Connected Cars: Disruption in Mobility

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commercetools is a next-generation software technology company providing the building blocks for the new digital commerce age. The cloud-native platform enables brands and retailers to build innovative shopping experiences across all touchpoints like web, mobile, voice, and in-car. www.commercetools.com Introduction

When the automobile was invented at the end of the 19th century, it was basically meant to serve as a substitute for horses and carriages. With the help of a combustion engine, an array of knobs, switches, and a steering wheel, drivers could drive their vehicle around, carrying other passengers and goods.

Now, imagine if a time machine could bring Karl Benz, Gottlieb Daimler, and Henry Ford to our time, what would they see? Electric cars are becoming more popular, instead of complex combustion engines, those cars only need simple electric motors. Cars are connected to the internet, which allows them to get automated updates and have drivers and passengers enjoy all kinds of entertainment. Oh, and no more knobs needed: people just use e eCoerce their voice to play a new song, look for the next service station, pre-order a cup of coffee or make dinner reservations. And in a not-so-soon future, vehicles drive autonomously, so no human drivers are needed.

olution or For sure, things have changed a lot. These days, the web is ubiquitous, connecting people and things with each other. Why should cars be an exception? Electronic mobility and autonomous driving are changing the way nnoators and in which car manufacturers deliver value to their customers. This next paradigm shift in mobility is the concept of “connected mobility”. It is an amalgamation of new technologies, software, and user-friendly solutions to take the automotive industry towards autonomous driving. isionaries Connected mobility is expected to put all major economies in the world on a significant growth curve. This growth will be unprecedented, with an estimated annual value of around $560 billion by 2035 for the core services around self-driving vehicles1. As connected cars become a new mobility phenomenon, the two most prevailing questions are: How will autonomous driving change the patterns set by traditional OEM companies? And what does the future look like in terms of features, digital services, and value-add?

In this whitepaper, we will take a closer look at the changes that the automotive industry is going through and the many opportunities and new commercetools is a business models which are evolving. next-generation software technology company providing the building blocks for the new digital commerce age. The cloud-native platform enables brands and retailers to build 1 How Automakers Can Survive the Self-Driving Era (A.T. Kearny), 2016 https://www.atkearney.com/documents/10192/8591837/How+Automakers+C innovative shopping experiences an+Survive+the+Self-Driving+Era+%282%29.pdf/1674f48b-9da0-45e8-a970-0dfbd744cc2f across all touchpoints like web, mobile, voice, and in-car. www.commercetools.com Connected Cars: Disruption in Mobility 3 The Automotive Industry is Changing, Fundamentally

Until the past few years, large automobile and original equipment manufacturers like Audi, BMW, Ford, Toyota, Volkswagen, and others held the major market share of the automobile industry. However, the tables are somehow turning. Auto OEMs are now being challenged by the software and service industry to adopt connected mobility through digital services. They are facing some hard questions about value propositions, capabilities, service partnership, and best practices to take the lion’s share in the future. Given their already established infrastructures and customer base, it is not hard for OEMs to develop solutions that integrate a connected lifestyle with existing mobility to realize the dream of mainstream connected mobility.

Digital Services Mobility

Dealerships

Used Car New Car

In-Car Mobile My Car

Aftersales

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Additional Services

Mobility-as-a-Service

This is where it gets interesting. What we’ve seen in the last couple of years is the need to find new forms of mobility which connect to different modes of transportation. This resulted in a wide range of service providers, from car sharing (e.g., Car2Go), ridesharing (e.g., Uber) to new on-demand electric scooters. Customers can determine which of these vehicles to use, in which and quickly rent them. Service providers then make these cars available, maintain them, and pay for the insurance. In the fully connected world of

Connected Cars: Disruption in Mobility 4 the future, we will see integrated intermodal mobility: not only can private companies offer their services to consumers, but they can also connect their infrastructure to public transportation systems.

As a result, for the automotive industry, the idea of people purchasing, owning and using a car is being challenged. Instead of buying or leasing a vehicle (ie. the hardware), consumers temporarily rent one. This “as-a- Service” idea has already been gaining traction, e.g., in the software industry – you have all come across the “SaaS” (Software-as-a-Service) model, now this idea also makes its way to the car drivers.

Connected Cars: IoT Devices on Wheels

A connected car is a vehicle equipped with telematics boxes which can establish an internet connection via a GSM module – very similar to how mobile phones operate. So if we think about which multiple use cases there are for apps on an iOS or Android device, it is easy to imagine just how many different use cases there are and will be in the future. In other words, the car, which used to be just a chassis with four wheels and an engine, turns into a device which plugs into the Internet of Things, sending and receiving data.

According to PwC, there are eight segments which characterize connected cars2:

• Mobility management: functions that allow the driver to reach a destination quickly, safely, and in a cost-efficient manner (e.g.: Current traffic information)

• Commerce: functions enabling users to purchase goods or services while on-the-go (e.g., fuel, food & beverage, parking, tolls)

• Vehicle management: functions that aid the driver in reducing operating costs and improving ease of use (e.g., vehicle condition and service reminders, remote operation, transfer of usage data)

• Breakdown prevention: connected to a breakdown service, with a back end algorithm predicting breakdowns and an outbound service intervening via phone, SMS or push notification

• Safety: functions that warn the driver of external hazards and internal responses of the vehicle to hazards (e.g., vehicle condition and service reminders, remote operation, transfer of usage data)

2 https://en.wikipedia.org/wiki/Connected_car

Connected Cars: Disruption in Mobility 5 • Entertainment: functions involving the entertainment of the driver and passengers (e.g., smartphone interface, WLAN hotspot, music, video, Internet, social media, mobile office)

• Driver assistance: functions involving partially or fully automatic driving (e.g., operational assistance or autopilot in heavy traffic, in parking, or on highways)

• Well-being: functions involving the driver’s comfort and ability and fitness to drive (e.g., fatigue detection, automatic environment adjustments to keep drivers alert, medical assistance)

As car manufacturers and customers realize the additional benefits of integrated vehicles, the number of connected cars which are sold around the world is growing.

Connected Cars: Disruption in Mobility 6 Electric Mobility is Changing the Game

When Elon Musk introduced his vision of building a company around fully electric cars, the global automotive elite mostly treated this as just another one of his crazy ideas – like building a space rocket. After setting up Tesla Motors Inc. in 2003, the plan was to begin with a premium sports car aimed at early adopters, and then move into more mainstream vehicles. Less than ten years later, the Model S was both produced and sold. Until now, the company has shipped more than 520,000 cars3 to the USA, Europe, China, and other countries. Now Tesla cars have a share of 20% of all the world’s battery-only fleet4 and they are a common sight these days.

But Tesla is not the only one building zero-emission cars, in fact, there are quite a number of companies who have been producing battery-driven or at least hybrid engine cars: Audi has just released its all-electric SUV e-tron5 (see case study below), BMW launched its first mass-produced zero emission car, the i36 in 2013, Renault sells the Zoe7, which has been on the market since 2012, likewise the Nissan Leaf8 has been available since 2010. And as a newcomer, the startup e.GO from the German city of Aachen has released its first compact passenger car e.Go Life9.

In general, sales of electric cars have gone up considerably over the last several years.

3 https://en.wikipedia.org/wiki/Tesla,_Inc. 4 https://edition.cnn.com/2018/11/13/business/tesla-volkswagen/index.html 5 https://en.wikipedia.org/wiki/Audi_e-tron_(2018) 6 https://en.wikipedia.org/wiki/BMW_i3 7 https://en.wikipedia.org/wiki/Renault_Zoe 8 https://en.wikipedia.org/wiki/Nissan_Leaf/ 9 https://www.e-go-mobile.com/en/models/e.go-life/

Connected Cars: Disruption in Mobility 7 In Europe, Norway is the country with the most ambitious goals regarding zero-emission cars. In fact, the country wants to ban the sale of combustion- engine powered cars by 2025. The Scandinavian country incentivizes the purchase of electric cars: consumers don’t have to pay the value added tax for those vehicles, and they are also exempt from carbon dioxide, nitrogen oxide, and weight taxes. Additionally, owners of zero-emission cars get discounts on parking, toll roads, and ferries.

Connected Cars: Disruption in Mobility 8 Electric Batteries and Charging Infrastructure

But electric engines are not the only part of the story. What’s almost more important is how to store electricity efficiently. Battery technology is becoming a new scientific and economic battlefield – some even say that batteries are the new oil – and it is no surprise that Tesla is producing its own battery packs in what they call the Gigafactory.

Battery technology is also the most expensive part of any electric car. Being able to reduce battery prices will also decrease the total cost of these vehicles. New scientific discoveries such as solid-state batteries or sodium phosphate-based compounds could also result in the prices for batteries dropping:

Last but not least: charging stations are important. Here, Tesla has laid the foundation with their so-called Superchargers10, which allow Tesla drivers to refuel their vehicles at more than 1,400 stations around the world. IONITY11, a joint venture between BMW Group, Daimler AG, Ford Motor Company, and Volkswagen Group with Audi and Porsche included are building a charging network for electric vehicles. Their plan is to have 400 fast charging stations along major highways across Europe by 2020.

Although the vast majority of cars on the road are still driven by combustion engines, the clock is ticking for those kinds of vehicles. Countries around the world have set ambitious goals, and when tax benefits for EV (electric vehicles) owners meet dropping prices for battery technology, this technology is certainly headed for mainstream adoption.

10 https://en.wikipedia.org/wiki/Tesla_Supercharger 11 https://ionity.eu

Connected Cars: Disruption in Mobility 9 Autonomous Cars and Their Impact

According to the American Automobile Association, Americans spend an average of 17,600 minutes driving each year12. In other words, every driver in the US spends almost an hour each day in his or her car – commuting, driving to shops, or going on vacation. And the reality is that you just cannot do much while driving. In a time where people try to get the most out of their days, being restricted to keeping their vehicles on the road feels like a waste of time.

If there is any viable solution to have an intelligent real-time traffic system, it is connected fundamentally to autonomous cars. They enable efficient and real-time traffic management and can reduce traffic congestion drastically. Human errors can also be reduced because autonomous cars make fewer mistakes than humans and also do not drive (or drink) recklessly. Their better speed and driving patterns can reduce the emission problem as an added incentive.

The future with connected autonomous cars can also create unlimited possibilities for senior citizens and physically disabled people. “Blind and visually impaired people could benefit from travel options that were previously unimaginable,” says Sue Sharp from the Royal Society for Blind Children in the UK13. “Imagine how liberating it would be for an 18-year-old blind man to be able to drive to meet his girlfriend instead of having his mother take him there.”

Another futuristic advantage is the commute time to and from work. Boston Consulting Group estimates14 that connected autonomous cars can reduce travel time in urban cities by up to 33%.

12 https://newsroom.aaa.com/2016/09/americans-spend-average-17600-minutes-driving-year/ 13 https://new.siemens.com/global/en/company/stories/research-technologies/the-future-of-mobility-connected-autonomous-vehicles.html 14 https://www.bcg.com/en-us/publications/2017/automotive-making-autonomous-vehicles-a-reality.aspx

Connected Cars: Disruption in Mobility 10 Experts and CEOs of car builders estimate that level 5, fully autonomous cars will be available within the next 5-10 years. Advances in AI support this ambitious forecast. Autonomous cars enable a whole new range of services such as infotainment because the vehicle turns into a personal, mobile living room.

With smart and audio-enabled devices as well as mobile internet connections everywhere, connected cars are quickly gaining prominence as an exciting touchpoint of the post-web era.We’re entering an era where drivers can interact with brands and retailers through voice and expect instant results – why wait until reaching my destination when I can be served right now?

Purchasing Cars and Accessories

We have gotten so used to purchasing everything online – from groceries to fashion, from digital books and music to expensive luxury watches. However, with cars it’s not that easy. Automotive OEMs, for the most part, rely on their retail network to sell their products to the customers. In other words, the transaction is not done via a website, but while visiting a dealer showroom. Yet, according to a study done by Accenture, 75% of customers would buy a car online15. And this makes sense: when they spend months doing research online, why not give them the opportunity to do the transaction online as well?

So far, car manufacturers are putting more focus on delivering an inspiring and intuitive user experience. Potential customers can find out more information about cars and use elaborate configurators to assemble their preferred variant online. Further, they can also make appointments for test drives and look into financing and leasing options.

In its latest The Forrester Automotive Wave(™) European Websites, Q3 201816 report, Forrester has analyzed the websites of eleven European brand sites, including Audi, BMW, and Renault among others. The analysts looked at the overall functionality and user-friendliness of the sites and evaluated the handover from the online to the offline – the car dealers’ – world.

15 https://newsroom.accenture.com/industries/automotive/car-buyers-want-better-digital-experience-most-ready-to-complete-entire-process- online-accenture-study-finds.htm 16 Miller, Brendan, Causey, Alex, The Forrester Automotive Wave™: European Websites, Q3 2018, Forrester Research Inc., https://www.forrester. com/report/The+Forrester+Automotive+Wave+European+Websites+Q3+2018/-/E-RES142003

Connected Cars: Disruption in Mobility 11 Audi, which came out as a strong performer in the analysis, scored highest and provided the most convincing tools for guiding customers to the purchasing process. According to Forrester, “Users can easily search, sort, and filter through available inventory across the country, and its website wide search is also one of the few to present results as users are typing. Audi’s vehicle comparison engine outpaced other brands, offering potential customers a slick tool to save configured vehicles in a user profile to review at a later point.”

Here it is interesting to note that the digital presentations which car manufacturers offer to their customers have nothing to do with rocket science. Other industries, who have been doing e-commerce for decades now, have been building these kinds of customer experiences for years. In other words, the way to go forward for automotive OEMs is not only to build new products but to learn from other industries regarding how to inspire and retain visitors of digital channels.

Connected Cars: Disruption in Mobility 12 Digital Services in the Car

As cars are turning into mobile communication, infotainment, and entertainment centers rather than just being a mode of transportation, digital services that guide, entertain, and inform the drivers and passengers are now redefining the game. Some of the most relevant use-cases of digital services in cars right now and in the future are discussed below.

In-Car Commerce

As long as self-driving vehicles are still experimented with, using your voice is the only reasonable mode of communication. With a voice assistant in place, the vehicle is suddenly turned into a very versatile touchpoint which becomes increasingly interesting for brands and retailers.

Now, drivers can look for products, get their shopping done, organize their next birthday party, and check tomorrow’s weather forecast. They are in a comfortable space, they have time to spare, and nobody is there to complain about their constant chatter with their digital butlers. And the best part is that this touchpoint is truly mobile. So if a customer needs an item really urgently, the car could direct her to the nearest store that carries it.

Connected Cars: Disruption in Mobility 13 Entertainment and Infotainment

Entertainment and infotainment digital services are a huge part of the connected car experience. Drivers look for relevant information while driving and also want to stay entertained and updated during long commutes. According to MarketsandMarkets17, the in-vehicle infotainment market is estimated to reach 30.47 billion USD by 2022, at a CAGR of 11.79%. The numbers are driven by the increased interest in connected cars, technological advancement, and demand for luxury vehicles.

Infotainment digital service includes information about the car, low fuel level, total distance covered, brake oil level, a clogged air filter with dust particles, door open or close and other relevant information to keep the driver informed about the car and its maintenance. Another relevant use- case through C2I communication is to look for nearby fuel or gas stations and pay for your fuel via the dashboard. In case of an electric car, look for a nearby charging station and provide the relevant information to pay and charge your car.

Drivers of connected cars will also be able to find restaurants on their way and order their food in advance. Payment through the dashboard will open opportunities to pay with the convenience of your car.

Smart Navigation and Smart Parking

In 2016, sixteen surveys were conducted under the supervision of UCLA Professor Donald Shoup, who found some interesting facts18 about parking space during the time between 1927 and 2001. He highlighted in his report that the average time spent on-street looking for parking was about eight minutes and the figure has remained unchanged since the 1930s. His research also concluded that of all vehicles on the road, one in three vehicles is looking for a spot to park. This figure is also reconfirmed by San Francisco City Council which stated that a 1/3rd of weekday traffic, especially during office and lunch hours, is due to people looking for a parking space.

This shows a really good opportunity that connected cars can tap by providing accurate traffic and parking information. Connected cars can let customers find parking spots in areas where parking is a hassle. Some features will also schedule a car wash in certain spots so you won’t have to plan ahead for it.

17 https://www.marketsandmarkets.com/PressReleases/ici-systems.asp 18 http://shoup.luskin.ucla.edu/wp-content/uploads/sites/2/2015/02/CruisingForParkingAccess.pdf

Connected Cars: Disruption in Mobility 14 Drivers can find available parking, reserve a spot, and also pay for it in advance. It’s not as easy as it sounds though. Parking spots in any place are usually divided into types: on-street and off-street. Connected cars can easily take care of off-street parking through sensors and constant data. In a few steps, drivers will also be able to book and pay seamlessly for a space in any garage. The actual hard work required is for on-street parking because detecting available spaces in real-time is complex and requires multiple layers of information to be handled seamlessly.

It’s not impossible though. Anagog19 is using an approach to detect parking and unparking events through inertial sensor data from driver’s smartphones. The company has built an SDK now embedded in several apps. Through signal processing, Anagog is detecting out of gyroscope, accelerometer, and location data (GPS, etc) parking events which are fed to a big data cloud which now has almost 1 billion historical parking events.

Another example is the company, Garmin20, which is calculating the inflow and outflow of cars for each road in large cities of Europe and mapping this data with real-time traffic. The company has also partnered with Parkopedia21 to include off-street parking information in their app which is already launched in 6 German cities and now adding London, Amsterdam, Vienna, and the United States as well.

One more feature that connected cars have is the real-time traffic updates through V2I. The smart navigation feature can select the best route possible for drivers during peak hours. Drivers can also inform 3rd party entities like restaurants, companies, events, and hotels about their estimated time of arrival which is equally as accurate as sharing your live location.

Maintenance, Repairs and Traffic Jams

All connected vehicles use a sensor system which we all know, can fail. Not just a sensor system, maintenance, and repair of everything else in connected cars is crucial but will not be a hassle. How would this be possible? The cars can schedule a reminder for drivers about repairs and also schedule an appointment with automobile shops and garages in advance to avoid any last minute hazard.

Not only this, remote diagnostics while driving is also possible so the driver can assess if the maintenance is needed and how urgently it is needed. With the help of statistical tests like similarity analysis the data can be compared with historical issues which were commonly experienced, once the issues

19 https://www.anagog.com/ 20 https://www.garmin.com/en-US/ 21 https://venturebeat.com/2017/03/19/how-parkopedia-became-a-parking-data-powerhouse/

Connected Cars: Disruption in Mobility 15 are identified, the needed parts and the closest dealer will be notified of the appointment. This process will save time and cost as the running of diagnostics every time to find the issue will be avoided. When the driver arrives for the appointment, the technician with the identified skills will be available with the right parts to fix the issue. This entire process will make your car maintenance process fast, seamless, and cost efficient. Software updates will also be a process of minutes without any delay if your car is connected to a WiFi service.

Another breakthrough in the maintenance of cars is the use of Artificial Intelligence to predict breakdowns in advance. Companies are using statistics to calculate the mean time to failure of your car parts. This is how replacement based on the number of miles driven concept came to the place. Similarly, AI now has the potential to actively monitor the life of the vehicle and its parts while it is in use. Uptake22, Preteckt23, and Caterpillar24 are some of the companies that have taken the plunge to explore this opportunity with connected cars. Another company, Volvo Truck25 is tapping the same opportunity, it strives to provide service notice and maintenance before any breakdown. Downtime of any vehicle is a nightmare for freight and logistics companies, so Volvo has adopted an analytical solution to anticipate breakdowns and other incidents and speed up repairs when necessary.

Safety, Security and Emergency eCalls

The first and foremost use-case of digital service in the car is to provide safety, security, and convenience on the road. The emergency response of connected cars was among the earliest use cases of this innovation and it will remain significant in the future as well. Connected cars are able to use cellular connectivity and GPS to respond in case of an emergency, accident, or sudden breakdown. As of March 201926, every new car in Europe will have an eCall system, a feature that dramatically shortens the time it takes for emergency services to arrive.

Apart from the eCall system, connected cars will also have sensors to prevent such accidents from happening. For instance, the U.S. Department of Transportation has proposed27 some rules that will enable connected cars to “talk” to each other (V2V communication). For example, on a blind intersection, a connected car would notice that the other car is not slowing down and could alert the driver to slow down or sometimes apply brakes automatically to prevent a collision.

22 https://www.uptake.com/ 23 https://preteckt.com/ 24 https://www.caterpillar.com/ 25 https://www.volvotrucks.us/ 26 https://ec.europa.eu/growth/sectors/automotive/safety_en 27 https://www.nhtsa.gov/press-releases

Connected Cars: Disruption in Mobility 16 Similarly, another example of safety is through vehicle-to-infrastructure (V2I) technology where the car can alert the driver that an upcoming traffic light is about to turn red so in turn slow down the car or stop to avoid an accident.

All these safety and security features will also add another benefit for insurance companies and car manufacturers. Connected cars and sensors will give these companies a deeper understanding of your driving pattern, mistakes, and habits. For example, companies can use braking and acceleration behavior to provide drivers with alerts and prompts to be more mindful on certain aspects of their driving.

Data Collection for Advertisement

According to a forecast28 by IHS Automotive, there will be 152 million actively connected cars on global roads by 2020. The combination of new car features and aftermarket devices suggests29 that there will be nearly 2 billion connected cars on the world’s roadways by 2025. The number is big but what’s even bigger than this number is the amount of data these cars will generate. Another estimate30 from IHS Automotive states that the average car will produce up to 30 terabytes of data each day.

What this data includes is the real wealth for marketers and advertisers. The cars will continuously generate reports regarding the performance and health of the vehicle which will also include details like how, when and sometimes, by whom the vehicle was driven. The driver’s driving style and preference will help in profiling the customer to a whole new level. Not only advertisers and marketers will benefit from this, but, insurance companies can use this data as well to reform their business strategy tremendously.

Car manufacturers can also analyze the same data to reveal trends and patterns that can help create better hardware and improve vehicle quality in the future. The result of this data analysis by multiple spectrums opens new revenue opportunities for advertisers and companies collecting this data.

Marketing companies can also use the same data to enhance the driving experience as well. Exclusive content based on your driving time, driving schedule, and current weather can be provided. Customized content for each passenger in your car can also be set with the intelligent messaging of breaking news, traffic updates, and weather reports.

28 https://news.ihsmarkit.com/press-release/country-industry-forecasting/big-data-drivers-seat-connected-car-technological-advance 29 https://www.sas.com/content/dam/SAS/en_us/doc/whitepaper1/connected-vehicle-107832.pdf 30 https://blog.motiveretail.com/connected-car-not-so-fast

Connected Cars: Disruption in Mobility 17 Case Studies

Audi: Functions-on-Demand

For the 2019 CES in Las Vegas, Audi issued a press release about its upcoming innovations. One of them was the release of functions on demand in the new e-tron SUV:

“Beginning in mid-2019, customers will be granted the flexibility to book various functions from the fields of lighting, driver assistance, and infotainment as required, even after they have purchased the vehicle. Which functions can be booked and how much they cost is regulated in the individual markets. In terms of vehicle configuration, everything will stay the same for customers. However, for the first time, customers can now also book functions that were not selected during the initial configuration on demand after the vehicle has been delivered to them. Customers can select between various terms in the process. If they want to get to know a function first before committing themselves, they can book a one-time, one-month test phase. Customers can extend the booking even during this phase, either for a further month, a year, or permanently. If the customer decides not to extend the term, the booking expires automatically and without requiring active termination at the end of the term.” 31

“Customers increasingly value simplicity and convenience in our offerings. With commercetools’ platform technology, we are able to focus on our customers and deliver unique retail experiences. commercetools’ technology aligns perfectly with our digital strategy at Audi. For a big company like Audi, commercetools adds value by redefining the development process of products and services. Speed, flexibility, and sustainability are key ingredients when it comes to product development.” – Said Bük, Digital Business at AUDI AG

31 https://www.audi-mediacenter.com/en/audi-at-the-2019-ces-11175/download

Connected Cars: Disruption in Mobility 18 BMW: Seamless Alexa Integration

BMW is at the next step of such innovation with the recent announcement32 of integrating Alexa into its connected car’s vision. By using the Open Mobility Cloud, BMW is creating a highly personalized network of digital services such as search for driving times based on current traffic, remote services such as locking or unlocking the doors, turning on the ventilation or air conditioning system, notifying the driver about the estimated arrival time and also with the integration of Alexa, drivers can lock their car doors, check their fuel level, and more without lifting a finger.

Toyota: Connected Vehicle Care and Support

In Japan, Toyota launched33 the Crown and Corolla Sport models as the first generation of its own version of connected cars. These cars have a built-in Data Communication Module (DCM) connected to Controller Area Network (CAN). Toyota is using this hardware to provide connected services through its Mobility Service Platform (MSPF) which is a connected car infrastructure developed by the company. Connected cars, linked to Toyota’s MSPF will have an array of digital services for customers to better understand, use, and care for their vehicles. The most important addition is Helpnet34, a digital emergency call service for emergencies which is linked to the air-bag deployment.

32 https://techcrunch.com/2018/07/29/bmws-alexa-integration-gets-it-right/ 33 https://www.motor1.com/news/250278/toyota-crown-launched-in-japan/ 34 http://www.toyota.com.cn/innovation/safety_technology/safety_technology/rescue/

Connected Cars: Disruption in Mobility 19 Headless Commerce Platform in the Cloud

All the new mobility concepts we have discussed in this whitepaper have something in common: they all rely on a scalable cloud infrastructure to deliver the necessary data and algorithms. Without this counterpart, connected cars have nothing to connect to. Take software updates. New features can be pushed to the vehicle via a broadband connection without having to drive to a local garage first. And all the other functions, such as commerce and entertainment, security and navigation, all rely on a resilient infrastructure for all the heavy-lifting in the background.

B2B

werable car voice

shop VR commercetools Platform

apps IoT more social

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commercetools is a cloud-native commerce platform. It separates frontend and backend functionality and enables businesses to create seamless shopping experiences across all digital touchpoints. The flexible API lets you engage with your customers via webshops, mobile apps, voice assistants, AR/VR applications, social networks – and of course connected cars! So whether you need a platform to store and process transactions out of a connected vehicle, or you need a flexible technology to build seamless digital shopping experiences in the automotive sector – this headless solution is for you.

Connected Cars: Disruption in Mobility 20 Microservices for Innovators

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Connected Cars: Disruption in Mobility 21 Summary and Outlook

All these automotive companies we talked about are upgrading their game to win the race of connected mobility. With technological innovations at this pace, the future looks bright and full of certain opportunities and use-cases of digital services in connected cars.

With smart and audio-enabled devices as well as mobile internet connections everywhere, the car is quickly gaining prominence as an exciting touchpoint of the post-web era. Increasingly, drivers interact with brands and retailers through voice and expect instant results – why wait tart deelopin until reaching my destination when I can get served right now? Also for car manufacturers, this has enormous potential. Instead of “just” building it coercetools motorized vehicles, they become the gatekeepers for products and services and even reinvent how customers pay for their products: Horsepower-as-a- Service. o are a developer and want to test how fast yo can implement yor Just what would Karl Benz, Gottlieb Daimler, and Henry Ford say to all of this? eCommerce ideas with commercetools hen or free -day trial access is st right for yo

fter just a few clicks, you get the full functionality of our cloud I. Many tutorials, DKs M, H, .NET, Node.js, and iO wift as well as extensive I documentation, make getting started easy. nd if you have any further questions, our qualiﬁed support is there for you.

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Connected Cars: Disruption in Mobility 22 docs.commercetools.com tart deelopin it coercetools

o are a developer and want to test how fast yo can implement yor eCommerce ideas with commercetools hen or free -day trial access is st right for yo

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docs.commercetools.com About the author

Since 2001, Dr. Roman Zenner works as an author, consultant, and speaker in e-commerce. He has written several books on web shop software and regularly publishes articles in professional magazines and blogs. Dr. Zenner runs shoptechblog.de as well as the podcast ShopTechTalks. Furthermore, he speaks at conferences, teaches university classes and moderates expert panels.

In his work, Roman focuses on next generation commerce technologies and Dr. Roman Zenner explores what retail will look like in a post-web world. Since 2015, he is a full- time employee of commercetools GmbH, working as an Industry Analyst.

About commercetools commercetools is the world’s leading platform for next-generation B2C and B2B commerce. To break the market out of being restrained by legacy suites, commercetools invented a headless, API-first, multi-tenant SaaS commerce platform that is cloud native and uses flexible microservices. This enables customers to deliver the best commerce experiences across all touchpoints.

Founded in Germany in 2006, commercetools has worldwide offices spanning the US, Europe and Asia Pacific, with a customer base of Fortune Global 500 companies across industries.

www.commercetools.com Munich - Berlin - Jena - Amsterdam - London - Durham NC - Singapore - Melbourne

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