automotive big data part3 cover image

Automakers Must Partner Around Big Data

By extensively utilizing data, and paying attention to detail Tesla has changed the conversation on the type of personalized experience car owners (drivers and passengers) should expect from an automaker. In the process, it is building strong loyalty with the owners of its cars who appear willing to support it through thick and thin. Tesla has taken a lesson from Apple, Google, Facebook and Amazon, four companies that obsess about connecting pieces of data and using it to better understand their consumers and tailor their services to provide the right experience. It is this personalized experience that Tesla offers that has allowed it to build a brand that delights its customers. The exploitation of big data that is generated by vehicles, consumers and companies across the entire automotive value chain must become a key competence of all automakers. But as I discussed in previous posts of this series, with the possible exception of GM through its OnStar service, (and here) only recently have started to collect and utilize these types of big data (and here). As a result, they don’t capture data of sufficient scale and they are not best in class yet at exploiting big data. In this post I argue that automakers should accelerate their partnerships with companies that have strong data collection and exploitation DNA as Tesla has already demonstrated is possible. As mobility services are starting to play an increasingly important role in transportation solutions, companies that offer such services become ideal partners to automakers. By partnering with them, automakers will be able to better understand their customers in far greater detail than they do today, as well as mobility services, which threaten to disrupt them. Ridesharing and carsharing companies represent the best initial candidates for such partnerships because these companies a) are collecting and utilizing consumer big data with the same attention and rigor as Apple, Google, Facebook, and Amazon and b) have already collected impressive data sets due to the scale they have achieved. Apple’s just announced investment in Didi Chuxing (and here), in addition to the broad implications to Apple’s services in China, e.g., ApplePay, is a further indication that data partnerships even among companies that are some of the best in class, can be essential for developing next-generation transportation solutions, including autonomous vehicles.

Continue reading