Creating smart cities and digital workplaces means connecting infrastructure and digitizing transport systems, particularly in the taxi industry. Can you imagine what South Africa roads would looks like in 10-years-time, if taxis were connected?
According to Statistics SA’s 2013 Household Survey, taxi operators transport over 15 million commuters daily. Around 200,000 minibus taxis, across 2 600 taxi ranks, provide the main mode of transport for 50% of SA’s population earning less than R3 000 per month.
The impact of the taxi industry on the daily lives of South Africans is huge, research by Transaction Capital, a financial services provider in the taxi industry revealed. An estimated 70% of people who attend educational institutions make use of taxis, 69% of all South African households use taxis in their transport mix, and a staggering 68% of all public transport trips to work are in taxis. Plus, minibus taxis reach remote places other forms of public transport don’t – the average South African lives within a 5-minute walk of a minibus taxi.
Sadly, the industry is still faced with challenges when it comes to road congestion, accidents and safety, and with drivers often forced by financial needs to work long hours. But a future where taxis can operate efficiently and profitably, while improving safety and providing a more convenient customer and employee experience, is possible. But it requires a digital business transformation.
Our cities need to start connecting infrastructure and piloting these digital experiences now. Globally, there will be 380 million connected vehicles on the roads by 2020, but that is only half the battle. The first step toward making the frictionless commute a reality is for local governments to begin investing in technology architectures and physical infrastructure to accelerate connected transportation systems and create workplace innovation.
On the strategic side, transportation officials can begin by identifying best practice. It is best to first pinpoint a problem that is unique to a city or region. For example, a city with notorious traffic congestion might want to start integrating smart sensors on roadways to alert drivers and connected vehicles in real-time of potential hazards, and possibly prevent accidents before they happen.
How would that look in practice? Let’s take the example of Sipho Ngwenya, a fictional character, from Zola in Soweto, one of the 600 000 people employed in the industry.
He gets up at 4am everyday to get to the taxi rank where he parks his mini bus overnight. Sipho hopes to be one of the first drivers there to ensure he fills his taxi with commuters, who travel to the northern suburbs of Johannesburg for work and school.
The earlier he starts transporting people, the better chance he has of generating the daily “rental fee” he pays his boss – the owner of the minibus. If Sipho is even 10 minutes late, the queue of people at the rank may have halved. If his taxi is the last one in the queue, it may not fill up, and he may need to drive around the block to find more commuters. The delay means longer hours for him, his conductor-cum-assistant (guardjie) will have to spend more time calculating and collecting fares, and it will increase his costs – he’ll spend more money on fuel.
Fast forward six-months later, when the Joburg metro area would have implemented the Cisco Connected Mass Transit technology solution to connect the taxi industry. Sipho’s alarm goes off at 4am. He grabs his phone and logs onto the Cisco platform before he jumps out of bed: the weather is clear but there’s been an accident overnight on his route to the rank – he’ll have to take a detour. He checks once again just as he leaves home, and sees that he has time to grab breakfast on his way.
He is the first driver to arrive at the rank that morning – stress-free and ready to start. The rest of the minibuses are stuck behind the accident. He loads commuters and manages to get all of them to their destinations 10 minutes early, by checking the best routes. Payments are no longer collected in person – there is now an easy mobile payment option that customers love, especially the young ones. And Sipho no longer needs to search for commuters – they stop his minibus on the road because it is marked as a ‘connected minibus’. This is a smart workplace.
These digital solutions are real and available to the SA taxi world. There are some caveats, though: Cisco’s international experience shows that these solutions are best implemented alongside awareness campaigns for commuters and government incentives to drive adoption, as well as ensuring the regulatory environment is conducive. Luckily, technology itself isn’t too much of a problem: the solutions work with existing IT systems local governments have installed.
Imagine South Africa in a decade. Now imagine a South Africa where traffic congestion is a thing of the past.
Are you playing auto roulette with smart car devices?
Kaspersky analysed aftermarket connected smart car devices, and made a pleasant discovery
There are currently two ways for car enthusiasts to obtain a connected vehicle – purchase a ‘smart by design’ car from a dealer, or improve their existing car with a number of additional ‘smart-devices’. While both scenarios create a greater driving experience, smart technology also represents a brand new area for malicious use, as the media and Kaspersky’s own research has repeatedly shown. This is inevitable – when a piece of technology becomes essential, related security issues tend to increase.
With this in mind, Kaspersky researchers set out to discover whether these reports on the security of IoT devices had any impact on manufacturers of smart devices for the automotive industry. The researchers analysed several randomly selected devices, including an OBD dongle scanning tool, a tyre pressure and temperature monitoring system, a smart alarm system, a GPS tracker, and an app-controlled dashcam.
The findings were a pleasant surprise: while the IoT industry has often been considered vulnerable, these automotive-related smart and connected devices proved to be quite secure, with no major vulnerabilities exposed. However, several security issues were also revealed: the ability to remotely access driving dynamics data via a scanning toll, the option to manipulate signals from the tire monitoring system, and, most alarmingly, the ability to open vehicle doors using the alarm system. However, all of these elements are either very hard to implement or bring no obvious or immediate outcome for a criminal.
“The devices we examined met many security policies and were satisfactory, with the exception of a few small issues. This is partly due to the limited functionality of these devices and the lack of serious consequences in the event of a successful attack through these products – but also thanks to the vigilance of manufacturers. We were glad to see that they have invested their efforts into making these devices more secure, a good sign overall for the automotive industry. Yet, this is still not a reason to relax: based on our experience, the smarter the device, the higher the chances that security issues will occur. That is why security should be considered more closely in the early stages of product development, especially as a new generation of smart devices come to the market,” notes Victor Chebyshev, security expert at Kaspersky.
To keep smart automotive devices even more secure, we advise:
- When choosing which part of your vehicle you’re going to make a little bit smarter, first consider the security risks. Think twice if the device has something to do with the car telemetry or access to its ‘brains’.
- Before buying a device, search the internet for news of any vulnerabilities. It is likely that the device you are going to purchase has already been examined by security researchers and it is possible to find out whether any issues have been found in the device, or have already been patched.
- It is not always a great idea to buy the most recent products released on the market. Along with the standard bugs often found in new products, recently-launched devices might contain security issues that haven’t yet been discovered by security researchers. The best choice is to buy products that have already been worked on with several software updates.
- Always consider the security of the ‘mobile dimension’ of the device, especially if you have Android devices – applications are often helpful and make life easier, but once a smartphone is hit by malware, a lot can go wrong.
- To overcome the challenge of smart device cybersecurity, Kaspersky has invested in Kaspersky OS, widely used in customised manufacturing hardware and software. This system can be used across a variety of fields: on mobile devices and PCs, IOT devices, intelligent energy systems, industrial systems, telecommunications, and transportation systems. Kaspersky sees opportunities in the further development of KasperskyOS to meet the needs of our customers and ensure the highest levels of security can be achieved in all these fields, including the automotive industry. More information can be found here.
Read the full text of the report on Securelist.
How car-buying must change
The car-buying experience must innovate to evolve the automotive industry, writes TREVOR HILL, head of Audi South Africa
Our relationship with motor vehicles is a complex mix of emotional and rational decision making. Add to this, external influences such as longer product-retention cycles (up from five years to as much as seven years), a struggling economy and probably the greatest product choice in the market we have ever seen; there is a significant need for manufacturers to reinvent the car-buying experience.
So, while the “future of mobility” is evolving to enable new technologies such as autonomous vehicles, connectivity, electrification and shared mobility – it is necessary that there be a proportional shift in how we can innovate how these products are purchased or considered at the onset.
This trend is not new. As early as 2013, global consulting firm McKinsey published a report highlighting three key trends that would impact customer decisions and engagement on the retail end of the automotive industry. These included: an enhanced level of what it called “touchpoint management”, sales and service upgrades and the role of the traditional Dealership in the customer purchase and sales decision journey.
Fast forward to 2019. The challenge for automotive brands is how to deliver a personalised, digital service in an industry once solely reliant on bricks-and-mortar Dealerships and a hard-sell sales approach. In the premium segment, there is even more room for innovation around the Dealership experience to meet the demands of personalisation and technology while still delivering on fundamentals. This includes aspects like physically experiencing the vehicle before purchase, expert product advice and the personal customer experience that enhances long-term brand experience and loyalty.
Behaviour-driven thinking dictates how we reframe and design the customer experience of the future. As an automaker in the premium segment, we focus on three key principles of behavioural planning:
- The paradox of choice: Offering customers more choices is not always better, as we can trigger an unintended “paralysis of choice”. When we have too many options, the likelihood that we will make a decision is reduced. Given this, Audi has reviewed our options specification for new products entering our model range and will be developing specific packages around various customer needs. This allows for reduced complexity of choice and ease of ordering a new vehicle. This will be reflected on our digital platforms when configuring any of the new vehicles such as the Audi Q8 and upcoming Audi A1 and Q3. This simplification is the first step towards addressing how customers experience us as a brand.
- Availability: Creating opportunities for customers to assess choices through innovative and digital examples is a foundation of how we are slowly reinventing our Dealership experience. We are pioneering this by introducing the Customer Private Lounge (CPL) – one of a kind in South Africa and located at Audi Centre Centurion in Pretoria – that allows customers to build up their Audi using digital configuration and virtual-reality technology.
- Relativity: Customers are more likely to make decisions based on the context. While traditional Dealerships will remain key to the customer’s sales journey, Audi aims to connect new opportunities within this environment. This includes a combination of traditional selling (knowledgeable consultant, premium environment) and digitalisation (customisation, low need to carry extensive showroom stock).
The launch of the Audi Customer Private Lounge is the foundation of this latter effort. A recent Bain survey found that even web-savvy modern car buyers’ still make an average of 2.4 Dealer visits before making a purchase decision – underlining the critical importance of combining a relevant and unique Dealer retail experience when finalising a sale.
Another foundation of our retail experience effort effort is a 4000m2 Audi and Volkswagen Training Academy in Centurion, custom designed to continuously improve Dealer performance through training and skills development. Added to this is Audi’s global and digital initiative towards training – Audi Training Online. This is an online platform offering convenient learning for all Audi dealership employees around the world. Employees can access the portal at any time, from any location and easily upskill themselves on brand related topics, products, technologies and job related (technical and non-technical) subjects. Given the increasing technical complexity of our vehicles and new business and brand themes, a high level of knowledge and expertise is critical to ensure optimal customer satisfaction.
The evolution of training and customer experience is the first, necessary step to respond to today’s car-buying customers’ demand for a unique retail environment. As an industry, we need to respond to this opportunity sooner rather than later. This response must deliberately address the customer experience journey from information, to contact, to purchase, handover and to aftersales. This requires interventions in terms of personalisation, how we introduce opportunities for customers to be in control while still receiving expert guidance.
A more digital retail platform gives us a significant opportunity to better serve our customers through this journey. In the case of the CPL, a dedicated consultant, specially trained, takes the customer through the process of selecting the customised specification on their virtual-reality Audi, before they even encounter a salesperson. The CPL represents the first leg of Audi SA’s digitisation strategy. It’s progress in the retail realm, and a game changer for the automotive industry.
In future, automotive retail will require many new functions and roles to meet the demands of an omnichannel sales model. Building these new capabilities is a fascinating process, bringing in new skill and fundamentally refreshing the industry to benefit the most important stakeholder – the customer.