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M2M: THIS LOOKS SET TO BE THE JOURNEY OF A LIFETIME
by JOHN LEECH
The automotive sector looks set to be at the forefront of realising the benefi ts of Machine-to-Machine (M2M) technology – a term describing the wireless connection of machines – and the potential benefi ts apply to both car manufacturers and drivers.
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Y
oung, more affl uent, drivers will be the fi rst to experience this technology. For example, the recently released Vauxhall ADAM is a fully ‘connected car’ and Jaguar Land
Rover are increasing the technological content of their cars with a series of new apps.1
The main benefi ts which drivers of this car will be able to experience are infotainment-based, including seamless connection with smartphones for media, communication and navigation services – enabled by good connectivity between mobile phone devices and the car. In the not-too- distant future, cars will be able to communicate with each other as well as their surrounding environment. Such technology will ultimately make the driverless (autonomous) car possible, which will further impact the insurance market and the leisure sector amongst others.
M2M technology also has the potential to change business models, sources of revenue and business-to-business relationships in the sector and I believe that this is where the most radical, and least appreciated, changes will be seen in the next fi ve to ten years. Today, when a new car leaves the factory, its relationship with the manufacturer comes to an end. But the wirelessly connected car could radically change this.
Car makers will be able to direct-market and direct-sell additional products, such as optional extras and a variety of services, to the owner throughout the car’s life. This could include winter tyres when the fi rst snowfall is forecast, optional extras when the driver’s birthday approaches or annual car insurance.
1
http://www.thebusinessdesk.com/westmidlands/news/515308-jlr-raises- connectivity-stakes-with-new-in-car-apps.html?news_section=19036#
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M2M
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