Mercedes-Benz USA Addresses the Next Frontier in Automotive Technology at COMDEX Keynote Speech
15 November 2000
Mercedes-Benz USA Addresses the Next Frontier in Automotive Technology at COMDEX Keynote Speech
LAS VEGAS, Nov. 15 Mercedes-Benz USA today took its place
as the first automaker -- as well as the first non-computer/technology company
-- to deliver a keynote address to the who's who of the computer industry
gathered this week at COMDEX/Fall, one of the world's largest information
technology tradeshows/conferences.
Complementing the keynote address is a 4,000 square-foot display centered
around MBUSA's new flagship model: the V12-powered CL600. The display
highlights and explains the latest in Mercedes-Benz technology, including
active body control, distance monitoring systems, active cylinder control,
telematics, web-based information services and more.
COMDEX attendees also have the opportunity to test drive 2001
Mercedes-Benz models in an area adjacent to the Las Vegas Convention Center.
Over 1,500 test drives have taken place since the test drives began on Monday.
Also during these five days, MBUSA is conducting workshops focusing on various
aspects of automotive-related technology, including voice recognition,
telematics and fiber optics.
In his keynote address, Ken Enders, vice president of marketing for MBUSA,
discussed automobiles as the next platform for the computer industry and how
the two industries could complement each other in this next frontier as well
as what the challenges and opportunities might be.
"The average commuter spends 1.5 hours per day in their car. There are
135 million registered vehicles in the US -- more cars and trucks than homes.
If you think about it, this is an amazing opportunity for the computer
industry. It's certainly too important for automotive companies to ignore,"
Enders said.
Highlights from Enders' address include:
* * *
Why do cars belong at COMDEX? The first reason is simply that they're
packed full of technology. Cars are the computers we drive. Many people
might dismiss them as more mechanical than digital. But if you consider the
state-of-the-art technology that makes up today's automobile, you would
immediately realize that this is not the case.
Today's vehicle is one of the most sophisticated ecosystems of embedded
computing and communications technology there is. Computers are a part of
virtually every function of your vehicle. A network of computers make
thousands of decisions a second that affect things like safety and
performance. It's a network that can get you from 0-60 mph in 6 seconds ...
that doesn't melt down in 120-degree desert temperatures ... that can get
blasted with water and still perform perfectly. Your PC can't do that. Your
datacenter can't do that ... but your car can. In fact, Mercedes-Benz has
been the leader in using computers to bring innovations to car buyers, such as
anti-lock brakes, smart airbags, adaptive Suspension systems, telematics
systems, and one of our latest, doppler radar based cruise control.
* * *
The second reason (that cars belong at COMDEX) is that automotive
companies have a tremendous amount of experience in building brands and
selling lifestyles. Ever since automobiles were offered in colors other than
black, cars have been lifestyle products. Americans have always chosen their
vehicles based as much on looks, design and brand attributes, as well as on
performance and safety capabilities. The entire ownership experience for a
vehicle, especially a Mercedes-Benz, is both a highly rational and a highly
emotional experience.
For all of our attention to performance and safety and high-end
functionality, buying a Mercedes-Benz is in essence a lifestyle decision for
the consumer. No one is more aware than we are, of the powerful roles design
and brand-association play in a major purchase decision.
But, the considerably longer product development time and lifecycles of
our products required us to develop an expertise in creating close
relationships with our customers. Not only to meet their current needs, but to
anticipate and deliver on their future expectations.
* * *
And finally the third and perhaps the most important reason why our
attendance here at COMDEX makes sense is that cars have become the next big
untapped platform for "mobile e-services." You've heard a lot this week about
your cell phone, your PDA, your house being the hot platform: I'd argue that
it's your car.
Whether you admit it or not, we all have an intimate, important
relationship with our cars ... you're most likely more familiar with your
car than you are with most other pieces of technology in your life. You
depend on it to do something that no PC or enterprise network or chunk of
C-code can do: you depend on it to preserve your life, and the lives of those
around you, while it physically transports you from Point A to Point B.
That's a huge responsibility. Security, reliability and performance are
some of the core reasons people choose the brand Mercedes-Benz. They entrust
us with their dollars, and their lives. We take this responsibility very
seriously.
But, we're always looking for ways to raise the bar for how we deliver
exceptional experiences to those consumers. So far design, technology and
traditional services have been the corner stone of our efforts. But more and
more, mobile e-services will play an increasingly dominant role in how we
evolve and differentiate the Mercedes-Benz ownership experience.
At the heart, mobile e-services are about matching a consumer's
preferences with their location, to deliver a service of value to them over
the Net -- in this case, into their vehicle. Some have said that "content is
king." But the emergence of new platforms has shown that "context is king."
What I mean by "context" is the right information or service, delivered to the
right person, place or thing at the right time. A person in a vehicle at a
particular roadway at a particular time going to a particular destination with
a particular purpose, combined with information about environmental and
vehicle conditions. That's a powerful context in which to deliver these new
mobile e-services and make them compelling and relevant.
Connecting your car to the Internet is not a very difficult technological
challenge. Very soon, justas your PDA and WAP phone does today, your car will
become another access point to the Internet and e-services. The real
challenge lies in finding a way to deliver the content and context, without
interfering with a safe operation of the vehicle.
Because every Mercedes-Benz is equipped with telematics, including GPS, it
can pinpoint your location down to a few meters. Today, marketing a swanky
new Asian-fusion restaurant to a driver based on their proximity to the
restaurant is a no-brainer. But with mobile e-services, we'll be able to do
that only to the people who like Asian food. We'll be able to marry customer
preferences with location and deliver appropriate services to them in their
car, over the Internet, since the car will be connected to the Net. It's easy
to see the migration of current navigation systems from providing simple
turn-by-turn directions, to providing restaurant suggestions, alerts about
sales that might interest you, or news items that cover only those topics you
typically enjoy.
* * *
I'm told that the battle over "Who Owns the Consumer" is raging in Silicon
Valley. Does Yahoo! or Sprint PCS own the consumer when a cellphone is used to
get news, sports, or stock reports? Car companies have a clear advantage in
that respect. When a customer presses the "I" button inside any one of our
models, the voice that says, "Mercedes-Benz, may I help you?" is clearly the
voice of Mercedes-Benz. Our telematics platform is the best tool we have to
be in constant contact with our customer. And let me tell you, it's a good
feeling to hear that voice when you run out of gas on a dark and stormy night
in an unfamiliar area!
* * *
Our Silicon Valley research center in Palo Alto, California has
demonstrated some amazing technologies that may be indicators of what is to
come:
-- Dynamic communities. Cars connected to the Net by voice can not only
push shopping information to you in the comfort of your car, but do so based
on what we've learned about your likes and dislikes. They can dynamically
create and disband communities of like-minded commuters who happen to be
sitting in the same traffic jam!
-- Infofueling. In 2001, you will see the emergence of a new high-speed,
short-range wireless infrastructure that connects cars to the Net in new and
novel ways. You've heard a lot about how bluetooth and other high-speed,
short-range wireless networks will be deployed throughout shopping malls and
gas stations. They'll leapfrog cellular networks, because they'll be 5-10
times faster. Will the next Blockbuster video rental be downloaded to your car
as you drive by? Will you get updated news, information and entertainment as
you drive by an infofueling station? Yes ... and much more.
-- Mapping. Cars with GPS receivers -- a standard feature on all
Mercedes-Benz vehicles sold in the U.S. -- could automatically build their own
maps. By tracing vehicle paths over a large number of cars, it is possible to
build far more accurate "living maps." These maps will be far more up-to-date
than any static database. And through Dynamic Route Guidance the latest
construction roadblocks, real-time traffic alerts, and histories of dangerous
curves, slippery intersections, and frequency of traffic jams, can be
intelligently interpreted by the vehicle.
-- Telematics will continue to be enhanced. Tomorrow's car may know what
kind of highway you like to drive, and which ones you like to avoid. It will
know that you go out of your way to avoid making left turns. Marrying this
data with your location, the navigation system could route you in a way that
appeals to you. In addition, the telematics systems alert you to the need for
a software upgrade in your engine diagnostics system and your car could
download new software or reflash itself, while you drive, making a service
visit unnecessary.
-- Federated computing on the road. Take this a step further: I spoke
earlier about how every car will soon be connected wirelessly to the Internet
-- able to access mobile e-services -- able to transmit information about its
location and behavior over the Net. When you think about a highway of cars,
each uploading information about its experience -- and that information
feeding back into the cars' drive control systems allowing it to automatically
adapt to the various situations on the highway -- it's a phenomenal example of
federated computer power, of peer-to-peer communications helping improve and
secure the driving experience for everyone on the road.
... And then imagine that cars don't communicate simply with each other,
but with other connected devices. If your smart refrigerator knows that you
are out of milk, your car could know that, too, and direct you to the nearest
grocery store.
* * *
As the company that invented the automobile over 100 years ago,
Mercedes-Benz is now redefining the automotive experience for the 21st
century. We have technology leadership. We have a history of firsts that we
intend to extend. We have unmatched brand loyalty. We have prioritized safety
and reliability. And, from a marketing perspective ... we understand how
critical it is to provide mobile e-services in such a way that we protect and
enhance our brand. We will use mobile e-services to further differentiate the
experience of driving our cars, from the experience of driving any other. And
that requires very new relationships.
Relationships that benefit both the automotive and technology industries.
We know that you've got a wealth of expertise in coping with the fast-changing
technologies, bringing emerging technologies to the marketplace, and to make
the seemingly impossible ideas of today, a reality of tomorrow. By the same
token, we bring our know-how in integrating the latest innovations into the
ultimate lifestyle product -- the automobile -- by anticipating the needs of
our demanding customers. Together we can work to bring the safest, most
compelling, most technologically-forward solutions to drivers everywhere.
Today marks the convergence of information technology, with the
tried-and-true technology of the automotive industry. And for those of us at
Mercedes-Benz, it's an incredibly exciting time.
So, don't be surprised to see more of the likes of me at future
computer-industry tradeshows. I think it's going to be one hell of a ride for
all of us ... car people and computer people alike.
Mercedes-Benz USA, headquartered in Montvale, N.J., is responsible for the
sales, service and marketing of Mercedes-Benz products in the United States.
The company sold 189,437 vehicles in the U.S. during 1999, an 11.3 percent
increase over the previous year, setting the highest sales volume ever in
history. Mercedes-Benz USA is currently running 10 percent ahead of last
year.