads from and downloads to cars at the heart of many of these processes.

Some things are easier said than done, especially when auto manufacturers have little to no experience running software-centric businesses. However, a detailed plan outlining these requirements is just what you need to make the transition and unlock 10X financial returns!

*“Predicts 2013: Mobile, Cloud and Information Fuel the Automotive Era of Smart Mobility” Thilo Koslowski, Gartner, November 2012

About the author
Bashyam Anant leads product management for Flexera Software's backoffice solutions for software producers and high tech device manufacturers. Previously, Bashyam was Director of Product Management for Yahoo!'s Audience Products Platform.