Upgrading the Auto Retail Experience with Industry 4.0 and 5G

Summary

There are a lot of use cases for 5G and private wireless in the context of factories and warehouses.  But there are untapped opportunities using private 5G networks for automotive retail.  

Car manufacturers, retailers and innovative services companies can utilize 5G and private wireless with its secure, high-bandwidth connectivity to explore new business models. It starts with a simple, secure, automated over-the-air (OTA) software update process via a private 5G network. 

The amount of software in cars continues to increase and with it the need for updates. Over-the-air (OTA) “anywhere” updates via public networks are already a technique used by auto manufacturers in diagnostics, navigation system updates, entertainment features –all non-critical software elements of a car. Yet, critical software in cars today still requires a visit to the dealer for secure, manual updates to prevent exposure of critical systems. Car buyers tolerate the effort to book appointments, drop off a car, get a rental/ride, and pick-up a “fixed” car. This is not a customer-centric relationship, it’s service-department centric, with “maintenance” as the customer reward. 

No one really “wins.” Statistics show a rise in software-related recalls, and manual updates are covered under warranties, costing automakers millions–or billions of Euros, not to mention costs to their brand.  

Let’s “re-call” the recall and look at alternatives with private 5G. It’s faster, benefits the retailer and buyer, and offers a positive brand experience.  With in-car authentication in place, software installations (including critical software) via a private 5G network can be enabled. Once this is done, software coding changes and procedures are set in place to bring factory functionality to other parts of the operation, including secure OTA updates. 

Instead of inflexible schedules and long service appointments, a car owner can stop by the dealer at their convenience for a short visit. While enjoying a cup of coffee in the dealer cafe or exploring the retail store, the car is updated seamlessly and securely. The customer drives off with a securely updated vehicle and the experience is transformed to a client-focused process with big benefits for the retailer. 

In addition to software recalls, OTA services could be used for maps, media, other maintenance or non-critical updates, where large bandwidth is needed. New options could be added by the customer and billed automatically for a touchless process.  The bandwidth is guaranteed, available, and higher than a public network. With upgrades happening at once, productivity, efficiency and shop use is improved. 

Besides a positive brand experience and optimized service department, the biggest value is the chance to reduce warranty budgets, and attract sales with add-on services–or new opportunities yet to be discovered. This is not a far-off proposal for futuristic space cars… the infrastructure and 5G technology solutions needed are available today.