Capgemini recently released the 2014 Cars Online ‘Generation Connected’ report which addresses what consumers want for their car buying experience and ownership experience. From the results, it's clear that connectivity is the fundamental component. The result - automotive Original Equipment Manufacturers (OEMs) are changing the way they design and deliver their vehicles, with more complex product design and technology, increasing partnerships to expand their capabilities, and more emphasis on services.
Capgemini's study of more than 10,000 consumers underscores the fact that the new generation of connected customer influences innovation in the automotive industry. This is the 15th year Capgemini has conducted the survey, and this year, the results are from consumers in 10 countries - Germany, France, UK, USA, Brazil, Russia, India, China, South Korea and Indonesia. Someof the research is about the increasing shift to researching and buying cars online, and personally, I'd be thrilled to buy a car online, after at least one test drive of course.
But here in IDC Manufacturing Insights, we're particularly interested in the consumers' interest and expectations for the connected car. Capgemini examined how OEMs and dealers must adapt their approach to shaping the customer experience to remain competitive and offer a new combination of connected car features and services.
Some of the most significant results come down to two points in the Capgemini report:
- Connected Car as a Platform for Customer Engagement: The connected car era offers a strong opportunity for manufacturers to gain a deeper understanding of their customers, as the vast majority (80%) of automotive customers are more willing than ever to share data with automotive OEMs or dealers - as long as there is a benefit in return.
- Connecting Product Performance and Service Delivery: Communication between car, driver, OEM and dealer will be vital going forward, as it provides a mutually beneficial opportunity for post-sale interactions, centered on the consumer desires that matter most: safety and driving experience (83%), vehicle management (79%) and real-time customer care and service (74%).
In our IDC Manufacturing Insights' 2013 Consumer Connected Vehicle Study of car drivers with smartphones, we also found safety and driving experience top of mind. Although vehicle management and customer care and service rank highly as important in Capgemini's study, we think more consumers need to be convinced that they should share their data, and the Capgemini study also shows that consumers need to know that they are receiving benefits in return.
In the IDC Manufacturing Insights survey, we found less than 60% of drivers in the United States are willing to allow the OEMs to have remote access to their vehicle. Automotive OEMs need to think about the connected car and their interest in accessing performance data and delivering software updates remotely in terms of communication, as Capgemini says: "Generation Connected is about communication".
We already know that aftersales service is increasingly important to automotive OEMs, and the connected care is a critical requirement for the next generation of service delivery. Here's a great fact in the study:
- 67% of car owners in growth markets are interested in remote diagnostics (remote vehicle checks and software updates) and almost half of consumers in mature markets said the same.
For those that are willing to think about adding more innovation in the new service delivery model, consider this point as well:
- Consumers in mature and growth markets showed a very high interest in mobile service technician services as well (50% and 63% respectively).
As manufacturers in many discrete manufacturing segments can tell you, the ability to remotely diagnose a service issue saves a significant amount of time and money in the service process and ultimately results in higher customer satisfaction.
Automotive OEMs already see the impact of the connecte dcar in their design and engineering and the way they operate in their value chains. What still remains unclear is just how signficant the change will be on service delivery, once the vehicle is on the road and in the consumers' hands. We're definitely going to see more change ahead.
What do you think? What investments are OEMs working on first? Are you already working on the service implications? Let me know about your experience with the conencted car by leaving me a comment here at the IDC Community or email me at kknickle .com.