motoring & travelling answers, from:
l-commerce
www.theaa.com
m-commerce
e-commerce
Telematics:
eCommerce in the Driving Seat
David Viney
12 March 2002
Introductions
David Viney, BSc ACA
32. Qualified with PWC London before joining British Airways.
Moved into Technology / Business interface, with programme
management experience on Year 2000 and eBusiness.
Joined Centrica in December 2000 as a “mini-CTO” for
theAA.com. Also manage the business/IS Interface for the
corporate website & the Centrica Intranet.
Outline Agenda
3 Centrica…. Who?
• Who we are
• What we do
• Why we are special
1 Our Strategy
• eCommerce objectives
4 Focus on theAA.com
• What we have to offer
• Channels to market
18 Focus on Telematics
• The market, as is & to be
• Winning products & services
The final question:
“How will L-commerce in general, and telematics, in particular
change the way companies reach their customers and the
products and services that they sell to them?”
Centrica
Who we are
British Gas
• Privatised in 1986
• Demerged in 1997
• Company split into 2 parts
Centrica
• British Gas brand in UK
• Morecombe Gas Field
• Billing & Collecting
• Oh, and 20m customers
BG International
• Demerged in 1997
• Lattice - Infrastructure
• BG plc – Exploration etc.
Verdict in 1997?
• Take or pay contracts
• Market opening to competition
• Tight pricing regulation
• Centrica will fade and die
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Centrica
What we do
Core business
• Own the home
• Own the car
• Own the customer
Road Services
• Breakdown services
• Motor & Travel Insurance
• Warranties, Inspections, Checks
Home services
• Gas supply
• Repairs & servicing
• Electricity suppy
• Telecommunications
Financial Services
• Goldfish Credit Card
• JV with Lloyds Bank :evolve
• Personal Loans etc.
• AA IFA recently launched
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Centrica
Why we are special
> 42.5p in ‘97 - over 200p today
> 100% growth over 4 yrs
> Against a falling FTSE 100
> Rated strong buy by brokers
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Strategy
eCommerce Objectives
Goldfish.com
• Full online bank
• Launch imminent
theaa.com
• the leading motoring & travel portal
• Getaway
• Travelwatch
• All About Cars
house.co.uk
• Find & buy a home
• Manage the move
• Arrange essential services
• Launch in November 2001
• Longer term: home automation
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theAA.com
Where is theAA.com today?
1. We are a huge site
3. Now a significant sales channel
1.4m
monthly
users
77%
49%
Source: Neilsen January 2002
M&S
British
Airways
RAC
Direct
Line
4. Achieved at a competitive cost
AA
2. We are growing fast
Autotrader
Source: Neilsen January 2002
% Total Sales
On Internet
via Internet
Since:
(Average for 2001)
Membership
5%
Jan-99
Loans
26%
Jan-99
Motor Insurance
13%
Jan-99
Home Insurance
10%
Jan-99
Vehicle Inspection
9%
May-00
CDC
4%
Jan-01
Warranty
50%*
Jan-01
Driving School
6%
Jan-01
Product
Growth in audience for
AA.com since re-launch
Growth in active UK
Internet audience over
the same period
Cost per page
served
35.5p McDonalds
13.6p Lastminute.com
6.5p
theAA.com
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theAA.com
What we have to offer
Insurance
Bookshop Warranties
Breakdown Hotel
Car Data
Vehicle Bookings Checks
Traffic
Master
Data
Inspections
Driving
Personal School
Loans
Products & Services
Cheapest Motoring
Petrol
Policy Unit
NCAAP
Car Tests
Glasses
Guide
Data
Motoring Info
Information
Assets, Products
& Services
Riders
Reports
Patrol
Reports
Traffic Info
Navtech
Data
Events Travel
Info Guides
Road
Atlas
AA Directions
POIs
Hotel
Data
Ordnance Ratings
Survey
Data
Travel Info
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theAA.com
Over 8,500 Sources of T&T Information:
93
Local Authorities
8 Motorway
Control Rooms
4100
Traffic Master
Sensors
National up-to-date
database
7000
AA Patrols
& British Gas
Engineers
Traffic Speeds
80,000 miles of roads
1,500,000 traffic incidents
pa
30 CCTV
Control Rooms
Bridge opening
information
40 Roadwatch
Motorcycles
Mobile Phone Users
“Jambusters”
30
Ferry Companies
52
Regional Police
Forces
European Road
Information
Centre
63 Regional
Public Transport
Companies
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theAA.com
Channels to market
B2B Data
Sales
Web
DiTV
CD
Sales
In Car
Telematics
WAP
Information
Assets, Products
& Services
RDS/TMC
SMS
Mobile
Radio /
Broadcast
Hard
Copy
Fixed Line/
Call Centre
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telematics
Telematics
Is all about people going places….
Telekommunikation
(telecommunication)
Informatik (information)
Convergent consumer mobility needs,
being created by:
Infrastructure Congestion
 Increasing number of vehicles per roadmile
 Increasingly inadequate road networks
 Real possibility of pan-European gridlock
..in the automotive industry, telematics
refers to the provision of two-way voice
and data communication between the
vehicle and information service providers
Our definition includes “SatNav”
systems and more traditional “in-car
telematics”
Need for Dynamic Routing & Information Services

Changing Society & Lifestyles
 Employment mobility
 Widening gap between rich & poor
Increasing perception of hostile unfriendly
society
Need for Personal Safety & Security Services
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telematics
Three Distinct Regions
End user revenues
United States
• Lead by Separate companies est. by OEMs
• Hardware as an optional extra
• Recurring charge for services
2000
Europe
Japan
$5bn
Japan
• Sizeable lead in market size & technology
• Lead by Electronics Manufacturers
• Charge for hardware; free services bundled
US
(Western) Europe
• Lead by OEMs as a core activity
• Mixed approach – hardware & services
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telematics
The ten year view
2000
Europe
Japan
$5bn
2010
US
Europe
Japan
US
$49bn
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telematics
A growing market
• Dominated by Hardware today
• Longer term, Services the key to growth >
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telematics
The two biggies
• Onstar appears in the US at end of 1997
• Reached 1m subscribers in April 2001
• Ford in catch-up mode with Wingcast >
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telematics
Considerations for the future
•
•
•
•
•
Safe & secure or Wireless Portal?
Vehicle console or wireless device?
Windows vs. Java
The role of floating car data
GPS vs. wireless location technology >
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telematics
Likely future developments
Step 3
In car Voice portal access
to multiple services, incl.
email, music, news and
entertainment offerings.
Step 2
VR technology enhances
the user interface. In car
turn-by-turn navigation
& POI. Real-time traffic info
Step 1
Connection to emergency
services, breakdown
services, call centre
navigation assistance
Floating Car Data
Time
15/26
Likely future developments
16/26
telematics
Our own experiences
•
•
•
•
A long gestation period & some aborted projects
Have finally given birth
Exciting partnership with a major OEM - Ford
Now working with many others
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telematics
 sos
The Ford Platform
An “E-Call” connects
the driver to the
emergency services
with a hands-free
cellular voice call. At
the same time, an incar GPS takes a
location, which is
combined with vehicle
make & model data
in an SMS, which is
transmitted to the
Emergency Call
centre operator 
 telephone
Connects driver to a handsfree voice recognition
system, from which he can
call a UK number from his
own address book. In this
way, there is less driver
distraction in making the
call 
 traffic
Connects driver to the
401100 AA traffic IVR
service. The service
picks up the cell ID of the
Connects driver to an AA Call Centre operator with a hands-free
cellular connection to
cellular voice connection. As for e-call, location & vehicle data is sent
give local traffic
to the agent by SMS. From here, services available include (a) Dispatch
information.
a Breakdown unit to drivers location, (b) Provide routing directions to driver,
(c) Direct driver to Places of Interest (e.g. cash point) & (d) Give driver local traffic info
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 operator services
19/26
 sos:
vehicle position
20/26
 sos:
vehicle direction & speed
21/26
 operator services:
strategic routing
22/26
 operator services:
street level routing
23/26
 operator services:
direct to POIs
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 operator services:
more info on POIs
telematics
•
•
•
•
•
The final question
Initially, mid-range and high-end marques
OEMs take telematics to the mass market
Telematics as a core CRM tool for OEMs
Guaranteed captive market
Stimulates more impulse purchasing
The final question:
“How will L-commerce in general, and telematics, in particular
change the way companies reach their customers and the
products and services that they sell to them?”
25/26
Contact Details
David Viney
BISM, E-Commerce
Centrica IS
1F Millstream East
Maidenhead Road
Windsor SL4 5GD
Mobile 07979 567690
david.viney@theaa.com
Telephone 01753 492 286
Facsimile 01753 493 422
www.centrica.co.uk
motoring & travelling answers, from:
www.theaa.com
Credits:
Worldwide Telematics Industry: Eyes on the Road and Hands on the Wheel
Global Autos Team +1.212.821.2317
Download at: http://www.eye4auto.com/content/ubs_warburg.pdf
[Aug 2000]
Download the presentation at:
Viney website: http://www.viney.com/DV/Filespace/filespace.html
Other resources:
Visit Ford Wingcast at http://www.wingcastmobility.com
Visit OnStar at http://www.onstar.com
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