The next “mobile” is the “Auto-Mobile” and Detroit the next Valley?

The automobile OEMs are in the best position to disrupt Silicon Valley and become the next valley. And so are the industrial OEMs from GM and GE to Boeing, to Lockheed, John Deere and Philips. But why?

Why Software Is Eating The World

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HOW JOHN DEERE & AGRI OEMS CAN DISRUPT AGRICULTURE? APPLE, GOOGLE, BLACKBERRY & APPSTORES MAYBE THE ANSWER?http://gerardjrego.com/2013/09/20/how-john-deere-agri-oems-can-disrupt-agriculture-apple-google-blackberry-appstores-maybe-the-answer/comment-page-1/#comment-46

Imagine while you drive and based on time of day, time in a location, number of days, etc. retail and commerce companies of the world from Walmart to Amazon to eBay, all offer you and you phonebook social network deals that are specific and it’s a win-win.

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GM CEO: Bring us your apps
Nathan Bomey , Detroit Free Press Business Writer5:01 p.m. EDT June 14, 2013
“With an army of coders working to write 4G-optimized programming for our cars, our GM App Shop may someday be as popular as iTunes or the Android Marketplace”.

A SIM card in an automobile and the platform for mobility went across industries such as commerce and retail, entertainment, education, healthcare, insurance, financial services, etc.

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Why is the connected “thing” of the web of things so disruptive?

GE CEO Jeff Immelt Says Analytics ‘Next Holy Grail’

“New GE technology merges big iron with big data to create brilliant machines. This convergence of machine and intelligent data is known as the Industrial Internet, and it’s changing the way we work.”

Look at the Profit Pool of the Auto industry. It’s very clear where the ROI and ROE is. The opportunities are downstream as marketplaces connecting demand-supply markets across the ecosystem. Look at the mobile or PC or tech industry and see why every single OEM that concentrated on “manufacturing” disappeared when marketplaces connected their industries.  The list is endless and many more to follow.

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The opportunity is downstream.

Now imagine if the auto OEMs adopted the iTunes/Appstore business model, with a crowdsourced marketplace. This just opened the greatest API platform in the history of manufacturing to consumers and an ecosystem connect.

The connected car as a platform then is the API platform to;

1. Consumers & Social Commerce – Social networks who leverage their phonebook to connect their social network into 10 people x $30,000 =$300,000 in one contract to buy cars in a specific location! This is then open to retailers who bid in real-time in reverse auctions to get the best deal out, a win-win-win for all.

2. Real-time insurance – Insurance companies connected to real-time insights from analytics on driving patterns, location, distance, et al are able to drive “Mass Personalization” to the “phonebook” of social networks.

3. MRO – Based on “predictive insights” dealers bid in real-time to consumers and social networks on what parts have to be replaced, service plans and scheduling and this then lowers cost of insurance to consumers.

4.  Sensor & M2M APIs – Health monitoring, weather, road, etc. are all now able to integrate bringing a convergence of “services” from “Adjacent” industries converged around a crowdsourced marketplace platform. Machines commoditizing data interchange via algorithms who then process workflow and analytics for decisions to optimize. Route planning, MRO, connecting consumers to marketplaces and connecting adjacencies such as healthcare and mCommerce.

5. mCommerce – While you drive and based on time of day, time in a location, number of days, etc. retail and commerce companies of the world from Walmart to Amazon to eBay, all offer you and you phonebook social network deals that are specific and it’s a win-win.

6. Connected Grid – Every automobile connected with wi-fi routers that provide a digital connectivity footprint. Is this the mobile telco?

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This is just some example of possibilities.  Is that why Google is creating the driverless car? Then the OEMs are just “box suppliers” and production capacity for what the marketplaces around data 2 information 2 analytics 2 insights lifecysle will connect.  Or is this the reason why industrial OEMs from GM and GE to Philips and others are now hurtling to the greatest disruption platform opportunity since the PC?

Just compare as an example the Cash Conversion Cycle, Stock Turns, GMROI, as key metrics for GM and Apple and you have a real view of the disruptive opportunity of the Connected Marketplace.

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Cars, truck, ships, washing machines, plumbing, home appliances, all connected to marketplace in real-time, online and off-line? This what GE calls the industrial internet is only the beginning. The opportunity for entrepreneurs and innovators to disrupt OEMs has never been bigger and for OEMs to disrupt entrepreneurs too! This is the innovation, the business model, after all technology is commoditized to all the laws of digital.  The OEMs could be the greatest wealth creators that dwarf the technology valleys of the world, creating new clusters. Or the reverse is in progress? The opportunity for investors, entrepreneurs, CXOs, boards and supplychains has never been greater.

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Now you know what opportunities exist. Start disrupting or get disrupted.

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HeadsUP! Displays Your Smartphone on Your Car’s Windshield

At CES, automakers create software platforms for apps

Covisint Study: Connected Car Owners Transform, Disrupt Old Ways of Perceiving Automotive Value
Cloud-based Services Driving Future Automaker Relevance, Profits; First-mover Advantage There “For the OEM Taking”

MIT Technology Review
The Connected Vehicle

The Connected Car
Prepare For The Next Computing Environment

Hardware Alley At Disrupt Europe 2013: Connected Home, Connected Car And More
Hardware Alley At Disrupt Europe 2013: Connected Home, Connected Car And More

HeadsUP! Displays Your Smartphone on Your Car’s Windshield

Google Puts Connected Car Pressure on Ford, General Motors


12 replies »

  1. you are one of the few that have noticed that the possibilities are far beyond the mobile wallet and m-commerce/retail … the big market is in all of the ways to cut down intermediaries and paper .. it requires very different business model … and excellent execution … more importantly, requires a move away from product-centric to user centric … and away from coompetition toward collaboration … the network is the business … the linking of all of the different players is where the value is created … bringing them together …

  2. re: the auto … i’ve had such systems installed in my car for years now … linking … it was custom made for me by saab using off the shelf parts and stitching it together … there’s a great white space / blue ocean in combining things for adaptive technology …

  3. Absolutely and in the defense industry the work from C2I to C4ISR has evolved over 50 years. What’s changed is the commoditization of sensors, networks, computing and density of mobility. Now combine with HUMINT to generate Insights from analytics then you have a disruptive business model. You are very smart to be so clear on this.

    Bold Research Predicts Apple’s iOS in the Car” will Own 50% of the In-Vehicle Market by 2018 http://www.patentlyapple.com/patently-apple/2013/10/bold-research-predicts-apples-ios-in-the-car-will-own-50-of-the-in-vehicle-market-by-2018.html

  4. How big data is changing the cost of insurance

    This, he says, is the future of car insurance: being able to monitor individual drivers to give them lower prices but also to make them better drivers. “Now that we can observe directly how people drive, we think this will change the way insurance works,” says Mr Pratt, who adds that Progressive has more than a trillion seconds of driving data from 1.6 million customers.


  5. The Gigaom interview: Bill Ford on the new golden age of automotive innovation
    s Ford a tech company? It’s easier to tie Ford’s great age of innovation to the era of the industrial revolution than the internet revolution. But Ford Executive Chairman Bill Ford wants to convince both car buyers and the tech industry that one of the most iconic companies in American history is just getting started.


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