Smartphones on wheels
There has been a lot of talk about how cars have become “software-defined vehicles” or, if you prefer, “smartphones on wheels” or “rolling computers”. One of the biggest advantages of that are OTA (over-the-air) updates, where a vehicle receives the very latest functionalities from the comfort of the driver’s home, or wherever (s)he is. But not much attention is being paid to the fact that the hardware – the car – will at one point no longer support the updates, just like happens with smartphones. The biggest challenge is that, while smartphones typically receive updates for 6 to 8 years, the average age of vehicles is now at 12.6 years in the US and 12.3 years in Europe.
According to our CEO Patrick Vanbrabandt, this is a typical software-company problem, which is what a lot of automotive organizations are increasingly becoming. They dream up this amazing solution that has incredible potential for their users, but then they forget about the road map and the longer-term vision on user-support. It’s a common challenge in our short-term driven society.
Interestingly, many car brands mitigate these effects of obsolescence by creating a strict division between the core, most basic functionalities (not dependent on updates) and the fancy, more intelligent but less necessary functionalities (software based). That way, if the car becomes incompatible with the latest software version, it can still run like a more classical car, without the bells and whistles.
A benefit of this software-based approach is obviously the option to put a business model behind the upgrades. The more basic ones tend to be free, but the more advanced ones come at a price. Automakers can then keep selling new services and subscriptions—like hands-free driving systems, remote start, enhanced maps or (more controversially) car seat heating—to people who already bought their cars, as long as that car is on the road. That’s how Tesla’s Full-Self Driving (Supervised), and Mercedes’ Me Connect package work. Or General Motors’ OnStar roadside assistance.
It will be interesting to follow how this will evolve. Will the car hardware remain compatible longer than smartphones, because they are more expensive, and people tend to keep them longer (compared to 2.8 years on average for a smartphone)? Or will people just get used to the fact that their cars won’t receive any updates any more after 7 à 8 years? What do you think?
Want CARYA to help you develop a long-term vision and roadmap for your technology needs? Check our website to see if we can help you with your CRM, DMS, IT or marketing!
Interestingly, many car brands mitigate these effects of obsolescence by creating a strict division between the core, most basic functionalities (not dependent on updates) and the fancy, more intelligent but less necessary functionalities (software based). That way, if the car becomes incompatible with the latest software version, it can still run like a more classical car, without the bells and whistles.
A benefit of this software-based approach is obviously the option to put a business model behind the upgrades. The more basic ones tend to be free, but the more advanced ones come at a price. Automakers can then keep selling new services and subscriptions—like hands-free driving systems, remote start, enhanced maps or (more controversially) car seat heating—to people who already bought their cars, as long as that car is on the road. That’s how Tesla’s Full-Self Driving (Supervised), and Mercedes’ Me Connect package work. Or General Motors’ OnStar roadside assistance.
It will be interesting to follow how this will evolve. Will the car hardware remain compatible longer than smartphones, because they are more expensive, and people tend to keep them longer (compared to 2.8 years on average for a smartphone)? Or will people just get used to the fact that their cars won’t receive any updates any more after 7 à 8 years? What do you think?
Want CARYA to help you develop a long-term vision and roadmap for your technology needs? Check our website to see if we can help you with your CRM, DMS, IT or marketing!
