Mobile Future Webinar:

The Connected Car: Whats Driving Mobile Innovation

Tuesday, October 18 at 1 PM (ET)
Presenters Jonathan Spalter, Chairman, Mobile Future Scott Nelson, Director of Business Development, ATX Group/Cross Country Automotive Services Mark Sagafi, Business Development, Automotive, Teleca

Where the Connected Car is Moving

Mark Sagafi Head of Business Development, Automotive Teleca USA, Inc.

Agenda
1. What is the connected car experience? What will cars require moving forward from both a UX and wireless perspective to give consumers the desired infotainment experience? 2. How will mobile applications be handled inside the vehicle environment? 3. In-Vehicle Smartphone integration challenges and future trends.

The Car is Getting Complex

1. The Connected Car Experience

Connectivity options Handset sales by type Instrument cluster issues

Connectivity Options

North America Handset Sales by Type

Percent of Total Handset Sales
100% 90% 80% 70% 60%
72% 40%

Smartphones

Feature Phones

50%
40% 30% 20% 10% 0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Basic Phones

Android superphone popularity leading huge growth in North American smartphone volumes.

Source: Strategy Analytics Wireless Device Strategies (WDS)

Todays instrument clusters present new challenges:

Challenges
Multi-Driver Ownership (Personalized UI and settings, PIM, etc) Connected In-Vehicle Services

Navigation / LBS via Voice Control

Hands-Free Echo Cancellation and Noise Reduction

CE device integration
Lifecycle Management Software / Functionality upgrade Context-aware availability of functionality to prevent driver distraction

Differentiating and Personal HMIs

Support multi-ownership of vehicles through driver profiles Support UI differentiation through advanced MMI frameworks (Flash, Qt, Kanzi, Mentor Inflexion) Support multi-market rollout through localization Usability concepts for direct access to main functionality

Voice Control via ASR / TTS Multimodal Inputs/UI (Touchscreen, Jog-dial, rotary push-button, gesture control) Local Connectivity via Bluetooth/WLAN for CE device integration

1. The Desired Consumer Experience

Familiar user experience or UI from tablets and mobile devices Easy access to services Secure environment Non-distractive

2. Mobile Apps
How will mobile applications be handled inside the vehicle environment? Safety regulations and concerns App storefronts who manages these?

3. In-Vehicle Smartphone Integration

How to get your Smartphone experience extended to your vehicle? Challenges of integration Future trends

Connecting to the Cloud

Services on your Smartphone available in the vehicle via Terminal Server

How Does Teleca Handle Connected Car Opportunities

Combining network access and entertainment systems to provide: Creation and productization of in-vehicle infotainment and telematics communication platforms Personal information management (email, contacts, calendar, audio/video, media sync) In-car audio and video routing and processing Location based services bringing real-time geographic information using device/user location information, spatial data and content based on user preferences Web 2.0 for enhanced design and usability

The Future of the Connected Vehicle

ATX Group, Inc A Cross Country Automotive Services Company Scott Nelson Director of Business Development

Cross Country Automotive Services and The ATX Group

Markets

Roadside

Insurance

Connected Vehicle

ATX Connected Vehicle Services Business Unit of CCAS

Delivering cloud-based content and services to OEM vehicles promoting safety and relevancy

CCAS and ATX

Privately held Cross Country Automotive Services established in 1972; acquired ATX Group in 2008; together the enterprise is a leading provider of services, technology that provide automobile manufacturers, auto insurers with higher customer satisfaction, retention, and brand loyalty with greater operating efficiencies.

Provide client branded services Over 100 corporate clients, serving 80 million vehicle owners 12 million requests for services per year Roadside assistance network manages over 34,000 independent contractors one of largest in North America- responding to over 6 million roadside events per year Nearly 2 million telematics subscribers across luxury and mass-market platforms (BMW-Hyundai-Lexus-Rolls Royce Motor Cars-Toyota). Services delivered 24/7/365, managed to SLAs to four-nines. 6 response centers / 4 data centers

Penetration / Subs / Demand

Connected Vehicle

Data courtesy of ABI Research, Aug-2010.

Apps in the Car

Content & Services from The Cloud

Which apps & services? Why in-vehicle? What interfaces? Whats the User Experience?

Cloud-Based Plaform
for Integrating Connected Vehicle Services
ATX Connected Vehicle Platform
Carrier Command Control Interface

Hyundai BlueLink

Vehicle Gateway Services

Content Delivery Services

Carriers Telematics Control Unit OTA Protocol

Telematics Business Services

Data Services

CRM VRM Billing

Head Unit

Gateway Services Web / Mobile / Dealer

Embedded approach to BlueLink: To Ensure a Consistent and Easy-To-Use Experience. (Hyundai,

2011)

PSTN PBX CTI

Voice Services Agent Services

Full Connected Vehicle Example

Service and Contents Suite
MOBILE APP

PACKAGES BUILD ON EACH OTHER

OWNER WEBSITE

CALL CENTERS

AND
IVR

IN-VEHICLE

Challenges to Service & Content Delivery to Vehicle

Bandwidth & Cost; Business Models Future-Proof; Vehicle vs. Consumer Device Life Cycle Scalability Security, Vehicle & User Data Privacy User Experience, Driver Distraction Deliver globally

Handset Linked vs. Embedded Systems

Whats the eventual solution?
Embedded - Protocol
Vehicle User Interface Data Interface Protocol

On-Board App Tethered Phone

Network Access Device

TSP

Vehicle User Interface Data Interface

App

BT WiFi USB

Phone
Tethered

TRADITIONAL ATX & ONSTAR STARTED 1976 Tethered Phone- Protocol

Vehicle User Interface Data Interface Protocol

FORD SYNC / TOYOTA ENTUNE Phone App Terminal Mode HMI

BT WiFi USB (DOV)

Phone
Tethered

Vehicle User Interface Data Interface

V N C

BT WiFi USB

Phone
VNC App

TERMINAL MODE (ONE FLAVOR) Phone App Remote HMI

Vehicle User Interface Data Interface A P I

Browser/Proxy - Embedded Phone

App
Vehicle Browser/ User Interface Webapps Data Interface

BT WiFi USB

Network Access Device

MINI CONNECTED / BMW LINK On-Board App Embedded

Vehicle User Interface Data Interface App

Browser/Proxy Tethered Phone

Vehicle Browser/ User Interface Webapps Data Interface

Network Access Device

BT WiFi USB

Phone
App/ Tether

EMERGING / PROMISING

Some of these may be generalizations or approximations of exact architecture

Challenges Bandwidth & Cost

Embedded
3G/4G hardware just emerging to car Costly device most OEMs have been reluctant Separate billing today BUT, brings reliability and always there connection Tethered or through apps on the handset Could solve data cost problem (consumer plan) Unreliable connection, pairing problems* (*latter on decline) Some believe in leveraging content already off the smartphone onto vehicle interfaces

Handset

Challenges Future-Proof
Vehicle vs. Consumer Device Lifecycle
CE device development cycle Vehicle development cycle Average vehicle age
(RL Polk 2010)

today
12 mos 3 years 50 mos

10.2 years

18-24 mos

Average consumer replaces phone

Average vehicle ownership period (RL Polk 2010) Vehicle features fixed according to todays technology expectations

Increasing challenge as consumers compare digital lifestyle experience outside the car with the lagging experience in car and enduring relatively fixed feature set for 10+ years

Approaches Future-Proof
Vehicle vs. Consumer Device Lifecycle
Design in app-based and updateable vehicle architectures CE device development cycle

Add new app(s) or update in-vehicle feature

Add new app(s) or update in-vehicle feature Average vehicle age*

(*RL Polk 2010)

Vehicle development cycle

today
12 mos 18-24 mos 3 years 50 mos

10.2 years

Average consumer replaces phone

Average vehicle ownership period*

(*RL Polk 2010) Lauch with todays expected Enhance a feature / Enhance a feature / content and apps content capability content capability from the cloud with no from the cloud with no update to feature / update to feature / app in vehicle app in vehicle

Challenges Scale
Disparate Auto App Ecosystems Not Sustainable
Toyota Entune Ford Sync Chevy MyLink

MINI Connected

KIA UVO

ATX OEM X

Although great start, development, maintenance, and scalability of disparate app ecosystems will be a huge challenge. High vehicle integration and testing costs, cannot develop new apps and meet consumer demands quickly enough.

Scale Unification / Federation

Individualized or model-specific features expressed with OEM BRANDs identity and user experience. Content Management Voice Enablement

+
Safety &an Security Convenience Information Services

UI / brand personality

Authentication & Security

Provisioning and Billing Wireless Management (if embedded)

and Partners!

Challenges Security and Privacy

More Connected Vehicle Demands Tighter Handling Of User Data, Privacy and Security
Dealers

Vehicle & End User Data

Carriers
Secure, private Secure, private

ATX

Automaker

Vehicle security Alarm Anti-intrusion Remote device shutdown Remote vehicle immobilization Stolen Vehicle Recovery

Security inherent in pipe Secure sockets (HTTPS) Device authentication Device deprovisioning

Consistent private network access point to vehicle Consistent authentication and security procedures Fraud Monitoring and security alerts Consistent policies and audits around sharing of user data Authenticate, broker and prioritize access to vehicle and data

Thirdparties

Owner and family members

User Experience
Individualized or model-specific features expressed with automaker BRAND identity and user experience.
Content Management Voice Enablement

OEMs branded UI OEM specified feature set Balanced with Personalized feature set

+
Safety & Security Convenience Information Services

UI / brand personality Authentication & Security Provisioning and Billing Wireless Management (if embedded)

Natural voice commonization, consistent access across all content

and Partners!

Challenges Mitigating Risk of Driver Distraction

User Experience and Driver Distraction - Complex

versus

balance Select apps allowed Many apps ENHANCE safety and driving experience Vehicle-tailored interface, updateable from cloud Evolves feature set according to automaker, end user and societal needs Workload management Voice enabled access to services and content

THE CONNECTED VEHICLE IS NOT JUST ABOUT TECHNOLOGY. IT IS EMPLOYING TECHNOLOGY TO ENHANCE DRIVER SAFETY & CONVENIENCE, VEHICLE SECURITY, OWNERSHIP/BRAND EXPERIENCE, ENHANCE REVENUE OPPORTUNITIES, CUSTOMER RETENTION/LOYALTY, REAL-TIME MONITORING OF VEHICLE PERFORMANCE.
THANK YOU! Scott Nelson, ATX Business Development snelson@atxg.com