Presentation: new business models driven by cognitive intelligence
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.
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.