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Covisint Study: Auto Industry Reaching "Tipping Point of Demand" for Connected Vehicle Technology

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--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 ownership period.
  • 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 lifecycle.

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 it provides the kind of engaging information experiences that people everywhere have come to expect. Learn more at www.covisint.com.

Compuware Corporation

Compuware Corporation, the technology performance company, provides software, experts and best practices to ensure technology works well and delivers value. Compuware solutions make the world's most important technologies perform at their best for leading organizations worldwide, including 46 of the top 50 Fortune 500 companies and 12 of the top 20 most visited U.S. web sites. Learn more at: http://www.compuware.com.

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Doug Anter, Public Relations Manager, Covisint, danter@covisint.com, 313-227-0127

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