motoring travelling answers from l-commerce www theaa

motoring & travelling answers, from: l-commerce www. theaa. com m-commerce e-commerce

Telematics: e. Commerce in the Driving Seat David Viney 12 March 2002

Introductions David Viney, BSc ACA 32. Qualified with PWC London before joining British Airways. Moved into Technology / Business interface, with programme management experience on Year 2000 and e. Business. Joined Centrica in December 2000 as a “mini-CTO” for the. AA. com. Also manage the business/IS Interface for the corporate website & the Centrica Intranet.

Outline Agenda 3 Centrica…. Who? • Who we are • What we do • Why we are special 1 Our Strategy • e. Commerce objectives 4 Focus on the. AA. com • What we have to offer • Channels to market 18 Focus on Telematics • The market, as is & to be • Winning products & services The final question: “How will L-commerce in general, and telematics, in particular change the way companies reach their customers and the products and services that they sell to them? ”

Centrica Who we are British Gas • Privatised in 1986 • Demerged in 1997 • Company split into 2 parts Centrica • British Gas brand in UK • Morecombe Gas Field • Billing & Collecting • Oh, and 20 m customers BG International • Demerged in 1997 • Lattice - Infrastructure • BG plc – Exploration etc. Verdict in 1997? • Take or pay contracts • Market opening to competition • Tight pricing regulation • Centrica will fade and die 1/26

Centrica What we do Core business • Own the home • Own the car • Own the customer Home services • Gas supply • Repairs & servicing • Electricity suppy • Telecommunications Road Services • Breakdown services • Motor & Travel Insurance • Warranties, Inspections, Checks Financial Services • Goldfish Credit Card • JV with Lloyds Bank : evolve • Personal Loans etc. • AA IFA recently launched 2/26

Centrica Why we are special > 42. 5 p in ‘ 97 - over 200 p today > 100% growth over 4 yrs > Against a falling FTSE 100 > Rated strong buy by brokers 3/26

Strategy e. Commerce Objectives Goldfish. com • Full online bank • Launch imminent house. co. uk • Find & buy a home • Manage the move • Arrange essential services • Launch in November 2001 • Longer term: home automation theaa. com • the leading motoring & travel portal • Getaway • Travelwatch • All About Cars 4/26

the. AA. com Where is the. AA. com today? 1. We are a huge site 3. Now a significant sales channel M&S British Airways RAC Direct Line AA Autotrader 1. 4 m monthly users Source: Neilsen January 2002 2. We are growing fast 77% 49% Source: Neilsen January 2002 Growth in audience for AA. com since re-launch Growth in active UK Internet audience over the same period 4. Achieved at a competitive cost Cost per page served 35. 5 p Mc. Donalds 13. 6 p Lastminute. com 6. 5 p the. AA. com 5/26

the. AA. com What we have to offer Insurance Bookshop Warranties Breakdown Hotel Car Data Vehicle Bookings Checks Traffic Master Data Inspections Driving Personal School Loans Products & Services Cheapest Motoring Petrol Policy Unit NCAAP Car Tests Glasses Guide Data Motoring Information Assets, Products & Services Riders Reports Patrol Reports Traffic Info Navtech Data Events Travel Info Guides Road Atlas AA Directions POIs Hotel Data Ordnance Ratings Survey Data Travel Info 6/26

the. AA. com Over 8, 500 Sources of T&T Information: 93 Local Authorities 8 Motorway Control Rooms 4100 Traffic Master Sensors 7000 AA Patrols & British Gas Engineers National up-to-date database Traffic Speeds 80, 000 miles of roads 1, 500, 000 traffic incidents pa 30 CCTV Control Rooms Bridge opening information 40 Roadwatch Motorcycles Mobile Phone Users “Jambusters” 30 Ferry Companies 52 Regional Police Forces European Road Information Centre 63 Regional Public Transport Companies 7/26

the. AA. com Channels to market B 2 B Data Sales Web Di. TV CD Sales In Car Telematics WAP Information Assets, Products & Services RDS/TMC SMS Mobile Radio / Broadcast Hard Copy Fixed Line/ Call Centre 8/26

telematics Telekommunikation (telecommunication) Informatik (information). . in the automotive industry, telematics refers to the provision of two-way voice and data communication between the vehicle and information service providers Our definition includes “Sat. Nav” systems and more traditional “in-car telematics” Is all about people going places…. Convergent consumer mobility needs, being created by: Infrastructure Congestion ü Increasing number of vehicles per roadmile ü Increasingly inadequate road networks ü Real possibility of pan-European gridlock Need for Dynamic Routing & Information Services Changing Society & Lifestyles ü Employment mobility ü Widening gap between rich & poor ü Increasing perception of hostile unfriendly society Need for Personal Safety & Security Services 9/26

telematics Three Distinct Regions End user revenues 2000 $5 bn Japan • Sizeable lead in market size & technology • Lead by Electronics Manufacturers • Charge for hardware; free services bundled United States • Lead by Separate companies est. by OEMs • Hardware as an optional extra • Recurring charge for services (Western) Europe • Lead by OEMs as a core activity • Mixed approach – hardware & services 10/26

telematics The ten year view 2000 2010 $5 bn $49 bn 11/26

telematics A growing market • Dominated by Hardware today • Longer term, Services the key to growth > 12/26

telematics The two biggies • Onstar appears in the US at end of 1997 • Reached 1 m subscribers in April 2001 • Ford in catch-up mode with Wingcast > 13/26

telematics Considerations for the future • • • Safe & secure or Wireless Portal? Vehicle console or wireless device? Windows vs. Java The role of floating car data GPS vs. wireless location technology > 14/26

telematics Likely future developments Step 3 Step 2 Step 1 Connection to emergency services, breakdown services, call centre navigation assistance In car Voice portal access to multiple services, incl. email, music, news and entertainment offerings. VR technology enhances the user interface. In car turn-by-turn navigation & POI. Real-time traffic info Floating Car Data Time 15/26

Likely future developments 16/26

telematics Our own experiences • • A long gestation period & some aborted projects Have finally given birth Exciting partnership with a major OEM - Ford Now working with many others 17/26

telematics sos The Ford Platform An “E-Call” connects the driver to the emergency services with a hands-free cellular voice call. At the same time, an incar GPS takes a location, which is combined with vehicle make & model data in an SMS, which is transmitted to the Emergency Call centre operator telephone Connects driver to a handsfree voice recognition system, from which he can call a UK number from his own address book. In this way, there is less driver distraction in making the call traffic Connects driver to the 401100 AA traffic IVR service. The service picks up the cell ID of the Connects driver to an AA Call Centre operator with a hands-free cellular connection to cellular voice connection. As for e-call, location & vehicle data is sent give local traffic to the agent by SMS. From here, services available include (a) Dispatch information. a Breakdown unit to drivers location, (b) Provide routing directions to driver, (c) Direct driver to Places of Interest (e. g. cash point) & (d) Give driver local traffic info 18/26 operator services

19/26 sos: vehicle position

20/26 sos: vehicle direction & speed

21/26 operator services: strategic routing

22/26 operator services: street level routing

23/26 operator services: direct to POIs

24/26 operator services: more info on POIs

telematics • • • The final question Initially, mid-range and high-end marques OEMs take telematics to the mass market Telematics as a core CRM tool for OEMs Guaranteed captive market Stimulates more impulse purchasing The final question: “How will L-commerce in general, and telematics, in particular change the way companies reach their customers and the products and services that they sell to them? ” 25/26

Contact Details David Viney BISM, E-Commerce Centrica IS 1 F Millstream East Maidenhead Road Windsor SL 4 5 GD Mobile 07979 567690 david. viney@theaa. com Telephone 01753 492 286 Facsimile 01753 493 422 www. centrica. co. uk motoring & travelling answers, from: www. theaa. com Credits: Worldwide Telematics Industry: Eyes on the Road and Hands on the Wheel Global Autos Team +1. 212. 821. 2317 Download at: http: //www. eye 4 auto. com/content/ubs_warburg. pdf [Aug 2000] Download the presentation at: Viney website: http: //www. viney. com/DV/Filespace/filespace. html Other resources: Visit Ford Wingcast at http: //www. wingcastmobility. com Visit On. Star at http: //www. onstar. com 26/26