Automotive

Presentation: new business models driven by cognitive intelligence

Share this post:

Last week’s IAA event in Frankfurt was the place for people passionate about the automotive industry to come together, play with new ideas, investigate new business opportunities and share their thoughts on where the industry will go next. Among them was Stefan Schumacher, IBM’s Global Director for Connected Vehicle & Mobility Services, who discussed new, cognitive-driven business models in Speaker’s Corner at the New Mobility Hall last Thursday. Below are some of his key points.

Tapping into digital white space with cognitive intelligence

The connected car already offers a lot beyond simple transportation. It performs its own engine diagnostics, can handle route-mapping, traffic updates, weather information and even entertain its passengers. However, there is one area that represents a largely untapped resource where connected vehicles are concerned: commerce.

One half of all our journeys are taken in order to make purchases, whether that’s grocery shopping, going out for a meal, or travelling into town for a good old-fashioned shopping spree. That’s a lot of time spent in the car. And so far, no one is making use of it. This is a digital white space, and it has a lot of potential, especially considering that:

  • We spend an average of 90 minutes in the car each day;
  • 58% of offline purchases involve a car;
  • Each vehicle produces considerable volumes of data.

Instead of purchases being merely the end point of a given journey, what if we could bring commerce to the journey itself? The connected car would become a hub of commercial possibilities, where retail partners could share offers and recommendations with customers as they travel. The vehicle could learn its occupants’ preferences based on their typical commute, and favourite sports and shops, so that they’re not bombarded with irrelevant or uninteresting information, and see only offers that will be important or useful to them.

Stefan Schumacher at IAA 2017

Stefan Schumacher at IAA 2017

IBM and Volkswagen: bringing ecommerce to the connected car

IBM is working to make this vision a reality. Earlier this month, we announced a collaboration with Volkswagen to develop digital mobility services, supporting the Volkswagen WE digital ecosystem with IBM hybrid cloud.

This exciting partnership will focus on creating a network between vehicles, drivers, and their surroundings. Personalized driver services will be incorporated into the VW Passat for 2018, one year into the five year collaboration.

Find out more about our work on connected cars in and our forthcoming work with Volkswagen.

More Automotive stories
By Parham Vasaiely on May 24, 2018

Part 2: Why we should embrace the current disruption in the automotive industry

As a guest of the IBM CE Summit, I shared the four reasons why I was excited to join. In this blog, I’d like to address the key ‘mega trends’ that are disrupting the automotive industry. 1. Automation Automation presents itself as both an opportunity and a challenge. At Jaguar Land Rover, our vision of automation revolves […]

Continue reading

By Parham Vasaiely on May 22, 2018

Part 1: Why we should embrace the current disruption in the automotive industry

The IBM CE Summit recently finished up in Munich. It’s the fourth year for the event, but the first time the event has taken place in Europe. Here are just four reasons why I’m especially pumped to be involved in this year’s IBM CE Summit. #1. An ever-expanding ecosystem – on a global-scale. Whether you […]

Continue reading

By Ryan Begley on May 7, 2018

Give drivers the unique experiences they want with the right AI assistant

I’ll start with this obvious observation: today’s auto makers – and the companies that work with them – are all grappling with ever-growing customer expectations, rapid technology advancements, and changing industry boundaries. Electric and autonomous vehicles are driving new products and new ways of thinking. While electric cars are in most markets today, autonomy is, […]

Continue reading