1. Automotive Academy Styria Connected Car Searching for successful business models Jurgen Moerman, CEO Graz June21st, 2012

2. 2 Founded 2009 Offices in NLD (Eindhoven/Best & Valkenburg) and USA, Ca (Santa Rosa) Tarriffic’s core competence can be summarized into 3 steps: To develop soft-, hardware, and data management solutions for 1. generic devices (smartphones, tablets) 2. to interact with a closed environment 3. in a controlled way Real time controlling Connected House, Connected Car, Connected anything…. About ourselves

3. 3 To be successful tomorrow you need to know the history of Connected Car / Telematics

4. 4 Telematics: a troublesome history First wave 1995-2000 Initiated by OEM’s Technology driven No channel strategy Proprietary solutions High development and production costs High admin efforts at Point Of Sales No business case for user or OEM Low success rate Abandoned by most OEM’s

5. 5 Telematics: a troublesome history Second wave 2003-2010 Initiated by ‘Integrators’ Combine existing resources into 1 proposition for OEM’s Proprietary solutions Substantial development and operational cost Users cannot choose content freely (package-deals) Limited success rate Rejuvenated via eCall initiative

6. 6 Telematics: a troublesome history Third wave 2010-> Initiated by end-users Proliferation of mobile high-speed internet Everything has an IP address Introduction smartphones Low development cost Low operational cost Generic hardware Users have free choice

7. 7 …meanwhile in the outside world…

8. 8 ‣ iPhone introduction USA ‣ Revolution: complete turn-around in telephony & computing 2007: Revolution Hardware driven Software driven 100+ Nokia’s and SE’s Focus on tech spec’s Functionality embedded Non-upgradeable Very short life cycles Lack of continuity for user OS determines user experience Focus on customization Functionality is upgradeable HW life cycle 2+ years Stability for user; migration within platform

9. 9 Consequence for mobile solutions Hardware Software Old situationNew situation Proprietary Functionality from hardware Embedded Limited upgrades Closed/no ecosystem tablet smartphone Generic Functionality from software Upgradeable Open ecosystem

10. 10 Smartphones accelerated Connected Car But how to make money?

11. 11 Key Stakeholders Connected Car

12. 12 It’s a crowded marketplace Stake- holders Telco Content HW-SW

13. 13 Obstacles for success Many stakeholders, esp. OEM’s, did not decide their role yet Commoditization forces many companies to look ‘over the boundaries’ A market standard is needed to attract appealing content Automotive industry is not capable of achieving this: -Too many stakeholders -Too much invested money, often in obsolete technology -Too many different agenda’s “…we will co-operate as long as our technology will win…” Standard will likely come from ‘the outside’

14. 14 Who owns the data? Essential element in current discussion OEM’s think it belongs to them Content providers think they at least should have access EU thinks customers should be in control Yet to be decided whether the customer can determine this freely

15. 15 Connectivity types Embedded Tethered Smartphone

16. 16 What users want: Their own customized environment; everywhere Regardless of what car they drive Appealing content Free choice Flexibility Continuity along with platform evolution No lessons learned

17. 17 The way forward No mainstream standard = No Ecosystem = No Connected Car Include safety standards for user interface and system security Listen to what users want Smartphones will be an essential part eCall and smartphones are the ‘pace-makers’ Successful solutions might be surprisingly uncomplicated

18. 18 Our Solution

19. 19 Thank You / Danke! Any questions?