Embedded telematics systems like OnStar ought to act as the car maker’s wingman, which is defined by Wikipedia as “a pilot who supports another in a potentially dangerous flying environment.” The wingman is most familiar from formations of jet pilots where a second, support flyer flies his plane beside and slightly behind a lead flyer to “watch his back.”

Telematics technology has the ability to fulfill that function, but it isn’t happening yet.

The GM Authority newsletter reports today that General Motors has issued a recall for more than 4,000 2012 Chevy Sonics that have rolled out of the company’s Orion Township assembly plant missing either an inner or outer front brake pad.  The newsletter reports that new Sonic owners can expect a letter in the mail beginning January 14, 2012, which will instruct them to take their Sonic to the nearest Chevy dealer for inspection for missing components.

How GM can have this happen when its cars come equipped with Bluetooth and embedded modems is beyond comprehension.  With the existing on-board technology, GM ought to be able to enable vehicle diagnostics capabilities during, or at least at the conclusion of, the production process to ensure the existence and proper functioning of all on-board systems.

GM probably does not want to provision the on-board modem at the factory and Bluetooth may not be considered sufficiently secure for extracting sensitive and vulnerable vehicle data.  But the value of this information and the service it provides to customers, dealers and management is great enough to justify the added cost of provisioning the modem during production and/or hooking up the Bluetooth to the CAN bus.

The unfortunate truth is that architecturally speaking embedded telematics systems have for the most part been segregated from Bluetooth connectivity systems.  In fact, at GM, the teams responsible for these two connectivity propositions are working in parallel and not entirely in cooperation.

This is why this analyst made a plea earlier this year for a “C-level” executive at every auto maker to act as Chief Connectivity Officer.  (http://bit.ly/fXV0r1 - Vehicle Connectivity as a C-Level Responsibility – Insight – 3-2011)  The responsibilities of this executive will include embedding connectivity into all systems of the car and all aspects of the organization.

From production, to dealer delivery, to sale, telematics systems ought to be part of the entire car making, selling and owning experience.  This philosophical approach means the telematics system is live as early in the vehicle production process as possible (with GM in the forefront having made OnStar standard on most models).  Plant managers receive OnStar reports throughout the day regarding the status of on-board systems for cars rolling off the line – and managers and developers see the same reports.

The trucks delivering the cars have a wirelessly updated manifest of all the cars they are delivering.  The dealer uses the telematics system as part of his inventory management system and, after the sales of the vehicle, as part of his customer relationship management system.

In the connected world just described, no GM customer is waiting two weeks for a letter to let him or her know there is a missing brake pad on their car.  The plant manager knows or, if he misses it, the truck driver knows or, if he misses it, the dealer knows right away something is wrong with the car.

In contrast, Ford won an award earlier in 2011 (http://bit.ly/rZEWhd) for its use of Wi-Fi on the production line to provision Sync and MyFord Touch system software and configurations.  This shows yet another innovative way that wireless technology can be used on the production line to save or avoid costs.  (No word on whether Ford is enabling the kind of wireless diagnostics I have described, but they can and should.)

This production line software provisioning, too, ought to be interesting to GM not only because the company has been flirting with adding Wi-Fi to more of its cars, but also because it is struggling with the timing of the launch of its MyLink (Chevrolet) and Intellilink (Buick) smartphone connectivity systems.  Wireless provisioning of these systems might enable GM to bring these solutions to market more swiftly and competitively.

Implications

The Chevy Sonic brake pad slip-up ought to have represented an opportunity for GM to show the power of OnStar’s diagnostics capabilities.  The existing OnStar diagnostic report may not detect the presence of a brake pad, although it does report on the status of the anti-lock brake and stability control systems among others. 

The typical OnStar subscriber will certainly want to know how much pad they have left on their brakes. OnStar ought to be adding detection of the brake pads and their status to the existing report.

The good news is that in a world where OnStar is no longer the only telematics player in town, the pressure is on like never before to innovate and leverage the existing (and future) telematics investment to ensure the organization is extracting all possible revenue opportunities and cost avoidance potential out of that embedded modem. 

Telematics ought to be acting as every car maker's wingman, watching for trouble and leaping into action at the first sign.  The potential remains to be tapped and there are riches to be had by those who choose to tap it.

Traffic is a little bit like the weather. Everybody complains about traffic, but it seems like nobody is able to do anything about it. That will change in 2012 which is shaping up as the year that broadcast television traffic information arrives as the essential fifth screen aided by new traffic animation products and providers.

All seems quiet on the last Friday before the end of 2011, but Monday will bring the birth of a new age of traffic information on television. The past year ended with Navteq divesting its broadcast media group (formerly known as Traffic.com), the assets of which were acquired by Matchbin and converted into Radiate Media. Radiate Media now owns the former Traffic.com radio and television group and its ad-supported traffic reporting capabilities.

Months before, ITIS Holdings was acquired by Inrix.  ITIS has its own fledgling broadcast traffic animation product which Inrix will no doubt seek to deliver to broadcasters around the world.  While Radiate may claim market leadership in the U.S., there is competition in the space notably from Metro Traffic and Triangle Software.  Triangle Software is better known as Beatthetraffic.  which is recognized for its 3D traffic rendering and its recent rapid gains in broadcaster customers.

Not to be outdone, Clear Channel acquired Westwood One’s Metro Traffic division with its radio, television, Internet and mobile products.  Formerly owned by the Gores Group, Metro Traffic’s portfolio was enhanced by Gores’ acquisition of Sigalert – a traffic animation provider based in Southern California – and a year-long deal to use and resell traffic camera feeds from TrafficLand.  (As part of its acquisition, Clear Channel resolved a patent infringement lawsuit brought against Westwood One by Triangle Software.)

Clear Channel added the TrafficLand relationship to its portfolio when it acquired Metro Traffic in April of 2011, but the Metro-TrafficLand deal expires at midnight, January 31, 2011.  By Monday morning, the starter’s pistol will have fired launching a new stage in the integration of traffic video for broadcast television even as a battle is shaping up in the traffic animation arena.

Finally, Tango Traffic of Philadelphia launched a 24/7 traffic television station in January 2011 with plans to bring its vision to additional markets and multiple screens.  The company has a close relationship with Trafficcast as a data provider and new strategic announcements regarding the company’s expansion plans are anticipated in Q1 2012.

Weather Central, which also competes in the broadcast television traffic business, is expected to follow suit with enhancements to its offerings.  But no announcements or strategic moves have been made by the company.  Another potential market participant yet to be heard from is TomTom.

In fact, it remains to be seen what kind of move TomTom or Garmin or even Google might make in 3D traffic rendering.  With a new platform and new technology emerging new players can be anticipated.

These developments mean that more and more television viewers will be seeing 3D animated images of local traffic conditions along with the integration of live traffic camera feeds.  TrafficLand is partnered with most of the players, but, with the passing of its Metro Traffic relationship, will be entering negotiations directly with broadcasters around the country to convince them to enhance their traffic broadcasts with TrafficLand traffic camera feeds.  In addition to its feeds for broadcast telelvision, TrafficLand also has solutions for Internet, mobile and automotive platforms and is working on its own enhancements.  TrafficLand's primary value add is simplifying the process of integrating maps and cameras for broadcasters.

The real advances will occur, however, when traffic information broadcasting finally takes on the trappings of weather forecasting.  While 3D renderings and flyovers of real-time traffic information will be attractive and engaging to viewers and advertisers, the real interest will rise as providers solve the challenge of delivering a predictive traffic story in a video environment.

Viewers will tune in to get a traffic forecast of the impact of the big football game or a coming storm front.  In fact, weather information broadcasters may be forced to cooperate even more directly with traffic information providers as consumers discover this new medium and message.

At the same time, the power of these new and more intensely engaging solutions for consumers will stimulate already strong interest in Web-based, mobile and automotive traffic information delivery systems.  The arrival of high-quality, predictive and attractive traffic information services on television will provide the final impetus translating traffic information from a daily frustration to a manageable proposition.

Implications

Traffic has always been the single most important telematics application.  Without reliable and predictive traffic information, navigation and routing are unreliable at best or entirely misleading at worst.  And without reliable, predictive traffic information arrival times cannot be accurately calculated, nor can probable driving outcomes be determined.

With the onset of 3D renderings of real-time and predictive traffic information on television, consumers will finally have the tools they have long sought to cope with daily traffic challenges.  The power of television – enabling the fifth content delivery platform – will enhance the collective value and awareness of all five traffic information platforms: Internet, mobile, radio, TV and car.

With higher quality and more attractive content, the opportunity to monetize traffic information services via sponsorships or subscriptions will improve.  To play in this new market, providers will need flexible delivery platforms and robust back-end systems able to integrate multiple location-referenced data feeds in real time.  The next 12 months will likely be an acid test for the current crop of contenders even as they find early success plucking the low-hanging fruit.

One potential dark cloud on the traffic horizon is the increasing inclination of local departments of transportation in the U.S. to seek to monetize their traffic information sources including cameras and sensors.  Government coffers are running low and all assets are potential sources of emergency revenue. 

Current partners have been quick to point out the limited value of traffic information in the current market, but increased attention may change that valuation - especially with Inrix, in particular, positioning itself for a public offering.  And both Waze and Inrix secured substantial $30M+ equity investments in 2011.  Hopefully, the U.S. market won't be snuffed out, even before it ignites, by needy traffic agency executives.

State Farm and OnStar have a Christmas present for you but you need to be an existing State Farm customer and a former OnStar subscriber and you need to act before midnight, Dec. 31, 2011. In a novel tie-up between OnStar and State Farm, State Farm will pay for a year of OnStar’s Safe & Sound service (a $199 value) including automatic crash notification, roadside assistance, hands-free calling and on-demand and emailed vehicle diagnostics.

In an even more creative twist, State Farm customers interested in State Farm’s Drive Safe & Save usage-based insurance program – available in seven states – can have OnStar send their data to State Farm for State Farm to determine if the insured is eligible for additional discounts based on their driving behavior.  The offer shows State Farm in the forefront of the usage-based insurance business – an unusual place for such a large car insurer.

As the largest auto insurer in the U.S., State Farm has more to lose financially in the short-term from offering customers discounts.  But State Farm also has the most to gain in the long run from reducing customer churn and offering additional services.  The Drive Safe & Save program is also a technology leader in that it is offered two ways: either via an aftermarket device that can be connected to the car (See: http://bit.ly/t7SzRn - State Farm, Hughes Raise Usage-Based Insurance Bar - Insight – Lanctot); or with data derived from the OnStar embedded system.  (Might a smartphone-based solution be in the cards?)

It’s also a low risk proposition for State Farm because the company probably long ago determined that previous OnStar users were reasonable risks as responsible drivers and excellent candidates for a usage-based insurance offering.  If they had any doubts about that, OnStar will have been able to show them the relevant data to help them make that determination.  

There are further implications to the offer including OnStar’s desire to tap into the massive fleet (10M+) of OnStar-equipped cars that are currently dormant due to the service not being renewed.  Like GM partner Sirius XM - which is trying to woo back previous subscribers with $5/month subscription offers - OnStar can instantaneously turn on a massive network of connected cars if it so chooses, though it will need a customer's approval before doing so in these privacy-obsessed days.  The State Farm offer opens the door to that customer approval for turning the service back on.

Expect more attractive offers from OnStar as the company seeks to win back former subscribers with new services, deep discounts and marketing partnerships such as the one with State Farm.  The only downside to the State Farm Drive Safe & Save part of the offer is that it is only available in seven states.  Progressive Insurance’s Snapshot usage-based insurance offering is available in 37 states, allowing Progressive to promote the program more effectively and efficiently with national advertising vs. the direct mail approach used by State Farm.

TomTom continues to cut a swath of innovation in the midst of a high wire rewiring of its business in the face of declining portable navigation device demand.  The latest announcement from the company – hidden in a whirlwind of repetitive press releases about adding HD Traffic users and miles of mapped roads – describes a collaboration with Vialis, a variable message sign (VMS) traffic information provider, in The Netherlands to communicate traffic routing information from TomTom’s cloud-based traffic service to the Vialis signs.

The announcement reflects similar moves by Inrix in the U.S. to integrate cloud-based, crowd-sourced real-time traffic data, derived from mobile devices, with roadside infrastructure. Vialis says that to enable their AMS solution with TomTom they created a standard interface to integrate TomTom traffic data into the central system which controls all signs in The Netherlands.

The objective of the TomTom deployment is to provide the city of Purmerend with real-time traffic information to optimize traffic flow. In particular, journey time information will be displayed on the highway message screen advising drivers of the quickest way out of the city onto the A7 highway.

Now, let’s set aside the real-time aspect of this solution and the fact that Inrix is providing a similar service for municipalities all along the Route 95 corridor in the U.S. The real significance of this deployment lies in a few key facts.

1) Local governments are recognizing the critical and intrinsic value of crowd-sourced data derived from mobile devices being used in cars.

2) The quality and accuracy of this data is sufficient to qualify for use as a public service.

3) In fact, the data derived from mobile devices is superior to and an invaluable enhancement to the information derived from cameras and fixed sensors of various types.

4) TomTom still has a unique value proposition in its cloud-based, crowd-sourced HD Traffic solution which may soon find its way into new markets globally.

The U.S. and European integration of mobile-device-based traffic information is a significant manifestation of the powerful cooperation to be derived from the use of mobile devices in cars. This is, of course, saying nothing about the value of mobile devices for reporting incident information including inputs directly from crash scene regarding the nature of the incident and condition of potential victims – and, of course, location.

The VMS scheme in The Netherlands makes use of TomTom’s HD Route Times, a turnkey solution for real time travel and delay times for a specific route either on a temporary basis or for permanent solutions.  The cloud-based service benefits from consumer and fleet inputs of vehicle probe data as well as user reports of roadway changes.

TomTom also leverages its historical congestion data to help planners structure their road infrastructure most effectively. This should lead to fewer traffic jams, less expenditure and lower CO2 emissions, the company says.  TomTom offers its feed in XML file delivery format and updates every minute by fusing multiple data sources. To facilitate its work with municipalities, TomTom offers fast set up and temporary installations.

The TomTom and Inrix initiatives reflect a wider movement of mobile-device-based data into different traffic platforms on the Internet, on television, radio and in cars and on mobile phones. Los Angeles traffic authorities involved Waze, for example, as part of a consumer information campaign during a recent highway shut down in Los Angeles for construction. Waze provided information regarding preferred routes to drivers via their mobile devices and on television.

Implications

Mobile devices are increasingly recognized by transportation executives around the world as valuable sources of traffic and travel information in real time. As efforts increase to communicate valuable traffic information to drivers to better manage traffic on major highways and around large urban areas, floating car data from mobile devices are an essential tool to increase awareness of overall traffic conditions.

Floating car data from mobile devices integrated with infrastructure-based systems for communicating with drivers will help turn the tide of growing fuel consumption and CO2 emissions from vehicles stuck in traffic. The next step will be to improve predictive traffic solutions to better anticipate traffic conditions rather than simply responding to real time developments.

Mobile device inputs should also help to identify incidents and speed the process of clearing those incidents. Major initiatives are under way around the world to improve the process of clearing stalled or damaged vehicles and injured passengers to restore the flow of traffic.

Finally, TomTom's traffic and routing expertise are critical differentiators in a consolidating navigation industry.  The proliferation of public partnerships will alter the competitive landscape.

The National Transportation Safety Board has recommended that all 50 U.S. states introduce bans on the use of portable devices in vehicles. The move comes in reaction to a horrific crash in Missouri where 2 passengers died and 38 passengers were injured after a reputedly texting 19-yeare-old driver struck a tractor trailer and was in turn hit by two school buses.

The fact that the crash occurred in Missouri, where a texting and driving ban already exists for drivers under 21, is but one indication of the futility of the NTSB’s initiative.  The NTSB lacks the power to promulgate legislation and only the Department of Transportation is capable of seeking coercive laws, withholding valuable highway funds, for example, from states that fail to fall into line.

The statement of the NTSB is as follows:  “(1) Ban the nonemergency use of portable electronic devices (other than those designed to support the driving task) for all drivers; (2) use the National Highway Traffic Safety Administration model of high visibility enforcement to support these bans; and (3) implement targeted communication campaigns to inform motorists of the new law and enforcement, and to warn them of the dangers associated with the nonemergency use of portable electronic devices while driving.”

The NTSB is justifying its decision based on the 3,092 roadway fatalities from 2010 that were attributed to distracted drivers along with the results of a study estimating that 13.5M drivers are on hand-held phones at any given time.  Some interpretations of the statement suggest that embedded telecommunications modules are exempted.

Strategy Analytics’ own consumer surveys conducted around the world show that drivers readily admit to making calls and sending texts while driving. But these surveys are conducted in the context of manufacturers seeking to better understand the scope of the problem and identify safe alternatives to the use of handheld devices – including the implementation of connected smartphone solutions that allow the driver to leave the phone untouched while driving.

The proposed NTSB ban exempts emergency uses of the mobile phone, which is an important exception given the inclination of some regulators to ban phones from cars altogether or to actually disable mobile phones in moving vehicles.  The proposed NTSB ban also exempts the use of portable electronic devices by passengers.

The announcement of the recommended ban is nothing more or less than a scolding of the driving public.  The NTSB lacks the authority to bring about a ban, but the recommendation embodies the thinking already expressed by the National Highway Traffic Safety Administration under the DOT.  In that sense, the NTSB reflects a regulatory alignment which, though ominous, is meaningless.

Three important facts remain unchanged:

1)      Bans are ineffective.  Missouri already has a ban that is being ignored. 

2)      A simple nationwide “Don’t touch your phone while driving” law – as exists in Germany – will clarify the issue once and for all.

3)      Highway fatalities are at their lowest level in 60 years, according to NHTSA data released two weeks ago, in spite of the meteoric rise of smartphone use.

4)      Smartphones are increasingly becoming an intrinsic element of safe vehicle operation.  From live traffic and hazard alerts to sensors detecting driving conditions to applications controlling or limiting access to distracting phone functions, the smartphone is rapidly becoming a safe driving co-pilot.  And car makers are introducing systems such as Ford Sync and Toyota Entune to leverage smartphone apps and sensors to enhance the driving experience in a safe manner. 

According to some interpretations of the NTSB announcement, hands free systems built into the car by the manufacturer will be exempted from the ban.  It doesn’t much matter anyway, because the NTSB announcement has already achieved its intended objective of putting drivers on notice that regulators are watching their behavior and are capable of intervening if that behavior doesn’t change.

Do smartphones distract drivers?  Yes.  Is one death due to a distracted driver too many?  Yes.  Is a ban on the use of portable electronic devices by drivers the answer?  No.  Is it time for a nationwide law preventing the touching of a mobile phone while driving a sensible alternative that is easier to enforce?  Yes.

One final, fatal and unfortunate note regarding the futility of state-by-state legislative efforts is the fine line Missouri has drawn between those drivers older than 21 being able to text and those younger not being allowed to text when they drive.  This kind of absurd mixed signal is the kind of thing that can be clarified with a nationwide proposition.