Interview with VW Group CIO Martin Hofmann [P 4]

Transcription

Executive Report – October 2014
On the way
[P 8]
Driver assistance
gets complicated
at higher speeds
· · · · · · · · · · · · · · · ·
IT specialists
[P 10]
Smaller IT players
expected to grow
German car business
· · · · · · · · · · · · · · · ·
Microsoft
[P 12]
New CEO steps up
efforts to change
corporate culture
· · · · · · · · · · · · · · · ·
After-sales
[P 14]
Digital technologies
make their way into
car service operations
· · · · · · · · · · · · · · · ·
Radio
[P 16]
Broadcast industry
sends digital-radio
message to auto industry
················
Software
Automakers' decision
on software platform
seen as crucial
· · · · · · · · · · · · · · · ·
BMW i ConnectedDrive Services
P
ECO
PRO
Dynamic
Charging
Station
Information
QNX
Dynamic
Range Map
Range
Assisstant
ECO Pro
Route
Dynamic
Parking
Information
Intermodality
Traffic
Information
Point of view
BMW i Remote: BMW i Remote: BMW i Remote:
Mobility
Efficiency
Status & Control
[P 21]
The Uber case:
Resisting market change
is detrimental to industry
· · · · · · · · · · · · · · · ·
Connections
Interview with VW Group CIO
Martin Hofmann [P 4]
[P 18]
[P 22]
Connectivity trend
gaining traction across
brands and countries
Executive Report: This is Volume 3, Issue 10, of the automotiveIT Executive Report. It features exclusive interviews, news stories and
analyses covering the top issues facing IT decision makers in the global automotive industry. Subscribers receive the Executive Report either in print or
in PDF format via e-mail 12 times a year. The next issue will be published in late October. Make sure you receive the automotiveIT Executive Report and
place an order online at www.automotiveit.com/executive-report
Navigation systems
Sensors and
cameras
Construction site data
Mobile phones
Mercedes-Benz Live Traffic: Real-time traffic information
Executive Report 10/2014
2
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3
www.automotiveIT.com
From the editor:
October's news agenda
October is always a busy month. At
the tail end of the world's biggest
commercial-vehicle fair, the IAA in
Hanover, we host the annual automotiveIT Connected Car Congress. This
year's event sees Audi R&D boss,
Ulrich Hackenberg discuss technology
innovation. Other speakers include
Daimler CIO Michael Gorriz; Elmar
Frickenstein, BMW's head of electrical and electronic development; and Burkhard Milke, director electrical systems, infotainment and electrification at General Motors' Opel division.
Immediately following the Congress, the Paris auto show will
see some of the most important launches of the year. Audi's new
TT roadster will showcase the brand's new "digital cockpit;" Fiat
will unveil a new 500x crossover; Ford will give a first showing
of the second-generation S-Max van; Mini will debut a five-door
hatchback; and Volvo will offer a first public viewing of its secondgeneration XC90 crossover.
In San Francisco, starting October 13, Salesforce.com will stage its
annual Dreamforce convention, which brings together more than
100,000 IT experts and users of the company's business software
programs. Dreamforce is also a forum for discussion of the newest
information-technology and productivity trends across all industries, including the car business. Sessions concerning the automotive industry will focus on how car companies can reap more
benefits from connected cars and connected consumers.
In Munich later in October, the eCarTec show has as its theme
"Connecting Mobility Markets." The annual fair pays particular
attention to electric vehicles, energy storage and the charging
infrastructure.
We'll cover all of these events and more in the next automotiveIT
Executive Report, but, first, please look at the current issue for
a wealth of insights into how automakers are incorporating ever
more technology into their cars.
In this edition, we feature an exclusive interview with Volkswagen
Group CIO Matthias Hofmann, we explain the software decisions
automakers face today and we report on a discussion of digital
radio in the car. In addition, we look at the cultural changes CEO
Satya Nadella is making at Microsoft and we examine the automotiveIT ranking of the top 25 IT service providers to the German
automotive industry.
Arjen Bongard
Editor-in-Chief
automotiveIT.com
[email protected]
4
"We are shaping and acting
instead of just reacting"
An interview with
VW Group CIO
Martin Hofmann
Group IT at Volkswagen is reactivating its old strengths and
wants to take matters in its own hands on issues such as the
cloud, big data and mobility. That's why CIO Martin Hofmann has
been pushing new specialized staff training. He's also testing
joint projects and startups, and is consolidating IT employees
into their own office complex at VW's Wolfsburg headquarters
in late 2016. Hofmann spoke to automotiveIT about these developments and other matters.
Mr. Hofmann, you want to continue to build up the company's
IT expertise. How do you precisely envision future roles and the
division of labor?
The Volkswagen Group has wide-ranging IT expertise. But
over the last few years, we have focused especially on project
management and placed the technical execution into the hands
of service partners, including the development of new applications and support issues. In the future, we will increasingly
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direct our expertise toward technical implementation. When it
comes to technologies such as cloud computing, data analytics,
the internet of things and mobility, we cannot and will not be
satisfied with a control function. As Volkswagen IT, we want to
retain the core competency over the entire lifecycle of a solution. That begins with seeking out innovative technologies,
continues through the evaluation of their relevance, and covers
their seamless integration into our business processes. We are
shaping and acting instead of just reacting. That does not mean,
however, that we will do everything ourselves.
What are the consequences of this approach?
They are positive, without exception. Our highly trained IT team
is going through another powerful training initiative. At present,
we are training our third-generation IT security specialists. Our
cross-brand IT Academy will shortly train 150 enterprise architects and is currently preparing the first 30 pilot project participants. Another example: We are going to offer Java boot camps
– all to further expand, deepen, and spread our IT expertise.
So less outsourcing in the future?
Precisely. It is a matter of taking what is security-relevant and
confidential and handling it ourselves. For example, this includes the operation of our FIS, which is our production, information and control system. In 2013, we consolidated all the services of a number of IT providers. At the moment, a software
development center is going up in India. We will expand our
programming capacity there, and maintain and further develop
the systems ourselves. Yet another example: Skoda's brand IT
department will take over SAP-related application support for
the entire Group. In this way, we are working through all the
sections step-by-step and by mutual agreement with our IT
partners. We assume that we will complete the insourcing in a
little more than three years.
If you support FIS from India, the support processes will also
change.
That is correct. The service provider is no longer just a few
streets away. It is working in another time zone and its employees speak English. Everything is becoming more international.
Does the internal build-up of IT expertise go hand-in-hand with
a growing number of IT employees?
We use the group's 9,300 IT employees more effectively if we
exploit synergies and avoid double work. We will naturally
bring new IT specialists on board in the future. In 2012 and 2013,
we hired more than 400 IT specialists at just Wolfsburg and at
Audi headquarters in Ingolstadt. In addition, we have taken on
IT-oriented employees from other areas since last year. This is a
true success story. The new co-workers receive custom-fit training. They think and act extremely pragmatically and are useroriented. Everyone involved sees this as a positive step.
Group IT had a presence at CeBIT 2014 with a large stand for the
first time, and it aggressively went after young, qualified talent.
What did this campaign accomplish?
It was a total success. We could hardly handle all the applications. Two months after CeBIT we no longer had any open positions. I am sure that this was no transitory impression tied to the
trade fair. In the current European Graduate Barometer published by market researchers trendence, the Volkswagen Group
holds the second spot in the Engineering/IT area. That puts us
significantly ahead of our rivals in the automotive sector. A few
years ago, we were not even in the top 10. Through CeBIT, we
had contact with 25,000 students and 120 professors – an ideal
starting point to strengthen and expand our connection to the
university world.
"When it's security-relevant
or confidential, we want to
handle it ourselves"
What is your main focus this year and in 2015?
There are three that should be emphasized. First, the close cooperation of Group IT and technology development on networking and connectivity; second, our work on a digital mobility
platform to facilitate the networking of vehicles with the environment and objects in the internet of things; third, new IT
initiatives in artificial intelligence and robotics.
Does the new data lab in Munich play a role in this?
Of course. In the data lab, our employees develop ideas, identify
trends and test new technologies. In doing so, they work with the
support of external partners such as Google and Intel as well as
startups from Germany and Silicon Valley. The environment is
inspiring and very dynamic, and the approach to work is highly
creative. There is experimentation and, as a result, mistakes are
allowed. Nonetheless, no one loses sight of the mission. In this
way, extremely interesting results emerge within several weeks.
If they work out, they become the basis for ongoing projects.
How do you manage relations with the startup scene?
We make full use of our partnership with the German Accelerator promoted by the Federal Economics Ministry. Through this
organization, we are in contact with more than 150 young companies in the information and communication technology fields.
This new form of cooperation is bringing a breath of fresh air
and many ideas into our software development. We are already
benefiting from it.
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Automotive and classic IT are coming together. What does this
mean to Volkswagen?
The integration of network services in a vehicle like the new Golf
is extremely complex. In this area, technology development and IT
work together closely under a clear division of labor. Our development co-workers hold the responsibility for the car's technology. Corporate IT handles everything from the air interface to the
backend. It is a matter of bringing information from the Internet
to the driver in such a way that he is informed but not distracted.
Vehicles and software are developed at different paces. How do
you achieve pinpoint synchronization?
We have adapted our software development process to the product
development process. The same logic, the same terms, the same
milestones. This promotes a mutual understanding of the work.
Industry 4.0 will be a megatrend in coming years. Where does
Volkswagen stand in the networking of the production process?
Volkswagen has long worked with networked production facilities. This is the only way large production volumes are possible.
Industry 4.0 will, for example, offer the opportunity to identify
possible malfunctions and improve supply flows into factories. In
pilot projects, we are now evaluating large data quantities – the
requirement for an even more pro-active maintenance.
You are the head of Group IT, and every brand has its own IT. How
difficult is it to walk the tightrope between preserving the independence of the brands and bundling capabilities group-wide?
Strong brands such as Porsche, Audi and Volkswagen are the
foundation for company success. In the world of bits and bytes it
doesn't matter what logo is on the computing center. The important factor is that our IT solutions contribute to the success of the
brands and to the success of the Group. Hardware infrastructure,
network and operating systems are all important for successful
business activities and can be the same for all the brands. That is
why we standardize processes in the IT area wherever the change
is technically feasible and make sense.
You want to make IT resources available to the operating departments more quickly in the future. That is why you have acquired
experience with a private cloud architecture in a major project.
How will this strategy evolve?
We have established a private cloud for the connected car. At the
same time, we are examining where we can take advantage of
public cloud infrastructures. The volume of storage in the group
is growing enormously because developers use storage-intensive
simulation technologies, large quantities of machine data are
collected from production, and we are networking new vehicle
generations. But we will not and cannot build one computing
center after another. So we are going to store non-critical data
such as relatively old archival data in public clouds – naturally in
dedicated hardware environments that are clearly recognizable
as Volkswagen IT.
Martin Hofmann
Martin Hofmann has worked at the Volkswagen Group for
13 years. Before joining Europe's biggest car group, he
worked at IT services provider Electronic Data Systems Corporation (EDS), handling international duties, and later as
the head of Digital Markets Solutions Consulting in the US.
Between 2001 and 2003, Hofmann managed e-procurement
and supply chain integration at the Volkswagen Group.
Thereafter he assumed responsibility for process and information management in corporate procurement. Starting in
2008, Hofmann took charge of VW organizational development. He has been Group CIO since December 2011.
Volkswagen Group key facts
Revenue (in billions of euros)
2013: 197.01
2012: 192.68
2011: 159.34
2010: 126.88
Capital spending for current operations (in billions of euros)
2013: 14.94
2012: 16.84
2011: 16.00
2010: 9.28
Number of employees on December 31, 2013 (Group)
2013: 572,800
2012: 549,763
2011: 454,000
2010: 389,000
Interview by Ralf Bretting and Hilmar Dunker
Photos: Claus Dick
7
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On the way
Driver assistance systems are considered the pacesetters for
autonomous driving. But, though the development goals are relatively clear, the route to the finish is not. Automakers are continuously adding new assistance systems and eventually, so the
thinking goes, these will combine to allow autonomous driving.
Several brands are targeting 2020 as the year in which they hope
to start marketing such vehicles.
The auto industry is today already showing that the technology
exists to take the driver out of the driving equation for extended periods of time. A Mercedes-Benz S-Class earlier this year
drove more than 100 km without a driver physically managing the
car. Google's driverless pods are cruising down California streets.
Other brands are also testing autonomous vehicles.
But many experts say regulatory and technical barriers are sizeable
and both need to be overcome before driverless driving becomes a
reality. One of these technical experts, Hermann Winner, says collision avoidance and collision mitigation systems face a particular
problem in that they are difficult to adapt to higher speeds.
In low-speed tests, these systems can successfully recognize that
machine intervention entails less risk than doing nothing. In
other words, the car brakes or swerves to avoid a potential accident. That's not so easy at higher speeds.
Autonomous cars have to figure out the direction and speed and
the intentions of pedestrians and bicyclists. Researchers are finding out that low-speed intervention cannot be easily extended to
higher and higher speeds. The reason is that braking distance has
a quadratic relationship with speed. It poses no problem to stop
within a meter at 10 km an hour. But at 50 km/h, the detection
range needed for safe stopping is 25 meters, and at 70 kilometers
per hour the figure is nearly 50 meters, or half a football field. It
would take extensive algorithmic forecasting to enable the best
possible decision-making – all the more because surroundings
can change substantially over longer distances.
“None of today's approaches fits very well at 70 km/h,” said Winner, who heads the Vehicle Technology department at Germany's
Technical University in Darmstadt said. The defined safe condition
is always to stop if you're driving at walking speed. But that safe
condition no longer exists if you are driving in the left lane of the
autobahn, he said. From Winner's perspective, it is still not clear
how the problem can be solved.
Research projects in this area are still at square one, the university professor said. And there's another issue: no one has clarified
how the handoff can take place between the automatic system
and the driver when they take turns during highly automatic driving. “That is also a legal question,” Winner said. It is a challenge
that involves the human-machine interface as well. When the automatic system has taken over, how can the driver's attention be
re-directed if he is not even looking at the road? The only certainty is that this has to occur within a few seconds. But, said Winner,
the mechanism for that is “completely up in the air.”
By Michael Vogel
Automotive IT news
at the speed of innovation
For current news and opinions on a variety of automotive technology, design, and
manufacturing topics, head to AutomotiveITNews.
From the latest connected car platform wars to innovative fuel economy developments,
we provide up to the minute news online, on Twitter, and via email newsletter subscription.
See what’s new at www.automotiveitnews.org/pages/it
9
10
Management · Top 25 der IT-Dienstleister
22
Slicing the German automotive IT cake
Top
25:
Germany's
biggest
Top 25: die
umsatzstärksten
Anbieter in Deutschland
2014 automotive IT service providers
Alle Angaben in Millionen Euro
In millions of euros
1)
Rank
Company
2014
Automotive revenue
2013 Germany
Automotive
revenue
Germany 2012
Forecast
2014 1)
1
T-Systems International GmbH 1)
715.0
750.0
710.0
2
IBM Deutschland GmbH 1)
540.0
564.0
540.0
3
Hewlett-Packard GmbH 1)
327.0
353.0
335.0
4
Computacenter AG & Co. oHG
238.8
245.0
245.0
5
Altran GmbH & Co.KG 2)
160.0
-
170.0
6
Mieschke Hofmann und Partner GmbH
145.0
125.0
175.0
7
SAP Deutschland AG & Co. KG 1)
140.0
123.0
146.0
8
NTT Data Deutschland GmbH
136.0
113.0
145.0
9
Accenture GmbH 1)
120.0
110.0
130.0
10
Capgemini Deutschland Holding GmbH 1)
102.0
90.0
110.0
11
Atos Information Technology GmbH 1)
85.0
88.4
85.0
12
ESG Elektroniksystem- und Logistik-GmbH 1)
85.0
82.0
91.0
13
Infosys Ltd.
84.0
75.0
95.0
14
All for One Steeb AG
75.4
51.0
87.0
15
H&D International Group
75.0
69.0
80.0
16
msg Systems AG
57.0
45.0
65.5
17
CSC Deutschland GmbH
54.0
43.0
68.5
18
Sulzer GmbH
52.0
40.5
60.0
19
Allgeier SE 1)
38.0
38.0
38.0
20
Abat AG
34.5
27.5
37.0
21
BT Germany GmbH & Co. oHG 1)
32.0
32.0
34.0
22
CGI
32.0
28.5
40.0
23
Cenit AG 1)
31.0
35.0
32.5
24
MVI Solve-IT GmbH
29.0
-
32.0
25
Datagroup AG
27.6
28.0
32.0
Includes estimates by automotiveIT
• New entry
2)
Includes IndustrieHansa
Source: automotiveIT 2013, data may be incomplete
Up/
down
11
While some of the biggest IT service providers to the German
auto industry are seeing a drop in revenue, many smaller players
are growing. That's clear from looking at data on the revenue
performance of the 25 biggest IT services suppliers to the German car industry. According to a list compiled by automotiveIT,
the top 3 – T-Systems, IBM Deutschland and Hewlett Packard
GmbH – all reported lower automotive revenue in 2013. For the
current year, the revenue outlook for T-Systems and IBM is little
changed, while HP could see a small increase.
The weak performance of the biggest players says little about
the overall German automotive market for IT services. The top 25
posted a 6 percent gain in revenue in 2013 to 3.415 billion euros
from 3.194 billion euros in 2012. This year, the top 25 are expected
to see another 5 percent growth to rougly 3.58 billion euros.
Industry insiders say the trend favoring smaller IT service providers
has several reasons. First of all, automakers are increasingly dividing up big consultancy projects, preferring to let smaller specialist
companies handle specific tasks. Second, foreign competitors are
getting a bigger slice of the IT consultancy pie. As one IT manager
said: "Others are always welcome if this brings the price down."
And third, automakers are increasingly bringing in-house strategically important IT functions that were previously outsourced.
German automakers – like their competitors elsewhere in the
world – are counting on IT to realize the transformative plans that
should bring their models in line with 21st century mobility requirements. And they continue to rely heavily on the help of the IT
services industry. To better understand the priorities automotive
companies are setting, automotiveIT asked senior German IT executives which issues are key for the future of the industry.
Here are some of their answers:
"Big data and analytics are increasingly putting their
stamp on the auto industry. Applications on the retail
side, in product development and in production make
it possible to gain better insights into business processes and
react faster."
Dirk Wollschlaeger, general manager Global Automotive
Industry, IBM Deutschland
"Next to the product, customers and automakers are
concerned with the emotional experience of the brand
and mobility as well as digital information in and
around the car. Customer Connect is tomorrow's IT issue.
Kai Grambow, corporate vice president, Capgemini Deutschland
"Connected car and autonomous driving are becoming a reality, which pushes IT security to the top
of the agenda. Automakers can profit from the expertise of network providers, who have built up decades of
experience protecting connected devices."
Ansgar Gruendler, sales director automotive, BT Germany
"IT security, cloud and M2M are the the issues of the
future. One central challenge will be how to dynamically manage cloud-based systems via a cloud integration center. The other is Industry 4.0."
Luz G. Mauch, senior vice president automotive, T-Systems
"For many customers, assistance systems are more
important than horsepower. Those brands inspire that
offer seamless and easy-to-use services. The iPhone
is an example. The relevance of the information is decisive and
big data is the key."
Rainer Mehl, managing director, NTT Deutschland
"In the future we will experience a Smart World with
intelligent products. The trajectory will be marked by
the connected car, agile IT, Industry 4.0 and big data."
Ralf Hofmann, CEO, Mieschke Hofmann und Partner
"Networked cars are more and more becoming driving
data machines. Components equipped with sensors
and digital interfaces generate a large amount of
valuable information. And digitalization will fundamentally
change the way cars are sold."
Andreas Baier, managing director, Accenture
"Industry 4.0 has started. By way of innovationoriented cyber-physical production systems, intelligent
machines and production lines that communicate and
interact with each other, the auto industry will play a key role."
Ruchir Budhwar, head of automotive Europe, Infosys
"Today already, the auto industry faces the challenge of
managing very large data volumes in real time and
using this information in a sensible way. In the near
term, innovations and new business areas based on these data
will emerge. These will complement and broaden the established
successful business models of automakers and suppliers."
Daniel Holz, board member, SAP Germany
"The networked car and service-oriented business
models require information management, security
and agility. Cloud, Big Data, IT security and mobility
are core technologies for this transformation."
Oliver Bahns, director automotive, HP Enterprise Services
By Pascal Nagel
Glockenkurve. Doch kultureller Umbau gelingt nicht über Nacht.
12
Culture change at Microsoft
"We plan to have fewer layers
of management, both top down
and sideways"
Microsoft CEO
Satya Nadella
Traditionally, summer was a trying time for the 40,000 Microsoft
employees who live in and around Seattle in the northwestern
US.
That's when the
software
automotiveIT
08/09
· 2014 giant's so-called stack ranking exercise assessed how the company's employees were doing on the
job. Everyone's performance was ranked against each other and
workers were divided into different categories. The system had
a bad reputation among Microsoft staff. With mostly predetermined quota along a bell curve, many ended up in the middle, regardless of how successful their teams may have been. For these
staffers, their ranking often meant a lower bonus. And for their
colleagues at the bottom of the curve, it could mean getting fired.
"Any strategy gets eaten for
lunch if you don't have culture
that backs it up”
Photo Microsoft
"In order to accelerate our innovation, we must rediscover
our soul – our unique core"
Since autumn last year, everything has changed, at least in theory.
A fresh wind has been blowing since Microsoft CEO Steve Ballmer announced in August, 2013 that he would be retiring and his
successor, Satya Nadella, officially took over in February of this
year. The writing was on the wall for stack ranking in November
already. That's when HR boss Lisa Brummel wrote a memo saying
there would be "no more curve" and no more ratings. Instead, in
a new staff evaluation method, employees would receive more
frequent feedback on their performance by way of so-called "
connects." The uppermost goal: to foster better cooperation
between teams.
13
The new system was well received but changes in corporate culture take time to implement. According to comments on the Web
site Glasdoor, a forum for more than 7,500 current and past Microsoft staff, political maneuvering and an everyone-for-himself
mentality continue to be the reality. Often the most aggressive
are rewarded at the expense of other potentially better qualified
colleagues, said a marketing employee in Redmond.
A key part of Nadella's corporate transformation plan is to have a
a leaner executive team. In an e-mail sent to staff in July, he said:
"We plan to have fewer layers of management, both top down
and sideways, to accelerate the flow of information and decision
making." As a result, Microsoft will, if all goes as planned, operate more like a startup, questioning the "tired traditions" that
characterize many of the older tech companies.
Entering the car
In the Seattle area, 1,351 people have received notice that they
are losing their jobs at Microsoft. If the ensuing jobs uncertainty continues, some of the company's top engineers may consider
heading for other technology groups or startups. All are looking
for qualified staff. Nadella knows the risks, but he's also aware that
far-reaching change is needed to position Microsoft for long-term
success. As he told the Seattle Times this summer: "Any strategy gets eaten for lunch if you don't have culture that backs it up.”
To transform a company that continues to be highly profitable but
appears to have lost its innovative drive, Nadella likes to resort to
strong language. "In order to accelerate our innovation, we must
rediscover our soul – our unique core," he said when he took office. Nadella wants nothing less than to reinvent productivity and
build a new "operating system for human activity." In the vision
of the new CEO, the cloud is central and data analysis is growing
in importance. And, if it's up to Microsoft, Windows, which continues to dominate the desktop PC market, will soon enter cars'
instrument panels as well. The company has positioned its infotainment system, which has the same look and feel as Windows 8,
as a competitor to Apple's CarPlay.
Microsoft's refocusing and its cultural reorientation also mean
job cuts. In July, the company, in the biggest layoff in its 39-year
history, said 18,000 people representing 14 percent of its workforce, would have to go. The bulk of these – 12,500 – will come
from Nokia's struggling mobile phone operations, which Microsoft acquired for 7.5 billion dollars earlier this year. In September, Microsoft also confirmed it is closing a Silicon Valley research
laboratory. Fifty jobs will go at the facility.
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Register Court: Amtsgericht München
Managing Directors: Christiane Sauer, Dominik Ortlepp
Tax Number: 117/132/20657
VAT-ID Number: DE 291832268
Bank Details: VR Bank, Volksbank Raiffeisenbank
BIC: GENODEF1STH
IBAN: DE 32 7009 3200 0101 2834 80
Managing Directors:
Christiane Nina Sauer
[email protected]
Dominik Ortlepp
[email protected]
By Alexandra Riegler
Microsoft to buy Mojang, maker of Minecraft
Microsoft is buying Mojang, the Swedish maker of the popular
Minecraft computer game. The US company is paying 2.5 billion
dollars for Mojang and plans to continue to offer Minecraft on
many different platforms. “Gaming is a top activity spanning
devices, from PCs and consoles to tablets and mobile, ” said
Microsoft CEO Satya Nadella. “Minecraft is more than a great
game franchise – it is an open world platform, driven by a
vibrant community we care deeply about, and rich with new
opportunities for that community and for Microsoft.”
Sales Assistant:
Andea Pacoli
[email protected]
Circulation Manager:
Maria Ganseforth
[email protected]
Event Management:
Meike Seipelt
[email protected]
Art Direction:
Henrik Schramm, enjoy-design.de
Important:
This is Volume 3, Issue 10, of the automotiveIT Executive Report. Only subscribers
get full interviews with top decision makers, extensive background information
and insightful stories on the hottest issues in the industry. Order your personal
copy of the automotiveIT Executive Report now and get it sent to you directly in
print or via e-mail 12 times a year.
Order now at www.automotiveit.com/executive-report and get the automotiveIT
Executive Report for only 199 euros a year.
www.automotiveIT.com/executive-report
14
42 Vertrieb und Handel · Digitale Dialogannahme
Photo: Fotolia/WavebreakmediaMicro
After-sales goes digital
Robots and computers can examine the state of a car,
making the work of the service advisor a little easier
Today’s automobiles are a product of digitalization. New IT systems play central roles in manufacturing, vehicle functions and,
not least of all, inspection and maintenance. Now, digitalization is getting traction in the after-sales market as well. Service operations are increasingly using tablets and robots during the check-in to collect data about a vehicle. That reflects the
stronger customer orientation and time savings that are top
priorities for after-sales service. The classic check-in focusing
on vehicle inspection and technical diagnosis is becoming a
dialogue geared to the customer. To make it as efficient as
possible, more and more branded operations and vehicle service
shopsasare
turning
to innovations
from
the mobile
communication
Auto
der Gegenwart
ist ein
Produkt
der Digitalisierung.
and automation
fields.
Dies gilt für
Herstellung, Fahrzeugfunktionen und nicht
in the cloud are synchronized with the car’s current condition
with the help of a checklist. Any deficiencies are recorded by a
camera integrated into a tablet. The service employee can then
use a mobile interface to show the results to the customer. An intuitive traffic-light color system highlights the repair work needed
on an individual part. “Our goal is to introduce a learning process
via the aggregation of vehicle data,” said Christian Polzer, API's
managing director. “The more we know about the vehicle or the
vehicle model, the more the examination can be dynamically adjusted to a specific case.”
_Alles im Blick. Im Aftersales ist die Digitalisierung
D
zuletzt für Inspektion und Wartung. Im Aftersalesservice ste
Oververstärkte
a number of
years, Leipzig-basedund
Automotive
Process
Instihen
Kundenorientierung
Zeitersparnis
mittler
weile
an erster
Stelle. Dabei
sich diethat
klassische
tute (API)
has developed
andwandelt
sold solutions
combineDirekt
these
annahme,
bei der other
Fahrzeugcheck
technische
Diagnose
im
two fields. Among
features, it und
has designed
a digital
checkVordergrund
standen, customer
zunehmend
zu Iteinem
auf dencustomer
Kunden
in system to determine
needs.
is processing
abgestimmten
Dialog.
Um
diesen
für
Kunden
und
Servicebe
data even before the vehicle is checked in. Vehicle data stored
triebe möglichst effizient zu gestalten, greifen immer mehr
Markenbetriebe und KfzWerkstätten auf Innovationen aus der
Next to API,die
German
ApplicoData
andfür
Procar
Lösungen,
beidescompanies
vereinen: such
Unterasanderem
wurde
die
Informatik are
comparableein
tools.
But API
offers a unique
Ermittlung
desselling
Kundenbedarfs
digitales
Dialogannahme
feature.via
To make
check-in process
efficient as possible,
the
system
Tabletthe
entworfen,
das dieas
Kundendaten
bereits vor
company
has developed
a fullyverarbeitet.
automatic inspection
that
der
Annahme
in der Werkstatt
Über einerobot
Checklis
te
werdenkey
in vehicle
der Cloud
gespeicherte
Fahrzeugdaten
dem
examines
check
points. The car
is hoisted on amit
hydrauaktuellen
Zustand
Autos abgeglichen
und
Män
lic lift where
mobiledes
measurement
modules
areeventuelle
attached. Chasgel
übertire
diemeasurements
im Tablet integrierte
Kamera
Über
sis and
begin without
anyfestgehalten.
manual handling.
das
mobile
Interface
kann
der
Servicemitarbeiter
dem
Kunden
API says the instruments check tire tread depth, tire damage, and
anschließend die Ergebnisse präsentieren. Dabei verdeutlicht
ein intuitives Ampelfarbensystem den notwendigen Reparatur
lia/ WavebreakmediaMicro
angekommen. Moderne Werkstattbetriebe nutzen schon heute
bei der Direktannahme Tablets und Roboter, um Daten über das
Fahrzeug zu sammeln.
15
the current adjustment of the chassis within five minutes. That
doesn't mean the service staff is idle; Fluid levels, glass and paint
are all inspected with the human eye. “In no way do we want to
make the service employees superfluous,” API's Polzer said. “On
the contrary, we want to make their work easier with digitalization and automation, allowing more time for customer dialogue.”
The API system’s first versions, which reached the market five
years ago, are gaining currency in Germany, Austria, France and
Switzerland. API also works with medium-sized partner companies and with automakers, including Kia and SEAT. In northern
Germany, the Kath dealer group, one of API's medium-sized partners, has used the system since 2011. “I especially see digitalization offering advantages when it comes to time-saving through
the use of interfaces to the dealer management system," Kath
Service Manager Randolf Gust said.
The automated check-in does not replace the service staff’s skills.
“This advanced technology must impress the staff – or the system
fails,” Gust said. “The robot is just a supplement to the service
advisor. The robot can't see everything.” But one thing is clear:
Digital technologies will also transform the after-sales market.
API has announced that it will introduce another feature as part
of the fully automatic check-in: a multi-sensor arm. It will allow
the creation of three-dimensional lattice models displaying any
damage to the vehicle.
By Yannick Polchow
News in brief ++++++++++++++++++++++++++++++++++++++
ZF to buy TRW to form supplier with 30 billion euros in sales
Germany’s ZF Friedrichshafen is taking over TRW Automotive to form a new global supplier
group that, with combined annual revenue of around 30 billion euros and 138,000 employees, will be among the world’s five biggest automotive suppliers. The two companies have
complementary strengths, with ZF occupying a leading position in driveline and chassis
technologies and TRW specializing in active and passive safety systems and components.
“The transaction combines two highly successful companies that have remarkable track
(Photo: ZF)
records of innovation and growth and solid financial positions,” ZF CEO Stefan Sommer
said in a press release. ZF had to divest its half-share of a 4.1 billion-euro-a-year steering joint venture – ZF Lenksysteme (ZFLS) – to get
around potential anti-trust objections. Its partner, Robert Bosch, is acquiring the stake, which will give it full control of a company that
could play a key role in autonomous driving.
The new ZF Group will more than double its sales in two major growth markets, China and the US. It will also have a better geographical
balance in its sales. Half of all revenue will henceforth come from Europe, while the other half will be generated in North America, AsiaPacific and the rest of the world. The transaction is expected to close in the first half of 2015.
McAfee warns of phishing danger
Business computer users aren't particularly good at identifying data-security risks in e-mails or on Web
sites, according to the latest quarterly McAfee Labs Threats Report. The security specialist, which is part
of the Intel Group, found in its tests that 80 percent of participants failed to detect at least one of seven
phishing emails. Phishing refers to digital attempts to get sensitive information from people through the
use of fake Web sites. The study also showed that finance and HR departments, which hold particularly
sensitive corporate data, performed the worst at detecting scams.
(Photo: Shutterstock)
McAfee found that the total volume of phishing URLs keeps increasing and that the US continues to host more of them than any other
country. "One of the great challenges we face today is upgrading the internet's core technologies to better suit the volume and sensitivity
of traffic it now bears," said Vincent Weafer, senior vice president at McAfee.
McAfee employs more than 400 researchers across 30 countries to identify and analyze the complete range of cyber threats.
Europe's digital radio industry
makes push into the car
Photo: Fotolia/WavebreakmediaMicro
16
AMSTERDAM – Digital radio is gradually making its way into the
car across Europe, but automakers aren't convinced yet that the
technology will become a core component of in-car infotainment
systems. In a panel discussion on in-car digital broadcast radio
at the IBC broadcast exhibition here, digital radio executives
made a strong case for the technology. Digital radio offers better
sound quality, wider choice and a broad range of possible extra
features, said Patrick Hannon, president of WorldDMB, the global industry forum for digital radio. "The key is to have a highlydiversified quality offering with a stronger content proposition,"
he said.
In the car industry, executives are hedging their bets, with many
expecting internet radio and IP-delivered information in general
to become the standard for in-car infotainment delivery in the
future. "The internet potential is bigger," said one automaker
executive who didn’t want to be identified. Also, in the views of
auto-industry executives and most potential car buyers, digital
radio isn't something that stands out as a coveted function available in a new car. That's because it's, at best, seen as "improving
on an existing feature," said Kevin Hamlin, an analyst at market
researchers IHS. "It's not something that's new and exciting to
the buyer."
Most major car brands offer DAB or DAB+, the European digital radio standard, either as an option or as a basic radio feature. According to WorldDMB, 63 percent of new cars sold in Norway and 55
percent in the UK come with DAB and DAB+. The two countries so
far are among the most successful in pushing digital radio.
According to a recent IHS survey, slightly more than 20 percent
of respondents indicated that digital radio was a "must have"
when buying a new car. By comparison, more than one-third said
factory-installed navigation and smartphone connectivity fell into
that category.
17
The auto industry – and car buyers - may be underappreciating the potential of digital radio, broadcast executives say. For
example, one of the benefits would be improvements in connected safety systems, a key automotive focus. Using the socalled TPEG (Transport Protocol Experts Group) specifications,
digital radio can deliver more information faster and more reliably than internet-based technologies, said Thomas Kusche,
who is the president of TISA, the global association that deals
with traveller information services. "We're talking about reliable
coverage at low delivery costs," Kusche said in the panel discussion. He cited in particular TPEG's improved ability to warn
drivers of traffic incidents quickly and provide them with better
visual information. TPEG would replace the widely used TMC
technology, which relays traffic information using FM signals.
Ford Ennals, CEO of Digital Radio UK, said digital radio can address
driver distraction, one of the major preoccupations of the global
auto industry. "How do you keep it simple for motorists is a key issue," Ennals said. The complexity of radio menus, clear both in the
home and in the car, could lead to a loss of listeners in the car, he
warned. "The way radio is delivered needs to be simplified."
That issue was specifically addressed by Michael Hill, managing
director of Radioplayer UK, whose stated goal is "to make radio
listening easy on connected devices." Hill has developed a prototype automotive module that takes digital radio and traditional
FM and combines them to show a user just one station list. In
infotainment systems today, car brands force users to look for a
specific radio category, such as DAB, FM, or internet radio. "We've
developed a multiplayer hybrid radio adaptor that hides all transmission complexity from the listener," Hill said.
Jacqueline Bierhorst, who runs the campaign to promote digital
radio in the Netherlands, underscored how important the car is
for the broadcast industry. She cited research that shows 19 percent of all radio listening takes place in the car.
The question of whether or not to have DAB in the car is likely
to become more acute in coming years as more countries' official
broadcasters move from FM to digital transmissions. Norway's official broadcasters will no longer transmit FM signals from 2017,
leaving the spectrum to smaller, private players. Other countries
are likely to follow suit, attracted by the broad options offered by
the new technology and its lower transmission costs.
Broadcasters at the WorldDMB panel discussion agreed that 3G
and 4G mobile coverage today remains too unreliable for highquality connected services in the car. That opens the car door for
digital radio. Several European countries, including the UK, Germany, the Netherlands, Norway and Switzerland, have nearly full
DAB coverage, which they achieved in only a few years. In other
markets, digital radio coverage is expected to grow sharply as
governments officially endorse the new standard. The European
Broadcast Union is calling for pan-European adoption of the technology and the inclusion of digital receivers in all radios.
By Arjen Bongard
Photos: WorldDMB
Switzerland
Netherlands
Italy
UK
Norway
Germany
Das gilt für die Software in der kommerziellen IT ebenso wie im Auto.
The software decision ...
QNX
wichtigsten
Unterstützern
Daimler
Audi –storage
die Ingolstädter
With an operating system, 
the Zu
userden
is tied
to an ecosystem
Andvon
thenQNX
therezählen
is the fact
that theund
available
space in the
beispielsweise
haben
QNX
erst
jüngst
eine
tragende
Rolle
im
„Virtual
Cockpit“
of tools and middleware, to a licensing model and a world of
car's control units is subject to much tighter limits. As ihres
a result,
brandneuen
Sportcoupés
TT program
anvertraut
applications. That applies to software
in commercial
IT as well asAudithe
code must be much more efficient than codes that
in the vehicle. But the automotive software revolution is a relanormally hold sway on company servers and workplace computively new development. Now, automakers need to decide what
ters. And that is an important consideration: After being switched
they want and need. That includes decisions on what platforms
on, the software environment must be available in a moment. The
to deploy, which partners
to
select
and
how
proprietary
they
long booting-up processes common in office environments are
02 · 2014
want their offerings to be.
unthinkable in a vehicle.
Of course, the technical requirements for software in a vehicle
are different from those for software on a company server. In the
car, the software must be failproof; it must react to a demand within milliseconds, or even microseconds. And, where required for
the safety of the vehicle and its occupants, it must be developed,
tested and approved in accordance with the strict regulations of
ISO 26 262.
The software landscape in the car is segmented. For starters,
there are the system-critical environments: powertrain, body and
chassis. This field is to some degree the domain of Autosar system
software. The earmarks of this landscape are static task configurations and interactive relationships. Uncoupled operating systems
are not found here; software environments prevail that are jointly
defined by the auto industry and its most important suppliers.
Photos: Audi
18
19
The trend in head units and expanded infotainment is much more
dynamic. Camera-based assistance systems play into this area as
well. This is the battle zone – the field where consumer-electronics and conventional car technology meet. The consumer industry with its fast design cycles and its fashionable trends runs into
the somewhat sedate yet solid, traditional automotive technology, with potential consequences for the automotive and IT power
structure.
Long-term commitment
To some degree, operating systems are given the role of the
mother ship that conveys the troops – the apps and services –
into the battle zone. "The determination of an operating system
is a very important decision for an automaker. It implies a longterm commitment," said Juergen Reiner, partner and automotive
expert at consulting firm Oliver Wyman. People in the auto industry agree. "As a matter of principle, the decision on an operating
system is always strategically motivated," confirms Simon Fuerst,
department manager for software architecture and platform software at BMW. "The selection of an operating system is the heart
of the platform strategy."
The top dog in this area is QNX and its namesake operating system. A few years ago, the market share of the Canadian firm's
software was a bit over 50 percent. The Posix-capable real-time
operating system was explicitly developed for mission-critical use
in companies, in particular in the aviation and auto industries.
It is considered extremely secure, lean and configurable to the
greatest possible extent. QNX has been employed in many areas
of the vehicle. The applications range from driver assistance
systems to infotainment.
Whither Microsoft?
Daimler and Audi are among its most important fans. Audi just
entrusted QNX a leading role in the "virtual cockpit" of its brandnew Audi TT sport coupe. At most manufacturers, QNX basically
runs on one of the control units. If the system's market share has
eroded somewhat recently, the decline is not due to the software's
technical attributes, but rather to QNX's corporate parent, BlackBerry. The auto industry views BlackBerry as a dubious player; its
future is not considered rock-solid. BlackBerry’s main market is
smartphones with encrypted communication. In this field, major
players such as Google with its Android and Apple with iOS are
pushing smaller companies aside more and more brusquely.
If you are looking for familiar names from commercial IT in the
software landscape beneath the hood or behind the instrument
panel, you have to look a bit more deeply. According to the experts, Microsoft, for example, has never achieved a market share
of more than 10-to-15 percent. If Microsoft has been able to land
a spot in vehicles, it has been incognito: The Microsoft operating
system, Windows Automotive, a special assembly of middleware
components based on Windows CE, has definitely made inroads
into the auto sector. But it does not have its own user interface
and thus cannot be identified at first glance.
For example, a Microsoft heart beats in Fiat’s Blue & Me head
units and at Ford, where it is installed in Sync systems. Introduced
in 2007, Sync is no longer considered entirely up-to-date, nor are
others of its species. No one was surprised when the news made
the rounds that Ford wanted to uncouple itself from the aging
software and make a fresh start with another operating system.
Meanwhile, Ford denied that it planned a divorce, but the denial
was so halfhearted that it can almost be seen as confirmation.
"The selection of an operating
system is the heart of the
platform strategy"
Simon Fuerst, BMW software architect
At its "Build" developer conference, Microsoft recently presented
a further development of its vehicle operating system. For the first
time, it anchors its own user interface featuring its characteristic
tiles in the infotainment screen. It would offer some up-to-date
features such as access to music, calendar and telephone from a
smartphone and a voice control system. But the software did not
actually do this during the demonstration. It did something that
Microsoft users in the workplace know well: It crashed.
It is still not clear whether Microsoft would like to first iron out
this bug or adhere to its standard routine and send the software
to customers as it is and hope it will reach the required maturity at
the customer’s end over a period of time. The giant from Redmond
is currently in its quiet mode. When asked, the company declined
to explain its strategy for the automotive environment. That's
why it remains unclear whether Microsoft even has a strategy
for the market.
The Linux lead
Meanwhile, more agile players are dividing up the pie among
themselves. Linux is leading the pack. The operating system reaches
a car via a number of gateways. One of them is Google with its
Android system. This operating system in fact (still) does not
function inside the car; it works on the users’ smartphone. But
it will soon find its home in cars through the use of MirrorLink
Photo: Daimler
20
"The HMI is a differentiating characteristic par excellence,” says Guenter Metsch, software manager at Daimler

„Das HMI ist das Differenzierungsmerkmal schlechthin“, sagt Guenter Metsch, Softwaremanager
connectivity technology. Audi is also working with Google to
they consider the cost-effectiveness of their development actividevelop
a software
system
for vehicles.
"Our cooperation
the wheel
there is already
tried Metsch
and testedan. W
ist: Sie
stürzte
ab. Ob
Microsoft
diesen
Bug erstwith
ausbü-ties. Why
dasreinvent
muss nicht
soifbleiben“,
deutet
Google – and Apple as well – is opening up new opportunities
software available in many cases?
möchte oder ob das Unternehmen in gewohnter Bananenerster Linie ein Gerüst von Definitionen ist, das n
for networking vehicles with the internet,” said a source at Audi’s
egie die
Software,
so wie sie ist, an die Kunden ausliefernAnd here
Stellen
mit realer
bietet es d
headquarters
in Ingolstadt.
companies
really doSoftware
not have toausgefüllt
feed all theirist,
developund darauf hofft, dass sie beim Kunden mit der Zeit schonmentssteller
eine
sichoriginated
zu differen
back into
the wichtige
open sourceMöglichkeit:
community if they
Above
all,
there
is
the
Genivi
alliance,
which
is
developing
a
them
in-house.
"BMW
is
already
underway
very
broadly
in the
nötigen Reifegrad erreichen wird, bleibt unklar: Der Riese
so viel zeichnet sich bei der Diskussion um
System
Linux-based standard for infotainment operating systems under
open software area,” Fuerst explained. "We make a number of
Redmond ist gegenwärtig im Schweigemodus. Auf Anfrage
Middleware im Auto ab: An Open Source komme
the leadership of BMW and General Motors. Daimler is taking a
things that we develop available to the community,” he said. “The
te es das
ab, as
seine
fürcomparisons
das automo-exceptions
le auch
die Fahrzeughersteller
nicht ourselves,
vorbei. Im G
goodUnternehmen
look at the Linux world
well. Strategie
"We have done
are elements
that allow us to differentiate
Umfeld
zu erläutern.
bleibt
deswegen
noch,that is,Community-Gedanke
derhuman-machine
damit verbundene
R
between
the differentUnklar
variations,
including
Android," immer
said Guenmainly components of our und
HMI, the
inter Metsch,
who iseine
responsible
for telematics
and
terface."
Fuerst's counterpart
at Daimler
sees the issue
simiMicrosoft
überhaupt
Strategie
für denarchitectures
Automobilmarkt
Software
kommt den
Herstellern
sehrquite
entgegen.
G
system
engineering
at
the
automaker.
"We
see
greater
flexibility
larly.
“The
HMI
is
a
differentiating
characteristic
par
excellence,”
immerhin einer der am schnellsten wachsenden Märkte in
die Wiederverwendbarkeit von Softwarefunktion
with Linux,” he said. “And with its many ranges of application, AnMetsch said. "We don't give that away."
gesamten
tiges Argument bei der Wirtschaftlichkeitsabwäg
droid Welt
is moreder
thanSoftware.
an operating system.”
Warum
das Rad
neu
Open wicklungsaktivitäten:
software will likely become
increasingly
relevant
forerfind
The expert
is also looking
closely
at Genivi.
are notunter
a mem-sich.Daimler.
That matches
independent
analysts are expecting.
vielen
Fällenwhat
bereits
eine ausgereifte
Software z
erdessen
verteilen
agilere
Player
den“We
Kuchen
ber
–
but
that
could
change.”
As
Genivi
is
first
and
foremost
a
Reiner
of
Oliver
Wyman
sees
the
Linux
fleet
heading
intointhe
steht? Und man muss ja nicht alles, was
diesem
z vorn dabei: Linux. Das Betriebssystem kommt über mehframework of definitions that is only filled with real software at
automotive market, and he is not alone. In seven to 10 years,
im eigenen Haus entwickelt wurde, wieder
Einfallstore
unter das Blechle. Da ist einmal Google mitReinerhang
a few locations, it offers the automaker a crucial opportunity to
says, Linux will likely end up the dominant system softSource-Community
zurückspeisen. „BMW ist scho
oid –differentiate
dieses Betriebssystem
läuft
nicht for
direktware in
itself. That's because
so zwar
much is(noch)
on the horizon
vehicles.
software and
middleware.
Meanwhile, Genivi's
community und
thin- hat
umfangreich im Bereich Open Software unterwe
uto, sondern
auf
den Smartphones
der Benutzer
king
and
stage
of
maturity
suit
automakers
quite
well.
At
the
same
Softwaremanager Fürst. „Manches, was wir entwi
it, über die MirrorLink-Verbindungstechnik, schon bald
time, the reusability of software functions is a strong argument as
By Christoph Hammerschmidt
en festen Platz im Armaturenbrett. Zudem entwickelt Audi
Google zusammen eine Systemsoftware für das Auto. „Die
wir auch der Community zur Verfügung. Ausgen
Elemente, die uns eine Differenzierung erlauben, a
21
A perfect example of resistance to change
In cities all over the world an ugly war is being fought by “traditional” taxi companies against a new form of competition from Uber
and other ride-sharing services. These newcomers offer customers
the ability to use a mobile application to find and reserve vehicles
in their immediate area in minutes. From Los Angeles to Sydney
and Singapore, the services are shaking up the taxi business. But
they are being met with heavy resistance by the taxi industry.
Such opposition is a futile attempt to put the brakes on innovation. Fortune magazine’s lists compiling the 100 biggest companies from 1900 until today yield only one company that is still
in the same business: Ford. Fifteen others still exist but their activities have evolved drastically. All the rest are gone. The ones
that have disappeared were leaders in their markets and had
three things in common with today’s taxi drivers:
ing because it is responding to customers’ needs and offering a unique and innovative experience. While taxi companies are on the defensive, Uber continues to innovate. It
recently announced that it will soon offer trips in helicopters.
Investors took notice; they value the five-year-old company
at around 17 billion dollars.
1. They were prisoners of a system. The world may be changing
too fast for the traditional taxi industry, which has launched
a crusade to defend its interests and prevent reform of an
outdated, often monopolistic and over-regulated system. Traditional taxi drivers are complaining about Uber’s “illegal”
activities, saying their drivers don’t have official permits and
can’t charge by the kilometer as they don’t have meters. This
is a perfect example of industry players being prisoners of
an old way of thinking and entrenched in the defence of an
aging system.
Taxi companies are coming up with strategies to continue business as usual. Some have recently introduced electronic payment solutions, but like many businesses in other sectors, such
responses to new challenges are coming too slowly. Success is
not guaranteed by a historic position in an industry. It is comfortable and reassuring in the short term, but dangerous in the
long term. If taxi companies refuse to innovate, they will quickly
fall behind.
2. They were stuck in denial. Long waits, rude drivers, uncomfortable vehicles, and lack of route transparency are just
some of the shortcomings of traditional taxis. And that's exactly why the new car-sharing services are prospering. Uber
founder Travis Kalanick, 37, has said that the idea for his
company was born in Paris when he couldn’t find a cab, an
experience that seems all too typical. Until now taxi companies seem to be ignoring the simple solutions that customers
want. And government policy makers in key countries such as
Germany and France seem to be supporting taxi companies’
resistance to change. That's a mistake. Legislation should
protect consumers and not industries in decline. Following
protests by taxi drivers in London in June, Uber registered an
850% increase in new users. This is proof that yesterday’s
keys to success won’t be the same tomorrow.
3. They weren't innovating. Uber isn't successful just because
its prices are lower than those of normal taxis. It is succeed-
By Cyril Bouguet and Chloe Renault
Cyril Bouguet is professor
of strategy at the IMD
business school in
Lausanne. His major
interest is the interface
between organizational
psychology, strategy
and leadership.
Chloe Renault is an IMD
researcher, facilitator
and graphic recorder
working on innovation
and organizational
transformations.
Eine aktuelle Studie von Frost and Sullivan rechnet damit, dass 2030 mehr als 40 Prozent der
Fahrzeuge mit V2V-Technologien ausgerüstet sein werden.
22
Photo: BMW
Multiple connections
BMW i ConnectedDrive Services
P
ECO
PRO
Dynamic
Charging
Station
Information
Dynamic
Range Map
Range
Assisstant
Navigation systems
ECO Pro
Route
Dynamic
Parking
Information
Intermodality
Traffic
Information
BMW i Remote: BMW i Remote: BMW i Remote:
Mobility
Efficiency
Status & Control
Sensors and
cameras
Construction site data
Mobile phones
The networked car is picking up speed worldwide – accompanied
by multifaceted systems for car-to-car and car-to-infrastructure
communication. A recent study by Frost and Sullivan forecasts
that more than
40 percent of vehicles will be equipped with car02 · 2014
to-car technology in 2030.
In Germany, according to a random survey by the IT industry
association Bitkom, 37 percent of all people can imagine themselves driving an autonomous vehicle in the future – even though
the suitable technologies are still in the experimental stage. The
reasons are obvious: The systems can benefit and improve transportation efficiency, mobility and driving conditions. According
to the Frost and Sullivan study, “Strategic Analysis of the European Market for car-to-car and car-to-infrastructure Communication Systems,” the latter systems will get a good response in
the Netherlands, Denmark, Austria, Germany and France. “The
various countries in Europe are looking for ways to minimize the
enormous waste of time and money associated with traffic disrup-
Foto: BMW
Mercedes-Benz Live Traffic: Real-time traffic information
tions,” the analysts say. In Germany alone, traffic jams are estimated to cost more than 17 billion euros a year.
Matthias Wissmann, president of the German Auto Industry Association (VDA), had a similar message at the carIT Congress in
2013. He sees German automakers playing a key role in networking. And he prefers a fully integrated German car to an “anonymous Google vehicle,“ he said. “Networking the vehicle not
only offers the driver greater comfort but improves driving safety
as well," Wissmann said. "With a full-scale penetration of car-to-x
functions, more than 11 billion euros in economic costs could be
saved each year.”
The US consulting firm IHS Automotive forecasts 50 million
autonomous cars globally and a new vehicle share of nearly 30
percent by 2035. By 2025, cars of this type are expected to be
available for a surcharge of up to 10,000 dollars. After 2050, the
market researchers predict, virtually all vehicles will be driving
23
themselves autonomously, and the number of accidents and
traffic jams will approach zero.
Connectivity leaders
BMW, General Motors, Ford, Audi and Chrysler now have the lead
in the connectivity rankings, according to a study by the London
firm Machina Research. But among the automakers, analyst
Neelan Barua of Frost and Sullivan expects Daimler and Volvo to
be in the forefront of car-to-car communication in Europe. “With
its Intelligent Drive strategy, Mercedes-Benz is well positioned to
bring Car-to-X technology onto the road this year, which will enable the exchange of information between individual vehicles as
well as between vehicles and the transportation infrastructure,”
Barua said.
The Stuttgart-based automaker would also like to join the recently-launched Open Automotive Alliance. “It is totally clear that we
have to position ourselves flexibly. We don’t want to focus solely
on Apple’s iOS,” said Thomas Weber, Daimler's head of research
and development. Volvo wants to make new and sophisticated
connectivity features a major reason to buy its new models. The
key drivers are expected to be models such as the XC90, which will
be on the market later this year, and a completely new approach
to HMI. In Volvo’s case, Ericsson built a back-end architecture for
networked vehicles using a multiservice delivery platform. Thomas Mueller, vice president for E/E systems at Volvo, believes this
will lead to new market opportunities. “We can sell apps and services using this platform,” he said. In the future, “Volvo on Call,”
originally developed as an emergency call and security system,
is expected to make the car reachable at any time inside the new
vehicle and electronic architectures – whether from the couch or
from a café.
Car-to-infrastructure
Next to car-to-car, car-to-infrastructure is the key component for
automated driving. A so-called cooperative system is the essential
base technology. It uses wireless local networks such as a WLAN
or dedicated short-range communication (DSRC) to support
various kinds of communications to and from the vehicle. In
the process, global navigation satellite systems (GNSS) and
infrared modes are likely be able to expand DSRC and mobile wireless solutions such as LTE. In this way, future platforms can be built for cooperative intelligent transportation
systems (C-ITS). Said Frost & Sullivan's Barua: “In the next
two to three years, substantial growth in the market for C-ITS
will likely be stimulated by market-ready car-to-X communication products that are already available at Tier I suppliers."
Other drivers are likely to be a range of new products with
embedded car-to-X technology that automakers are introducing
and the strong continued support from European governments.
By 2015, 15 automakers and 10 Tier 1 suppliers will likely have
car-to-X applications ready to go. But automakers worry that the
necessary infrastructure may be lagging behind the systems they
are developing. “When you are dealing with connectivity, the
infrastructure is the biggest construction job,” Daimler's Weber
said. “My dream is to quickly bring a high-performance LTE network into operation, and we are definitely supporting this effort.”
DSRC will play a crucial role in bringing about the fully connected
car. Frost & Sullivan's Barua said startup companies such as Autotalks, Savari Networks and Cohda Wireless are already successful
in building DSRC-based devices for car-to-x communication that
work both in Europe and the US. “DSRC seems to be the mostpreferred and protected wireless technology for vehicle communication with infrastructure," Barua said. "Satellites represent a
potential option for communication with vehicles in remote
areas." Among the manufacturers of communication systems,
the Frost & Sullivan analyst sees NEC Labs Europe and Kapsch
TrafficCom as important players.
Reliability issues
Reliability is a crucial technical issue in wireless connections.
According to the Fraunhofer Heinrich Hertz Institute in Berlin,
reliability is directly related to the propagation characteristics of
the underlying wireless channels. That means that data can be
lost during the transmission at increasing speeds as the wireless
channel in car-to-car communication is dynamic. The Fraunhofer
scientists are working on a true-to-life simulation of dynamic
wireless channels with their HHI channel sounder and channel
emulator software. The goal is to be able to design future communication systems in adapted form and, what is more, have them
seen as a good value. The high resolution measurement data
from often complicated “real” traffic situations are entered into
the real-time simulations. Highly precise position determinations
and 360-degree video recordings accompany the wireless channel measurements. At the same time, the researchers test the modules of various manufacturers. Barua says “the local government
plays an important role in regulating the services.”
The two European standardization organizations, ETSI and CEN,
have confirmed that the base set of standards required by the European Commission has been completely met, allowing the networked car to become a reality. The agreed-upon standards ensure that vehicles from different manufacturers can communicate
with one another. “The EU has invested more than 180 million euros in research projects on cooperative transportation systems,”
Frost & Sullivan's Barua said. “This will move the European auto
industry and its 13 million jobs forward, so it can develop the next
generation of cars."
By Julian Sommer
24
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25
Russian Insight
Chinese bet on Russian market
The new-car market may be declining and Chinese carmakers' share of it slipping, but Russia remains one of the top
priorities for the Chinese automotive industry. Chinese brands
are extensively expanding into the Russian market and many
also have plans to increase or start local production there. In
the first half of 2014, four Chinese automakers started selling
cars in Russia: Brilliance, Changan, Dongfeng and JAC. And
three more - Great Wall subsidiary Haval, Hawtai and BYD
– have announced plans to come to Russia. For BYD, this
marks a return to the market.
Chery wants to start car production at Derways with an initial capacity of 12,000 cars a year. That could be increased
to 36,000 at a later date. Chery is considering setting up
an R&D center in Russia for joint development projects with
Derways. Lifan, whose cars are also assembled at Derways,
plans to invest up to 300 million dollars to build its own production facilities in Russia. The projected capacity is 60,000
car a year with the possibility to expand up to 100,000 cars.
The expansion plans come as the Russian market declined 9
percent in the first half of 2014. Chinese car sales fell by 15
percent during the period and, as a result, their market share
slipped to 3.4 percent from 3.7 percent. There are several reasons Chinese brands are keen on Russia. They see a market
that in a good year can have sales of between 3 million and 3.5
million new cars. They're also aware that it's easier to enter new
growth markets such as Russia than to go up against established competitors in more mature car markets. And they
are attracted by Russian buying interest in low-cost cars, a
segment where Chinese brands offer competitive products.
Great Wall has already started construction of its own production facilities in the Tula region about 200 km south of
Moscow. The company is planning to complete construction
in 2017. The projected capacity is up to 150,000 cars a year.
Great Wall cars will also be produced at the “IRITO” plant
in the Lipetsk region about 500km south of Moscow. The
projected capacity there is 30,000 cars a year. FAW subsidiary Haima also announced its intention to set up production
in Russia. By the end of 2014 the company is planning to
choose the construction site for its assembly plant. Haima
is going to start with SKD assembly and increase localization level with time. Derways used to assemble Haima, but in
2012 the companies stopped their cooperation and Haima
started importing its cars to Russia.
Up-to-date lineup
Chinese carmakers will need an up-to-date model lineup to
be successful in Russia. They also will have to expand their
dealer networks and build more cars locally. And they will
need to have more brands to grow their overall market share.
Today, there are 10 Chinese brands actively operating in the
Russian market. Geely, Chery, Lifan and Great Wall clearly
dominate the segment: together they accounted for more
than 90 percent of Chinese car sales in Russia in the first half
of 2014. That percentage was unchanged from 2013.
There are two kinds of Chinese carmakers active in Russia.
On the one hand there are those like Chery who entered the
market relatively early and now have a wide model range that
includes different-size sedans and hatchbacks. And there are
brands such as Changan and Brilliance that came to Russia
later during the SUV sales boom and offer just two or three
models. Recently, several Chinese brands – notably Chery,
Lifan and Great Wall - have announced plans to start production in Russia. Domestic car production allows Chinese
brands to participate in public procurement and local producer support programs. Lifan, Geely, JAC, Brilliance and
Luxgen already have been building cars in Russia since the
mid 2000s. Most of that production takes place at the Derways plant in Karachay-Cherkessia in southern Russia.
Manufacturing plans
Falling sales
Sales of Chinese cars in Russia fell 15% in the first half,
outpacing the overall market, which dropped 9%
Brand
First half 2014
First half 2013
% change
GEELY
9,594
11,300
-15.1%
CHERY
9,056
9,216
-1.7%
LIFAN
8,946
9,306
-3.9%
GREAT WALL
7,130
10,267
-30.6%
VORTEX
1,443
FAW
732
953
BYD
-
395
-23.2%
CHANGAN
436
-
HAIMA
322
103
BRILLIANCE
139
-
JAC
122
-
Other Chinese brands
250
206
21.4%
36,727
43,189
-15.0%
Chinese brands: total
212.6%
Source: Russian Automotive Market Research
Russian Automotive Market Research
www.napinfo.ru · [email protected]
+7 831 439 21 82
A man who stops advertising
to save money is like a man
who stops a clock to save time.
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27
trategie · Interview
In the next automotiveIT Executive Report:
An interview with Ulrich Hackenberg, head of R&D, Audi
Photo: Claus Dick
Audi, BMW and Mercedes-Benz are competing for primacy in the
premium segment of the global auto industry. A key requirement
for each of the German luxury brands is to have state-of-theart technology in their newest models. Audi's marketing slogan
"Vorsprung durch Technik" literally translates as "Staying ahead
through technology." Ulrich Hackenberg, Audi's veteran R&D boss,
rejoined VW's premium brand in July 2013 after six years as the
head of R&D of the entire Volkswagen Group. His mission: To make
sure Audi stays ahead of the competion in all technology areas.
In an interview with automotiveIT, Hackenberg discusses how
Audi will reduce the growing complexity inside the car, its connected-car strategy and the practical implementations of new
technologies that will enter future Audi models.
Hackenberg says the founding early in the year of the Open Automotive Alliance, whose goal is to make it easier to integrate Android devices in the car, will speed up development overall. "Consumer- and automotive technologies are coming closer together
than ever before through this cooperation," he said.
The Audi R&D chief also cites "significant progress" in making
voice recognition systems in the car work better. And he says
there may be a role for augmented reality in future models. But
the company is treading carefully with technologies that have
relatively high distraction potential. Says Hackenberg: "We won't
be playing electronic games at Audi just because we can."
Other stories in the November issue:
• Tesla opens its book of patents, but is anyone using them?
• Reports from the annual Dreamforce convention in San Francisco
ektronikspielereien
wird es nicht geben«
• Opinions differ on who owns the connected-car data
• News from the Paris auto show
• An interview
with ThyssenKrupp
Full coverage
of the Hanover Connected Car Congress
Hackenberg
will Kritiker,
die bei Audi CIO
denKlaus-Hardy
„VorsprungMuehleck
durch Technik“•vermissen,
mit
Technologien überzeugen. Zudem fordert der Entwicklungsvorstand ein Bündel an
hmen, um die zunehmende Komplexität in der Bedienung zu reduzieren sowie einen
möglichen Schutz gegen Hackerangriffe zu realisieren.
Read more stories and other exclusive news features in the
next issue of the automotiveIT Executive Report
3 · 2014
Click here to order a one-year subscription!
J U LY 2 N D
|
2015
|
PAR IS
|
FR AN CE

Interview with VW Group CIO Martin Hofmann [P 4]

Transcription

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