Monetizing the Connected Car - Build or Buy?
24 September 2023
Read time: 2 min
How an incumbent manufacturing industry will transition to a data-driven future
The modern vehicle is a very complicated machine with hundreds of sensors and dozens of computers. The number of lines of code in a Tesla (150M) exceeds that of a fighter jet, which highlights that vehicles are software-on-wheels. The value of mobility is moving away from the physical vehicle and towards software and the data that is generated by it. This includes managing large volumes of data securely and safely while producing customer centered software experiences.
How will an incumbent manufacturing industry transition to a data-driven future?
It is often said that “data is the new oil”, and is now the most valuable resource. The raw product by itself is not valuable, its value is created when it’s refined, packaged and distributed.
In order to extract and process oil, it requires a multi-million dollar investment with top of the line equipment. Similarly, in order to extract value from raw data, it requires sophisticated data processing techniques and advanced AI & machine learning. This includes a robust software architecture, backend, edge to cloud, artificial intelligence & machine learning models, automated feedback loops, microservices, APIs, SDKs & front end products including dashboards and mobile apps. The effort not only requires time, resources, but a team that is built around software and more importantly, a software and data science driven culture.
In order to monetize the $400B connected car opportunity, the transportation industry is being forced to put aside that traditional way of thinking. At their core culture, they are manufacturing first but what the future requires is an intensive software – and more importantly – data centered thinking. Coming from an automotive background, I understand the notion of, build over buy. But I also come from a software background and know that incumbent transportation companies have to establish partnerships to be relevant. For example, seeing Ford partnering with Google – is a great example of the two worlds coming together.
For automotive companies, great software & data experiences is a necessary requirement for the connected world we live in today. Pitstop is, and will continue to be there to help those find critical value from their vehicle data, which currently includes global fleets, Tier123 suppliers and OEM’s.
By: Shiva Bhardwaj, CEO & Founder | Pitstop |
