Cars will also need to be self-healing. They will diagnose themselves and know when they need repairs and updates. Vehicles are becoming more electric and software-driven making self-healing capabilities viable.
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Boschis worlds leading global automotive supplier about how theyre tackling the complexity of the global supply chain.
Our cognitive computing platform, Watson, offers a comprehensive system of capabilities that includes visual recognition. Language translation. Tone analyzer. Natural language interface. And we are building out Watsons ability to analyze video and audio providing new dimensions to understanding how people behave and machines operate.Watson is key to understand the vehicles driver and occupants.
And then finally consumer electronics giant Samsung boughtHarman, the leading provider of infotainment systems for premium vehicles.
Nowhere is the challenge, and the opportunity, greater than with the connected car and urban mobility in particular. IoT-driven technologies are continuously bringing new options to consumers.
Back in 2010, we developed our first study outlining how mobility services will become the new frontier for smarter transportation. We believed that auto companies had to establish their stake in this emerging opportunity, digitally integrating how people move around.
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Cars will remain a key component of our transportation mosaic with connected and electrified vehicles playing a critical role in helping this new world of mobility take off. Today most automotive companies and those in other industries are investing heavily to add a variety of mobility offerings to their portfolio.
Vehicles must also fit into and help optimize the broader transportation system. They will be self-socializing as vehicle social networks will share information about traffic, routing, accidents, weather conditions along with like vehicles sharing information about defects, recalls. Vehicles may even share purely social information.
Looking at the key initiatives from several of our clients we see a number of common strategic investment areas they are pursuing.
Low-speed electric vehicles, meanwhile, will be the first fully autonomous vehicles to commercialise. Their upgradable design and hardware means they can:
All this leads to enormous opportunities to share vehicles. This is changing dramatically as auto manufacturers are also becoming mobility providers. These services are becoming the next competitive landscape.
Their systems are bringing innovation to wind turbines, planes, trains and even bio-hybrid vehicles. Professor Peter Gutzmer, Deputy CEO and Chief Technology Office, explains that Schaeffler have four focus areas as the basis for their strategic direction:
As a result of cooperation between IBM and Bosch, blockchain solutions were implemented within just three months, with a small team. There is a high probability for productive use of PoC, and further use cases within Bosch are in evaluation:
Ecosystems are developed around the consumers experience with how they want to utilize mobility options. Consumers have various preferences regarding the features and services they want to access. These are often based on their digital maturity and lifecycle expectations. Based on the desire for capabilities that enrich the vehicle experience. Based on connected services that enrich the personal experience of getting around. And based on a desire for new mobility models and alternative transportation modes.
February 16, 2017 Written by:Lynne Slowey
Engineering is the other key ingredient. Automotive companies have excelled at engineering for decades, but bringing engineering into the digital age becomes even more important today.
They also need to be self-configuring, where they can take data from devices, the vehicle and information stored in the cloud to configure themselves to individual users preferences.
We often talk about blockchain and how its keeping our food safer. But how can blockchain help the automotive supply chain remove cost and improve parts integrity?
The next target for automotive companies to elevate the users experience in cars is to develop vehicles that enable themselves. In helping to take care of drivers and occupants, vehicles will need to be self-integrating. Capable of smoothly accommodating whatever devices people bring into cars with them.
Within a complex environment, Mercedes-Benz Engineering IT leverages the digital transformation by means of seamless integrated methods and tools:
On top of all this there are much greater investments in enhancing the customer experience. From the buying process to in-vehicle to extra-vehicle, the experience in cars has strategic focus throughout the industry.
We have emphasized the importance of developing new ecosystems in order to transform the Internet of Things. And that especially applies to automotive, mobility, and how people move from place to place.
Mercedes-Benzcan stake their claim as one of the early inventors of automobiles and are one of the biggest premium vehicle manufacturers. Once again theyre innovating, but now with a turn toward systems engineering.
Looking back at some of the thought leadership IBM has published over the last few years, I noticed studies that examined how the auto industry would change. From both the product and business model perspective. Its really exciting to see those changes playing out right in front of our eyes today.
The underpinning of self-enabling vehicles is data. Data-driven solutions remove the complexity of todays human-machine interface with too many knobs, buttons and levers that limit the realization of IoT in connected cars.
The common theme running through all these strategies is digitization. The world is, of course, digitizing across every aspect of our lives. The way cars are designed. The way they are made. And the way they are experienced by consumers. Nearly every aspect of what it means to be a car company or an automotive supplier is being transformed by digital technology.
And, of course, vehicles are becoming more self-driving. This means automated driver assistance along with fully autonomous cars. And consumers agree. Last year IBM published a global survey of 16,500 consumer from the top 16 automotive markets. Consumers across all markets indicated substantial interest in self-enabling vehicles.
To facilitate processes, blockchain could connect:
Jay Rogers, co-Founder and CEO of Local Motors explains that transformation of a brand or product means going back to the drawing board. For Local Motors, it means co-creation and micro-manufacturing.
Apple made an even larger investment of $1B USD in Chinese ride-sharing leader Deedee
This is happening in all the places where IoT is at work: the home, the city, in transportation, healthcare and much more. All of this also raises important questions, about data ownership, monetization and business models as well as consumer relationships, privacy and trust.
For current challenges in car development, the V-Model is more important than every, and the functional prototype is the backbone or Model-based systems engineering.
All of which means that the traditional boundaries of an industry like automotive are disappearing. In fact, from our Automotive 2025 study that we published recently, 73 percent of automotive executives we interviewed said that collaboration with other industries will become the centerpiece to their growth strategies.
Dr. Seigmar Haasis, CIO for Research and Development, Mercedes-Benz Cars at Daimler takes us through the functional prototype.
Finally, weve also made additional investments to build our AutoLAB. This is IBMs first joint investment between one our industries and Watson IoT to assemble a crack team of Automotive experts who can rapidly develop and prototype IoT solutions for our clients. Both our work at Local Motors and with BMW was initiated through our AutoLAB.
If we net it all out, connected vehicles serve one of three functions. First to help the driver and occupants of the vehicle. Secondly for the vehicle to be able to take care of itself. And finally, for the vehicle to fit into the larger transportation system and work efficiently with other cars and infrastructure
We have stories from our clients, positioned around three big outcomes that are enabled through IoT.
Dr. Josef Maichle, Head of Advanced Analytics at Bosch talked us through multiple business ideas benefiting from blockchain: from smart contracts and safeguarding to commercial transactions and processes.
Local Motorsare not only working on a very exciting initiative, but they also represent some of the non-traditional auto industry disruptors that I referenced earlier.
Weve not seen activity that stretches the industry boundaries like this before. All of this primes the pump for innovation across this growing ecosystem to develop products and services faster, and to connect vehicles to the Internet of Things. All feeding performance and operational data back through the value chain.
To start with, the connected vehicle is here and will continue be the catalyst for change. They havent yet become the staple in consumers lives that they cant do without, but new connected services are brought forth every day and that killer app is certainly coming.
The IBM CE Summit recently finished up in Munich. Its the fourth year for the event, but the first time the event has taken place in Europe. Here are just four reasons why Im especially pumped to be involved in this years IBM CE Summit. 1. An ever-expanding ecosystem on a global-scale. Whether you 
As you know, IBM has a long history of working alongside the automotive industry. Combining innovation with industry expertise, and solving problems from the factory floor to the rubber on the road.
Everything is now underpinned with an emphasis on data analytics. By 2020, connected cars will generate 350 MB of data every minute theyre operating. Video, audio, voice, text along with sensor data are all part of the foundation of information to be utilized. And the ability to analyze this information efficiently is paramount.
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General Motors(GM), who earlier in the year purchased a Silicon Valley autonomous drive startup called Cruise Automation, also took a $500m stake in ride-sharing start-up Lyft.
Later in the year, the action got even bigger. Qualcomm, already investing heavily in automotive decided to buy NXP, the 1 producer of chips for the auto industry.
As a guest of the IBM CE Summit, I shared the four reasons why I was excited to join. In this blog, Id like to address the key mega trends that are disrupting the automotive industry. 1. Automation Automation presents itself as both an opportunity and a challenge. At Jaguar Land Rover, our vision of automation revolves 
We joined IBMs John Kitchingman, Vice President, Global Sales Leader for Automotive at Watson IoTsGenius of Thingsevent
The complexities of high speed vehicles constrain innovation. However, DDM dramatically simplifies component composition, simplifying the supply chain and improving manufacturing efficiency. Low part count and lighter materials create significantly more energy efficient vehicles that are rapidly configurable for the latest advancements in vehicular technology.
Electrification continues to grow, even as oil prices stay low. And vehicles are moving rapidly toward autonomous driving. Auto manufacturers and those outside the industry are enthusiastically piloting autonomous cars and trucks. And cars are enabled with more and more active safety features leading to greater automation to assist drivers.
Amongst others, the Functional Prototype supports the creation of the digital twin within the whole lifecycle of a car. Within the Functional Protorype, specifications are analyzed by IBM Watson technology for a consistent system model.
To take care of themselves, vehicles will be self-learning. They will understand driving habits, determine how the driver is feeling emotionally and the depth of their overall skill, so that they can adjust themselves to keep their occupants safer and to drive more efficiently.
When we consider the foundations of operational performance, we need to be able to verify and authenticate the movement of vehicle ownership and possession along with the parts that will go onto the vehicle. As we get closer to autonomous there will need to be integrity of critical parts and sub-assemblies as consumer must have absolute trust that the vehicle will operate safely. The vehicles lifecycle is long and its imperative to be able to reliably track everything.
Ill start with this obvious observation: todays auto makers and the companies that work with them are all grappling with ever-growing customer expectations, rapid technology advancements, and changing industry boundaries. Electric and autonomous vehicles are driving new products and new ways of thinking. While electric cars are in most markets today, autonomy is, 
Blockchain is clearly a critical technology to tracking parts and processes through the supply chain and vehicles life.
Our IoT for Automotive platform understands the vehicle through its sensors.
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We believe that our Watson IoT portfolio is the ideal set of solutions to realize the vision Ive discussed above. Based on three key elements:
Schaeffler AGare using IoT and digitization to improve operational performance in their traditional manufacturing. Theyre also re-positioning themselves in the automotive value chain by creating new value and services.