TECHNOLOGY AND BUSINESS IMPLICATIONS FOR DISTRIBUTED TELEMATIC APPLICATIONS

This paper describes why telematics offerings have not been very successful in the marketplace. The author describes the various technologies that fall under the term telematics, from in-car, hands- free functionality of mobile phones to internet-based rear-seat entertainment. He describes common characteristics of telematics services and the most common business models. He suggests that automakers are looking for an optimal balance between system complexity and perceived value of the implemented system. The author cncludes that hands-free functionality and diagnosis functionality are the applications that can best boost market penetration of basic telematics systems into vehicles. Once sufficient penetration has been achieved, the opportunity will exist for additional functionality.