Telematics, big data and analytics are the three major avenues driving the automotive industry. In this article, we will see how big data analytics with the insights of information processing can help transform the automotive and transportation industries worldwide.
The future of telematics lies in big data.
Traditionally, most automotive and transportation companies have always analyzed and modeled specialized business processes based on the limited empirical data or contextual information available to them. Correct data were few and far between. Or even if the required data was available, the companies had little technological know-how with them to make all the information necessary for their use usable. It was quite a difficult task to deal with such a situation where companies relied heavily on traditional methods such as searching through previous driving records, including taking into account age and gender of individuals and local demographics, to determine the risk level for their Accurately predict customer base. This was somewhat arbitrary, cumbersome and unreliable.
With advanced Big Data analytics, access to vast amounts of information and the science of telematics is putting current understanding in a new light, providing new conversation starters and creating new potential outcomes not really possible before. “Big Data” as we know it is changing everything for the better. It’s changing how vehicles are built, how they work, how we use them, and how they interact with everything else in this world: from vehicle assembly to insurance underwriting to traffic modeling and route optimization, Big Data is changing the world of transportation Large scale auto/fleet transportation industry.
Big data analytics plays a very important role in telematics. The fact is, the science of telematics, which encompasses telecommunications and vehicle technologies, shows how big data analytics can improve supply chain management and fleet management, increase yield and drastically reduce material costs, not to mention the quality and safety issues, that never occur are compromised by appropriate big data analysis. In fact, leveraging relevant data directly leads to more opportunities. In this context, we will see how Big Data brings transformative elements to the various industrial sectors, especially insurance, finance, automotive, transportation and other sectors, and improves their business processes.
Telematics across the board
Telematics heralds an era of great change. The way vehicles are insured and how they are driven or repaired is changing for the better.
We’ve already seen that vehicle insurance and maintenance standards were based on some sort of guesswork and crude use of raw data that was available. But with the use of telematics, strong data evidence is available in a timely manner that can transform entire branches of commercial operations and change the driving behavior of drivers.
Thanks to telematics, the wealth of data that can be derived from vehicles can also be made available to the driver. This is also one of the major changes that telematics promises. As far as valid data is concerned, there are simple ways to access it immediately from the connected car, and this data can also be transmitted to the manufacturers or insurance companies. Therefore, when data is available and accessible to users, there will be a better understanding of how their vehicles are performing, ultimately leading to support for drivers to adopt good driving behaviors. Drivers have access to GPS-related data that informs them about their driving style, including real-time information on fuel consumption, speed limits, hard acceleration, braking, phone distraction, etc. All this useful information can not only affect their driving performance, but also can extend the life of their cars.
Driving innovation and continued growth for auto insurance
To give just one example, think of the insurance industry. With the great combination of telematics and big data analytics, insurance companies can improve their business processes to a degree that was not possible before.
Basically, the insurance industry is based on analytics and probability. Therefore, adequate access to accurate and detailed data identifying each customer’s lifestyle and risk is always in the insurance industry’s best interest. This is an area where telematics has added a whole host of significant value propositions that are of great importance to both insurance companies and their paying customers.
With telematics and big data analytics, insurance companies don’t have to resort to guesswork to set premiums for their customers. It has allowed insurers to reward policyholders who demonstrate good driving behavior and check their vehicle health stats with lower premiums and rebate offers, taking the guesswork out of the equation. This is nothing more than a big data approach to telematics insurance.
Telematics is a positive trendsetter and has grown exponentially in recent years. The positive impact it is having on businesses and consumers alike proves to be a win-win deal for everyone. And as far as telematics go, big data would also work hand in hand. Not only consumers, but also automobile manufacturers and service providers will benefit greatly from the combination of big data and telematics. And since the relationship is truly symbiotic, big data will be the future of telematics. Use big data and telematics on a grand scale!