As the automotive industry embraces the era of connectivity, telemetry data has emerged as a game changer for original equipment manufacturers (OEMs). While the technological complexity of telemetry data adds new challenges, such as ensuring data security and compliance with regulations, it also unlocks trillions of dollars in potential for manufacturers, with the promise of improving customer experiences, enhancing vehicle performance, and generating new revenue streams.
However, despite the transformative potential of connected vehicle data, the industry continues to struggle in meeting driver expectations for personalized experiences and enhanced service offerings. To stay competitive, OEMs must integrate data from all sources—vehicles, drivers, services, and retail—to deliver tailored experiences and offers. The key to unlocking these opportunities lies in a comprehensive data strategy.
1. Initial assessment and evaluation
The first step in unlocking the value of telemetry data for OEMs is to conduct a thorough strategic assessment of both risks and benefits. This assessment must prioritize regulatory compliance, ensuring that data collection practices align with local and global standards. Additionally, public perception plays a pivotal role; OEMs must build trust with customers by being transparent about how their data is collected and used. Any gaps in this process should be identified and addressed. Ethical concerns, such as data privacy and security, should also be top of mind, and any deficiencies should be noted during the evaluation stage, as mishandling these areas can lead to reputational damage and legal risks.
Once these foundations are in place, the next step is to evaluate the maturity of telemetry data. This evaluation helps OEMs identify redundancies, address scalability challenges, and assess the feasibility of various use cases.
2. Connected data strategy and management
After the initial assessment, OEMs must ensure appropriate data infrastructure and develop a comprehensive data strategy that aligns with their business goals. This step involves outlining low-risk, high-benefit use cases within the limits of the current infrastructure. Working with telemetry data requires a lifecycle approach that encompasses data strategy, data architecture, data engineering, and operations to ensure maximum value is derived from the data.
A comprehensive governance framework includes key elements such as data risk management, data discoverability, and data trustworthiness. These components cover critical processes like consent management, compliance, data lineage, and privacy. By implementing these measures, OEMs can ensure not only compliance but also build long-term trust with their customers.
3. Strategic use case development for OEMs
A focused approach to use case development is essential for accelerating time-to-value. By prioritizing high-impact use cases, OEMs can not only extract valuable insights from telemetry data but also ensure that future applications can be seamlessly integrated as technology and customer needs evolve. OEMs can explore key use cases in the following areas:
- Customer experience and safety: Telemetry data can significantly enhance both safety and convenience for drivers. Proactive maintenance alerts, real-time driver behavior analysis, and fatigue detection features can help prevent accidents and reduce vehicle downtime. These proactive insights not only improve the overall driving experience but also create a deeper connection between the customer and the brand.
- Dealership enablement: Sharing telemetry data with dealerships transforms aftersales services. Dealerships can use real-time data for remote diagnostics, offering personalized service bundles tailored to individual driving habits, or optimizing used car valuations based on actual vehicle performance.
- Data monetization: The commercial opportunities from connected vehicles are vast. OEMs can establish partnerships with insurers to develop usage-based insurance (UBI) models, where drivers are charged based on their driving behavior. Other potential partnerships include sharing real-time traffic data with navigation providers or working with urban planners to provide insights into traffic flow and infrastructure needs. However, transparency is key—OEMs must clearly communicate who is receiving the data, how it’s being used, and for what purpose.
Conclusion: A roadmap for success
As the automotive industry undergoes a profound transformation driven by connectivity and telematics, OEMs stand at the forefront of unlocking unprecedented value from telemetry data. To effectively navigate this evolving landscape, OEMs should invest in infrastructure to build scalable and secure data architecture that supports the increasing volume and complexity of telemetry data.
Furthermore, OEMs must embrace continuous improvement by regularly evaluating and refining data governance frameworks to ensure compliance with regulations and adapt to changing consumer expectations. Actively exploring and prioritizing innovative use cases that leverage telemetry data will allow OEMs to deliver personalized services and enhance vehicle performance. By taking these proactive steps, OEMs can meet the challenges posed by connected vehicles and lead the charge in shaping a safer, more efficient, and more customer-centric automotive future. The time to act is now embracing the potential of telemetry data will define the next era of automotive excellence.
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Nekhil Agrawal is analytics practice lead for the media and manufacturing practice at EXL, a leading data-and AI-led services, digital operations, and solutions company.
