DISRUPTIONS AND OPPORTUNITIES WITHIN THE AUTOMOTIVE INDUSTRY Subramanian Gopalaratnam March 2015

AGENDA 1. Disruptions as a way of life

2. Non-industry players taking over industry

3. Everything as a service

4. Setting a standard as an opportunity

5. Knowing what is code

6. Simplicity & Interchangeability

7. Open sourcing

8. Opportunity for you

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DISRUPTIVE TECHNOLOGIES

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Steam powered vehicle - 1672

Ford Model T – 1927

Tesla Driving – 2015

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DISRUPTIVE TECHNOLOGIES

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Market Leader in 1980 – IBM Market Leader in 2000 – Google, Facebook

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NON INDUSTRY PLAYERS TAKING OVER INDUSTRY

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In 2015 Uber, the world’s largest taxi company owns no vehicles, Facebook the world’s most popular media owner creates no content. Alibaba, the most valuable, retailer has no inventory and Airbnb the world’s largest accommodation provider owns no real estate.

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EVERYTHING AS A SERVICE

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Users are changing – Using Versus Owning

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STANDARDS AS OPPORTUNITY

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Doing what you do well

Having global

footprint

Licensing know how

Standard Setting

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STANDARD AS OPPORTUNITY

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CENELEC, 2015

Connected & Autonomous Eco system play rather than just an automotive

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STANDARDS HELP COLLABORATION

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“Tesla is vertically integrating - or possibly taking an Apple/Foxconn funded manufacturing and supply chain partnership approach” (Supply Chain, 2014)

(CNN, 2012)

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COLLABORATION – MARRY INNOVATION AND SIZE

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KNOWING WHAT IS CORE IN AUTOMOTIVE?

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Source: Spansion

 2015 Linux Foundation

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OPEN SOURCE - FUTURE

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Local Motors, 2012

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Blackduck, 2012

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SIMPLICITY & INTERCHANGEABILITY

The typical car contains about 2,000 components, 30,000 parts, and 10 million lines of software code

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More complex than a fighter jet

Harvard Business Review

Budget 2015: funds for driverless cars to be matched by industry

“We welcome this opportunity for the UK to consolidate its position as the world leading place to trial and demonstrate driverless technologies.” (Steve Yianni, CEO Transport Systems Catapult, 2015).

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OPPORTUNITIES FOR YOU

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“The automotive industry is Britain's largest sector in terms of exports and has invested over £6 billion during the last three years*. Vehicle sales have fully recovered back to pre-recession levels and we expect production to grow towards 2 million vehicles in 2017, a record level of output.” - KPMG

“The £100m for driverless cars announced by George Osborne will be matched by a similar commitment from business, to help fund research and development on the computer and telecoms systems needed to make the driverless cars a reality.” – UK Budget 2015

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OPPORTUNITY FOR YOU

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THANK YOU

Subramanian Gopalaratnam