Providers of traditional telematics services are facing an increasingly commoditised market. Transition to offering big-data systems could provide a way out of cut-throat competition, but this will require a major restructuring of their marketing approach - and indeed mentality - as well as investments in new capabilities.
Systems for analysing 'big data' would seem to be the way forward
'Telematics' - capturing and transmitting real-time operational data from business operation - includes everything from basic vehicle tracking solutions to complex fleet management systems (FMS), including insurance, optimisation and driver/operator performance management. As technologies are evolving and costs declining substantially, telematics is penetrating into many markets and industries. Most companies, whether they have already adopted basic tracking systems or not seem convinced of the benefits of collecting operational data.
But basic telematics is increasingly becoming a commodity which other companies, such as telecommunications providers, can also offer. Providers of telematics systems will therefore need to tap into new sources of value creation. Systems for analysing 'big data' would seem to be the way forward, but these make a hard sell, as we found in an international study on 'telematics' which we recently conducted.