INFORMATION TECHNOLOGY AND THE AUTOMOBILE INDUSTRY

1. INFORMATION TECHNOLOGY AND THE AUTOMOBILE INDUSTRY Chester Kumm Sue Murali Praveen Punnam Desiree Vance

2. IT and the Auto Industry • Information Technology has transformed the car into • Mobile Work Fronts – for the professional • Entertainment Centers – for passengers • Search and rescue – for the lost • Weather stations – for fans of the weather channel • Gizmos – for tech freaks ;-)

3. IT in Automobiles • Electronic Systems that control various functions – brakes, fuel injection etc. • Auxiliary Services based on Wireless IT – navigation aids, for e.g..

4. Say What ?!? • 1990 – “the average new car carried more on board computing tools than the vehicle that took Armstrong et al to the moon and back.”

5. Electronic Systems • Back in the 70’s, vehicle emission systems were crude and mechanical. • By the 90’s, engine management computers take over.

6. Electronic Safety Standards • Airbags – can be traced back to the 60’s but only became viable with electronic controls. • ABS, Traction control and Stability control are other examples.

7. Auxiliary Services • In the 1930’s, radios in cars or telephones in cars were unheard of. • Early Satellite Navigation Systems – not user friendly. ( the Hyundai example ) • Pioneer’s voice recognition idea in 1996 -market reaction was non-existent.

8. The Industry Today • “Digitization and Networking” • Revolution of IT – Market Globalization • Commercialization of the Internet

9. The Industry Today - • Information Technology - Contributions to the Auto Industry • Product Development • Procurement and Supply • Manufacturing System • Vehicle Order to Delivery Management

10. The Industry Today - IT- Research and Development • AHTRI (1995) – Collaboration with other research organizations • Other activities

11. The Industry Today - Features once considered luxuries are Standard features in cars today.

12. The Industry Today - • Hybrid Technology • More mileage • Low emissions • Telematics • ACN (Automatic Crash Notification)

13. The Industry Today- • LCD Technology • Several keys integrated into a single multi-functional key • User friendly • Interactive guidance • Space saving

14. The Auto Industry What the future holds

15. Software and Hardware Advances • Continually improving • CAD and CAE advances enable simulations to replace physical models • Order tracking and delivery management applications

16. E-Commerce and the Internet • Increased Revenue • Cost Savings • End-to-End integration of the value and supply chains • Less vertical organizations – Partnering • Evolutionary vs. Revolutionary

17. Modularity • Build to order - Customization • Traditional Push approach vs. Pull approach • Production pulled from real time information • Inventory buildups will be eliminated • Need for incentives reduced

18. Supply Chain Management • A Good IT system is the backbone of a good supply chain management system • Partnering – with real time, networked collaboration • Increased role of vendor in development • Internet – order tracking

19. COVISINT • Industry consortium developed B2B hub • Benefits • Reduced Costs • Increased efficiency • Enhanced quality • Improved time to Market • Logistical Improvements • Provide vendors access to real time production information

20. Industry Wide IT Standards • XML Labels • COVISINT Standards • Vendors will not need to support multiple processes and technologies • CAD / CAE applications available to smaller firms • Enables partnering and co-development

21. In Vehicle Systems • Creating value by providing customized services • Increased revenue opportunities • Subscriptions and repeat upgrades • Requires merely a software upgrade • Upgrade and configuration management services • Standardization - Eliminate system compatibility issues

22. In Vehicle Systems • Modular approach • Assembly and Design Cost savings • Increased Software control of functionality

23. Future In-Vehicle Systems • Entertainment • MP3 players • Satellite radio expanded • Information Services • News Headlines, weather, sports • Investment portfolio updates • Movie or theatre times

24. Future In-vehicle Systems • Communication Services • Safer docking facilities for cell phones and PDAs • Improved voice activation and recognition • Hear email or navigation instructions • Pay for items like fast food or movie tickets

25. Future In-Vehicle Systems • Driver Assistance Services • Enhanced GPS Systems • Dynamic routing directions based on real time traffic reports • Operational Assistance • Sensors diagnose problems and proactively alert • Driver • Roadside Assistance • Service Personnel

26. Future In-Vehicle Systems • Operational Monitoring • Insurance Companies • Repair Shops • Safety and Security • Different levels of access • Drivers • Passengers • Mechanics, Valets..

27. Future In-vehicle Systems • Virtual Dashboard • All gauges consolidated into one flat panel monitor • Safer • Voice technology • Hands stay on the wheel • Eyes stay on the road

28. Future In-Vehicle Systems • Integrated Services • Sensors automatically activate or control an event • Velocity of the airbag • Doctor or family members notified after accidents • Trend analysis leads to proactive repairs

29. Future In-Vehicle Systems • Parental Monitoring • Safeforce Teen Driving System • Audio warnings to unsafe driving • Removable memory card • GPS option to track real time driving • Will be available in early 2003. • Roadsafety Inc.of Thousand Oaks, CA

30. Conclusion Technology transforming the Auto Industry.