LinkedIn Pulse The driver consumer holds the keys to $1.5T in future vehicle enabled digital services.
Working with a number of our large automotive customers, it becomes clear that what it means to become digital – and to run a digital business – can take on many forms and meanings to different companies based on their organization and their position in the automotive value chain. I have written about the advent of connected platforms, whereby suppliers are moving to land grab specific elements of the ecosystem and lay claim to their use. This includes a number of scenarios about the enhancement and transmission of information from the individual consumer as a driver whether it be to the car, the home, the household appliance and mobile device. McKinsey estimates the market for vehicle enabled digital services to grow to $1.5T by the year 2030.
Understanding how the consumer will function as a services buyer, however, is an entirely different matter whether that individual is a personal vehicle owner, rideshare passenger, renter or simply a passenger in a friend’s car out to the movies and dinner. And while automakers are determining how to enable that customer experience one thing is clear: the driver consumer wants the same, easy to use experience to carry with them from one vehicle to the next, regardless of role or method of use of a vehicle.
What do I mean by this? Digitally connected customers move seamlessly across vehicles with their secured personal identity and profile available for the use and purchase of services. Vehicles maintain the most driver desired customer experience based on real time feedback to engineering designers, significantly reducing warranty claims and updating software during non-use windows. It shouldn’t matter if I’m a passenger in a rideshare or renting a luxury vehicle for the weekend in the big city, my wallet and profile move with me based on personal credentials, personal preferences (pre-sent entertainment, services palate, etc.) and secure on-board data connectivity.
Vehicles are maintained based in similar consistency. Soft service events – uploading software versions or even tuning firmware – occur in off peak times or as needed based on severity. Hard service events occur at low-use hours to reduce labor and operating expense while maximizing availability of vehicles during peak times. Parts are available as needed, at the quickest route to service locations.
Automakers are learning more about the advanced options to support consumer connectivity as drivers, buyers and passengers and the ability that secure data environments supported by SAP HANA can deliver.
This article previously appeared in LinkedIn Pulse and D!gitalist Magazine. Learn more about trends in autonomous and connected vehicles at SAPPHIRENOW in Orlando, Florida (May 15-19) and secure your spot today!
This week at the SAP Business Objects User Group Conference (SBOUC), Steven Lucas (President of Platform Solutions at SAP) announced the acquisition of predictive analytics and cloud-based solution platform KXEN. This was position in response to SAP customer demand around greater workflow and process integrations with analytics in a cloud-based offering. While the intent to acquire KXEN by SAP is not a done deal, the wheels are firmly on the track and the train is moving ahead to an October, 2013 close based on an analyst call hosted by both companies this morning.
The KXEN acquisition is definitely a good response to SAP customer demands in both the cloud and predictive analytics offerings. At SAPPHIRE 2011, in private meetings with the analytics solution team, the direction of the solution roadmap for SAP in the space of predictive analytics was on the forward horizon view of many solution management team members. As part of the product portfolio, SAP has a long-standing product development gate strategy with rigorous decision points on “make or buy” approaches to new product development. Acquiring KXEN is an acknowledgement that SAP – in at least this space of the predictive analytics field – needed to get in front of the customer based more rapidly than the organic product development cycles would allow.
The acquisition also speaks to a growing proxy war quietly playing out between SAP and Salesforce.com, arguably one of the leaders of the cloud-based sales force automation and marketing who has been cherry-picking talent recently from SAP’s Palo Alto and SuccessFactors Bay Area campuses. Lucas came from Salesforce.com a few years ago to lead the SAP analytics and cloud platform efforts and in his current role targeting good partners (and the talent and products that come with them) to bring formally into the SAP ecosystem. KXEN also has development solutions such as its Cloud Prediction which it launched at DreamForce 2102, and as such to direction of this and other product offerings on the Force.com platform is in question (this was directly asked during the analyst briefing at which point there was a “no change in direction” reply statement while at the same time acknowledging this and other products would enhance the HANA cloud offerings). As the acquisition formalizes it is hard to understand how KXEN’s relationship with SalesForce.com, in short the buy appears to be away to poach and divert the product lines from Force.com to HANA while also getting a good look at the Force.com “wiring” as a part of the process.
As SAP makes more moves to shore-up its cloud and analytics strategy to support the HANA cloud offering, KXEN could be the first of several spot acquisitions in this field as SAP accelerates its product introduction cycles.
Filed under Big Data, Business Analytics, Cloud Computing, Cloud Readiness, Digital Content Strategy, Mergers and Acquisitions, Mobile Society, Operations, Strategy, Supply Chain Management, Technology