One trend we hear from the market is the challenge small and midsize organizations face in finding accessible, scalable fleet management software that works for their business across all powertrains, gas, hybrid, and electric inclusive. According to the U.S. Energy Information Administration, the global share of electric vehicles in a fleet is set to reach 31 percent by 2050. So, this challenge will continue in the years to come, especially as EVs become more widely adopted.
The reason? The market is awash with disintermediated software solutions, especially in the fleet management world. Many large companies don’t have this issue as they have bigger budgets that acquire these solutions tailored specifically to them, or their in-house IT teams create bespoke solutions fit specifically for their business. This offers larger businesses a significant advantage in terms of efficiency. Smaller organizations typically lack the depth of IT support to integrate and customize disparate software solutions – let alone the capital to do so – to create integrated solutions that make their businesses safer, greener, and more efficient.
This is why there’s increased pressure on software vendors and OEMs to provide integrated suites of fleet management solutions to all, from Main Street USA to the largest fleets.
Organizations of all sizes need a simpler, integrated platform to enable holistic vehicle management, efficient maintenance monitoring with proactive scheduling. and improved driver behaviors to help increase the safety of operators while lowering costs associated with fuel, downtime, or vehicle damage. A single platform can also enable organizations to consolidate the management of their larger fleet needs, including managing vehicles across all powertrains as noted, as well as connectivity to insurance, financing, charging, and electric vehicle optimization. Adopting an integrated platform is essential for all businesses – and it represents a first step toward competitive parity for small and midsize fleets.
Data Enhances Fleet Efficiency
Reaching the next level of efficiency and competitiveness is anyone’s game. As we’ve all heard, big data is the new oil that makes businesses run. One of the most critical applications of big data is the ability to reduce the total cost of ownership (TCO) and maximize the uptime of ICE vehicles and EVs.
Data helps organizations gain real-time insights into fleet operations to enable better decision-making and take proactive measures to ensure vehicles stay well maintained. Fleet managers are using data from connected vehicles to predict and prevent breakdowns in an incredible orchestration of activities that can drastically reduce vehicle downtime.
For example, let’s say my telematics system tells me I will soon need to replace a part in one of my vehicles. It will identify the exact part to be replaced and may also locate the part and have it shipped to my dealer. I can make an appointment with the dealer, where the vehicle will be off the road for a few hours or maybe a half day.
Contrast that to what typically happens, which is the late identification of an issue, taking the vehicle to the dealer, having them diagnose a problem, and then perhaps needing to order the part, waiting for the part, and then replacing it. This can take days instead of hours.
The Future of Connected Vehicles
Data will also play a crucial role in deriving added value from connected vehicles. Once we have millions of cars on the road equipped with telematics, the amount of data generated will be massive. We’ll be able to use the data to monitor aspects of the vehicle – such as temperature, location, and brakes – and the surrounding environment. Through high-speed 5G connections, vehicles could contribute information to a giant data lake that, when analyzed in real-time, could provide information about the road ahead, traffic patterns, and potential hazards.
For example, suppose multiple vehicles report the use of anti-lock brakes and traction-control systems around a specific corner in a cold-temperature climate. In that case, analytics could infer there might be a patch of black ice and instruct other vehicles to slow down and take the turn carefully.
Or perhaps a deep pothole triggers connected vehicles’ sensors. A city could purchase data related to road issues and send crews out to make repairs before the issue causes damage to vehicles or injuries to passengers. The sensors could also help fleets prevent damage to expensive vehicles. Connected vehicles will and are using prognostics to diagnose and alert of potential catastrophic failures ahead of time.
What Fleet Managers Should Do Now
To fully realize the benefit of connected vehicles, fleet managers must get their entire fleet connected. In the future, this will become easier as OEMs automatically embed modems in their vehicles. Companies like Ford Pro are already offering free solutions such as Ford Pro Telematics Essentials with their connected vehicles to help provide visibility into the health and performance of their vehicles.
The connected vehicle market is at a tipping point and is expected to grow rapidly in the coming years. This is good news for everyone: connected vehicles and integrated solutions can help small businesses achieve competitive parity, decrease costs through predictive maintenance, and apply analytics to reduce GHG emissions and maximize EV battery productivity to create a greener and more sustainable world.
David Prusinski is Global Chief Revenue Officer of Ford Pro Intelligence