BMW Group ITRC May 29, 2008 Page 1 Collaborative innovation between Automotive and IT industry. Dr. Joachim G. Taiber Information Technology Research Center

BMW GroupITRCMay 29, 2008Page 1

Collaborative innovation between Automotive and IT industry.

Dr. Joachim G. TaiberInformation Technology Research Center


BMW Group.Innovative brands.


Innovation by IT.IT is an innovation factor both in the vehicle and in automotive business processes.


The digital lifestyle.IT is impacting our personal and business lifestyle.


The traditional Automotive supply chain.Is part oriented and IT is used to optimize the supply chain processes.

Source: Activplant


The new Automotive supply chain.Is used to deliver software, IT services and digital content to the “connected vehicle”.

The “connected vehicle”

Location basedservices

TelediagnosticsAccess to corporate data and applications/services in the corporate network

Mobile payment for digital content, software and IT services

Access to private data/applications/services in the home network

Access to public data/application/services in an personalized rendering format in the cloud


The new role of the enterprise IT.The enterprise IT becomes a critical element in delivering services to the “connected vehicle” The “connected

vehicle”

Enterprise IT as “corporate cloud”

Connected devicesHomenetwork as

“private cloud”WWW as

“public cloud”

Access to corporate IT services (vehicle diagnostics, customer data, hosted services for the customer, provider of trusted digital content and software, vehicle related data)

Access to vehicle systems and onboard information

Access to driver specific data and device-specific applications and services


The new innovation partnership.Business and IT as innovation partners.

Source: Gartner


BMW Group‘s approach to innovate via IT.Active Innovation Management (AIM).

The main goals of AIM are:

• To identify co-related business and IT innovations at an early stage

• To assess the potential of these innovations in close collaboration between business and IT

• To assign innovation projects to suitable research locations

• To transfer innovations to working solutions in the business


Active Innovation Management.Key issues addressed by AIM.

AIM is trying to reach the main goals by:

• Implementing cross-functional IT scouting

• Cooperation with innovative IT companies

• Defining IT research focus areas

• Bundling resources to work on IT innovations


The Information Technology Research Center. ITRC is used as a location for AIM.

IT data center

IT research facility


BMW Group‘s innovation network in the USA.The ITRC is the latest node in the innovation network.

Technology Office

Palo Alto

Technology Office

Palo Alto

Design Works

Newbury Park

Design Works

Newbury Park

ITRCGreenville

ITRCGreenville


The BMW plant.The ITRC is located close to the BMW plant.


BMW‘s partnership with Clemson University.The International Center of Automotive Research (Groundbreaking in 2003).


BMW‘s partnership with Clemson University.The ITRC was the first building on ICAR (2005).

15min to plant (W10)

I-85

ICAR: International Center of Automotive Research


BMW‘s footprint on ICAR.ITRC and Graduate Engineering Center (GEC).

Quelle: CU-ICAR

ITRC

GEC


The challenge in 2005.Establish the ITRC as innovation platform both for business & IT.

ITRC

GEC

2005

Build the network,fill the project pipeline, prepare operations, test concept with smallprojects

2006

Implement projects, start offering research services, negotiate research partner agreements, positionITRC

2007

Transition from start-up phase intooperational mode,settle framework &processes

2008 ff

Establish the ITRC aspermanent innovation platform for Business & IT within the BMW Group organization

Excellent relation-ship with Clemson

Respected project partner of Business& IT within BMW

1st class addressfor IT industry to

work with


Bridging the worldsof Automotive Engineering

and Information Technology

Let BMW Group leverage onthe powerful and innovativeNorth American IT industry

Strengthen BMW Group’scapability to work cross-

functionally and distributed

Increase the agility of the business and IT by doing joint

research with IT vendors

Support the convergence ofVehicle IT and Business IT

Help ICAR to get a world-classplayer both in academia and

industry

ITRC

Driven by BMW Group’sbusiness needs

Driven by academia’sresearch interests

Driven by IT supplier’sinnovations

Driven by short- tomidterm implementation opportunities (1-3 years)

The Information Technology Research Center.What is the value contribution of the ITRC?


IT Research Office

Identifies, helps initialize andsupports ITRC projects and integrates project partners

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IT partner companies*

AIM focus areas

*current list of partnerships in IT research includes Apple, CA, Cisco, HP, IBM, Intel, MS, Oracle, SAP, Sprint

The Information Technology Research Center.A US-based IT innovation platform.


Active Innovation Management.IT research areas.

• Emerging technologies & trends• Data management• Collaboration• Car2infrastructure• High Performance Computing• Security & Privacy• Portals & site technology• Virtualization including servers & storage• Mobile & wireless technologies• Media & communication• Consumer electronics & entertainment


Primary benefits for ITRC partner

Early involvement in research and build project activities of strategic relevance

Improved involvement of the US R&D and project service organization by assigningUS-based key experts to ITRC projects

Lower project cost due to US locationversus overseas engagement

Use of the ITRC as communication platformfor IT innovation

Primary benefits for BMW Group

Improved access to key knowledge by working with US-based IT companies on US ground

Acceleration of adoption of new IT methodsand standards into the BMW Group

Local availability of BMW business and IT know-how

Better use of joint project funding opportunities in key technology areas

Key success factors

– Strong focus on concrete projects that bring tangible value to the business (no high level research)

– Apply professional project management methods (project reporting/tracking/monitoring)

– Secure sponsoring & commitment of senior management to support project initiatives and allocate resources

– Develop a solid framework of templates where legal and procurement issues are properly addressed

The Information Technology Research Center. Mutual benefits & key success factors in a collaborative research approach.


University & IT Partner

Resources

University & IT Partner

Resources

Research Associatesincl. PhD

Research Associatesincl. PhD

Management Team

Management Team

The ITRC model.Team & project structures.


User Help Function | UMPC and Mac

Crion Table/Collaboard vPro for Enterprise Management SAP on Intel (Windows and Linux) Server Virtualization Integration of 802.11n in the

BMW infrastructure WiMAX Communication “B2V”

Doing Proofs of Concept (PoC‘s) is a key service at the ITRC.Examples.


• The Automotive ecosystem will change – by bringing IT services to an “always on” vehicle requires a new supply chain of IT service providers, IT application providers and IT content providers

• By providing IT services to the customer in the vehicle new business models and revenue streams can be realized

• The role of the Enterprise IT is to make sure that the IT services are delivered to the connected vehicle in a reliable, robust and secure manner

The role of IT in re-inventing the Automotive business model. Connecting IT services to the vehicle.


Imprint

BMW Group

Communication BMW Group IT

80788 München

Reproduction, even in parts, must be approved by

Bayerische Motorenwerke Aktiengesellschaft, München

©2008 Bayerische Motorenwerke Gesellschaft

Thank you for your attention.

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BMW Group ITRC May 29, 2008 Page 1 Collaborative innovation between Automotive and IT industry. Dr. Joachim G. Taiber Information Technology Research Center