Much more than a car show and trade fair attracting 225,000 visitors, the Frankfurt Auto Show (IAA) and New Mobility World event is where international visionaries, CEOs, and newcomers converge to debate the future of mobility.
This year we took the opportunity at New Mobility World to express how Microsoft’s mission to, “Empower every person and every organization on the planet to achieve more,” comes to life in the automotive industry. We shared how we are helping automakers address the challenges and opportunities facing them today, and empower automotive organizations of all sizes to transform into the smart and sustainable mobility services providers of the future. Namely:
- Microsoft shared its belief that the future of mobility will be shaped by technology and automotive partnerships, and how our automotive strategy is shaped by three key principles:
- We partner across the industry. We are not in the business of making vehicles or delivering end mobility as a service offerings.
- We believe data should be owned by our customers, as insights from data will become the new drivers of revenue for the auto industry. We do not monetize our customers’ data.
- We support automotive companies as they enhance and extend their unique brand experiences to expand their relationships with their customers.
Microsoft’s automotive leaders and partners participated in the New Mobility World exhibition and conference keynotes and panel discussions. Throughout the show, we saw compelling themes and stories that illustrate how automakers are embracing new technologies and partnerships that will transform their industry. For our take on the key trends, and opportunities to dive deeper into them, read on.
Connected, Autonomous, Shared and Electric (C.A.S.E.) is the new normal
New entrants and mobility service models have redefined the competitive landscape and consumer paradigms for the automotive industry. Automakers, visionaries and customers who participated at IAA/New World Mobility seem to agree on a connected, autonomous, shared and electric vehicle future, (commonly referred to as C.A.S.E.) which was backed up by a slew of new electric and connected vehicle announcements, new mobility service models, and autonomous vehicle concept vehicles.
As new alternatives to personal vehicle ownership grow in popularity, established players have much to learn from new entrants as they embrace the novel roles of being service providers. A future defined by C.A.S.E technology is the destination that everyone is striving towards, but the journey itself is marked by partnerships. Along the way, companies must not only ensure that business practices work harmoniously, but that they adapt nimbly to thrive.
Download our new white paper on the Future of Mobility: Making the C.A.S.E. for Digital Transformation.
Reimagine sustainable transportation
Automakers are building a future that is electric, clean, and sustainable. Electric vehicles are expected to capture 20% of new vehicle sales by 2030. Moreover, electric vehicles are expected to form the base for autonomous vehicles, shared mobility services, and fleet services. Consumers are showing greater interest in electric vehicles while seeking environmentally sustainable methods of transportation when affordable. As electric vehicles have the potential to reduce the cost of ownership over the internal combustion engine (ICE) vehicles, consumers are progressively adopting hybrid and electric cars. Frost & Sullivan estimates savings of up to $20,000 on the lifetime costs of owning an electric vehicle compared to a similar internal combustion vehicle. But of course, it all begins with car connectivity.
At IAA/New Mobility World we shared our progress on the Microsoft Connected Vehicle Platform (MCVP), the digital chassis upon which automotive original equipment manufacturers (OEMs) can deliver value-add services to their customers. With the Microsoft Connected Vehicle Platform, our ecosystem partners, and our partnerships with leading automotive players – both vehicle OEMs and automotive technology suppliers – we believe we have a uniquely capable offering enabling at global scale the next wave of innovation in the automotive industry, as well as related verticals such as smart cities, smart infrastructure, insurance, transportation, and beyond.
Watch our Driving the Future of Mobility video from IAA/New Mobility World featuring Microsoft’s automotive industry leaders, MCVP, Volkswagen AG, and the Renault-Nissan-Mitsubishi Alliance.
Transform mobility experiences
The next phase of transportation will be defined by connected vehicles and smart mobility services. In-vehicle connectivity is reshaping consumer experiences and expectations of mobility. Drivers desire customized features that remain consistent between applications, vehicles, and across multiple points of contact with an automotive brand. Frost & Sullivan predicts that 65% of newly sold vehicles will be equipped with connectivity services by 2020. Using cloud technology, connected vehicles can offer highly engaging, personalized driving experiences. And for those that can’t or don’t want to drive, connected vehicles and smart mobility services offer new opportunities for multi-modal urban mobility, especially as we enter the future of autonomous vehicles.
Watch our Transforming Mobility Experiences video from IAA/New Mobility World featuring FEV and Cubic Telecom.
Accelerate auto industry innovation
In the case of autonomous development, partnering with tech companies can greatly facilitate end-to-end development cycles. Data ingestion, data curation, model training, simulation, and re-simulation present insurmountable challenges for developers lacking a solid DevOps team that can continuously integrate and deploy software to autonomous vehicles. Without the appropriate human capital and talent, this process can become unsustainable. In such cases, partner networks become essential to accelerating autonomous development and competing effectively with a wide range of autonomous vehicle players.
Cultivating a state-of-the-art, global partner ecosystem has been a focal point of our autonomous driving strategy and our startup partners have played an important part in helping our customers deliver the promise of autonomous driving at scale. Just prior to IAA/New Mobility World we announced Microsoft for Startups for Autonomous Driving. We want to empower pioneering startups who are defining what is next in autonomous driving by helping them scale up and scale out through business and technical enablement. For details on how to apply, nomination requirements, selection criteria and more, visit https://aka.ms/ADstartup
Watch our Accelerate auto industry innovation video from IAA/New Mobility World featuring Microsoft for Startups for Autonomous Driving, Applied Intuition, and Roborace.
Enable new business opportunities
Traditional car buying experiences are changing. With the explosion of new sales channels, digital retail, E-commerce, and social media, customers can now choose how, when, and where they shop for vehicles. Dealerships are no longer the only starting point in the car purchase journey, forcing automakers to devise more engaging ways to drive sales. Connected marketing, sales, and services foster deeper, more meaningful customer relationships and provide a more complete understanding of customer behavior and preferences. This allows for greater personalization, customized content, and hyper-targeted marketing. In-vehicle connectivity serves as a catalyst to reimagine driving and passenger experiences, enabling dynamic experiences and services such as driver profiles, digital assistants, in-vehicle retail, and new revenue streams. Before realizing these opportunities, automotive players must address challenges such as creating comprehensive customer 360s, shifting towards omnichannel marketing, and redefining the role of dealerships.
A few months ago we announced the Microsoft Automotive Accelerator. Microsoft Industry Accelerators is a packaged and pre-populated common data model (CDM) using industry standards, built on Microsoft 365, Azure, and Dynamics 365. For automakers, the accelerator offers device details and specifications within our data model to allow for the management and tracking of vehicles and devices. For dealerships and service providers, the accelerator includes a service and post-sales focus helping create connected customer experiences with a holistic view of customers, from service appointments to contracts and warranties.
Watch our Enable new business opportunities video from IAA/New Mobility World featuring the Microsoft Automotive Accelerator, Daimler AG and Annata.
Get your copy of our new white paper on the Future of Mobility: Making the C.A.S.E. for Digital Transformation.