Monetizing Car Data: A Literature Review on Data-Driven Business Models in the Connected Car Domain

Abstract

The amount of data generated by a single modern vehicle is exploding.Consequently, the entire global automotive industry is facing the question of how to monetize this valuable data. Triggered by the connectivity trend, data-driven business models disrupt the automotive ecosystem by changing mobility behavior, proliferation of technical enablers, new strategic collaborations, and shifting revenue streams.In this study, we analyze the existing body of literature on data-driven business models in the connected car domain and structure it according to four dimensions-value proposition, value architecture, value network, and value finance.Thereby, we contribute to the business model research by providing a comprehensive overview and categorization of existing works in this area and laying the foundation for future research.

BMW Addresses Business and Financial Implications for Long-Term Sustainable Growth Based on a Competitive Value Approach

“…This decrease reflects the trend seen in operating profit margin and gross profit margin. This is due to the fact that net profit margin is dependent on gross profit margin [17] (Fig. 4).…”

“…The greater the ratio, the more efficiently a firm uses its assets to generate net income, and the lower the ratio, the inefficiency of a business in creating net income. According to a review of BMW's financial performance, the return on assets ratio has been dropping since 2017, when it fell to 3.85% in 2018 from 3.88% in 2017, and then fell again in 2019 to 3.76% [18] (Fig. 5).…”

Introduction to the Minitrack on Qualitative Comparative Analysis in Business and Management Research

“…To harness the game-changing opportunities of this tremendously growing amount of data, not only original equipment manufacturers (OEMs) but also insurers, rental companies, and repair shops, among other players in the connected car ecosystem, seek to offer data-driven services (Sterk et al, 2022). In exploring car data monetizing, leading consultancies identified data-based fleet management as one of the industry's most impactful use cases (Arif et al, 2019;Carter et al, 2018).…”

“…Since car data marketplaces remain in their infancy and currently provide limited data, fleet management is a solid starting point for connected service design due to its high utility and manageable data requirements (Arif et al, 2019). However, scholars have scarcely touched on designing connected car or fleet services incorporating the concept of data marketplaces (Sterk et al, 2022). Hence, we pose the following research question: How to design a connected fleet management system in order to use car data from data marketplaces effectively?…”

A Survey of Federated Learning for Connected and Automated Vehicles

“…Robust network communication and significantly increased internet speed are expected to be guaranteed with the onset of advanced communication infrastructures. Currently, CAVs are generating a tremendous amount of raw data, up to one to two terabytes per vehicle per day [1] from various sources like engine components, electronic control units (ECU), perception sensors, and vehicleto-everything (V2X) communications. This large amount of data is sent to the cloud continuously or periodically for monitoring, prognostics, diagnostics, and connectivity features.…”