Bill Russo to Speak at Future of Automotive & Steel Conference

Chongqing, China, November 17, 2015

Bill Russo of Gao Feng Advisory Company will be speaking on the topic “China Drives the Future of Automotive Innovation” at the Future of Automotive & Steel Conference in Chongqing, China on November 17, 2015.

He will also chair Day 2 of the conference.

Chongqing Steel Presentation Automotive Innovation Draft V5-Gaofeng_CN Microsoft PowerPoint, Today at 11.27.34 AM

China Drives the Future of Automotive Innovation

Gao Feng Insights Report, October 2015

We are pleased to share with you a report titled: China Drives the Future of Automotive Innovation.  This new report is the product of a collaboration between Gao Feng Advisory Company and our partners at Tech Mahindra.  Tech Mahindra is a specialist in digital transformation, consulting and business re-engineering solutions, and is is also amongst the Fab 50 companies in Asia as per the Forbes 2014 List.

For global automakers, China represents the greatest opportunity for growth in the 21st century.  Since 2009, China has been the world’s largest market by volume, and will likely surpass 25 million units in annual car sales in 2015.  Over the coming decades, we believe that China will remain the key battleground for dominance of the global auto industry.

However, this battle will not be waged using the conventional automotive technologies which have been refined over the past century.  We believe several driving forces, which are particularly evident China, have the potential to disrupt the status quo of the automotive industry:

  • The unique context of China’s urban transportation challenge, the highpenetration rate of mobile internet, combined with the rapid and aggressive introduction of alternative mobility and ownership concepts, are compressing the time needed to commercialize smart, connected car technology and related services.
  • The automotive value chain is being disrupted by non-traditional players as they enter and compete to deliver mobility solutions.  Disruptive new entrants are utilizing big data to draw insights about customers’ mobility patterns in order to address their “pain points” and offer new solutions for their mobility needs.  Such mobility needs are increasingly being met through on-demand and shared services versus individual ownership.

We believe that the confluence of these forces, along with rapid innovation to address “pain points” associated with mobility in the China context, are positioning China as the catalyst to drive the transformation of the business model and technological underpinnings of the global auto industry.  In this report, we highlight the six themes that are shaping the future of mobility, and describe the key features and functions of future automobiles.

We welcome your comments and feedback on our briefing paper or in general about our firm.  We would be glad to meet you in person to share our data and perspectives in a fuller manner.  Please let us know if you are interested in meeting and discussing directly how we can help you to operationalize these insights.

Thought leadership is core to what Gao Feng does.  We will, from time to time, share with you our latest thinking on business and management, especially as it relates to China and China’s role in the world.

Best Regards,

Bill Russo
Managing Director, Gao Feng Advisory Company
bill.russo@gaofengadv.com

Aloke Palsikar
Senior Vice President & Global Head, Manufacturing Vertical
Tech Mahindra, Ltd
aloke.palsikar@techmahindra.com

Tel: +86 10 5650 0676 (Beijing); +852 2588 3554 (Hong Kong); +86 21 5117 5853 (Shanghai)

BILL RUSSO TO CHAIR AUTOMOTIVE STEEL WORKSHOP IN BEIJING

Beijing, China, December 3, 2014

Gao Feng’s Managing Director and Auto Practice leader Bill Russo will chair a workshop on Life Cycle Analysis and Future Emissions Regulations, and will deliver an opening keynote speech titled “Towards a Green Automotive Industry.

Click here to see the workshop agenda:  LCA workshop Beijing_En & Chn

Mr. Russo and his colleagues at Gao Feng Advisory Company are experienced experts on doing business in China, and would be happy to develop a customized briefing on the industries or topics you view as critical to your business.

For further discussion, please contact:

Bill Russo
Managing Director,
Gao Feng Advisory Company
bill.russo@gaofengadv.com

Bill Russo to Speak on Green Mobility at Automotive Steel Conference

Pattaya, Thailand, November 6, 2014

In the context of a sustainable world and increasing environmental pressure from the government, green manufacturing has become a prerequisite for all industrial sectors to achieve sustainable development. Steel and automotive sectors are playing a critical role to support the sustainability of the entire society. Regulations on environmental protection are getting increasingly stringent to the two sectors. Facilitating collaboration between the two sectors is becoming an important item in the agenda of relevant government agencies, market players and research organizations.

Gao Feng’s Managing Director and Auto Practice leader Bill Russo will deliver a keynote speech titled “Towards a Green Automotive Industry:  A Collaboration Model to Accelerate China’s Green Mobility Efforts” at 10:05am on Thursday, November 6th.

Driving Steel_Conference Agenda

HOW CONNECTED MOBILITY TECHNOLOGY IS DRIVING THE FUTURE OF THE AUTOMOTIVE INDUSTRY – PART 2

This is the second article in this 2-part series

Four key trends of the connected car paradigm

The connected car is changing the way we perceive our driving experience. We have identified four key areas of connected car technology that are shaping the industry future, driving new business models and creating a new technology paradigm.

  1. Navigation and parking

While navigation technology has become a standard feature in premium vehicles, the interactivity with other drivers and users is becoming more common and it is expected to be a standard feature in new vehicle models. Start-ups such as Waze were a key driver for the mass adoption of social platforms by drivers and it could be suggested that they were the pioneers of the connected car revolution for the wider industry. Waze was recently sold to Google for over $1B and is being integrated into Google maps providing intelligent crowdsourced information to millions around the world. Connectivity is also changing the world of parking, with a number of start-ups using smart algorithms to predict parking behaviour in real time as well as providing availability maps for drivers and municipalities. One of the key challenges in both navigation and parking analytics is the monetization of these services and we can expect to see some business model innovation in this area.

  1. Vehicle analytics

In-vehicle analytics is also creating significant opportunities for technology players. Initially this technology was mostly being used for large fleets in commercial vehicles making it possible to manage driver performance and vehicle diagnostics in real time and helping improve fleet safety and reduce maintenance costs significantly.  The positioning of such an offering for the mass consumer market has not been established, but we can expect to see this technology impact the way we maintain and insure our cars as well as features for monitoring our own family driving patterns and behaviors.

  1. Wearables

Another important factor in the connected car paradigm is the use of wearable devices and the information extracted from them. These items can be expected to assist in creating additional connectivity and in the short term will allow for connectivity for drivers in non-connected cars. For example the use of smart glasses can provide access to augmented reality navigation prior to the installation of a HUD or virtualization projector. Using data from wearable and mobile devices will provide a wealth of personalized data and will allow the vehicle to become contextually aware and therefore respond to specific driver needs better.

  1. Driver safety and autonomous driving

In the world of sensors and driver safety we have seen companies using various technologies including laser, cameras, night vision and radars to create smart driver assistance and collision avoidance systems. While initially these systems have been used for parking assistance and collision warnings for premium models, we can expect mass adoption of these systems while gradually moving toward full autonomous driving. This area is likely to be heavily guided by regulation and government policy and we can expect the adoption of full autonomous driving to be gradual and limited to specific areas.

These four key trends are an indication of the wealth of opportunities in the connected mobility space, however, while connectivity provides multiple benefits, it is also a vulnerability to core vehicle systems through its multiple wireless entry points (RDS, GPS, cellular, IR, WiFi, etc.). As vehicles become ‘smarter’, all systems become interconnected via the vehicle CANbus providing direct access to critical vehicle systems. Most recently, there has been a significant amount of work conducted around understanding the future threats in this area from simple auto-theft to more advanced cyber terrorism. A number of automotive specific cyber firms have been setup in order to build up expertise for tackling such challenges and ultimately to provide us with vehicle firewalls and other cyber security mechanism.

Connectivity driving new players into the Auto industry

While vehicle connectivity has been relatively slow to enter the global auto sector, the Chinese auto industry has shown strong commitment and vision in this area. In fact, China has already made fundamental moves to ensure that it will be a global leader in the auto mobility paradigm.

The unique context of China’s urban transportation challenge, the high rate of adoption of mobile device connectivity, combined with the rapid and aggressive introduction of alternative mobility and ownership concepts will compress the time needed to commercialize smart, connected car technology and related services.

However, while China holds a tremendous ability to scale the manufacturing of its auto industry, its corporate structures lack the flexibility required for the development of new ‘out of the box’ technology and therefore it requires an external source of innovation to support this area of growth.

Prof Steven Spiegel of UCLA presented a model of ‘Importing Innovation’ from small innovative nations to large industrial superpowers. He presents the notion of economic complementarity between the US and small countries such as Israel, Singapore or Finland as drivers of ideas and innovation.

By way of example, Israel, dubbed the start-up nation, is known for its disproportional number of successful start-ups, doctors, scientists, engineers, registered patents and NASDAQ listed companies and could offer a unique development platform for major industrial countries such as the US or China. Israel’s experience in developing world class military technology combined with its leadership in mobile technology makes it a unique potential partner for the Chinese Auto industry in its quest for seamlessly integrating connectivity into cars.

Such collaborations could act as a powerful springboard for the Chinese industry in its path to establish global leadership in the auto industry.

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End of Part 2 (of 2)

Click here to read Part 1

For further discussion, please contact the authors:
Bill Russo
Managing Director,
Gao Feng Advisory Company
bill.russo@gaofengadv.com

Chee-Kiang Lim
Principal,
Gao Feng Advisory Company
ck.lim@gaofengadv.com

Guy Pross
Managing Partner,
31ºNorth Innovation Exchange
guy.pross@31degreesnorth.com 

Uri Kushnir
Managing Partner,
31ºNorth Innovation Exchange
uri.kushnir@31degreesnorth.com