Sunday , 21 July 2019

REINVENTING PERSONAL MOBILITY – “The Lakes” vs. “The Valley”?

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Andreas-MaiThe race to win the future mobility services business has begun. It is wide open on how automakers (“The Lakes”) will fare v/s technology companies (“The Valley”). Andreas Mai, Director, Smart Connected Vehicles, Cisco Systems, Inc says that in the future mobility value chain will be critical to assess how IoE will transform the business.

The race to win the future mobility services business has begun. It is wide open on how automakers (“The Lakes”) will fare vs. technology companies (“The Valley”). Will automakers be crossing the finish line first? Or will they be delayed or get stranded in the pits of the past, tuning to technologies and business models that have been working well for them for a century but are only marginally suited to strive in a future driven by autonomous vehicles and connected transportation value chains?

The future mobility value chain will go far beyond connected vehicle or owner relationship management and what an automaker currently controls. It closely integrates maintenance services, energy, usage-based insurance, Internet connectivity, location-based services, parking, traffic lights, road charging, car- and ride-sharing and also other modes of transportation in a way, that future customers can conveniently consume.

Or will “The Valley” win this race by adopting new and successful business models and transforming fast paced innovations from the virtual into the physical business of getting people to where they want faster and at lower cost?

Fighting on Two Battlefronts

Automakers are currently fighting on two major battlefronts: autonomous connected vehicles and a fundamental business model transformation – from building cars to selling travel time well spent.

Autonomous connected vehicles are designed to deliver new experiences to owners and drivers (or passengers) and will propel the convergence of personal and public transportation. Eliminating human error from driving will all but eradicate 90 percent of crashes caused by human error, which will ripple through the traditional insurance value chain and business model.

The transformation of the business model from building cars to selling travel time well spent will be driven by differentiation in creating better driver, owner and mobility experiences and ultimately turn our vehicles into smart assistants.

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