January 17, 2012

Accenture Unveils ‘Connected Vehicle Integrated Solution’ to Help Manufacturers Meet Customer Demand for In-Vehicle Services – From Wi-Fi Access to Mobile Payments and Safety Devices

In-vehicle infotainment expected to boost revenues by up to $200 per vehicle per year

NEW YORK; Jan. 17, 2012 – Accenture ( NYSE: ACN) today unveiled an integrated solution for auto and truck manufacturers that will help them meet growing demand from consumers for in-vehicle technologies with capabilities ranging from wi-fi access to the ability to process mobile payments for parking, insurance and tolls. According to Accenture, the market for these technologies is expected to exceed $70 billion this year[1], with new research showing a growing demand for automated driver-assistance and traffic-avoidance technologies.

The Accenture Connected Vehicle Integrated Solution (ACVIS) helps original equipment manufacturers (OEMs) design and integrate technologies such as on-board devices, telematics and mobile connectivity – the next generation of in-vehicle technologies – which Accenture terms the “Connected Vehicle.”

The solution combines Accenture’s deep automotive industry knowledge and mobility services expertise with technology experience in a single solution. As they seek to provide buyers with the latest in-vehicle infotainment (IVI) services, OEMs face a challenge in meeting complex integration requirements across a broad range of technologies. Increasingly, buyers are demanding streamed audio and video, live navigation systems, safety devices, location-based advertising and personalized services as well as the ability to make mobile payments for auto-related expenditures and wi-fi access for their portable devices.

Accenture estimates that IVI could give OEMs up to $200 in added revenues per car in mature markets every year as drivers and passengers increase their use of the new technologies. While IVI penetration is currently minimal in low- and medium-priced cars, Accenture research indicates that the new technologies will grow among all segments of the automotive market in the near future, approaching nearly complete penetration among luxury and other high-priced vehicles. The challenge for vehicle manufacturers will be to maximize sales by incorporating the right technologies into the appropriate vehicle price range.

“We see major but separate trends emerging for embedded and stand-alone in-vehicle solutions because there will be a seamless integration between on-board services and connected vehicle services,” said Marcello Tamietti, managing director of Accenture’s Connected Vehicle group. “Most of the automotive manufacturers have capabilities in the area of info-mobility, such as navigation, but they are still developing commerce capabilities. The next generation of IVI and telematics applications and services is evolving rapidly. We expect to see a significant increase in products and services for in-vehicle communications, entertainment and commerce, as well as safety capabilities.”

The ACVIS is currently being deployed by one large global car maker. The client is working with Accenture to help integrate technology and the back-end solution for online billing and order management services as part of its plans to include the latest in-vehicle technologies across its product range.

Part of the work involves leveraging Accenture’s new solution to provide back-end integration and the migration strategy for legacy data, as well as supporting the rollout of the technologies in all key markets for this global brand.

The Accenture Connected Vehicle Integrated Solution can also help OEMs integrate:

The new solution can also help deliver predictive maintenance capabilities by providing the technology platform needed for real-time status reports from vehicles. This allows scheduled services to be brought forward or postponed, as appropriate.

Accenture believes that in the near future, the next wave of enhanced and connected in-vehicle services will provide multiple services rather than a single ‘killer app.” Open platforms allow access to several new opportunities. Organizations that use ACVIS can draw on management consulting services to design business and related processes needed, software solutions for mobile technology both inside the vehicle and from the cloud, system integration expertise, analytics engines and business process outsourcing services.

“The connected vehicle has emerged as a key area for investment as customer needs converge with vehicle functions enabled by new technologies,” said Luca Mentuccia, global managing director of Accenture’s Automotive Industry Group. “Drivers want services that are eco-friendly and that improve security, safety and comfort. The industry is looking to provide the next generation of services that draw on cloud and full internet capability.”

Learn more about the Accenture Automotive Group and the Accenture Mobility Services Group..

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with more than 244,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$25.5 billion for the fiscal year ended Aug. 31, 2011. Its home page is www.accenture.com.

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[1] Perspectives on In-Vehicle Infotainment Systems and Telematics, Copyright © 2011 Accenture

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