Does the auto industry have business-model envy?

Many of the advances in automobile efficiency, performance and safety have been driven by software. And while cars may have a lot of embedded software in them, I never put them in the same category as my Smartphone (a mobile device).  But there’s been a spate of exciting developments that are about to revolutionize the automotive industry, and the mobile phone industry has played a significant role.

According to wikianswers.com, the average American spends about 2.5 hours per day driving. That’s a lot of time on our hands! Imagine how software innovations in our vehicles could impact the productivity of that time.  Want a glimpse at the future?  Picture the auto industry developed car-specific apps, just like the mobile industry did.  Talk about improving our driving experience!

One important milestone on the road to the next transportation revolution was the formation of the GENIVI Alliance which had its official launch in 2009.  GENIVI is an automotive and consumer electronics industry association driving the development and adoption of an open in-vehicle infotainment (IVI) reference platform.   It is embracing an open model to speed time to market, reduce development costs and, for consumers, provide apps!!  GENIVI members, like the auto industry at large, have seen the success of Android and Apple with developers and app stores, and look to unleash the same power and creativity of these open models for their “mobile devices.”

Business model envy?  You bet.  Especially when you think about how performance and mechanical design are core competencies of the big automakers but software and app development are not.  This chart from the GENIVI Alliance member meeting in Shanghai in November shows the value of moving to an open model.

And software and apps will be key.  I witnessed firsthand how even small software features can be the differentiating feature while recently helping my younger son buy his first car: Bluetooth support for his Smartphone to stream music was a must have and a key differentiator.  While it may be a bit difficult to imagine today, it’s pretty clear there will be app stores and perhaps thousands of apps available for your car in just a few short years. Everything from gas prices to road conditions will be right on your car’s dashboard.

Another recent development was the launch of The Linux Foundation’s Automotive Linux Summit (ALS). This new event is specifically for the automotive industry and the growing cross-industry ecosystem for solutions.  With the support of the Linux Foundation, the auto industry gets community support for Linux and open source, which will accelerate development beyond what groups like GENIVI can do on its own.

Software is at the heart of innovation in many industries. The automotive industry watched how an open developer model and platform revolutionized the mobile industry and they’re betting it will do the same for them.  Seems like a safe bet to me. What do you think?

(Note: Black Duck is a member of GENIVI )

(Image Copyright  GENIVI Alliance 2011)