The Internet of Things (IoT) has emerged as a revolutionary technology, and businesses from many different industries are embracing it, including the automotive industry. According to Gartner, 250 million connected vehicles will be on the road by 2020. Savvy automotive companies are capitalizing on the data generated to improve productivity, reduce operating costs, prevent vehicle accidents and automate processes.
Most automobiles manufactured since 1996 are equipped with an onboard diagnostics (OBD) port. Using the right device and cloud application, an OBD port will allow you to monitor the health of your vehicle, troubleshoot remotely, predict failures, monitor usage, improve fuel consumption, leverage new business models, and much more.
Companies can now collect more data, make intelligent decisions in real-time and rapidly come up with new business models thanks to the decreasing cost of sensors, network connectivity and advanced technology, including IoT, artificial intelligence, Big Data, blockchain, machine learning, etc. Here are four ways companies can leverage the IoT to create a connected fleet.
1. Equip vehicles with sensors
IoT-enabled sensors will allow your company to collect important data that can be used to track, monitor, analyze and maintain all moving assets, no matter where they are located.
2. Use sensor data to monitor the condition of vehicles
Sensors transmit data to a central intelligence location. This will enable you to keep track of the condition of your vehicles. For example, you can set up an alert if one of your tires becomes too low on pressure so you can address the issue before you have a major problem, such as a blow-out on the freeway.
3. Real-time data analytics
IoT and sensor data can help you do more than recognize problems; they can help you detect areas for improvement as well. For example, if you recognize a pattern that the batteries in the vehicles in your fleet are dying faster than expected, you can equip your vehicles with longer-lasting batteries.
4. Redesign business processes
The IoT can help your business optimize day-to-day operations and enable manufacturers and service providers to take advantage of new business models. This could include reducing emissions or enhancing delivery strategies. This could also include a connected fleet platform designed to help customers reduce maintenance costs and improve their driving experience.
Marsh & McLennan Agency (MMA) offers specially designed solutions and advice built on experience, industry knowledge and strong insurer relationships. To find out more about our comprehensive resources, industry-leading analytics, risk consulting expertise and specialized industry knowledge, contact us here.