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How can Insights on Sustainable
Transport Solutions Lead to
Customer Value?
Project Manager BIGdata,
Volvo IT
robert.valton@volvo.com

Volvo IT
Volvo Group Telematics

1

www.VolvoGroup.com
magnus.kuschel@volvo.com

Head of Service Innovation,
Volvo Group Telematics
magnus.kuschel@volvo.com
A snapshot of the transformation context
Vehicle - volume

Customer Touch Points - velocity

Hybrids - variety

Sustainable solutions - veracity

Volvo IT
Volvo Group Telematics

2

www.VolvoGroup.com
magnus.kuschel@volvo.com
BIGdata = transactions + interactions  AnalyticsIQ
PB, Predictive advice

Advanced offers & solutions

Connected vehicles

Co-created

3rd party

Volume, Frequency

Open data
TB, Online alerts

Social media

Business model innovation

GB, Report ondemand

MB, Daily batch

Variety, Uncertainty, Complexity
Sources: Volvo Group, Chalmers, Gartner, IBM, Teradata, Wikibon

Volvo IT
Volvo Group Telematics

3

www.VolvoGroup.com
magnus.kuschel@volvo.com
Volvo IT
Volvo Group Telematics

4

www.VolvoGroup.com
magnus.kuschel@volvo.com
>100.000 employees
Sales in >190 markets
>300 Bn SEK sales
~45 Bn USD
Production in
18 countries
>1m connected vehicles
most global and
leader in electromobility,
ITS, telematics and
transport solutions

Volvo IT
Volvo Group Telematics

5

www.VolvoGroup.com
magnus.kuschel@volvo.com
The connected ecosystem is growing
Connected drivers

Connected society

Connected
fleet operators

Connected dealers &
workshops

Connected OEM &
suppliers

Content and
other service
providers

X
Volvo Group Trucks Technology
6
www.VolvoGroup.com
magnus.kuschel@volvo.com

Leasing/insurance
companies

Goods
forwarders
The telematics perspective matters

Connected
Vehicles

Vehicle Management

Customer Efficiency

Connected
Fleet & Driver

Fleet Management

Connected
Society

Traffic Management

Customer Effectiveness

Transport system centricity
Vehicle centricity

Volvo IT
Volvo Group Telematics

7

www.VolvoGroup.com
magnus.kuschel@volvo.com
Volvo IT
Volvo Group Telematics

8

www.VolvoGroup.com
magnus.kuschel@volvo.com
Areas for sustainable solutions
Connected Service Quadrants
Revenue
(image)
OEM/Dealer

Customer/Driver

UT

TA
com

4
Transport efficiency & convenience
Non-vehicle centric
(ex. Navigation, logistics, POI ..)

3

2

Vehicle Management Efficiency
Vehicle centric
(ex. Fuel costs, energy, safety…)

Transport
Operation/
Driver
centric

1
Increased Aftermarket /Service Sales
Increased Vehicle Sales
(ex. Parts, finance, insurance…)

Quality and risk management
(ex. Warranty, Service
contracts , lead-time reduction…)

Cost Savings
i-SEE CS

Volvo IT
Volvo Group Telematics

9

www.VolvoGroup.com
magnus.kuschel@volvo.com

Vehicle/dealer/OEM
centric

UT
VRD 30/3000
Make 360 eco-system assessments
4

1

Transport efficiency &
convenience

Increased
Soft Products Sales
Increased Vehicle Sales

Low IT usage
Customer / driver
maturenes

3

2

1

0

1

2

3

Dealer / OEM
matureness

Manuel processes

3

2

Vehicle Management &
Efficiency

Quality and
risk management

Volvo IT
Volvo Group Telematics

10

www.VolvoGroup.com
magnus.kuschel@volvo.com
Exhibit A:

www.CommuteGreener.com

Volvo IT
Volvo Group Telematics

11

www.VolvoGroup.com
magnus.kuschel@volvo.com
Video clip: Commute Greener!
Everybody wants quality of life
Nobody likes congestion

http://youtu.be/WUIpvwhI5N0
www.youtube.com/CommuteGreener

Volvo IT
Volvo Group Telematics

12

www.VolvoGroup.com
magnus.kuschel@volvo.com

Customer value
drives sustainable
development
Göteborg
Mexico City
San Francisco
Vattenfall
Keolis
Enfo
iPhone App
>30 countries

Volvo IT
Volvo Group Telematics

13

www.VolvoGroup.com
magnus.kuschel@volvo.com
Valuable results with Commute Greener!
Key achievements equals on
three month initiation basis

3.000
participants

50.000
participants

Saved CO2 (kg)

43.200

720.000

Saved travel expenses ($)

100.000

2.000.000

~1

>20

800.000

Inflow/outflow patterns

14.000.000

Reduced cases heart disease
Zero Emission Miles (km)

Socio-demographic data

Volvo IT
Volvo Group Telematics

14

www.VolvoGroup.com
magnus.kuschel@volvo.com
Join the journey of Commute Greener!
2009

2010

2011

Prototype for
Volvo employees
to measure time,
CO2 and $

The first campaign
with the City of
Gothenburg, then
with Mexico City

Campaigns in San
Francisco, Universities, Companies
etc. Positive
results and targets

>2000 connected
commuters

>500 t CO2 offset

2012
Received the Indian
Parivartan award
for innovation and
sustainability

2013
Open innovation,
welcoming more to
join the journey
towards sustainable
development

>50.000 Reached
via Facebook
>100.000 greener
trips / month

Heritiage of
innovations
and environmental care

www.CommuteGreener.com
Volvo IT
Volvo Group Telematics

15

www.VolvoGroup.com
magnus.kuschel@volvo.com
Exhibit B:

Used Trucks

Volvo IT
Volvo Group Telematics

16

www.VolvoGroup.com
magnus.kuschel@volvo.com
Critical business questions for used trucks
 How to do an analysis of the vehicle/s, customer/s and operational conditions
“Single view of vehicle” “Singe view of customer 1st 2nd…” “Single view of context”
– Is this a “problem vehicle”?

Need: AnalyticsIQ

– What is the predictive mapping and potential usage?
– Driving patterns?

Connected data

– Do we use the component status to optimise opportunities?
 What do we know about the future risks for the vehicle, customer and application?
 Can we offer service contracts with calculated margin?

 Can we identify the “lemons and diamonds” for each customer profile, minimize
the risks and create better matching in the handling Used Truck ?
Why “used”?
Installed base, established operations, low margin, considerable risks…
Volvo IT
Volvo Group Telematics

17

www.VolvoGroup.com
magnus.kuschel@volvo.com
Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km

Last service

New truck

3 years

1 years

1st Truck
Evaluation

Trade in

X
months

Sell to the
second owner

Third owner

Service contract?

X
months

?

Service

Service

Service

Service

Service

Repairs

Repairs

Repairs

Repairs

Repairs

Telematics

Telematics

Telematics

Telematics

Telematics

Risk management
Access to complete vehicle history and the driver behavior
Example: Idle time, Number of owners, Number of users, Service history, History of breakdowns, Fault codes etc

Volvo IT
Volvo Group Telematics

18

www.VolvoGroup.com
magnus.kuschel@volvo.com
Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km

Last service

New truck

3 years

1 years

1st Truck
Evaluation

Trade in

X
months

Sell to the
second owner

Third owner

Service contracts?

X
months

?

Service

Service

Service

Service

Service

Repairs

Repairs

Repairs

Repairs

Repairs

Telematics

Telematics

Telematics

Telematics

Telematics

Volvo IT
Volvo Group Telematics

19

www.VolvoGroup.com
magnus.kuschel@volvo.com
Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km

Last service

New truck

3 years

1st Truck
Evaluation

Trade in

3-5
months

1 years

Third owner

Service contract?

1-5
months

?

Wired tool

Wired tool

Telematics

Sell to the
second owner

Telematics

Telematics

Wired tool
?

Telematics

Telematics

Predictive
Volvo IT
Volvo Group Telematics

20

www.VolvoGroup.com
magnus.kuschel@volvo.com
Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km

Last service

New truck

3 years

1st Truck
Evaluation

Trade in

3-5
months

1 years

Third owner

Service contract?

1-5
months

?

Wired tool

Wired tool

Telematics

Sell to the
second owner

Telematics

Telematics

Wired tool
?

Telematics

Telematics

Predictive
Volvo IT
Volvo Group Telematics

21

www.VolvoGroup.com
magnus.kuschel@volvo.com
Truck data lifetime - example
For sale
•
Model - FH13 4*2
•
Year – 2009
•
Mileage – 600 000 km

Last service

New truck

3 years

1st Truck
Evaluation

Trade in

3-5
months

1 years

Third owner

Service contract?

1-5
months

?

Wired tool

Wired tool

Telematics

Sell to the
second owner

Telematics

Telematics

Wired tool
?

Telematics

Telematics

Predictive
Volvo IT
Volvo Group Telematics

22

www.VolvoGroup.com
magnus.kuschel@volvo.com
Reference set-up
FH 13 4*2 + FH13 6*2

LAT

Facts:
• Thousands vehicles online for ‘ref’, >1/h
• >300 million records each
• Structured + unstructured data
• Lots of uncertain data

VSR

VOSP

LAT= LoggedProductInformation, ProductSpecification (variants),
Client information, Dealer information, ProductSessionInformation
VOSP=Service Plan

•

VSR= GDS is repairs, UCHP is warranty, TSA is contracts

•

DFOL = Telematics data

•

WT

•

•

DFOL

WT=WorldTrucker, community data
Customer Centric

Volvo IT
Volvo Group Telematics

23

www.VolvoGroup.com
magnus.kuschel@volvo.com

Volvo/Dealer Centric
Well yes,
There has been a
dashboard involved
Facts

Key
indicators

Matching
input

History

Predictive
score

Trends
Recommended
prices
Souces

Volvo IT
Volvo Group Telematics

24

www.VolvoGroup.com
magnus.kuschel@volvo.com
But please remember, we don’t need yet
another dashboard…

We need to take customer value creation more seriously
Volvo IT
Volvo Group Telematics

25

www.VolvoGroup.com
magnus.kuschel@volvo.com
BIGdata journey – connected vehicle asset
REPORTING

ANALYZING

PREDICTING

OPERATIONALIZING

GAMECHANGING
ACTIONS

WHAT
happened?

WHY
did it happen?

WHAT
will happen?

What IS
happening?

What do I WANT to
happen?

Game
changer
Differentiation
•
•

onnectivity

Competitive

Foundation
•

•
•
•

Foundation of the “Single View of
the Vehicle” concept
Risk management
Component status and overview
CRM basics and master data

•

Customer company

Volvo IT
Volvo Group Telematics

26

www.VolvoGroup.com
magnus.kuschel@volvo.com

•
•
•
•
•
•

•
•
•
•
•
•
•
•
•

Establish “Single View of the Transportation”
Channel strategy support
Service Agreement support
Predictive analytics
Channel Optimization
Customer engagement

Connected CRM
Customer Profitability
Customer CSR
Customer Experience Analytics
Customer Targeting & Growth
Customer/ Lifecycle Insight
Customer Insight, Social Media 360 view
Dialogue and Interaction History
Service Management Analytics
Product Relationship Management (PRM)
Consistent presence across all channels
LCA optimization
What is required?

Engineer

Sales man

AnalyticsIQ

Customer
operation
skills

Business
skills

Volvo IT
Volvo Group Telematics

27

www.VolvoGroup.com
magnus.kuschel@volvo.com

Vehicle
skills

Technology
skills

General management
Imagine what is possible to do

~7 sensors & Ux  eco-system

Volvo IT
Volvo Group Telematics

28

www.VolvoGroup.com
magnus.kuschel@volvo.com

>70 sensors, Ux, LBS, analytics...
 insights for customer value
Go ahead!
From snapshots to interactions
Vehicle - volume

Customer Touch Points - velocity

Hybrids - variety

Sustainable solutions - veracity

Volvo IT
Volvo Group Telematics

29

www.VolvoGroup.com
magnus.kuschel@volvo.com
Thank you!

Project Manager BIGdata,
Volvo IT
robert.valton@volvo.com

www.CommuteGreener.com

Volvo IT
Volvo Group Telematics

30

www.VolvoGroup.com
magnus.kuschel@volvo.com

Head of Service Innovation,
Volvo Group Telematics
magnus.kuschel@volvo.com

www.VolvoGroup.com

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How can Insights on Sustainable Transport Solutions Lead to Customer Value? - IBM Smarter Business 2013

  • 1. How can Insights on Sustainable Transport Solutions Lead to Customer Value? Project Manager BIGdata, Volvo IT robert.valton@volvo.com Volvo IT Volvo Group Telematics 1 www.VolvoGroup.com magnus.kuschel@volvo.com Head of Service Innovation, Volvo Group Telematics magnus.kuschel@volvo.com
  • 2. A snapshot of the transformation context Vehicle - volume Customer Touch Points - velocity Hybrids - variety Sustainable solutions - veracity Volvo IT Volvo Group Telematics 2 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 3. BIGdata = transactions + interactions  AnalyticsIQ PB, Predictive advice Advanced offers & solutions Connected vehicles Co-created 3rd party Volume, Frequency Open data TB, Online alerts Social media Business model innovation GB, Report ondemand MB, Daily batch Variety, Uncertainty, Complexity Sources: Volvo Group, Chalmers, Gartner, IBM, Teradata, Wikibon Volvo IT Volvo Group Telematics 3 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 4. Volvo IT Volvo Group Telematics 4 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 5. >100.000 employees Sales in >190 markets >300 Bn SEK sales ~45 Bn USD Production in 18 countries >1m connected vehicles most global and leader in electromobility, ITS, telematics and transport solutions Volvo IT Volvo Group Telematics 5 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 6. The connected ecosystem is growing Connected drivers Connected society Connected fleet operators Connected dealers & workshops Connected OEM & suppliers Content and other service providers X Volvo Group Trucks Technology 6 www.VolvoGroup.com magnus.kuschel@volvo.com Leasing/insurance companies Goods forwarders
  • 7. The telematics perspective matters Connected Vehicles Vehicle Management Customer Efficiency Connected Fleet & Driver Fleet Management Connected Society Traffic Management Customer Effectiveness Transport system centricity Vehicle centricity Volvo IT Volvo Group Telematics 7 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 8. Volvo IT Volvo Group Telematics 8 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 9. Areas for sustainable solutions Connected Service Quadrants Revenue (image) OEM/Dealer Customer/Driver UT TA com 4 Transport efficiency & convenience Non-vehicle centric (ex. Navigation, logistics, POI ..) 3 2 Vehicle Management Efficiency Vehicle centric (ex. Fuel costs, energy, safety…) Transport Operation/ Driver centric 1 Increased Aftermarket /Service Sales Increased Vehicle Sales (ex. Parts, finance, insurance…) Quality and risk management (ex. Warranty, Service contracts , lead-time reduction…) Cost Savings i-SEE CS Volvo IT Volvo Group Telematics 9 www.VolvoGroup.com magnus.kuschel@volvo.com Vehicle/dealer/OEM centric UT VRD 30/3000
  • 10. Make 360 eco-system assessments 4 1 Transport efficiency & convenience Increased Soft Products Sales Increased Vehicle Sales Low IT usage Customer / driver maturenes 3 2 1 0 1 2 3 Dealer / OEM matureness Manuel processes 3 2 Vehicle Management & Efficiency Quality and risk management Volvo IT Volvo Group Telematics 10 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 11. Exhibit A: www.CommuteGreener.com Volvo IT Volvo Group Telematics 11 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 12. Video clip: Commute Greener! Everybody wants quality of life Nobody likes congestion http://youtu.be/WUIpvwhI5N0 www.youtube.com/CommuteGreener Volvo IT Volvo Group Telematics 12 www.VolvoGroup.com magnus.kuschel@volvo.com Customer value drives sustainable development
  • 13. Göteborg Mexico City San Francisco Vattenfall Keolis Enfo iPhone App >30 countries Volvo IT Volvo Group Telematics 13 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 14. Valuable results with Commute Greener! Key achievements equals on three month initiation basis 3.000 participants 50.000 participants Saved CO2 (kg) 43.200 720.000 Saved travel expenses ($) 100.000 2.000.000 ~1 >20 800.000 Inflow/outflow patterns 14.000.000 Reduced cases heart disease Zero Emission Miles (km) Socio-demographic data Volvo IT Volvo Group Telematics 14 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 15. Join the journey of Commute Greener! 2009 2010 2011 Prototype for Volvo employees to measure time, CO2 and $ The first campaign with the City of Gothenburg, then with Mexico City Campaigns in San Francisco, Universities, Companies etc. Positive results and targets >2000 connected commuters >500 t CO2 offset 2012 Received the Indian Parivartan award for innovation and sustainability 2013 Open innovation, welcoming more to join the journey towards sustainable development >50.000 Reached via Facebook >100.000 greener trips / month Heritiage of innovations and environmental care www.CommuteGreener.com Volvo IT Volvo Group Telematics 15 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 16. Exhibit B: Used Trucks Volvo IT Volvo Group Telematics 16 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 17. Critical business questions for used trucks  How to do an analysis of the vehicle/s, customer/s and operational conditions “Single view of vehicle” “Singe view of customer 1st 2nd…” “Single view of context” – Is this a “problem vehicle”? Need: AnalyticsIQ – What is the predictive mapping and potential usage? – Driving patterns? Connected data – Do we use the component status to optimise opportunities?  What do we know about the future risks for the vehicle, customer and application?  Can we offer service contracts with calculated margin?  Can we identify the “lemons and diamonds” for each customer profile, minimize the risks and create better matching in the handling Used Truck ? Why “used”? Installed base, established operations, low margin, considerable risks… Volvo IT Volvo Group Telematics 17 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 18. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1 years 1st Truck Evaluation Trade in X months Sell to the second owner Third owner Service contract? X months ? Service Service Service Service Service Repairs Repairs Repairs Repairs Repairs Telematics Telematics Telematics Telematics Telematics Risk management Access to complete vehicle history and the driver behavior Example: Idle time, Number of owners, Number of users, Service history, History of breakdowns, Fault codes etc Volvo IT Volvo Group Telematics 18 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 19. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1 years 1st Truck Evaluation Trade in X months Sell to the second owner Third owner Service contracts? X months ? Service Service Service Service Service Repairs Repairs Repairs Repairs Repairs Telematics Telematics Telematics Telematics Telematics Volvo IT Volvo Group Telematics 19 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 20. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1st Truck Evaluation Trade in 3-5 months 1 years Third owner Service contract? 1-5 months ? Wired tool Wired tool Telematics Sell to the second owner Telematics Telematics Wired tool ? Telematics Telematics Predictive Volvo IT Volvo Group Telematics 20 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 21. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1st Truck Evaluation Trade in 3-5 months 1 years Third owner Service contract? 1-5 months ? Wired tool Wired tool Telematics Sell to the second owner Telematics Telematics Wired tool ? Telematics Telematics Predictive Volvo IT Volvo Group Telematics 21 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 22. Truck data lifetime - example For sale • Model - FH13 4*2 • Year – 2009 • Mileage – 600 000 km Last service New truck 3 years 1st Truck Evaluation Trade in 3-5 months 1 years Third owner Service contract? 1-5 months ? Wired tool Wired tool Telematics Sell to the second owner Telematics Telematics Wired tool ? Telematics Telematics Predictive Volvo IT Volvo Group Telematics 22 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 23. Reference set-up FH 13 4*2 + FH13 6*2 LAT Facts: • Thousands vehicles online for ‘ref’, >1/h • >300 million records each • Structured + unstructured data • Lots of uncertain data VSR VOSP LAT= LoggedProductInformation, ProductSpecification (variants), Client information, Dealer information, ProductSessionInformation VOSP=Service Plan • VSR= GDS is repairs, UCHP is warranty, TSA is contracts • DFOL = Telematics data • WT • • DFOL WT=WorldTrucker, community data Customer Centric Volvo IT Volvo Group Telematics 23 www.VolvoGroup.com magnus.kuschel@volvo.com Volvo/Dealer Centric
  • 24. Well yes, There has been a dashboard involved Facts Key indicators Matching input History Predictive score Trends Recommended prices Souces Volvo IT Volvo Group Telematics 24 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 25. But please remember, we don’t need yet another dashboard… We need to take customer value creation more seriously Volvo IT Volvo Group Telematics 25 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 26. BIGdata journey – connected vehicle asset REPORTING ANALYZING PREDICTING OPERATIONALIZING GAMECHANGING ACTIONS WHAT happened? WHY did it happen? WHAT will happen? What IS happening? What do I WANT to happen? Game changer Differentiation • • onnectivity Competitive Foundation • • • • Foundation of the “Single View of the Vehicle” concept Risk management Component status and overview CRM basics and master data • Customer company Volvo IT Volvo Group Telematics 26 www.VolvoGroup.com magnus.kuschel@volvo.com • • • • • • • • • • • • • • • Establish “Single View of the Transportation” Channel strategy support Service Agreement support Predictive analytics Channel Optimization Customer engagement Connected CRM Customer Profitability Customer CSR Customer Experience Analytics Customer Targeting & Growth Customer/ Lifecycle Insight Customer Insight, Social Media 360 view Dialogue and Interaction History Service Management Analytics Product Relationship Management (PRM) Consistent presence across all channels LCA optimization
  • 27. What is required? Engineer Sales man AnalyticsIQ Customer operation skills Business skills Volvo IT Volvo Group Telematics 27 www.VolvoGroup.com magnus.kuschel@volvo.com Vehicle skills Technology skills General management
  • 28. Imagine what is possible to do ~7 sensors & Ux  eco-system Volvo IT Volvo Group Telematics 28 www.VolvoGroup.com magnus.kuschel@volvo.com >70 sensors, Ux, LBS, analytics...  insights for customer value
  • 29. Go ahead! From snapshots to interactions Vehicle - volume Customer Touch Points - velocity Hybrids - variety Sustainable solutions - veracity Volvo IT Volvo Group Telematics 29 www.VolvoGroup.com magnus.kuschel@volvo.com
  • 30. Thank you! Project Manager BIGdata, Volvo IT robert.valton@volvo.com www.CommuteGreener.com Volvo IT Volvo Group Telematics 30 www.VolvoGroup.com magnus.kuschel@volvo.com Head of Service Innovation, Volvo Group Telematics magnus.kuschel@volvo.com www.VolvoGroup.com