Cloud Computing For Automotive: Take Advantage of Cloud Benefits To Simplify Business Processes and Reduce Costs

IBM Global Business Services
Thought Leadership White Paper

Automotive
Cloud computing for automotive
Take advantage of cloud benefits to simplify business processes and reduce costs
2 Cloud computing for automotive
Executive summary
The automotive industry is focused on making the most of
global operations, globalizing products and brands and changing
the mix of capabilities, knowledge and assets. The idea of using
cloud-based services in the automotive industry is inspiring
innovations in vehicle design, manufacturing, marketing and
sales. But as automotive companies add new capabilities and
enter new market segments, they face increasing challenges
related to the ever-growing barriers of time, cost and risk in
aligning IT and business goals.
In this dynamic new age, the time has come for a new breed of
systems. The key to success in the future will be systems with
integrated expertise that are built for cloud. This white paper
addresses two fundamental questions related to cloud technology
for automotive companies that want to take a proactive
approach.
1. What is the best way to explore cloud computing technology
that delivers the functions necessary to improve efficiency,
reduce cost or produce new capabilities?
2. Which applications, services and technologies should be
considered for development and deployment within the cloud
to meet the goals of the extended automotive enterprise?
One of the key findings of this paper is that many mature
technologies and best practices are already available that can
be readily deployed using cloud computing.

Automotive industry trends
To be successful, automotive companies need to work effectively
internally and throughout their value chain to make the best
use of relevant cloud technologies. Industry boundaries are
vanishing and automotive companies need to be comfortable
in a new environment that includes interdependent partnerships
both within the traditional industry and throughout other
industries as well.
The global manufacturing industry faces an urgent need to
deploy complex design, development and production systems
to diverse locations to keep up with the competition and address
changes in market demands. To better meet their needs, many
organizations are looking at cloud technology to build an agile,
global engineering environment. The move to cloud technology
is driven by four shifts:

The desire for more self-service, personalized and
instant access to IT

The changing economics of computing

The need to accelerate delivery of higher value products
and services

The globalization of dynamic value chains, which requires
new business models
While automotive companies continue to work to reduce risks
and costs, they are considering global work sharing for design
and development and collaboration for efficient product
development in their worldwide supplier network. Through
online communities, social networks and vehicle connectivity
provided by cloud technologies, the automotive industry will
also be able to form closer relationships with the consumer.
The convergence of these previously disparate industries with
the consumer represents a new world that every successful
automotive company must learn to embrace.
3 IBM Global Business Services
Connected vehicles and the Smarter Planet vision
The IBM Smarter Planet initiative describes how todays
instrumented, interconnected and intelligent technologies are
changing the way the world works. It relates to the systems
and processes that enable physical goods to be developed,
manufactured, bought and sold along with the services that
are delivered.
The vehicle of 2020 will be a core element of a Smarter Planet.
The vehicle of the future will be a communications wonder and
as yet another node on the Internet cloud, it will connect with
other vehicles, the transportation infrastructure, homes, busi-
nesses and other sources. This connection will happen through a
convergence of different electronic technologies and telematics
that range from infotainment, speech recognition and linguistics,
to thermal, power train and safety systems. Innovation will
emerge mostly from software, electrical systems, sensors and
driver-assistance services that will improve safety and the overall
driving experience. At the same time, a new level of owner/
vehicle personalization and customization will be delivered by
leveraging a mobility framework over the cloud.
Economic instability
and uncertainty
ncreased
consumer
empowerment
Limited visibility to
real-time production
metrics
Difficulty creating
accurate forecasts
Shift to green,
sustainable
vehicles
Supply chain
disruptions
Figure 1. Challenges affecting automotive companies.
Traditional automotive focal areas such as power train, body
design and interiors will remain important, but will be joined in
the future by sensing capabilities, software and wireless commu-
nications which will enable the vehicle to detect road conditions,
recognize other vehicles (and pedestrians) near its space and
sense environmental changes. Cloud connectivity will make
it possible for vehicles to respond to developing traffic
situations, find alternate routes and anticipate impending
collisions. Overall, the connected vehicle will open new
capabilities for safety by enhancing the driving experience
in three specific areas:

Real-time access to driving conditions and emergency
situations

Driver assistance and the personalization of the
driving experience

More convenient services, such as real-time remote
diagnostics and the automatic delivery of software patches
Figure 2. IBM Advanced Mobility Framework helps OEMs integrate and drive value from near real-time data from the vehicle
Warranty/Quality
Use vehicle data to help
predict failures
identify early failures
Dealers
provide better service
Use vehicle data to have
the correct parts in stock
Sales and Marketing
Customer Satisfaction
What are customers
using in the vehicle
Who is buying what
services
Services Customer Use
No Breakdowns
IBM Advanced Mobility
Framework integrates all parts
of the OEM enterprise
Advanced
Mobility
Framework
Greener vehicles
Green transportation is a key element of a Smarter Planet. The
use of innovative new technologies can ease urban traffic emis-
sions. In addition to the engineering advancements in propulsion
systems, as it begins the gradual process of moving away from
petroleum-based fuels toward battery power, the automotive
industry will launch dozens of new plug-in hybrid and battery
electric vehicles. Advancements in battery technology will enable
the widespread deployment of electric vehicles and reduce the
United States dependence on foreign oil.
IBM is collaborating with universities and the U.S. Department
of Energy labs to research battery technology. The mission of
the collaborative project at IBM is to use cloud technology to
push energy technology aggressively by exploring the outer
limits and capabilities of chemical energy storage systems.
Smart grid technology and changes to the fueling infrastructure
will play a major role in automotive electrification. A vehicle-
to-grid system makes it possible for electric or plug-in hybrid
vehicles to use cloud computing technologies to communicate
with the power grid to sell demand response services, either
by delivering electricity into the grid or by throttling their
charging rate.
Real time pricing and automatically charge
modulation based on customer preferences
enable customers to smartly charge at home
A central authorization system identies
users and allows them to charge out work
with the energy consumption properly metered
and displayed on their monthly utility bill
EVSE Health is reported to operator
and availability and key characteristic
provided to prospective users
Charge operators will
be able to accept all
payment forms
(periodic and PoS)
With appropriate integration with
system operators and charge posts,
electric vehicles can effectively harness
renewable generation for charge
Vehicles will be able to charge on different
networks with the appropriate systems in place
Utilities will be able to accurately meter PEV
charging and provide charge event data
on monthly statements
Utility 2
Utility 1
Charge Provider A
Charge Provider B
Charge Provider A
Charge Provider B
Charge Provider B
Charge Provider C
Charge Provider D
Figure 3. Vehicle to grid system
Automotive business pressures
At automotive companies, CEOs are focused on making the
most of their worldwide operations, globalizing their products
and brands and changing their mix of capabilities, knowledge
and assets. Automotive industry leaders are also aware of the
implications of business issues like bankruptcies and mergers, th
regulatory environment and litigation. During the 2012 CEO
study conducted by the IBM Institute for Business Value,
CEOs and Public Sector leaders identified technology change
as an important external force that will affect their organizations
through 2015. Leveraging cloud technology will enable CEOs
to respond to challenges and embrace change without making
significant capital expenditures.
Opportunities exist for automakers to employ cloud technologie
to reduce their data center and energy footprint through virtual-
ization, and at the same time, address the end of service life
(EOSL) problem. A three-year-old server reaching EOSL will
generally require a replacement server with less computing
power because of the increased technology density of the new
server. Virtualization technology is a key component of cloud
computing. It can be used to move the EOSL server into a
server pool on current hardware where it can reside as a virtual
server. Converting multiple physical servers into virtual servers
within a server pool can result in lower power and cooling
consumption.
Virtualization breaks the one-to-one connection between a sys-
tem and the hardware upon which it runs. Virtual servers can be
migrated transparently from machine to machine. As equipment
reaches EOSL, new equipment can be introduced to the server
pool. Then the virtual server can be migrated off the EOSL
server to the new server. Finally the EOSL server is removed
from the pool. No reimplementation or integration efforts are
required to swap an old server in a pool for a new server.
Cloud technologies can further improve the EOSL solution
by extending the provisioning of the resources necessary for
virtual servers.
e

s

In the automotive industry, test and development environments
are often periodically underutilized. Maintaining these
environments is expensive, so automotive companies often prefer
to let those machines sit idle until they are needed. A core func-
tion of virtualization is the ability to automatically provision and
de-provision services; entire images can be moved online and
off line quickly. An entire software configuration environment
can be moved online and off line, so virtualized development
and test environment images can be moved to the cloud cost
effectively. Cloud technologies make it possible for new services
to be provisioned in the underlying infrastructure.
As data volumes grow, the ability to provision vast amounts
of low-cost storage is becoming increasingly difficult for
automotive companies, but it is increasingly easy using storage
clouds. These companies rely on storage with high-performance
data access and robust backup/recovery mechanisms. Lost hours
caused by prolonged data recovery or lost data resulting from
improper backup frequency can put entire vehicle programs at
risk. Information protection services provided through cloud
technologies can help automotive companies mitigate these risks.
Outside of the data center, the traditional desktop client
continues to play a significant role at automotive companies.
But with it comes the traditional problem: how can you cut
computing costs with centralized management without
infringing on users desktop computing environment? The
cost of hardware and software to provision a desktop PC
represents only a small fraction of the total cost of ownership
(TCO) for a PC. Cloud technologies make it possible for thin
clients or other Internet-connected devices to access managed,
platform-independent hosted applications and full client images.
IT environment challenges
The automotive industry faces many challenges in the IT
computing environment. Data center demand for computing
capabilities will continue to increase as organizations run their
business processes, perform engineering simulations and work
with business analytics. Storage needs are growing exponentially
to handle the increased volume of data being created through
activities such as computer-aided designs and crash-test
simulations. By leveraging cloud technology, resources can be
requested as needed from a shared environment, dynamically
provisioned and/or assigned for the users task and then released
for reuse once the task is complete.
Cloud storage technologies can help automotive companies
address their storage needs. Energy consumption is a serious
issue at data centers. The need to obtain the necessary power
and cooling to handle the increasing computing demands has
become an important consideration and is changing long-held
cost dynamics.
Vehicle-embedded computers
Much of the future automotive innovation will be based on
electronics with advanced features and function realized through
embedded software. A sizable portion of these innovations
will come from companies outside the traditional automotive
industry. Software content will increase, and as the amount of
software on the vehicle grows, it becomes increasingly important
to use cloud technologies to effectively manage and distribute
the software. For administration and f lashing of vehicle
electronic control units, updated software parts need to be
distributed from a centrally-managed content system to
dealerships around the world.
Through enhanced network connectivity, the connected vehicle
of the future will be able to use real-time remote diagnostics and
prognostics to assess operating conditions and perform some
degree of self-repair. Software and other service patches to
electronic systems will be automatically delivered to the vehicle
using cloud computing technologies, which will keep the
vehicle updated with a minimum of consumer involvement.
When appropriate, warranty information will be communicated
using cloud technologies. Original equipment manufacturers
(OEMs) and dealers will be able to offer more comprehensive
customer relations management by maintaining cloud comput-
ing technologies to provide consumer agreement, vehicle usage
data and consumer preference profiles. Service alerts, scheduling
and notifications will be offered over the cloud based on
operating behavior information transmitted from the vehicle.
Cloud computing for vehicles offers several major benefits.
According to a number of engineers, cloud computing could
help reduce the size of the center console. With less hardware
under the dash and many data tasks outsourced to a remote
server, future vehicles could have slimmer control boards and a
bit more leg room.
Another advantage of cloud-based computing in vehicles relates
to an owners financial investment and an automobiles insurance
value. Fewer expensive data storage elements in the vehicle
could decrease the cost of our increasingly computerized cars.
Global product development
Abundant engineering skills will continue to be available in
countries such as China and India. But distributed product
development is difficult because the automotive design
environment is global and can be complex with limited or
poor integration. Operating across companies, geographies and
system domains is a significant challenge, considering the prolif-
eration of organizations, processes, tools and methodologies.
Infrastructures that support global product development can use
cloud computing technologies to recognize and respond to key
trends and challenges. Server systems and storage can employ
cloud technologies to handle an increasing amount of product
development and analysis in the virtual environment. Resources
in these systems can use cloud technologies to become sharable
throughout projects and geographies, making it possible for
them to be rapidly applied to high priority projects such as
virtual product development, integration of heterogeneous
operating environments and globally distributed design
environments.
Design organizations that target virtual product development
need to store and manage increasing amounts of data. Users can
take advantage of cloud storage technologies to access and share
that data throughout multiple sites and to manage the content
throughout its life cycle. The life cycle may include support
for product and verification data management, which is the
metadata that captures the pedigree of information including
who, what, when and where. It also may include support for
verification models for analysis, stimulus generators and test
cases and the storage of analysis results.
Business leaders at automotive companies see the product
development landscape evolving quickly. With an increased
focus on software engineering, there is a demand for full
traceability of requirements throughout the life cycle of the
vehicle and a clear need for holistic system design and interac-
tion. Leaders at automotive companies are realizing that rapid
software innovation could become a major differentiator.
Todays automotive product development situation can be
described in just a few words: too expensive, too slow and not
f lexible enough. These problems can be significantly improved
by cloud technologies that can help integrate resources that
are involved in the development process, including data
and information, applications, processes, humans and
organizational entities.
In most cases, only islands of integration exist, such as a mechan-
ical product data management (PDM) system. Singular activities
are not using cloud services and systems often are neither
aligned nor integrated with each other. Information and
activities are often duplicated or missing. Structural breakages
and inconsistent terminology also can hinder the consistent
description of the product and the process. Older applications
are often stitched together with rigid interfaces or monolithic
subsystems with encapsulated functionality. These situations
can lead to an application management nightmare, solution
provider dependency and a loss of enterprise agility.
All of these problems can be solved using cloud services, whether
on the product or organizational side. Using cloud, automotive
companies can address integration problems in a more holistic
way. It introduces a common language with cloud as the basis for
all integration and allows the integration of product data using
cloud across engineering disciplines and the lifecycle.
Product data can be diverse and include elements such as geom-
etries, functions, behavior or physical properties such as weight.
Data also may include technical relationships and dependencies,
rules and constraints, as well as lifecycle information through
cloud for manufacturing (such as as built) and support
(for example, as maintained, warranty information and
configuration data).
Product related data and its relationship to the product data in
the cloud also can be integrated. This product-related data may
include development artifacts, such as test cases, simulation data
and source code. It also may include business data such as cost,
schedules, lifecycle information for manufacturing (assembly
instructions) and support instructions or ownership data.
Applications can also be integrated using cloud. These applica-
tions may include authoring applications, systems for process
support such as project management applications. Related data
may include process models, project schedules, quality gate
criteria and key performance indicators (KPIs).
Cloud integration also may include stakeholders and organiza-
tional units within an enterprise and across the value chain.
Related data may include organizational data, such as roles,
responsibilities, and authorizations. It also may include, business
relationships, such as dependencies, rules and constraints.
Cloud computing has the strong potential to leverage centralized
resources to manage and maintain all aspects and phases of
design and design analysis. The right security measures,
including user access and identity management, and data
protection, and isolation, are required. With a centralized cloud
environment, major manufacturers and their suppliers and
partners can realize greater efficiencies and improved time to
market. Remote access to centralized resources is a critical
component. Where current technology limits global reach,
design content can be strategically placed in geo-centric data
centers, or pulled when necessary to support efficient daily
operations.
Enterprise collaboration and the workplace of the future
The notion of a workplace has changed. Work is increasingly
performed over the cloud on the business premises of partners
and suppliers, at home or even in coffee shops. To simplify,
automotive companies need to expose internal resources to
any user, from any device, from any location. Cloud applications
that make the most of web technologies will make device-
independent, security-rich access to a unified, global enterprise
possible, whether the access is from inside or outside the
corporate walls.
The automotive industry must adapt to the changes in consumer
technology. The ever-increasing diversification of mobile devices
and computing platform options (iPhone, Android, Microsoft
Windows mobile) mean that increasingly, employee-owned
smart phones and laptop computers are making their way into
the workplace of future. Otherwise known as bring your own
device (or BYOD) the devices often have built-in connections
to cloud services.
In response, automotive companies need to remove barriers to
collaboration by providing integrated tools over the cloud that
make it possible to share business information using multiple
technologies and devices inside and outside of the corporation.
Enterprise collaboration must simplify communication by

seamlessly combining the available communications channels
with anywhere/anytime connectivity using cloud technologies.
Automotive companies need capabilities to:

Connect people, suppliers and other businesses using instant
messaging through chat, voice, video and desktop sharing.

Understand colleagues availability and location using a wired
or wireless presence.

Create communities and collaborate in online team rooms
and search for other workers based upon skills, projects
and communities of interest.

Gain access to shared files from anywhere.
Manufacturing and plant floor considerations
Automotive manufacturers need to keep costs down, yet they
are confronted with diverse challenges related to production vol-
ume, quality and time to market. Cost concerns also have to be
balanced against the desire for recalibration of global demand,
built-in quality (versus inspect for quality) and plug-andplay
plant service. The maturity of the market in terms of volume
and the continuously growing competition drives automotive
manufacturers to improve their profitability in every area,
especially their plants.
In addition, automotive manufacturers face growing complexity
in their business connections, which include suppliers and
partners who must cooperate to achieve required production
levels. This complex environment has to react to the extremely
demanding features of the automotive market, where a high
variety of products, short time to market, quality and strict
compliance regulations have led to heightened management
of manufacturing business processes.
The automotive market continues to experience consolidation
and globalization that leads manufacturers to overcapacity and
strong price competition. Improved efficiencies in every area
of the engineering and manufacturing process are needed to
control costs and increase quality and profitability.
Because of these challenges, the automotive organizations
need a modular platform that can provide key capabilities
in the manufacturing landscape across plants, including:

Synchronization between manufacturing and business
systems through interoperability

Standardization of processes

Production performance

Integrated quality and quality data monitoring

Transparency, efficiency and responsiveness

Complete part traceability

Increased throughput and better delivery performances

Better quality management

Plant operations analytical and reporting capabilities
Global expansion
In the automotive industry, the global network of vendors,
employees, partners and dealers is a reality. Each entity expects
instant collaboration and a common platform for manufacturing,
distribution and product development that can be provided
through cloud technologies.
The worldwide labor force is changing and will become radically
different in terms of age, location and work habits. Cultural
awareness, diversity and adaptation will be the norm. This
geographically dispersed global workforce can significantly
benefit from cloud technology for sustaining and supporting
manufacturing and product development.
The joint ventures and the current investments in globalization
will be established creating a global infrastructure. Evolving
economies and markets will fuel new products, services and
business models. The challenge faced by automakers will no
longer be to globalize the industry, but instead will center on
effective global integration and execution over the cloud.
After investments in globalization are established, the challenge
will be to execute in this expansive environment, leading to the
need for a multiplex workforce. As with a multiplexor in
electronics, the multiplex workforce fosters the diverse skills and
culture that are a byproduct of globalization and unites them
into common goals and direction. This new workforce will have
important new attributes (such as the ability to work with diverse
cultures) and will likely be conversant in multiple languages.
The new global worker will also leverage scalable architecture
for working virtually over the cloud.
Sales and marketing
The automotive industry is highly competitive. It relies upon
sales and marketing organizations to get messages out to
consumers. A few years ago, a key communications channel was
business-to-consumer (B2C) web sites viewed on a computer,
but that approach is no longer sufficient. The core responsibili-
ties of sales and marketing are timeless: knowing the customer,
defining what to market and to whom and protecting the brand.
But how these responsibilities are executed is undergoing an
end-to-end transformation.
A smarter marketing framework that can drive transformative
change is necessary to excel in todays interconnected world.
Three new imperatives are critical to fulfilling the responsibili-
ties of marketing in an environment where data is overwhelming
and customers are increasingly driving the brand conversation.
These imperatives are:

Understanding each customer as an individual

Creating a system of engagement that maximizes value
creation at every touch point

Designing the culture and brand so they are authentically one.
Delivering on these imperatives requires an ability to tap into
both the seemingly infinite stream of data and customer conver-
sations that permeate every communications channel. In the
automotive industry, sales and marketing cant afford to evolve
slowly in an era where the customer is constantly changing.
Social media
Social media also affects automotive sales and marketing as
higher percentages of corporate media budgets are applied to
social media. Automobile brands have embraced social media
outlets in the cloud, such as Facebook and Twitter to promote
messages and build direct conversations with consumers.
As important as it is to share messages, it is also important to
discover what people are saying. To gain this insight, the
automotive industry will need to monitor information
streaming over the cloud on social media sites.
The application of business analytics to sift through these mes-
sages can help automotive companies identify what consumers
want, identify whether brand messages are resonating with
consumers and discover if brand messages are trending up or
down with consumers. Business analytics is a powerful sales
and marketing tool that affects the profitability of vehicle sales
through effective management of cash incentive programs.
Capturing web metrics and applying business analytics can
help determine consumer interest in incentives being offered.
This information can be used to help tune the incentives, such
as increasing an incentive amount if consumer interest appears
low and decreasing the amount when incentives may not be
necessary.
Because the automobile industry is extremely competitive,
cloud-based business analytics may reduce the time needed to
identify changes in shopping trends in response to a competitors
latest promotion and shorten the reaction time needed to
introduce counter measures.
Cloud computing and the
automotive industry
Cloud computing provides dynamically scalable and virtualized
resources as a service. The cloud model is especially important
when you consider that the investment is considered an operat-
ing expense rather than a capital expenditure. Another important
driver to cloud adoption is the ability to deploy resources quickly
or speed to value, which can be crucial in environments like
the automotive industry with f luctuating needs that may grow
or shrink rapidly.
Cloud computing combines these two drivers: both usage and
costs change based on user needs. Because of the f lexible nature
of cloud computing, it can meet user needs from an availability
and performance perspective and still keep operating costs low
because expenses are based on services that are actually used, as
opposed to a capital investment that is based on projections of
potential needs.
Whether you fully understand all the technical details or not,
the crucial question is, What can cloud computing do for the
auto industry? Some of the most noticeable benefits that cloud
computing can bring to automakers are:

Faster deployment of new capabilities. The use of a common
repository, combined with scheduling and automation, means
that new capabilities can be deployed more rapidly. This is
due in part to faster testing and ensuring that tests are
thorough and complete (for both unit and integration tests).

Improved consistency and quality of new capabilities.

A common image repository in which common and reusable
images are tested and hardened to ensure consistent, higher
quality results.

Increased efficiency in the use of IT resources.

Significant reuse of existing computing, storage and data
resources by simplifying access to them.

Faster integration with partners, vendors, customers and
suppliers. A cloud-based test environment requires
standardization and consistency. This approach makes it
possible for external partners, such as outsourced developmen
firms to plan test phases more efficiently and confidently,
because the environment is consistent and well known.
Automotive businesses are using cloud computing to reduce the
complexity, rigidity and costs associated with IT, which enables
new levels of strategic business value for global product develop
ment, services, maintenance, marketing and integration with
customers, dealers and suppliers.
Automotive businesses can take advantage of the power
of cloud computing to:

Build enduring supplier/dealer/customer relationships

Deliver global IT without boundaries

Improve speed and dexterity

Transform the economics of global automotive
industry innovation
To deal with these challenges automotive businesses need to
focus on:

Business agility: Rapidly define and deliver vehicle products
and services.

Business analytics: Harvest and apply insights made
possible by analyzing information for engineering, design,
manufacturing, purchasing, intelligent operations to
marketing/customer service.
t

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Service delivery and management: Optimize and speed the
delivery of IT computing resources and services for predictive
warranty/repair and product lifecycle management

Secure collaboration: Creating an always available and
collaborative ecosystem for connected vehicles, telematics
and infotainment technologies.
Considering the complexity of the world in which they operate,
consistency is a challenge for companies in the automotive
industry. As the world moves more quickly, the pace of change
increases and business leaders are discovering just how expensive
infrastructure and people can be.
IBM automotive industry experience
IBM automotive teams have worked on complex requirements
for manufacturing across a diverse customer base, including
original equipment manufacturers, tier one suppliers, power
train, heavy equipment and trucks. The teams have worked in
mature markets and growth markets in multiple languages. They
have worked with multiple mixed-manufacturing scenarios, such
as just in time (JIT), Japanese Industrial Standard (JIS), batch,
build to order (BTO) and build to stock (BTS).
IBM has extensive experience in building manufacturing systems
not only within IBM manufacturing sites but also across many
other industries, including semiconductor, pharmaceuticals,
consumer goods, process, aerospace and automotive. These
solutions range from full manufacturing systems to globally
deployed manufacturing execution systems (MES) to process
specific solutions like vehicle scheduling and advanced quality
control systems for engine casting.
From these many engagements, IBM developed the Common
Automotive Manufacturing Model (CAMM) that defines
all of the required functions and leading practices for building
automotive solutions.
IBM Product and Services Framework
The IBM Product and Services Framework (PSF) is part of the
IBM Smarter Planet initiative. The PSF enables IBM customers
to assemble and configure IBM software products plus third-
party or older applications into composite applications solutions
that meet specific business needs. The PSF minimizes support
costs, time to market, development efforts and allows for the
reuse of existing assets.

In the past, automotive manufacturing systems have been deliv-
ered using custom software or software from niche providers
that offer applications with a limited ability to address the full
range of business needs. These IT approaches made it difficult
for automotive businesses to respond to process improvements
and market demands in a timely, cost-effective manner.
Using PSF can bring industry standards, such as ISA-95 and
mainstream software products and industry-leading services and
practices into the manufacturing domain to deliver solutions
that are more f lexible, simpler, lower cost and easier to maintain
globally. Realizing PSF capabilities in the cloud will be achieve
greater efficiency of operations.
Figure 4. The IBM Smarter Planet initiative
Process
nnovation
New nsights
VisuaIization and
Tuning
All things becoming
INTELLIGENT
Our world is becoming
INTERCONNECTED
INSRUMENTED
Our world is becoming
Sensors
Event Processing
And Integration
New Data
The IBM Intelligent Operations Appliance cloud solution
connects to enterprise systems and receives all order data plus
bill of materials (BOM) and stores the information. These events
to actions that make up workf low can be configured, so system
users will be able to design and build manifests and labels
for example.
Cloud offerings from IBM
Cloud computing solutions from IBM give automakers and their
partners a cost-effective way to respond to the rapidly-changing
dynamics of automobile manufacturing, purchasing, service and
distribution. Because cloud computing works on a pay as you
go model, automotive OEMs can invest in resources for engi-
neering, design, manufacturing or other computing-intensive
capabilities as they are needed, rather than in anticipation of
the need.
IBM Engineering Solutions for Cloud
Realizing a holistic product development environment in
the cloud requires a set of interacting systems and services.
IBM Engineering Solutions for Cloud can provide a blueprint
and a foundation to quickly set up and manage highly efficient
and secure electronic design automation (EDA), a computer
aided design and analysis (CAD/CAE), product data manage-
ment and design control, and software development clouds
to streamline engineering processes, reduce costs and design
cycle times, and collaborate globally. The solutions deliver
two-dimensional (2D) and three-dimensional (3D) accelerators
and dynamic provisioning to realize remote access to a secure,
agile cloud-based engineering environment that can visualize
and manipulate 2D and 3D models, drive-up user productivity,
improve application performance, and manage overall product
development content and processes. The solutions can help:

Transform isolated environments into shared
engineering clouds.

Reduce the time needed to complete a design
through improved collaboration.

Use best-of-breed tools and standardized processes
and methodology.

Design high-quality products with multiple partners
using fewer designers.

Unlock designer skills from any location with remote
access capabilities.

Provide greater and more secure access to computing
and storage resources.
Using IBM Engineering Solutions for Cloud, automotive
companies can build a centralized, secure, shared product
development environment. Through the use of workload and
resource-optimized web portals, management tools and
accelerators, IBM Engineering Solutions for Cloud enable
you to access a design environment and collaborate from
almost any device anywhere in the world.
Pure Systems
Pure Systems combines the f lexibility of a general purpose
system, the elasticity of cloud and the simplicity of an appliance.
The systems are integrated by design and come with built-in
expertise to deliver a simplified IT experience.

IBM PureFlex System combines computing, storage,
networking and virtualization capabilities under a single,
unified management console into an infrastructure system
that can sense and anticipate resource needs.

The IBM PureApplication System is a platform system
designed and tuned specifically for transactional web and
database applications. This workload-aware, f lexible platform
is designed to be easy to deploy, customize, safeguard
and manage.

PureData System is optimized exclusively for delivering
data services to todays demanding applications with simplicity,
speed and lower cost.
IBM SmartCloud Enterprise
IBM SmartCloud Enterprise delivers a secure and scalable
hosted IT infrastructure with on-demand access to virtual server
and storage resources. It is designed for development, testing
and dynamic workloads, SmartCloud Enterprise offers highly
f lexible services and proven best-in-class security from
IBM. Powered by six state-of-the-art green IBM Smarter
Data Centers with embedded security and isolation features,
SmartCloud Enterprise performance is guaranteed with
industry-leading IBM service-level agreements of 99.9 percent
uptime that you can count on.
IBM SmartCloud Enterprise +
IBM SmartCloud Enterprise+ is a fully managed, security-rich
and production-ready cloud environment that is designed to
ensure enterprise-class performance and availability. It offers
complete governance, administration and management control
along with service-level agreements (SLAs) to align your specific
business and usage requirements. Multiple security and isolation
options built into the virtual infrastructure and network keep
this cloud separate from other cloud environments.
The IBM Integration as a Service (IaaS) solutions leverage
cloud-based business-to-business and security gateways based
on the Standards for Technology in Automotive Retail (STAR).
The capabilities use innovative automotive integration patterns
to connect business applications, such as a transportation
management system to older internal systems. The solutions
are comprised of an IBM WebSphere stack that can be
enabled in SmartCloud Enterprise and SmartCloud Enterprise+,
IBM Sterling B2B, or Cast Iron for integrating with
SalesForce.com. Additionally, analysis using the IBM Cloud
Transformation Advisor consulting service has helped customers
determine if their applications are suitable and ready for
cloud deployment.
IBM Smart Business Storage Cloud
Automotive OEMs and suppliers need to store, retrieve and
manage a growing amount of data for computer-aided design,
virtual product development and analysis and associated test
and modeling results. IBM Smart Business Storage Cloud can
help you successfully deploy high-performance, scalable storage-
virtualization solution to facilitate growth and innovation at
lower operational costs. The solution can help alleviate your
data storage challenges by enabling rapid implementation of a
scalable, global file storage system with f lexibility in deployment
and management options. It provides virtualized storage to
enable storage and server consolidation, a unified management
platform to help reduce outages and storage management
labor demands and costs, and advanced data replication for
cost-effective business continuity and disaster recovery.
IBM Smart Business Desktop
Automotive OEMs and suppliers need to transform from a
distributed, difficult-to-manage desktop environment to a
consolidated, virtualized user desktop solution that can offer
scalability, reliability, security and f lexibility. IBM Smart Business
Desktop can help accelerate virtualization of your desktop
environment with a range of cloud computing options that can
streamline support to help control costs and enable security-rich
access to corporate applications and data. End users can have
faster, security-rich access to resources, helping to improve
their productivity and increasing business f lexibility.
As an example, Toyota Boshoku will use IBM cloud technology
in worldwide manufacturing and engineering projects, including
automotive design. The new IBM SmartCloud Engineering
Desktop consists of a group of cloud solutions designed for
industrial sector clients that tap mission-critical 3D applications
globally.
1
IBM End User Services self-enablement portal
When users access a web portal for support, they want accurate
search results to quickly resolve their problems. IBM End User
Servicesself enablement portal is designed to empower your
end users to resolve their issues through a single easy-to-use
interface that delivers a personalized experience in multiple
languages. The IBM Self Enablement Portal addresses the
issues that companies have had in implementing self-service
technologies for their service desk:
Obstacles in
adopting self help
How the IBM Self Enablement
Portal addresses the
obstacles
Poor search functions Delivers fast and accurate results by
employing a patented easy-to-use
search technology
Inadequate content Provides an extensive knowledge
database that analyzes usage
trends and updates data to ensure
that it is relevant and current
Not totally integrated Offers multichannel support that
supports intuitive search, chat and
remote takeover functions
Impersonalized approach Uses a personalized web interface
and profiling data to meet the
individual needs of the user
Standalone set of tools Improves efficiency and reduce
costs dramatically with an
integrated solution to any existing
service desk infrastructure
IBM SmartCloud Resilience
IBM SmartCloud Resilience lets you leverage the power of
cloud to open new opportunities for cost-effectively managing
resilience of data and applications. These cloud services enable
you to protect, store and retrieve your critical data in minutes
versus days in the event of a disaster.

SmartCloud Managed Backup: Systematically and
automatically backup data, increasing availability and
recovery rates in the event of a disruption

SmartCloud Archive: Archive documents, improving the
efficiency of storing and retrieving information as needed,
whether for regulatory compliance or business need

SmartCloud Virtualized Server Recovery: Enable faster
recovery of applications without the high costs of a dedicated
physical duplication of your IT infrastructure
Business Analytics in the Cloud
Advanced business analytics is becoming increasingly critical
in the automotive industry. Analytics can be used to obtain
additional insight into data collected from the vehicle, which
helps design better vehicles, proactively analyze vehicle trouble
codes for early warning detection of issues and analyze consumer
data obtained from web sites and surveys to address consumer
buying habits and shopping trends. Analytics can reveal the
insights you need to manage the complexity of global markets,
supply chains and operations. By employing more agile business
models in which decisions are based on a holistic view of enter-
prise and production information, your organization can rapidly
react to new opportunities and achieve a competitive advantage.

With IBM Business Analytics in the Cloud, your business
analytics deployments-from business intelligence (BI) to
advanced analytics-can be up and running in less time than
traditional deployments. These cloud solutions can help reduce
the costs and risks associated with implementing and running
business analytics software and infrastructure. And, to make
sure you can get exactly what you need for what you can afford,
you can host these solutions on your own private cloud or
IBM can handle the hosting on our cloud infrastructure.
IBM SmartCloud for Social Business
IBM SmartCloud for Social Business integrates the essential
tools for social business in the cloud: enterprise-grade file
sharing, communities, instant messaging, web meetings, user
profiles, mail, and calendar. The solution is designed to bring
social business concepts into business processes that help
accelerate collaboration, deepen customer relationships, and
generate new ideas more quickly. It helps foster a more effective
workforce and makes it easier to work seamlessly with people
inside and outside of your organization.
You can meet online, share files, chat, manage projects, network
with potential clients, schedule meetings, and send and receive
mail anywhere, anytime. Whether you work remotely, manage
remote teams, or need one place to bring colleagues, partners,
and vendors together, SmartCloud for Social Business helps you
transform your business into a social business.
IBM BlueWorks Live
With the growing importance of globally-integrated processes,
lean process re-engineering and f lexible business processes,
IBM developed BlueWorks Live as an entry point to Business
Process Management (BPM) projects.
IBM BlueWorks Live makes it possible to create BPM business
designs in the cloud using pre-built content and collaborating
through community tools. With BlueWorks Live you can:

Collaborate across teams: Improve the way you work by
seamlessly collaborating across roles, teams and locations.

Capture process knowledge: Increase agility by
documenting and refining processes in a tool that
keeps everyone informed of important changes

Analyze and improve your business: Make your
organization more efficient by automating simple processes
that run today over email in as little as 90 seconds.
BPM business tools in IBM BlueWorks Live make it possible for
automotive OEMs and suppliers to achieve business understand-
ing for BPM solutions and make process improvements.
IBM Global Expense Reporting Solutions
As automotive OEMs and suppliers grow in complexity and
become globally integrated enterprises, they face significant
challenges with managing and processing travel and general
expenses. Without a comprehensive solution to effectively track,
process and analyze enterprise-wide reimbursable expenses for
employees, the business is vulnerable to rising costs, unapproved
expenses and the penalties that come with inconsistent
compliance.
With IBM Global Expense Reporting Solutions (GERS),
you can save more and spend less using this simple travel and
expense management solution. Designed on a cloud computing
model to smoothly integrate with your existing finance and
human resources systems, IBM Global Expense Reporting
Solutions helps simplify expense reporting and reduces travel
and entertainment costs along with the spending associated with
expense processing. An easy-to-use, web-based interface lets
employees submit expense reports online virtually eliminating
manual, paper-based steps.
How to get started
When adopting cloud computing techniques, tooling and
processes, it is important to use a phased approach in which
each step builds upon the previous step. The initial phase should
establish capability, so that evaluation and testing can determine
viability and then enhance those capabilities as appropriate.
The initial phase should also specifically address those character-
istics of re-provisioning technologies that use automation and
virtualization. Begin by identifying and prioritizing cloud
initiatives. Evaluate your cloud level of readiness to
determine what to address first.
Why IBM?
IBM leadership in cloud computing extends to the delivery of
enterprise-wide solutions. IBM cloud computing offerings make
it possible for your organization to cost-effectively address the
infrastructure issues that impede optimum delivery of business
process services.
Engage IBM as you examine the importance of:

Optimized workloads

Integrated service management

Choice of delivery models
With optimized workloads, workload characteristics determine
the rate and degree of standardization of IT and business
services. The increasing complexity of IT systems requires
advanced service management, visibility, control and automation
Private, public and hybrid models support the wide variety of
the automotive industry computing environments and system
requirements.
Prepare for the future with cloud
computing
The automotive industry can gain substantial benefits by
adopting cloud computing. Cloud solutions can help reduce
operating costs, simplify business processes and make it easier
to collaborate with partners and suppliers.
For more information
To learn more about how cloud computing can help the
automotive industry, visit: ibm.com/services/cloud
Additionally, IBM Global Financing can help you acquire the
software capabilities that your business needs in the most
cost-effective and strategic way possible. Well partner with
credit-qualified clients to customize a financing solution to suit

.
your business and development goals, enable effective cash
management, and improve your total cost of ownership.
Fund your critical IT investment and propel your business
forward with IBM Global Financing. For more information,
visit: ibm.com/financing
About the authors
John De Marco is a Distinguished Engineer in the Application
Innovation Services (AIS) Application Development Practice
and is the Chief Technology Officer for AIS Industrial Sector.
Throughout his 26 year career with IBM, he has led complex
application development and system integration projects,
including IBM program products, custom e-business solutions
for worldwide automotive corporations and emerging
technologies such as service oriented architecture (SOA),
speech recognition and agile and factory-based software
development. John can be contacted at mjde@us.ibm.com
Pete Joodi is a Distinguished Engineer in Sales and
Distribution, Industrial Sector. He is an international speaker
and has published in the standards and professional communi-
ties. He is a professional engineer leading the IBM automotive
portfolio in cloud computing, data center transformation,
and analytics. Pete can be contacted at pjoodi@us.ibm.com
Dave Coutts is an IBM Distinguished Engineer and the STG
Industrial Sector CTO. He has eight years of experience in
Smarter Computing for Industrial Sector solutions and
twenty-six years of experience in IBM server systems develop-
ment, product development transformation, and technical
strategy. Dave is also a member of the IBM Academy of
Technology and holds a BS in Electrical Engineering from
the Pennsylvania State University. Dave can be contacted
at coutts1@us.ibm.com
Copyright IBM Corporation 2012
IBM Corporation
Software Group
Route 100
Somers, NY 10589
Produced in the United States of America
December 2012
IBM, the IBM logo, ibm.com, Smarter Planet, WebSphere, Cast Iron,
SmartCloud, and BlueWorks Live are trademarks of International Business
Machines Corp., registered in many jurisdictions worldwide. Other product
and service names might be trademarks of IBM or other companies.
A current list of IBM trademarks is available on the web at Copyright and
trademark information at ibm.com/legal/copytrade.shtml
Microsoft and Windows are trademarks of Microsoft Corporation in the
United States, other countries, or both.
This document is current as of the initial date of publication and may be
changed by IBM at any time. Not all offerings are available in every country
in which IBM operates.
THE INFORMATION IN THIS DOCUMENT IS PROVIDED
AS IS WITHOUT ANY WARRANTY, EXPRESS OR
IMPLIED, INCLUDING WITHOUT ANY WARRANTIES
OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND ANY WARRANTY OR CONDITION OF
NON-INFRINGEMENT. IBM products are warranted according to the
terms and conditions of the agreements under which they are provided.
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