Connectivity and digitization: Own digital universe with new business models

Transcription

1 Connectivity and digitization: Own digital universe with new business models Volkswagen Truck & Bus is devoting considerable attention to its own digital platform, incorporating an impressive level of universality. At the same time, the Group is also investing in innovative start-ups. Braunschweig, October 11, 2017 The extent of the paradigm shift automated transportation and finally autonomous transportation will bring about must not be underestimated and can hardly be overestimated. Volkswagen Truck & Bus is devoting as much effort to advancing connectivity as it is to bringing about the technological leap toward autonomous driving. The future belongs to software CEO Andreas Renschler explains the importance of software for a commercial vehicle manufacturer such as Volkswagen Truck & Bus: Whereas ten years ago we primarily focused on hardware, the greatest potential now lies in developing new software. Volkswagen Truck & Bus is convinced that software will increase the efficiency of every single truck for example by ensuring better utilization of the available capacity. But that is not all. The entire transportation system, society as a whole, and last but not least the environment will all benefit in equal measure," says Andreas Renschler. The potential of software is considerable. According to Volkswagen Truck & Bus, an increase in truck capacity from the current average of 50 percent to around 80 percent is realistic. Cooperation with Navistar in North America Volkswagen Truck & Bus heads the European field in the connectivity of trucks. This position will be further strengthened by the expansion of the shared cloud-based platform being jointly developed by MAN, Scania, and RIO. The North American cooperation partner, Navistar, will shortly be joining this platform, as recently announced at the North American Commercial Vehicle Show in Atlanta. 650,000 connected vehicles As a first step, the same connectivity hardware is to be installed across the board in the driver s cabs. This would serve as a major step toward creating a global connected platform, covering roughly 650,000 vehicles worldwide, explains Andreas Renschler with respect to the future dimension of the Group s own connectivity based on a platform. Andreas Renschler adds: This Seite 1 von 5

2 is a real milestone, not only for our strategic alliance with Navistar, but also for the Volkswagen Truck & Bus Group. Connectivity means momentous change Connectivity will cover the entire value creation chain and all modes of transport, bringing about a momentous change. Digitization refers not only to products and services, explains Joachim Drees, CEO of MAN Truck & Bus, referring to the changes it will entail, it also means that every market and every company will take on a fundamentally new shape and form, opening up a new dimension of efficiency. Breaking new ground: investment in innovative start-ups So, considerable challenges lie ahead in the actual area of research and development. To overcome such challenges, new business models and highly unconventional approaches are needed, which are unheard of in traditional OEMs, but quite common among so-called start-ups. It is time to leave the well-trodden path and explore new avenues. This is the thinking behind investments in particularly innovative start-ups that MAN and Scania have recently made under the aegis of Volkswagen Truck & Bus. Loadfox, an algorithm-based freight exchange platform One such start-up is Loadfox. This is a digital freight exchange platform that optimizes truck capacity in an extremely user-friendly way on the basis of algorithms. The advantages of such a platform are clear: Better utilization of truck capacity, fewer empty runs, higher margins for customers, and less impact on the environment caused by the consumption of resources, explains Joachim Drees. Lightning-fast delivery via sennder Another start-up company in which Scania is investing in is sennder: This company has built up a reputation particularly in the area of e-commerce and specializes in same-day and extremely fast parcel delivery, using its own specially developed software. Henrik Henriksson, CEO of Scania, captures in a nutshell why sennder is of such interest: sennder has emerged without relying on traditional hubs, which still form the backbone of the conventional logistics sector today. Volkswagen Truck & Bus platform: consistently expanding its own digital universe The top priority for Volkswagen Truck & Bus and its brands is to expand their own digital universe. This is the banner under which Volkswagen Truck & Bus is bundling its various activities in the area of digitization and connectivity. The platform approach plays a key role in this respect, as by establishing a jointly developed cloud-based platform for digital solutions, the Group has created the basis for handling the entire range of services for customers from a shared logic and resource. Seite 2 von 5

3 One Stop Shopping for customers This not only opens the way for a of number synergies in the area of big data. It also means that customers likewise benefit from the digital platform: They can use the platform for One Stop Shopping instead of having to buy individual solutions, each with their own systems or logic. In practice this means that all the Group s brands would be active on the same digital foundation. RIO: cloud-based digital fleet platform RIO, the new digital brand in the Group, is setting even higher goals. RIO is designed as a cloudbased digital fleet service and is explicitly aimed at multi-brand fleets, offering the widest range of services for transportation and logistics. According to Markus Lipinsky, CEO of RIO, RIO gives customers with smaller fleets the chance to enjoy the huge benefits of efficiency offered by digitization. Top priority to brand neutrality and intermodality Brand neutrality and intermodality are key features of RIO. The RIO box acts as an interface between vehicle and system, and can also be retrofitted in every modern truck. The RIO box is compatible with various vehicle brands and corresponding systems of all manufacturers, and is geared toward making specific vehicle data transparent as well as offering a wide range of services to support the entire workflow in logistics with digital solutions. Strong partners involved with RIO from the outset RIO covers all modes of transport in the global supply chain, from the consignor via the dispatcher to the driver and recipient. Strong partners such as Idem, synfioo, Evertracker und auch LoadFox have been involved with RIO from the outset. RIO box successfully launched After extensive RIO field tests, calling upon assistance from reputed transport companies, including service providers of Volkswagen s Group logistics, the RIO box has already progressed beyond the trial stages. Since August 2017, MAN has been equipping all Euro VI trucks for Europe with the RIO tool as standard, based on the jointly developed platform. The online portal is scheduled to be activated towards the end of Scania with over 280,000 connected vehicles With its more brand-based systems, Scania can be regarded as one of the most advanced brands in the area of digitized solutions for the transportation sector. Customers benefit from significant economic added value. As a pioneer in digitization, Scania has already connected over 280,000 vehicles. It is therefore now possible to collect data on key variables such as fuel consumption or wear on parts to an unparalleled level of detail, and make it available in real time to the customer. Seite 3 von 5

4 Scania One with additional service features With its new Scania One market place, customers can activate services such as Scania Fleet Management. Scania has now considerably extended its exceptional portfolio of digital solutions. Scania One boasts features, such as Scania Fleet Management, which makes a wealth of key analytical data available to transport companies on their fleet and drivers. The solution is also available in an abbreviated version as a Fleet Performance app. Scania One also incorporates features focusing on driver experience, such as: Check before Drive: A digital checklist for guided daily inspections of brand-neutral truck and trailer status Scania Assistance: A feature allowing drivers to digitally contact Scania s assistance service and transmit their position data if roadside assistance or workshop repairs are required Guide me: An interactive navigation system including augmented reality functionality, guiding drivers through text, video, or the dashboard panel with symbols. Compatibility between systems ensured In the words of Henrik Henriksson, CEO of Scania: In this way, Scania has once again consolidated its excellent position as a pioneer in the area of digital solutions for its customers and for the transport sector as a whole. Of course, Scania One is compatible with the underlying RIO-platform, which also serves as the base for RIO applications. This ensures that Scania customers can access the wide range of services available on the RIO platform. By IAA 2018, MAN also plans to substantially expand its range of tailored digital solutions for MAN customers, providing access from the outset to the RIO platform and RIO applications based on it. In progress: universal interconnection of all players As a general rule, the brands of MAN, Scania, and RIO work in a tightly integrated network with the aim of digitally interlinking hundreds of thousands of vehicles in the future and making it possible, for the first time ever, for data to be exchanged comprehensively and across all brands from vehicle to vehicle, including access to further-reaching services. In other words, an open, cloud-based platform is being created for the entire transportation industry, the key feature of which, according to CTO Anders Nielsen, is: Our digital platform universally interconnects all brands and modes of transport, and all players along the entire logistics chain. Seite 4 von 5

5 Volkswagen Truck & Bus GmbH is a wholly-owned subsidiary of Volkswagen AG and a leading commercial vehicle manufacturer worldwide with its MAN, Scania, and Volkswagen Caminhões e Ônibus, and RIO brands. In 2016, Volkswagen Truck & Bus GmbH s brands sold around 184,000 vehicles in total. Its offering comprises light-duty commercial vehicles, trucks, and buses which are produced at 25 sites in 17 countries. The Company had a workforce of around 77,000 worldwide across its commercial vehicle brands as of Saturday, December 31, The Group seeks to realign the transportation system through its products, its services, and as a partner for its customers. Contact: Volkswagen Truck & Bus GmbH Julia Kroeber-Riel Head of Corporate Communications & Governmental Affairs Tel.: julia.kroeber-riel@vwtb.com Volkswagen Truck & Bus GmbH Dr. Alexander Baer Business Communications Tel.: alexander.baer@vwtb.com Seite 5 von 5