Telematics
Telematics explained
The use of telematics is at the heart of IoT and m2m innovation. While telematics is a broad term, it became synonymous with fleet management systems. Since this is the field where telematics data is typically utilized. However, the beneficiaries of telematics data extend far beyond fleet managers.
History
The term telematics was first coined by Nora and Minc in 1978 as part of their technology development report to the prime minister, titled the Informatisation of society. It was derived from the words telecommunications and informatics. In commerce, the term has since then evolved to be mostly synonymous with vehicle telematics since it is mostly being applied in the automotive industry.
Various technological milestones, such as the inception of GPS, the internet and mobile phone networks, have played vital roles in the evolution of telematics. Some of these milestones include:
1960: GPS technology was introduced by the U.S. Department of Defense to be used for military applications during the cold war. The invention of GPS technology was inspired by a soviet spacecraft that launched in 1957.
The 1960s: The US Department of Defense’s creation of ARPANET (Advanced Research Projects Agency Network). The first network to implement TCP/IP protocols. These technologies became the technical foundation of the internet.
1968: Greek scientist and inventor T. Paraskevakos conceptualized machine-to-machine (M2M( while working on caller ID technology.
1978: The term Telematics was first coined by Simon Nora and Alain Minc
1988: EEC (Engineering Education and Centers) research programs were launched, that experimented with vehicle telematics. The objective is similar to many telematics applications of today: to improve road safety and efficiency.
1993: The U.S. government offers full GPS access to civilians. GPS technologies quickly reached the consumer market.
The 2000s: Web-based fleet management systems begin incorporating enterprise-wide use of telematics. Remote networks are being updated with real-time information, however tracking rates remain limited at only one or two updates per hour.
The mid-2000s: GPS-based navigations systems begin flooded the consumer market. Many car owners start to benefit from telematics.
The late 2000s: The quality (particularly speed and accuracy) of GPS tracking data increases as advancements in M2M and cloud technologies are made.
Present: The innovation of IoT and M2M further increase data management capabilities of telematics for both enterprises and end consumer.
Core components of telematics and areas of application
Any type of industry that relies on the internet or mobile phone networks might be e considered as utilizing telematics. Among many others, here are three areas of expertise, where telematics is commonly used:
Intelligent transportation systems
Sophisticated applications that provide innovative services encompassing various modes of transportation and traffic management to provide its users solutions, enabling a safer and more efficient use of transport networks. Most applications of IPS intend to increase the safety aspect of motor vehicle transport. One example of this is the eCall-system. The EU passed a law that requires car manufacturers to integrate eCall into all new cars. It assists motorists in case of a collision. The eCall is triggered either manually, by occupants or automatically by in-vehicle sensors after an accident.
Fleet management
The management of motor vehicles, aircraft, ships etc. Telematics systems provide diagnostic and tracking functions for fleet managers. They collect a wide range of data from fleets in real-time. By combining the data from the on-board computer and the vehicle tracking system, it is possible to create profiles for specific drivers of said vehicles. (e.g. breaks, choice of gears, average speed, etc.) This data can be used to increase a fleet’s efficiency and become aware of drivers with dangerous habits
Building automation
Building automation refers to a distributed control system, where sensors and devices are interconnected to a computer network that allows to monitor and control mechanical, safety and climate components of a building. The primary objectives of building automation are to optimize comfort for the building’s occupants, increase the efficiency of managing the building systems and reduce power consumption and operating costs.
Who benefits from telematics data?
Companies and end-users of the automotive, insurance and logistics industry seem to benefit the most from telematics data through intelligent transportation or fleet management systems.
Safety and Security for drivers
Telematics integrated into mobile apps allow drivers to gain insight on real-time performance and safety data of their vehicles. Automatically monitoring vital parameters, such as fuel consumption, oil and water, levels, tire pressure and potential malfunctions detected in the motor vehicle.
Theft alert assistance and automatic crash notification further increase drivers’ safety on a day-to-day basis.
Car companies
Lease companies, automotive manufacturers and fleet managers all benefit from telematics data. They are able to provide location-specific services even before customers become aware of them, thanks to real-time insight into vehicle diagnostics.
As an example: The vehicle detects a specific fault that requires replacement of individual parts. The necessary parts can be instantly ordered, and the car automatically directed to the nearest licensed garage for repair. In the future, product development of such components can be optimized, thanks to insights generated by large telematic data sets.
Car companies
Lease companies, automotive manufacturers and fleet managers all benefit from telematics data. They are able to provide location-specific services even before customers become aware of them, thanks to real-time insight into vehicle diagnostics.
As an example: The vehicle detects a specific fault that requires replacement of individual parts. The necessary parts can be instantly ordered, and the car automatically directed to the nearest licensed garage for repair. In the future, product development of such components can be optimized, thanks to insights generated by large telematic data sets.
Bus companies
Companies utilize telematics to attain valuable insights on driver behavior. Arriva is a UK bus company that installed telematics systems on 15000 buses in the UK to monitor driver performance, such as idling, braking, and accelerating. The objective here is to produce fuel consumption and cut up to 72000 tonnes of CO2 emissions.
Insurance providers
Insurance companies may benefit from telematics data in managing claims. Recently, black-box car insurance was able to thwart a fraudulent £55,000 claim using telematics data. A review of the driving data confirmed that no crash message has ever been recorded by the system.
Just like bus companies, these black-box insurances benefit greatly from driver performance data collected thanks to telematics. They monitor driving behavior, which is then factored in when calculating future premiums. Similar to how visiting the gym with a fitness tracker may reduce health insurance premiums.
Logistics companies
UPS is often considered the “king of M2M”. They have adopted m2m, telematics and IoT technologies early on and thus revolutionized their fleet. IoT sensors are installed on many UPS vehicles and generate 1.25 billion telematics data records every week. This data includes driver behavior, customer delivery information and other GPS-based information. The results of their IoT efforts: Saving almost one million gallons of fuel per year, faster delivery, and optimized utilization of resources.
References
https://www.gpsinsight.com/blog/what-is-telematics/
https://www.webopedia.com/TERM/T/telematics.html
https://www.verisk.com/insurance/visualize/looking-at-the-evolution-of-telematics/
https://www.nasa.gov/directorates/heo/scan/communications/policy/GPS_History.html
https://www.webfleet.com/en_gb/webfleet/blog/history-of-telematics/
https://www.lexalytics.com/lexablog/telematics-explained-cars-auto-insurance
https://www.edie.net/news/6/Arriva-inks-telematics-deal-to-slash-bus-emissions/