TATA CONSULTANCY SERVICES
1 . Data as a lever to optimise costs : This has to do with connected data from vehicles being used to improve existing processes and systems to reduce costs . For example , realtime vehicular data can be used for managing the inventory of spare parts in service centres to ensure that vehicles spend minimum time off road , while also reducing inventory holding costs .
2 . Data as an enabler to create revenue propositions : Mobility players are betting big on creating value from services curated on connected data . It is estimated the value of connected services will reach US $ 20bn in this decade . While this is not yet an entrenched business model , monetisable subscription models built on these connected services are quickly becoming a reality , whether it be through OTA upgrades , usage-based insurance , fleet management systems , or in-vehicle commerce . The ongoing success of this model will rest on the mobility players ’ capabilities to build perceptible value through personalised and contextual services , so that customers are willing to pay for it .
3 . Data as a tradeable commodity : Data marketplaces are not a new concept . OEMs have been partnering with tech players for data sharing , much like conventional data marketplaces in other industries like finance and retail , in revenue sharing models . However , the challenge with this model is the ever-intensifying regulatory environment around the handling of customer data and the need to preserve the trust of customers when using their information . While there are consent management systems in place to ensure that the rights of their customers are protected , it is uncertain whether OEMs would rely on this model to generate substantial revenues .
118 February 2023