Embedded telematics.

Slide 1. Introduction.

            The class develops what embedded  telematics is, its advantages, and its implications for fleet management.

Slide 2. Embedded  telematics.

• What is a telematics system for vehicles?.

            GPS, or global positioning system, was developed in the 1960s by the US Department of Defense. It was not incorporated into vehicle trackers until the mid-1990s. Research concluded that they improved road safety and helped reduce environmental impact, as cars were easily locatable. Systems in the early 2000s allowed fleet management companies to track their vehicles via the internet. This was further developed in the 2010s to incorporate telematics into smartphone apps, with instant location data sent via mobile data networks.

            “Telematics” is a combination of ‘telecommunications’ and “informatics.” It encompasses the transfer of information between telecommunications devices, computers, GPS satellite systems, and objects.

            Telematics devices are installed after purchasing the vehicle aftermarket, or embedded  into the vehicle during manufacturing.

            Telematics devices collect a wide range of data. This can be as simple as the vehicle's location, speed, and fuel consumption, or as detailed as acceleration figures, vehicle malfunctions, and oil and coolant temperatures.

            Telematics collects vehicle data in real time using the vehicle's OBDII on-board diagnostic system and combines GPS coordinates into a data package that is transmitted to a central server via satellite communication, GPRS, or 4G/5G mobile data networks.

            Telematics companies offer this data in cloud-based and software solutions, creating reports, visual indicators, and notifications that can be triggered based on a wealth of vehicle data.

            Users access this data using their device, which displays it in an easy-to-understand format.

• What is embedded  telematics?.

            Embedded  telematics, often referred to as “connected vehicle telematics,” is a technology that allows so-called “connected vehicles” to connect to the Internet.

            Like a smartphone, a vehicle equipped with embedded  telematics has a cellular modem built in at the factory. This embedded  telematics modem allows the car to connect to the cellular network and communicate with other devices connected to the Internet, such as mobile phones.

            The purpose of the cellular modem built into a car is to send vehicle telemetry, which is another way of referring to the data generated by the car, to the car manufacturer. Examples of vehicle telemetry include the car's location, odometer reading, fuel tank or electric vehicle battery level, tire pressure, and engine oil life.

            If a car has built-in telematics, the owner can access the vehicle's telemetry by downloading the car manufacturer's connected services app. This mobile app differs from one car brand to another, but most apps allow you to monitor the vehicle's location, lock and unlock the doors, and perform other actions, such as preheating the battery in electric vehicles.

• How are telematics systems embedded  into a vehicle?.

            Modern vehicles have dozens of electronic control units (ECUs) that detect vehicle data. Embedded  telematics systems use this data and send it wirelessly via mobile data networks to display it to the end user who accesses the information remotely.

            The data is sent through the cloud in a secure protocol to protect confidential data, and is packaged in a way that is reliable and fast.

            Vehicle-embedded telematics systems provide a complete solution for fleet management without the need to install or pay for additional hardware. The vehicle can be added to the system instantly to activate remote monitoring. In addition, the driver is less likely to tamper with the records if the telematics device is fully embedded  into the vehicle.

• Traditional aftermarket telematics versus current connected car technology.

            Traditional telematics systems work with an aftermarket telematics device that is retrofitted into vehicles. These devices typically need to be installed in the vehicle's OBD II diagnostic port.       

            Connected car technology, on the other hand, refers to internet connectivity that already exists in a vehicle after it is manufactured. By incorporating network connectivity into vehicles, mobility companies and consumers enjoy a more seamless data exchange process, with fewer limitations on how that data can be embedded  into new applications.

            Connected vehicles go beyond fleet management and offer more consumer-oriented features. Unlike traditional aftermarket telematics systems, which require more complex data management processes.

            Although they have fewer capabilities than an embedded  OEM-Original Equipment Manufacturer solution, traditional aftermarket telematics systems are still in use today. They are ideal for older, less connected vehicles that need to be monitored as part of a fleet.

   Traditional aftermarket telematics systems do not have all the vehicle information available in embedded  OEM systems.

Slide 3. Advantages of embedded  telematics.

• A hardware-free solution reduces costs and downtime.

            With embedded  telematics, data is collected directly from the vehicle, eliminating the need to purchase, install, and connect third-party devices.

            In addition to eliminating the expense of purchasing hardware, embedded  telematics also reduces the time and money spent on installation. Although the installation time for each vehicle is relatively short, drivers have to bring their vehicle in and a professional must check each one, which translates into greater use of resources and increased downtime.

            Vehicles can be remotely activated for immediate deployment. Furthermore, with no devices to install or connect, there is no risk of theft, device tampering, or data interruptions.

• Embedded  telematics offers world-class privacy and data protection.

            Embedded  telematics operates in a cloud-to-cloud environment, where vehicle data is sent to a data processor's secure cloud environment and is only disclosed based on permissions set by the fleet organization.

            Cloud-to-cloud telematics is generally considered more secure than traditional on-premise systems, as cloud providers invest in robust cybersecurity infrastructure that exceeds the capabilities of individual companies.

• Embedded  telematics is available in both internal combustion engine (ICE) and electric vehicle (EV) fleets.

            Embedded  telematics technology is suitable for all types of vehicles, whether electric or internal combustion engine vehicles.

            Embedded  telematics helps fleets with electric vehicles manage charging more effectively. Fleets can monitor battery level, charging status, vehicle range, charging reimbursement, and more.

• You can use embedded  telematics information to improve important fleet metrics.

            Beyond fuel and charging management, embedded  telematics information can help fleet managers improve key performance indicators (KPIs) such as utilization, productivity, maintenance, total cost of ownership (TCO), and safety.

            For example, vehicle health monitoring and preventive maintenance enable fleet managers to identify issues and schedule service before a breakdown occurs, reducing unplanned downtime.

            Keeping up with maintenance also reduces TCO, increases fleet availability, and provides drivers with safe, well-maintained vehicles.

            Provides access to information on sudden braking and acceleration, accident data, and seat belt usage, to name a few, so fleet managers can identify potential safety risks and provide training on safe driving practices.

            It provides fleet managers with data to encourage safer driving behavior. This can translate into fewer accidents, lower insurance premiums, and a decrease in fines, traffic violations, and penalties.

            In the event of an accident, the data provided gives fleet managers immediate access to the information they need to respond to accidents and subsequently communicate with insurers.

• Safety.

            In an emergency, embedded  telematics can alert drivers to hazards on the road. It is ideal for reporting nearby incidents or when vehicle problems arise. This allows for instant corrective action from the vehicle's ADAS functions or embedded  communications with service centers. Today, the vehicle can contact local authorities or alert the police and roadside assistance to come to your aid at the side of the road using its embedded  SIM card and hands-free calling feature.

• Historical records.

            Embedded  telematics systems can store historical vehicle data to show trends and anomalies and identify areas for improvement. This helps fleets understand driving habits over time and how they can improve them. It helps save on fuel and maintenance costs and improves overall driver safety, which is especially useful for companies that operate a large fleet, which can be a significant part of their budget.    ‍

• Social and corporate responsibility.
  

            By tracking and storing data in real time, companies with a fleet of vehicles can show this data to their investors. For example, by switching their fleet to more efficient models, including electric vehicles, and educating drivers to reduce idling time. At the same time, it allows them to drive optimally and reduce fuel costs, which ultimately helps to review budgets and expense reports.

• Regulatory compliance for employees and contractors.

            With laws on driving hours, shifts, and working hours, it is more important than ever to comply with local legislation and not overwork staff. Embedded  telematics systems enable accurate tracking of drivers, including trip duration, driving time, shift start and end times, and much more. All of this contributes to improving driver well-being and optimizing employee working conditions.

Slide 4. Six ways in which connected car telematics is being used.

            Let's look at some examples of how companies and consumers are deriving value from connected car telematics data.

• Modernization of the power grid.

            DERMS software and virtual power plants use connected car telematics to integrate with power grids so that electric vehicle charging activity can be proactively controlled to balance energy loads. Although utilities have traditionally shaped power generation to meet demand, telematics-managed EV charging is a major step forward in modernizing electrical systems without spending hundreds of millions on infrastructure costs.

            With connected car telematics, utilities and energy retailers can gain visibility into the charge status of electric vehicles and coordinate charging schedules to occur when demand is low. This is key to avoiding blackouts as electric vehicle adoption increases and to reducing the curtailment of renewable energy.

• Predictive maintenance.

            By regularly monitoring a vehicle's condition, connected car telematics can help auto repair shops track wear and tear and predict when parts may fail. Having this information allows them to offer customers proactive and predictive vehicle maintenance, helping them prevent accidents and save money that would otherwise be spent on unexpected repair costs.

• Usage-based insurance.

            Insurance companies can use telematics to offer personalized rates based on actual miles driven. Mileage-based insurance is a key innovation in auto insurance that can help address fleet concerns about rising insurance rates.

            Connected vehicle technology allows fleets to purchase insurance policies that best reflect their daily driving behavior, rather than factors such as the age of the insured, their place of residence, or the model of car.

            Mileage data is obtained directly from the vehicle's odometer, reducing the likelihood of errors derived from smartphone telematics or devices installed by the vehicle owner.

• Personalized experiences outside the vehicle.

            Vehicle connectivity allows drivers to do much more than customize their driving settings, climate control, and infotainment offerings. Connected car telematics helps vehicle owners easily transfer their driving preferences to experiences beyond the confines of the vehicle.

            From route planning to mileage-based incentives and vehicle recommendations, drivers can use mobile apps and web portals to get the most out of their vehicle data without a complicated user experience or difficult-to-install technology.

• Sustainable mobility.

            Our current transportation systems have been configured around the influence of private car ownership and gasoline-powered transportation, from gas stations to routes, road taxes, insurance policies, maintenance services, and much more. Connected vehicles accelerate the implementation of new improvements to infrastructure and the driver experience through software. For example, using software to incentivize sustainable mobility practices by:

            1. Simplifying electric vehicle ownership with easy-to-use solutions to manage electric vehicle charging, monitor battery status, and access exclusive discounts.

            2. Enabling electric vehicles to participate in demand response initiatives and virtual power plants.

          3. Improving access to and reliability of shared mobility options, such as on-demand transportation services, car rentals, and car sharing.

            4. Providing visibility into multimodal transportation options in route planning and travel solutions.

• Automotive intelligence.

            Connected vehicles give mobility companies more freedom to use advanced analytics and artificial intelligence to turn real-time data into powerful solutions. For example, companies use data on the charge status of electric vehicles to feed proprietary algorithms that analyze the charging behavior of electric vehicles and provide accurate recommendations on charge control.

Slide 5. What is influencing the transition to embedded  telematics.

• 5G technology.

            The rollout of 5G technology eliminates many of the connectivity concerns when integrating telematics into broader mobility ecosystems. With faster and more reliable data transfer, 5G enables stronger communication between cars, mobile applications, and the surrounding infrastructure. Unlike previous generations of cellular network connectivity, 5G systems take into account the communication needs of vehicles, as 9 out of 10 new cars are now manufactured with embedded Internet connectivity.

• Enhanced security measures.

            The increase in vehicle data raises concerns about privacy and security. Automakers and mobility companies are under increasing scrutiny regarding how they process and manage vehicle data. Robust encryption protocols, secure data storage, and user authentication are some of the essential elements for protecting this data.

• Understanding the return on investment.

            Ten years ago, the costs of innovating with telematics for connected vehicles were difficult to understand. There was no urgency to develop these forward-looking solutions, so it was difficult to visualize how they might affect infrastructure development and regulatory goals. However, decarbonization goals and advances in grid reliability have highlighted that the long-term benefits of connected vehicle telematics far outweigh the costs.

            For example, telematics enables efficient use of electric vehicle charging stations and the use of renewable energy, reducing the need for costly upgrades to electric vehicle charging infrastructure and power grids.

• Lower technical barriers.

            Historically, traditional aftermarket telematics systems were difficult to use and required extensive training. Today, telematics platforms simplify the process by providing developers with standardized APIs that facilitate access to vehicle data and the creation of connected car applications.

            This allows mobility developers more time to develop advanced solutions that solve real-world problems and achieve product-market fit. As a result, we are seeing a more diverse mobility ecosystem than ever before.

• Implications for fleet management.

            Embedded  telematics has many more advantages than traditional aftermarket telematics.

            Most new vehicles come with embedded  telematics as standard, so over time we will have all connected vehicles in the fleet. If we are currently using a traditional aftermarket telematics platform that cannot integrate embedded  telematics data, we have a serious problem.

            We need to know if the telematics platform we are using is adapting to embedded  telematics, because if it is not, we will have to switch to another telematics platform that can use embedded  telematics, with all the costs and changes that this entails.

            In addition to all the embedded  telematics information for fleet management, there is vehicle information that can be used by third parties to improve mobility in cities or the electricity grid.

            Embedded  telematics information is generated by the vehicle manufacturer, and it is very important that this information is only used by our fleet, because the vehicle manufacturer can sell or transfer our information anonymously to third parties such as mobility companies, insurance companies, etc.

            Vehicle information includes routes, schedules, recharge times, activity times, etc., that is, all fleet operations, which only our fleet needs to know. 

            It is common practice for vehicle manufacturers to ask vehicle owners to allow them to use vehicle information in exchange for updates, access to new applications, infotainment, etc., which the manufacturer then sells to third parties.

            It is very important to know how our vehicle data will be used and to sign an agreement that it will not be transferred or sold to third parties. 

            It is very complicated to manage a fleet of vehicles with a different telematics platform for each vehicle manufacturer, all vehicle information must be centralized.

            Therefore, we need a telematics company that can group all the information from each vehicle manufacturer into a single centralized telematics platform, in addition to the information from vehicles that use traditional after-sales telematics, because some vehicles do not have embedded  telematics due to their age.

            One of the requirements that must be demanded of a telematics company is that it can work with any vehicle manufacturer and can integrate vehicle information into its telematics platform, in addition to traditional aftermarket telematics.

            Before purchasing a vehicle, one of the requirements to be met is that it has embedded  telematics and can be easily embedded  into a telematics company's platform.

            Sometimes vehicle drivers disconnect or break traditional aftermarket telematics so they are not monitored, but with embedded  telematics this is much more difficult to do.

Slide 6. Thank you for your time.

            The class has developed what embedded telematics is, its advantages, and its implications for fleet management, see you soon.