Analysis of open source business model and its consequences on the value chain of automotive industry based on Continentals AutoLinQ platform

Abstract

The internet usage in the car and the connectivity of the car to its environment is one of the emerging markets with a disproportionate growth potential within the automotive industry. This thesis elaborates the AutoLinQTM platform and business model on base of the preceding industry analysis. Starting with an analysis of the external development and Continental internal strategy the business environment of the platform is described. In the next step the methods used in this thesis are described, business cases and literature are selected to derive the appropriate use for the automotive industry. The prerequisites are listed and discussed to order the various methods, e.g. value net and five forces analysis. The business model analysis builds upon the industry forces. The two main aspects of the business model are further discussed, i.e. the selection of the open source licensing model and the applications using the AutoLinQTM platform. The detailed concept is developed in the next step following the same structure. Based on the identified influencing factors of the two overlapping industries, i.e. automotive and telecommunication, the business model is further discussed and several concepts are described as input for the prototyping phase. The business model from Continental for the platform is described as well. The comparison of both approaches identifies the strengths of Continental's AutoLinQTM business model. Additional ideas derived from the industry analysis and the different business models challenges the actual concept. Finally further improvements are discussed mainly in regard to the licensing model and the application selection for the ecosystem based on AutoLinQTM.