What Future Does Telematics Hold for Diagnostic Companies?
By Charlie Gorman - November, 2013

Automotive telematics is such a broad field covering so many aspects of our daily lives, some of the information we want requires data from our vehicle and other information, not so much.  When you look at it, a lot of what telematics promises can already be done without data from the car.  Automotive telematics just takes what we already can get from a smart phone and moves it to a screen on the dashboard.  This is an important thing to understand because it means that much of what telematics entails is already being handled by companies better suited to those functions than traditional diagnostic companies, or car companies for that matter.  I do not see diagnostic companies offering a competitive product to Google maps for example.

This means that it is highly unlikely that diagnostic companies will be able to deliver complete telematics solutions to anyone on their own.  So what role will diagnostic companies play in the telematics space?

Traditionally Diagnostic companies provide tools and information to professionals engaged in repairing and maintaining vehicles.  These services are delivered in repair shops with the vehicle present.  Customers notice problems with their vehicles then seek professional help to correct the problem.  The vehicle is either driven or otherwise delivered to the point of diagnosis and repair. 

Telematics promises two changes to this scenario.  First, telematics can provide a new and improved method of determining what maintenance or repair is required.  Through telematics vehicles can notify motorists that a service is due, or something is wrong and needs attention.  It can also notify a motorist’s selected repair facility of the same information.  Second, telematics can provide a remote connection between a vehicle and a repair facility that will allow a technician to perform diagnostic routines on the vehicle without actually seeing it.  It’s kind of like the remote repair function that all windows computers have where you allow experts access to your computer and diagnose software issues from afar.

These are the telematics functions where ETI diagnostic companies can not only play a role, they can excel.  It is amazing to me how many telematics companies wrongly claim they provide telematics based diagnostics when they really know very little about it.   Diagnostics is much more than reporting codes with nondescript explanations and there are few telematics companies who have the expertise required to actually claim true diagnostic capability, especially in the aftermarket.

So clearly, diagnostic companies need to look upon themselves as expert app developers who can claim OEMs, telematics system providers, repair facilities and of course motorists as their potential customers.  Yes, motorists!  Telematics doesn’t really exist without motorist buy-in and diagnostics has to be tailored to their wants and needs.

OEMs develop diagnostics aimed at the needs of new car dealerships.  Aftermarket diagnostic companies develop diagnostics for a broader base of repair facilities and usually focus on older vehicles. Remote diagnostics ties these capabilities to the motorist.  This would be easier if the motorists were all the same, but they are not.  Motorists require different information depending on the demographic.  The information a do-it-your-self motorist wants is different from the information a retired couple wants.

All of this has to be taken into consideration as companies develop their presence in the telematics space.  They will need to go beyond their typical customer base and they will need to develop brand recognition beyond B2B all the way to the consumer.

To help in this effort ETI plans to conduct a marketing survey on telematics, specifically remote diagnostics.  Instead of surveying our usual suspects in the usual way, we need to take this survey to consumers and to do that we will have to change tactics. 

In the past we have used professional magazine email lists to distribute online surveys.  This won’t work with consumers, because we do not have access to consumer email lists.  And it won’t work for shop owners and technicians because the subject matter is too esoteric even for them.

The marketing committee has determined that the best way to conduct this survey is through the use of small focus groups.  The focus group model allows us to provide critical background information to the participants so that they know what the subject matter is.  Using a professional focus group company we will identify small groups of people who share a particular demographic, develop a set of questions and talking points and conduct interview sessions.   From the sessions we will develop a report that will then be shared with ETI members.

If this kind of effort interests you and you are an ETI member, please get involved in the Marketing Committee.  We can use your help in determining the demographic groupings and the questions we will ask each group.  Just email trishad@etools.org and ask to join the marketing Committee and we’ll get you signed up.

ETI member companies involved in diagnostics are used to dealing with repair facilities and OEMs.  With a few notable exceptions dealing with consumers is a new factor to be considered.  The aftermarket Telematics rallying cry states that the data a vehicle produces belongs to the motorist and this means that the motorist should make the decision regarding who is allowed access to it.  It sounds to me like this means that the motorist will make the decision regarding which telematics products will interface with their vehicles.

Follow us on Twitter | Find us on Facebook | Find us on Linked In
Copyright © 2013 Equipment and Tool Institute. All rights reserved.
Contact email: trishad@etools.org
You are receiving this message because either you or a friend opted you in at www.etools.org