With all the news centered around the automotive industry right now, telematics isn’t as talked about as it once was.
But the electronic topic is still a possibility for the aftermarket to jump into and get some of the benefits dealerships are seeing from telematics services like OnStar, not to mention the consumer electronics aspects, says Ben Johnson, director, North American Product Development and Sales, Service and Education Products, Delphi.
“I think what we need to do as an industry is figure out what we want to get out of this thing, he says. “Butt I’d like to sort that out before the playing field gets so cluttered with technologies serving single purposes that is gets to be too difficult to align it.”
So what are the options? Johnson proposes there are three scenarios that could take place as the technology and aftermarket move forward.
The first scenario is that multiple players get involved and produce a number of technologies and everyone goes at it individually. But Johnson says his fear is that the industry will attack this and end with a fragmented approach.
Another option is to approach the OEs and work together. He notes that the reality is the OEs need to be looking at some sort of relationship, as the number of dealership bays declines. But, one situation is how do you decide what to ask for to make it appealing to the dealer?
The third scenario, which Johnson says he would like to see, is an industry initiative to deliver the backbone of a telematics solution. This could be an aftermarket add-on until the customer purchases a new car with one built-in, and would require an infrastructure to broker the information needed and the data gather.
“That allows you, as a shop owner, and the customer as the ultimate decision maker to have an a la carte offering of the different ways they can interact with their vehicle,” Johnson offers. “It’d be a big project, but what we would end up with is a standard method of communication that the OEs could help us (with).”
No matter what scenario might be approached, building the business model and addressing the lack of standards for telematics are the largest challenges, Johnson states.
The first step is to develop a business model, which would include considerations for the cost of vehicle hardware, infrastructure, service and maintenance, as well as who pays and how much. Individual shop owners also need to keep in mind the scale and reach of the business.
One opportunity can be to leverage the technology already out there. The OEMs already have the coverage out there, as OEs have established dealership networks, Johnson suggests. Most vehicles produced by 2012 will have some level of telematics capabilities.
Plus, there are plenty of shops and bays out there; today’s shop owners just need to make sure they have a network of other shops to work with. You can use this to drive consumers into a more maintenance mentality.
Fundamental Building Blocks
And in looking at all of this, these processes address the service aspect of telematics, not the consumer electronics features possible. And with that in mind, there are basics to think about incorporating before taking the business model out onto vehicles.
First, you need the vehicle and have the hardware it to at least send data and more effectively send and receive data. You also need to have a way of sending and receiving the data, such as voice, data, SMS or GSM. Then you need a place to and store the data, finally utilizing it in an effective manner.
These programs can track everything from where the vehicle goes, how fast it goes, what service is needed and more.
So what do you do with it? Well, you can use a Web portal for a “self-serve” type situation where a driver can monitor their vehicle. Call centers are another option with concierge services, directions and direct to the garage.
Your garage can also receive data from the vehicle and you can get the heads up on service needed on vehicles to enhance customer service, which can take away from OE services directing drivers to their preferred dealerships.
“What really scares us in the aftermarket is it tries to direct them to their preferred dealership,” Johnson says, suggesting you can market away from this by saying to bring in your OnStar report and you’ll perform the maintenance.
