University of Michigan Business School Club Panel Challenges Auto Industry To Consider New Development Methods, Different Revenue Models
7 November 2000
University of Michigan Business School Club Panel Challenges Auto Industry To Consider New Development Methods, Different Revenue Models
Sensoria Corporation CEO and Other Speakers at Detroit Meeting Explain How
Adoption of Electronics and Networking Technology Requires Auto Industry
To Embrace Entrepreneurial Companies
SAN DIEGO, Nov. 7 Sensoria Corporation CEO Dave Gelvin, in
a presentation delivered at the October 17 meeting of
The University of Michigan Business School Club of Detroit, challenged the
automotive industry to accelerate development of advanced electronics, and
adopt and promote open standards.
Gelvin explained why the auto industry needs to partner closely with
venture-backed electronics and networking companies in order to speed the
adoption of advanced electronics and communications technology in automobiles,
trucks and other vehicles.
Auto manufacturers typically operate within a four-year-long development
cycle, while many electronics manufacturers are accustomed to development
cycles of one year or less. Standards allow the most talented, most focused,
and fastest-moving organizations to advance the state of the art much more
rapidly, as in the personal computer industry. Other panelists also explored
this and related themes.
Nearly 150 Attend University of Michigan Business School Club
of Detroit Gathering
The event, held Tuesday, Oct. 17, 2000 in the Hale Auditorium at the
University of Michigan Business School, featured a panel discussion called
"Automotive Telematics: The Emerging Service Business Model." Nearly
150 executives, alumni, business people and students attended the session.
Gelvin and other panelists pointed out the need for the auto industry to
adapt to the more rapid rates of change common to the electronics and computer
industries. Said Gelvin, "Telematics enables connectivity to the car for
safety, security, convenience, personal productivity and entertainment.
Providing an ever expanding list of services creates new revenue opportunities
for the automobile OEMs and their partners."
The expert panel of academics, suppliers and service providers included:
-- David J. Brophy, Ph.D., Director of the Office for the Study of Private
Equity Finance and Associate Professor, University of Michigan Business
School
-- Dave Gelvin, President and CEO, Sensoria Corporation, a leading
telematics systems provider
-- Tom Godward, Director, PRTM, a leading management consultancy to the
technology industry
-- John Correia, Core Wireless Technologies Multimedia and Telematics,
Visteon Corporation
-- Anthony Musci, Associate Director, IDB Forum, a not-for-profit trade
association dedicated to creating a common electronic bus to connect
wireless and other electronic devices in vehicles.
Telematics provides a feedback link to the end consumer, and
service-revenue opportunities as well. This link is crucial to customer
satisfaction in many industries, but absent in the current distribution model
for automobiles. Panelists also explored such questions as whether the
technology and service providers will change the industry structure, and
whether telematics technology will live up to its expectations.
The Emerging Telematics Market
Telematics is in its infancy as a market. However, industry analysts
predict it will reach $42 billion by 2010 from $1 billion in 2000. Delivering
on the expectations for telematics services will require rapid technology
innovation, widely adopted standards, and consumer-oriented branding. Working
with the companies who can create and deliver these new technologies and
services is instrumental to the success of the telematics industry.
Telematics Changes the Car or Truck into a Mobile Information Center
These new telematics services transform the auto or truck from a mode of
transportation to a mobile information, vehicle management, and entertainment
center. For example, telematics allows the Internet into the car, enables
communication between the vehicle and the manufacturer, and makes possible
Web-based customer relationships. These all allow the vehicle operator and
passengers much more control of their total environment while within the
vehicle.
"These services will soon become important differentiating features for
vehicle manufacturers, and they allow the manufacturers to establish new,
ongoing relationships with vehicle owners," added Gelvin. "These
relationships may provide ongoing sources of revenue, rather than the one-time
revenue model of the traditional automobile business."
For more information, visit the Web site of the University of Michigan
Business School Club of Detroit at http://www.umbsc-detroit.org.
About Sensoria Corporation
Sensoria Corporation is a world leader in applying wireless and wire-line
technologies for the inter-networking of embedded systems deployed in
residences, factories, commercial buildings, and vehicles. Sensoria's
networking solutions provide a common framework to deliver consistent Internet
and Intranet services across the diverse requirements of such systems. For
more information, visit Sensoria on the World Wide Web at http://www.sensoria.com.
NOTE: Sensoria Corporation CEO Dave Gelvin and Marketing VP Brian Davis
are available for interviews. To arrange an interview, please contact
Bill Warner at 503-402-1449, or email him at bill_warner@kvo.com.
CONTACT: Brian Davis of Sensoria Corporation, 858-673-4460, ext. 11, or
bdavis@sensoria.com; or Bill Warner of KVO Public Relations, 503-402-1449, or
bill_warner@kvo.com, for Sensoria Corporation.