STRATEGIC CHALLENGES JAGUAR LAND ROVER FACES IN CREATING A DIGITALLY RICH CONNECTED CAR
2014-2018
Gilles Corby, 19 October 2012
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Infotainment is reaching the limit of what can be done in standalone mode
First mass-produced car radio
1920s 1970s
AM/FM radioCassette
1980s 1990s
AM/FM radioCassetteAuto-reverse
AM/FM radioRDSCassetteCD (multi)
AM/FM/DAB radioRDSCD/mp3 (hard disk)Sat-NavDVDHandsfreeBT, USB, Jack, iPod
2000s
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Mobile data usage explosion provides an opportunity for Infotainment
Cost per MB v monthly data consumption, Worldwide
2008
2009
2010
2011
2012
2015
Cost/MB (USD)
0.46 0.19 0.10 0.06 0.03 0.01
MB/mth/smartphone
149 323 528 736 1041
3390Source : Portio Research via Mobithinking
Internet access (Mercedes-Benz) Apps (Lexus 2013 GS350)
Source : SBD 2012
Forecast Embedded Telematics revenues (Billion Euros)
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Actors fragmentation
Lifecycle synchronisation
UX to drive ROI
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Actors fragmentation
Lifecycle synchronisation
UX to drive ROI
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Connected car infotainment brings together usually unacquainted parties
Network operators Car Makers
Technology providers
Service providers
?
?
?
?
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Each party has a decent claim to owning the user and their revenue
Network operators Car Makers
Technology providers
Service providers
Who owns the user/driver ?
They are using my network They are driving my vehicle
They are enjoying my contentThey are using my system
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Competitiveness within each party increase the likelihood of turf war
Network operators Car Makers
Technology providers
Service providers
Who builds the strongest competitive advantage ?
Vodafone v. Telefonica BMW v Toyota
Google Maps v Nokia MapsAndroid v iOS ecosystem
Broadcom v CSRMicrosoft v Linux
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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This is a recipe for cacophony and procrastination, can JLR be heard?
Network operators
Technology
providersService
providers
BMWMercedes-BenzToyotaRenault-NissanGM
Jaguar Land Rover
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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The way out is for JLR to get a plan and drive on with it
Network operators
Car Makers
Technology
providersService
providers
Jaguar Land Rover infotainment plan
Network access decision Digital security solution Integration with vehicle systems In-car connectivity A/V functionality Telematics content Ecosystem decision Vehicle service decision Hardware partner
3. Confidently drive forward
1. Make a plan
2. Milk what can be got from industry fora
jPod + iTunes was not born in GSMA
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Jaguar Land Rover cannot wait for stakeholders to agree. We must run with
our own plan
Lifecycle synchronisation
UX to drive ROI
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Jaguar Land Rover cannot wait for stakeholders to agree. We must run with
our own plan
Lifecycle synchronisation
UX to drive ROI
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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The pace of technology evolution increases risk for Jaguar Land Rover
Inception Market Launch
Car : 5-7 years
iPhone* iPhone 3 iPhone3GS iPhone4 iPhone5
3G 3.5G/HSPA 4G/LTE
Lack of visibilityAngry Birds
* iPhones generate 46% of mobile data traffic (Source Chikita)
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Lack of visibility makes technology planning decisions trickier Hardware decisions will affect fluidity
CPU power Memory Interface
Connectivity decisions will affect comfort of use Set up Data speed Quality of service
Content decisions will affect consumer appeal Ecosystem Service provider Service content
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To de-risk the situation Jaguar Land Rover must be bold, open and agile
When you only have your best guess, go Large Remember predictions 1MB/s would be enough? Flip phones were still the rage 7 years ago
Avoid getting locked in a specific technology Open standards guaranty continued access Check track record for backward compatibility
Not all decisions have to be made today Be ready for change Have fall-back options
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
JLR’s market footprint growth brings a simplification factor
80% sales in 4 geographical segments
57% in 3 countries, China is getting bigger
Land Rover Evoque 30% units sales
21%
21%
19%
17%
17%
5%
JLR sales last 6 months
ChinaEuropeUKNorth AmericaAll other mktsAsia Pacific
22%
20%
20%
17%
17%
5%
JLR sales last 12 months
Source : Jaguar Land Rover
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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The growth of the Chinese market will have a lasting impact on developments
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Jaguar Land Rover cannot wait for stakeholders to agree. We must run with
our own planTo be future-proof Jaguar Land Rover must
be bold, open and agile, still being consistent with our market
UX to drive ROI
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Jaguar Land Rover cannot wait for stakeholders to agree. We must run with
our own planTo be future-proof Jaguar Land Rover must
be bold, open and agile, still being consistent with our market
UX to drive ROI
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Infotainment must reinforce the branded experience JLR has built over the years
style, performance, refinement, prestige affordability
Inspiringliving the spirit of adventure
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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The consumer base of Evoque is likely to set the bar higher
Evoque customers are younger affluent early adopters Used to smartphones, digitally savvy Technology is an enabler, not a wow factor
Existing devices must integrate seamlessly Easy set up Synchronise content and selected functionality
Be ready to keep the proposition at the cutting edge Non-intrusive upgrades, updates Compatibility with the leading ecosystems
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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The reward for all this effort will be a stronger customer loyalty
An augmented positive experience provides additional reasons to stay with Jaguar Land Rover
Reduce the pain of switching to a new vehicle by easily transferring the content and services
Technology cycles can drive the vehicle replacement cycle down and increase sales.
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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To seize this opportunity, JLR must address 3 strategic challenges
Jaguar Land Rover cannot wait for stakeholders to agree. We must run with
our own planTo be future-proof Jaguar Land Rover must
be bold, open and agile, still being consistent with our market
Adapting a user experience that breathes the Jaguar Land Rover identity to the new consumer base will provide a strong return
on investment
Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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One more thing …
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Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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The connected car experience will impact the value chain, be prepared.
In-car Telematics interfaceNew technologiesNew skillsNew peoplePrevent silo effectAgile development
Infotainment awarenessCrisp and clear communicationPosition as part of the whole value proposition
Sales force trainingCustomer introductionCustomer support
New processesMarket specific Software packages
Strategic challenges for Jaguar Land Rover in creating a digitally rich connected car Gilles Corby - 19/10/2012
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Thank you
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