COIN #11: Automotive Smart Connected Products as Life-Experience Ecosystems in a Co-Intelligence World
By Venkat Ramaswamy and Krishnan Narayanan
In a co-intelligence world, our experiences with products are undergoing profound transformation, reshaping how companies innovate, interact, and create value. Particularly in the automotive sector, cars have evolved from mechanical marvels to digital hubs; and now intelligence-on-wheels driving new ecosystems of innovation and sustainability.
The shift to CASE (Connected, Autonomous, Shared, Electric) mobility has positioned automotive firms as orchestrators of expansive offering ecosystems. These ecosystems aren't merely about advanced vehicles but about a comprehensive redefinition of the driving experience itself – personalized, adaptive, and continuously evolving.
BMW and GenAI: From Complexity to Clarity
Consider BMW's groundbreaking collaboration with Accenture on the GenAI platform EKHO (Enterprise Knowledge Harmonizer and Orchestrator). EKHO employs advanced Generative AI (GenAI) technology, capable of swiftly analyzing extensive enterprise data to generate actionable insights. BMW dealerships traditionally faced complexity, navigating nearly ten million potential vehicle configurations. EKHO revolutionizes this process, enhancing salesperson productivity by 30-40% by intelligently assisting them in real-time configuration decisions. Such tools epitomize co-intelligence by blending human expertise with AI to deliver outstanding personalized customer experiences.
Mercedes-Benz: Leading Co-Intelligent Innovation
Mercedes-Benz exemplifies co-intelligence with the development of MB.OS, its custom operating system designed to elevate the digital experience of its vehicles. CEO Ola Källenius encapsulates the vision succinctly:
" We are the architects of MB.OS. It means we specify, we design, we develop this whole operating system, but we also procure and partner . . . one-to-one relationship with the customer. . . the car knows you; we use data to improve the experience for the customer... over-the-air (OTA) upgradability - the product doesn’t get old, it actually gets better over time.”
The MB.OS integrates groundbreaking technologies including NVIDIA's powerful DRIVE Orin system-on-chip, analyzing data from sophisticated sensors like Luminar's LiDAR. This enables advanced driver-assistance systems (ADAS) and real-time infotainment experiences using Google Maps Platform. Soon, Mercedes-Benz drivers will interact with immersive 3D navigation maps directly on their MBUX dashboards, enhancing journey clarity and engagement.
Mercedes-Benz further underscores its commitment to co-intelligence by shifting from complete reliance on Tier 1 suppliers to an open, collaborative model emphasizing co-development and standardization. This new approach enhances efficiency and flexibility, allowing incremental innovation without reinventing entire systems.
Enterprise-Wide AI Integration: Beyond the Dashboard
Beyond vehicular technology, Mercedes-Benz has embraced AI deeply within its organizational processes and production environments. Katrin Lehmann, CIO of Mercedes-Benz, notes the complexity of managing a sprawling IT ecosystem comprising over 10,000 applications and 1,200 SAP systems. To streamline this, Mercedes implemented LeanIX, categorizing systems strategically through a transformative methodology (transform, invest, migrate, eliminate). This rigorous approach has accelerated Mercedes-Benz's digital evolution through SAP’s RISE initiative, enhancing agility, innovation, and operational excellence.
AI plays a pivotal role in this journey, pervading the enterprise from engineering teams leveraging GitHub Copilot to operational departments harnessing SAP's Joule AI suite. For example, Mercedes-Benz's own version of ChatGPT, called MRS GPT, significantly aids problem-solving across diverse areas including finance, human resources, and manufacturing. Natural language interfaces empower plant workers to efficiently address quality concerns, exemplifying co-intelligence through accessible, AI-powered collaboration.
Factory 56: A Digital Twin Revolution
At Factory 56 in Sindelfingen, Germany, Mercedes-Benz employs digital twin technology, epitomizing co-intelligence in manufacturing. Microsoft's industrial metaverse collaboration enables simultaneous production of both traditional (S-Class Maybach) and electric vehicles (EQS) on the same production line. Judson Althoff, EVP at Microsoft, highlights this digital twin capability as transformative, achieving unprecedented harmony between human and machine operations, significantly reducing the carbon footprint traditionally associated with new factory builds.
Towards a Sustainable, Co-Intelligent Future
Mercedes-Benz’s holistic adoption of AI and strategic IT transformations illustrates a broader industry trend. Smart connected products, from vehicles to home devices, embody dynamic digital ecosystems capable of continuous learning and adaptation. By embracing co-intelligence, companies aren't merely enhancing their products; they are fundamentally transforming their relationships with customers, employees, and the environment.
The automotive sector stands as a powerful example: vehicles evolving into intelligent companions, factories becoming agile digital ecosystems, and organizational cultures embracing co-creative innovation. Smart connected products, powered by co-intelligence, aren’t just driving industry evolution – they are actively shaping our collective future, redefining life-experience ecosystems, and co-creating sustainable wellbeing impacts in our interconnected world.