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SRI Consulting Predicts Integration is the Killer Application

16 August 1999

SRI Consulting Predicts Integration is the Killer Application That Will Greatly Enhance the Growth of ITS Markets

    MENLO PARK, Calif.--Aug. 16, 1999--Integrated products and services will be the catalyst for future commercial successes of in-vehicle Intelligent Transportation Systems (ITS), according to a new report entitled In-Vehicle ITS Product Integration from SRI Consulting.
    This report is number seven in a series of eight reports that analyze opportunities for ITS commercialization.
    The report notes that new in-vehicle ITS products, appearing almost daily, are turning the driver's area into the equivalent of a fighter pilot's cockpit. For the most part, these new ITS products use one, or perhaps two, technologies. In the future, these new systems will use several technologies and have one common feature: integration.
    "We will see an integration of functions-such as communications, location, computing, vehicle diagnostics, and Internet access-creating a mobile information center. In addition, the automobile will be integrated as a node with the external environment-home, office, Internet and roadside information centers," predicts Dave Benson, project leader for the ITS program at SRI Consulting and recognized ITS authority since 1993.
    "Bundled multiple features and applications will be integrated into one device for in-vehicle information and into a separate device for vehicle safety and control. Integration will create the consumer pull necessary for real market success."

	    Among the report's findings:

--   Integration is leading the way in driver information and
     communications, bringing high-tech giants and small technology
     start-ups into in-vehicle ITS.

--   The consumer electronics, information processing, and
     telecommunications companies will be big winners as integrated
     driver information systems markets take off.

--   Stand-alone applications and concept cars abound, but with little
     integration. Drivers cannot cope with multiple systems and
     functions without integration.

--   Auto OEMs will control the vehicle safety and control market.

--   Integration of functions, applications and technology is the
     killer application that will enable in-vehicles ITS to move into
     the mass market and reap profits for suppliers.

--   The key product-integration battle areas for in-vehicle
     information systems involve operating systems, platforms and
     software.

--   Integration requires strong working relationships among companies
     to develop and commercialize products and services.

--   Technologies from outside the auto industry are converging and
     driving ITS integration.

--   The mobile market offers an opportunity for suppliers to the
     stagnant consumer electronics market to expand product offerings.
     But automakers are unwilling to give up the vehicle market.

    About SRI Consulting's ITS Program

    The SRIC Intelligent Transportation Systems multiclient research program is assisting companies and government agencies in the ITS (or Road Transport Telematics) industry to receive a global and independent view of the commercial prospects of intelligent transportation systems.
    Phase I of the ITS research project has already provided clients with an in-depth 15-year forecast and global analysis of hardware and service revenue across the ITS markets of in-vehicle navigation systems, advanced traveler information systems, integrated driver information systems, vehicle safety and control systems, commercial vehicle operations, advanced traffic management systems, electronic toll collection, and public vehicle transportation management systems.
    Intelligent Transportation Systems 1998-99 will help clients further with analyses and reports on the implications and business opportunities within the following critical areas:

--   Mobile communications
--   Personal safety and security
--   Electronic payment systems
--   In-vehicle ITS product integration
--   Strategic alliances
--   Service providers
--   Interactive voice recognition
--   Consumer perceptions of ITS

    About SRI Consulting

    SRI Consulting, a wholly owned subsidiary of SRI International, combines strategic business consulting with technology expertise to help companies compete more effectively in changing global markets. SRI International is one of the world's largest research, technology development, and consulting firms.
    Report seven of the eight-report ITS 2 program is now available. For more information, visit our Web site: http://future.sri.com/its/its.html. Or contact:

In Europe - London
     Robert Thomas  
     Tel:  +44 181 686 5555    
     Fax: +44 181 760 0635
     e-mail:  rthomas@croydon.sri.co.uk

     Nick Evans   
     Tel:  +44 181 686 5555    
     Fax: +44 181 760 0635
     e-mail:  nevans@croydon.sri.co.uk

In the United States - Menlo Park, Calif.
     Dave Benson       
     Tel:  +1 650 859 2397     
     Fax: +1 650 859 4544
     e-mail:  dbenson@sric.sri.com

     Steve Baughman    
     Tel:  +1 650 859 2365     
     Fax:  +1 650 859 4544
     e-mail:  sbaughman@sric.sri.com

In Japan - Tokyo
     Kurao Tsuchiya    
     Tel:  +81 3 5251 1748     
     Fax: +81 3 5251 1754
     e-mail:  ktsuchiva@sri.co.jp