Covisint Study: Auto Industry Reaching "Tipping Point of Demand" for Connected
Profits, Relevance and Competitiveness All Depend on Ability to Deliver
"Digital Lifestyle" Value Desired by Consumers in Age of Big Data
DETROIT, June 6, 2013 (GLOBE NEWSWIRE) -- Covisint, a Compuware (Nasdaq:CPWR)
company, today announced the availability of a whitepaper it commissioned
outlining keys to automakers' future success. This success, the whitepaper
notes, is predicated upon how successfully automakers (often called original
equipment manufacturers, or OEMs), incorporate technology not only into "smart
vehicles," but also into the "digital lifestyles" of their customers.
This research, titled "Your Customer is Connected -- Are You?," highlighted
the following core points:
*It's becoming an owner-centric world. Consumers, although optimistic about
future technology, nonetheless demand value and results that likely will
shift industry attitudes in a way that places the owner, not the vehicle,
at the center of the digital equation.
*Relationships are transforming. In the past, manufacturers only had direct
engagement with car owners for about 10 hours of the typical 1,460-day
ownership period--less than 3/100 of one percent of the time. Now, through
owner-centric technology, OEMs can have a lucrative and ongoing stream of
engagement and revenue opportunities benefiting both during the entire
*Data continues to explode, multiply. As the sheer amount of data continues
to expand, an independent interoperability platform like Covisint's will
increasingly become critical to successfully integrating and delivering
value-added services from multiple sources.
"The automotive industry is reaching a 'tipping point of demand' for
user-centric connected vehicle services delivered via the cloud," said study
co-author and CEO/Founder of CGS Advisors, Gregg Garrett. "Expectations are
increasingly being shaped by the connected environment outside of the vehicle,
and this fundamental shift is making it 'change or die' time for some OEMs.
One facet of success likely will hinge upon how well automakers integrate
their services into vehicles, across their brand and ultimately into their
consumers' connected lives."
Traditionally, OEMs placed the end-product of the car at the center, focusing
primarily on styling, powertrains, performance and value. Although those
things will still be important, that traditional mindset is undergoing a rapid
transformation and disruption. In the future, the whitepaper noted, OEMs who
succeed will need to deliver a comprehensive, connected ownership experience
for consumers across web properties, mobile devices and within the vehicle.
Connectivity, it was noted, can no longer be viewed as "just another feature
of the vehicle;" rather, connectivity will be seen as a key purchase
differentiator with the car itself being perceived as just another node in the
owner's digital life.
The Covisint-sponsored whitepaper uncovered that the technology-driven
benefits desired by car owners, in priority order, include:
1.bringing transportation info (maps, traffic, parking) into the vehicle;
2.updating vehicle software automatically; and,
3.transferring personal settings from different devices and vehicles.
"Cars are quickly becoming digital epicenters producing and enabling vast
amounts of data. The OEMs have a time-limited opportunity to harness this
exponential value and redefine these emerging relationships before other
industries like telecom overtake the mindshare of the car-owning public," said
David McGuffie, President and CEO of Covisint. "Consumers increasingly expect
seamless connectivity with all their devices, including their vehicles, and
this Covisint-sponsored study outlines the path for OEM success that increases
loyalty, drives profits and enhances driver safety and convenience."
The Covisint-sponsored whitepaper is available here: http://bit.ly/14Ak0sd.
Covisint's cloud engagement platform offers a robust, secure and proven
platform for driving additional revenue and customer loyalty through connected
vehicle initiatives. With Covisint, CIOs, CMOs and LOB leaders can deliver a
unified and global connected vehicle platform that aligns with their business
strategies, through a single integrated experience across the ownership
Covisint, a Compuware Company
Covisint provides the leading cloud engagement platform for creating and
enabling new mission-critical external business processes. Our solutions
enable organizations to connect, engage, and collaborate with the critical
external audiences that define their success -- including customers, business
partners, and suppliers. Covisint allows its clients to establish a secure,
reliable, integrated presence in the cloud, and offer the kind of engaging
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Doug Anter, Public Relations Manager, Compuware Covisint
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