The automotive industry is being shaken up by the next big technology wave of the “internet of things” and connected car. We are always looking for the next, big, hot opportunity for growth, and today there are so many different areas I often feel like a kid in a candy store. The cloud, augmented reality, virtual reality, IoT, connected car, smart homes and more are all important and will all grow separately and together.
With that said, let’s take a closer look at the connected car as one of the big opportunities for 2017 and beyond. Today we are in the early stages of this new and important sector. Basic connected cars are already on the road. You may be surprised to see an update message on your dashboard screen. Click the button and you can watch the update process happen in real time while you are on the road. This is a shock to many since this is not the way we think cars work.
However, going forward this is exactly how cars will work. Today only a few new models have this technology, but it will reach all new models sooner rather than later over the next couple years. And this wireless connectivity is not just in the upper level cars like Lexus, Mercedes-Benz and Cadillac, but in the mainstream models from regular automakers like Toyota and Chevrolet as well.
Connected vehicle revolution bas already begun, just ask GM and IBM Watson
The revolution has already begun. I attended a speech by Mary Barra, CEO of General Motors, at the IBM World of Watson event in Las Vegas a few months ago. Barra talked about how 2017 cars, which were hitting the showrooms now, were the most advanced connected cars on the road today.
So, what exactly does connected car mean? It means the car is connected, wirelessly. What it does with this connectivity is amazing in that it lets the auto manufacturer send updates to improve performance and functionality, with fixes and new features suddenly appearing on screen. This is good because we tend to keep cars longer than smartphones and we all want updated technology.
However, connected car means more than that: It means we can use technology in the car the same way we do at home or in the office. With Wi-Fi we can watch movies or television on the screen in the dashboard or back seat. Great to keep the kids occupied. We can surf the web, send email, text messages, use social sites and so much more.
This is an incredible leap into tomorrow. I remember about 15 years ago when I bought a van for my family and it had TV screens that unfolded from the ceiling. We could stick a DVD into the player under the seat and keep the kids happy. It was so advanced for the day, but it was like a Ford Model T: exciting, but just the first step.
Aria Systems for connected vehicles, omninode technology, Syntel
So, what’s coming next? Today, using wireless, IoT and the cloud to enable this next level of connected cars, there are so many new opportunities for companies to become leaders in this new space.
Aria Systems is one of the companies leading the charge into this new area. Aria for Connected Vehicles uses their omninode technology to help companies manage their customer billing. They have technology that tracks users, their usage and bills them. This move into the connected vehicle world represents a new and rapidly growing opportunity for Aria.
Syntel is another player in this space. They focus on digital modernization services, with a core suite of automation-driven IT and knowledge process services. They help companies build collaborative partnerships and creates long-term business value for clients.
Every executive understands changes are coming
You see, while every business understands the changes that are transforming their industry and their companies, most simply don’t have a clue what steps to take next to retain their competitive advantage. Companies need AI specialists, and there just are not enough AI specialists in the market today.
The threat is companies who don’t make the right moves will lose their competitive advantage. It has happened so many times in the past that every executive understands this threat and opportunity.
Apple iPhone, Google Android, Motorola, Nokia, BlackBerry
As an example, just consider the wireless handset business. Motorola lead this sector for decades. Then they didn’t shift from analog to digital fast enough in the 1990’s. After that Nokia took the lead, then when the smartphone started making itself known BlackBerry lead that sector.
Then about a decade ago when the Apple iPhone and Google Android operating system hit the marketplace, suddenly they became the top players, sending Nokia and BlackBerry down in a death spiral. Today they are keeping Motorola company.
This is the current state of today’s competitive world. Leaders lead until the next big idea comes along and changes everything virtually overnight. Suddenly the rug is swiped out from under them. This is the threat and the opportunity faced by every company in the business world today.
Comcast, Charter, AT&T, DirecTV, Verizon
That’s the new rule. Some companies don’t like to play by those rules. Consider the cable television industry: They have tried to stall the transformation of their industry over the last decade, but suddenly they are losing market share to new technologies and competitors like AT&T DirecTV Now and mobile TV, Verizon FiOS, CenturyLink Prism, Netflix and Amazon.com.
With all that said, connected vehicles are transforming the automotive industry on many different levels. Carmakers will all jump onboard this train. Some will be early adopters and have a competitive advantage, while others will be followers, but they will all modernize.
Cannibalize yourself or others will eat you alive
So, no matter which slice of this pie you are in, understand the great reinvention that is taking place. New companies and new technologies will be leaders. Some exciting companies will also remain in a leadership position, but many others will miss the mark.
The big question is which companies will be the winners and losers going forward. Which should you work for, invest in, be a customer of or partner with. With connected vehicles, the transformation is happening right now. So … are you in?
