The number of businesses investing in the Internet of Things (IoT) technology continues to grow. Harley-Davidson is one company that recognizes the benefits and has started to leverage IoT both internally as part of their manufacturing process and externally with the new H-D™ Connect service.
WTF? Isn’t this a motorcycle blog Mac? You lost me at that inter-web-thingy!
First off, lets set some context with a bit of IoT background:
The Internet of Things (IoT) is used across industries such as manufacturing, logistics, healthcare, agriculture, automotive and industrial markets. Think connected cars, smart buildings, smart homes and smart city grids. You’ve likely interacted already with internet-enabled appliances (refrigerators, washer/dryer, garage door openers), there are smart TV’s, there are wearable health trackers. Need more specifics? Think RING doorbells, NEST thermostats or Philips Hue lightbulbs. Just a few product examples that highlight IoT-based value creation.
The key point here is VALUE creation. It involves performing activities that increase the value of a company’s offering and encourage customer willingness to pay. That is the heart of any business model. Simply connecting a “thing” to the Internet isn’t enough—you must be able to ensure that the data generated by that thing can be leveraged to enable new business benefits. Whether that benefit is reducing your business’ costs or enhancing your customers’ experiences with new services, the systems chosen to power an IoT deployment must work reliably, be easy to manage, and help you get to real business.
That’s enough context. Let’s circle the discussion back to motorcycles.
You may not know, but Zero Motorcycles produced a prototype of its first electric motorcycle in 2006 and began marketing them in 2008. In 2013 the company produced a mobile app enabling communication with the motorcycle using Bluetooth; effectively using the Internet of Things (IoT) to connect owner, motorcycle, and service facility. The app allowed the rider to configure their motorcycle in a number of different ways. For example, it can be configured for a more energy efficient ride or for a higher performance ride using only the app. One of the rider benefits is that the app can also inform you of your current battery capacity as well as an estimation of how far you can travel on the charge.
In addition, the Zero Motorcycles can communicate directly to the manufacturer, dealer, or repair shop. Most vehicles today can communicate with the mechanic by being plugged into a computer, but it requires a trip to the garage. The Zero Motorcycle app allows the motorcycle to send that diagnostic information directly to the mechanic over the internet no matter where you are. If a rider experiences mechanical problems with the motorcycle, all they need do is to tap the help button located in the app. The information is transmitted and the rider can get troubleshooting advice on location as well as having the company schedule a service appointment if desired. Rather than taking days to get your motorcycle into a mechanic for diagnosis, it is all done in minutes.
Now lets chat about the new H-D™ Connect service; a cellular telematics control unit (TCU) that functions as an (LTE) enabled modem connecting the 2020 LiveWire™ and select 2020 Touring models to the cloud. It’s built on the IBM Cloud and launched earlier this week. The H-D Connect (a $12/month fee-based service – FREE 1st year) service remotely connects you to your motorcycle through the Harley-Davidson App on your smart phone. The fact that Harley-Davidson marketing boldly claims they “will lead the electrification of motorcycling”, is a stunning statement-of-hype when they basically imitated a 6-year old service from Zero Motorcycles!
H-D Connect uses built-in cellular (LTE) connectivity with the IBM Cloud, IBM artificial intelligence (AI), analytics and IoT to enhance the rider’s experience as well as keep the rider in the know with motorcycle status, notifications and alerts. The rider is always “plugged in”. Riders can check the battery charge status or the fuel level, available range, tire pressure (on TPMS-equipped models), ride mode (on equipped models), odometer, Infotainment software updates where applicable, and riding statistics. There is even a GPS-enabled stolen vehicle tracking feature that lets riders share the motorcycle location with law enforcement.
It’s been reported that Harley-Davidson used IoT sensors as far back as 2013 along with other applications to keep track of production on its manufacturing facility in York, Pa., and can complete a new motorcycle every 86 seconds. But, clearly Harley-Davidson’s desire to make money in the internet-connected space is not limited to physical motorcycle sales; other revenue streams become possible after the initial product sale, including value-added services, subscriptions, and apps, which over time might even exceed the initial purchase price of the motorcycle.
As more and more of our daily life is internet-connected and “recorded” by computers communicating with other computers, riders (myself included) have a legitimate concern about security. There’s been very little information made available from Harley-Davidson in regards to how they will ensure the privacy of both rider, their riding data and the motorcycle stats. How often are data logs taken from the motorcycle, streamed to the cloud and then reviewed, stored and archived? Is the data encoded in a proprietary format, is it encrypted and who can review the data? Does it require a double-top secret decoder? The LTE cellular link is ideal to connect the motorcycle and it’s sensors to the dealer and motor company, but it also seems fairly simple to obtain or review that data for evidence that might be used later against the rider.
Any new technology hooked up to the web has the potential to become a surveillance device, even if it’s original purpose was benign. Law enforcement “cartapping” or using “things” for surveillance has been possible for years, but maybe we should dwell on the benefits that we as a society can reap from this technology. The new H-D Connect service and Harley-Davidson’s Internet of Things (IoT) platform may provide a reduction in motorcycle fatalities, provide increased benefits of predictive driving in real-time and a more energy efficient future once we’re all inter-connected to smart city grids.
We’ll know soon enough if Harley-Davidson’s internet-connected motorcycles and services actually increase the value of the company’s offering and encourage customer willingness to pay more.
Additional Information:
How Many Turns in a Screw? Big Data Knows — WSJ Paywall
IoT Makes Motorcycles, Helmets Safer, Smarter — Information Week
Harley-Davidson to Redefine Riding with IBM Cloud — IBM PR
How Smart Connected Products Are Transforming Companies — Harvard Business Review
Photos courtesy of Bosch and Deloitte
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