Strategy and Execution in the Telematics World

ABC’s David Muir and Lynx Telematics Vincent Rush

It’s been a wild couple of months for us here at Lynx Telematics.

After being invited to San Bruno, California to pitch for the producers of Shark Tank and subsequently being featured on ABC World News Tonight with Diane Sawyer, our business has increased dramatically.

We are currently running safety and operational efficiency programs with several local Cincinnati companies and are producing strong ROI numbers as well as effectively reducing fleet risk liabilities.

Working with the State of North Carolina and beginning work this week with the city of Charlotte, we have been able to take our “NEXT Practices Guide” and “LynxSafe *360 Connect” approach to implementing and helping organizations fulfill their purpose behind installing a telematics system and realizing the vision of an operationally efficient fleet, from a cost perspective as well as productivity and at the same time reducing risk liability.

As a speaker and sales trainer, I have always maintained that vision is not as much about what can be imagined…as it is about what can be delivered.

There is also a distinct difference between purpose (why you installed telematics) and the vision (what you hope to accomplish with telematics) for your programs. The bridge that connects those two mountains is called strategy (the how and when).

A strategy must be closely tied to purpose in order to be meaningful and enduring.

Never confuse the simplicity of telematics with the complexity of a well planned out and implemented strategy that produces short-term desired results along with a more enduring residual long-term returns on investment for you and your organization.

The telematics landscape it littered with thousand of programs gone wrong, sold by feature and benefit pitchman that couldn’t be found with a search warrant, once the contracts were signed.

However, an effective strategy moves away from the simple formulaic business approaches of yesterday and focuses on the human elements that take into consideration, cohesion and communication at every juncture to foster alignment.

A longer-term vision and emphasis on an enduring strategy have the potential to do far more than allow an organization to hit quarterly targets. A good strategy transforms a compelling vision into concrete outcomes. It’s all about planning and execution.

The Lynx Telematics “NEXT Practices Guide to Implementation” when coupled with the “Lynx Telematics 360 Connect” program not only offers a plan that makes sense but gives a clear-cut plan for execution and management.

Never underestimate the potential for uncertainty, fear, mistrust and ambiguity to derail even the best strategies!

At Lynx Telematics, we can not only provide you with the technology, but we continue to work with you over the life of your partnership to continue to achieve and grow returns on investments into telematics.

Vincent Rush, VP of Business Development at Lynx Telematics
vrush@lynxtelematics.com
(513) 965-6318

Telematics: Weaving the future

From Fleet Owner Magazine: Wendy Leavitt

Following the development of telematics today is like watching a robotic machine weave an enormous carpet of many colors and complicated, interlocking designs. Skeins and skeins of yarn (or data streams) wound onto countless shuttles (telematics devices) fly back and forth across the software loom forming intricate, interwoven patterns of blended shades and tones—nuanced information, surprising insights, subtle distinctions, and endless possibilities.

Telematics, like that carpet, is an amazing transformation of many small, individual elements into a dazzling, almost magical whole that, in the case of transportation, can take companies to places they have never been before—as long as they don’t get tangled up in the process.

“Both the telematics providers and users have evolved so much,” says Dyan Finkhousen, mobile resource intelligence strategy leader for GE Capital Fleet Services. “There have been big changes in just the past five years. People are thinking in terms of ‘telematics-based business intelligence.’

“We are seeing lots of investment in telematics solutions, more than ever. Companies also have more choice and more leverage with providers,” she adds. “Some buyers are already very focused on using advanced analytics to help support decision processes. Others focus on various telematics feature sets.”

“Today, you really can’t compete anymore without telematics,” observes Norm Ellis, vice president of sales, service and marketing for Enterprise Services. “Telematics makes the impacts of various things (like delays) visible. Telematics information has already had a profound effect on trucking—on areas such as safety, driver retention and efficiency.”

TREND: Data Integration

Talk with almost anyone in the telematics business and it won’t be long before the subject of data integration comes up. The theory is that by combining different data streams from a variety of sources, companies can discover valuable information that would have been much less useful or even invisible without the interweaving of other, relevant data.

Everybody wants information now, not data,The goal is to bring all the data together from vehicles, handhelds, fuel cards, sensors, diagnostic systems, GPS devices and everything at our disposal.

RAIR, a division of DriveCam, helps DOT-regulated companies comply with safety regulations. The ability to combine disparate data from multiple sources is making that a whole new ballgame. Think about holistic evaluations/scoring of drivers, offers RAIR spokesperson Stephanie Wagner. “We can combine equipment usage data (mpg, idling, rpms), productivity data (on-time deliveries), responses to emergency dispatches, safety data (like hard braking and speeding) and compliance data (HOS, accidents and citations) into a single picture.”

Fleet Managers and company owners want more kinds of information. Medium and large customers don’t want to have to go to a providers user interface page either to get the information the company provide. They want to have that product interface with the fleet management systems they already use—with McLeod Software or with TMW Systems or others. The very large companies just want the data pushed to them. And everyone is asking, “What else can you tell me from the devices I already have?”

Information is the product in some senses; and while that definitely rings true, the decisions that are driven out of that information will be what really matters. Customers are looking for information in order to make a decision. That means our job is to generate decisions. A good telematics company strategy is to produce the answer based upon real data and deliver that.

One thing enabling this automated decision making is the expanding ability to “flow” data automatically from all sorts of disparate systems and devices to the people who need to see it. Business process automation frees users from monitoring by automatically routing documents to appropriate queues based on defined rules. To put it another way, established thresholds [for various functions and outputs] automatically initiate standard sets of responses. The system is managing the data for you.

TREND: Constantly Connected

Delivering decisions, at least timely decisions, requires that companies be virtually connected all the time. You can’t run a business like a black box where you put decisions in the top and just hope everything comes out all right. Today, you have to know what is going on all the time and constantly be optimizing to deal with changes.

What if a truck breaks down or a driver gets sick or a customer changes his mind? All those things used to be handled manually by a dispatcher [and a driver over the telephone]. Now telematics can identify problems and re-optimize automatically.

I still like the ‘war room’ analogy…Even if you are not in the military, you still have to run your business that way. You have to be looking at the most relevant information all the time. I’ve often heard that having a war room or control room changes the psychology of a business. Something positive happens when you post actual, mission-critical information where everyone can see it.

Lots of utilities, for instance, have a central control room and they like to show it off to visitors. It says, ‘We know what is going on. We know what we are doing.

Making sure that everybody in the company has a window on that “control room” is also an emerging function of telematics. It is absolutely correct that information is becoming the product of telematics. The challenge everyone has is how do we disseminate that information throughout the organization to the people who need it when they need it?

The big push now, of course, is getting information to the driver in the cab. You have to make sure, for instance, that what the driver sees and is held accountable for is the same thing that the back office is measuring and evaluating—whether it is customer service, driving habits or out-of-route miles. Everybody has to be on the same page at the same time regarding how the driver is performing.

Trend: Specialized and Customized

But what actually needs to be on that “same page” is not the same for every fleet, and that is the genesis of another trend in telematics—creating systems that provide fleets with job-specific information.

Different markets have very different needs. On the private fleet and vocational side there is even more variety [than among for-hire carriers]. There is a ‘learned standards’ capability for private fleets with pretty regular routes, for instance, that helps to constantly improve performance along lanes. Fuel management, on the other hand, is a concern common across all markets.

Telematics providers are taking at least two different approaches to the challenge of specialized needs. The first is to offer job-specific tools. The other choice is to offer standardized telematics platforms designed to take care of the common basics, but also make it relatively easy for fleets to customize some data fields in order to capture and analyze data specific to their own operations.

Say you are a lumber company with 100 various class trucks operating on five lanes. You need to know things about board feet and weight and have a vehicle deployment hierarchy that a packaged dry goods carrier probably doesn’t worry about.The key really is how easy you make it for people to slice and dice their own data.

TREND: Advanced Analytics

If there really is magic in telematics, then advanced or predictive analytics is where it quietly resides.Information that might be useful elsewhere may not be visible. Broad data integration and the use of predictive tools are really the way forward. It is a major telematics trend.

Trucking companies are sitting on a mountain of answers. The job of vendors is to unlock the secrets of the mountain. There will be as many or more opportunities down the road [as we have discovered so far]. There is a lot of modeling going on in fleets now, for instance, around letting drivers use their time more efficiently. Inefficiencies create dissonance for drivers [and contribute to job dissatisfaction not to mention adding cost].

Over the past several months, companies have also used advanced analytics to help fleets better manage fuel purchasing. To do that, they pull more data from the J1939 data bus on a truck, including fuel tank levels. Then bump that figure up against the fuel purchase history, actual fill events, and other factors. This allows a company to tell the fleet how much fuel the truck could take and how much should actually be pre-authorized for a particular purchase.”

For example, it is now possible can tell a fleet why the fuel economy of a particular truck equals X. That requires analyzing data from the engine control module, velocity data, data about the driver’s habits, maintenance data and vehicle specs, along with data from other outside sources. Using parallel processing—multiple threaded processing—like Google or Facebook does. That allows a company to get answers much faster.”

It is now also possible through Risk Advisory programs to deploy advanced predictive analytics to give fleets new insights such as concerning which drivers are most likely to have an accident in the near future.

Today’s telematics companies can build models that look at historical data versus what really happened and know what a baseline safe driving behavior looks like and then spot even subtle changes—higher speeds, poor shift timing, hard-braking—the things that lead to accidents.

By looking for patterns it helps to see who is apt to have an accident and why and we want to see that in time to intervene.

TREND: OEM-Installed Telematics Platforms

Some fleet executives will tell you that they can’t wait for the day when truck OEMs provide standard, open architecture telematics systems that can interface with just about anything the aftermarket develops while still protecting the integrity of the electronic and computer systems the truck itself depends upon. Many telematics providers view that as the ultimate goal as well.

Less than five years ago, that seemed like a very distant possibility. That has changed, according to the latest report on telematics from C.J. Driscoll & Associates. Truck makers are becoming much more involved in the telematics revolution, generally in partnership with trusted telematics suppliers.

“In late 2011, [Daimler Trucks North America] began providing its Virtual Technician solution [developed with partner Zonar] as standard equipment on new Freightliner trucks with Detroit Diesel engines,” notes Driscoll. “Today, Paccar, Volvo, Ford, Navistar, Isuzu and Hino are also offering optional factory- or dealer-installed telematics solutions.

“The primary focus of truck OEM telematics solutions is currently on vehicle diagnostics and maintenance,” Driscoll adds. “However, some OEMs indicate that they plan to offer a broader range of fleet management features in the future.”
Making it all happen

Like the warp threads on that imagined carpet, there are a number of other, very significant changes taking place in the telematics space that provide the framework for other developments, including the rise in the number of handheld devices, improved and simplified user interfaces and a movement (some of it regulation-driven) toward greater standardization in order to achieve greater integration.

Perhaps most importantly, there is an explosion of cooperation and collaboration among suppliers, truck makers, fleets and others. That includes a growing number of mergers and acquisitions, but also a growing number of partnerships.

The user group conferences sponsored by many telematics providers are an acknowledgement—no, a celebration— of the power of team effort to achieve things through telematics beyond what an individual supplier or fleet could do alone. The energy crackling around telematics today is palpable—and it is highly infectious.

For more information and a consultative analysis on your fleet, company needs and concerns, contact Vincent Rush, VP of Business Development for Lynx Telematics. (513) 965-6318 or vrush@lynxtelematics.com

Telematics and Dealership Customer Relationship Management

From Telematics Update

Jessica Royer Ocken reports on how telematics is reinventing the customer experience

Telematicsenabled customer relationship management(CRM) has the potential to reshape OEM-dealer-driver relationships, and perhaps OEMs’ relationships with insurance companies as well. Dominique Bonte, vice president and practice director at ABI Research, describes CRM as an “umbrella platform” that allows OEMs or dealers to reach customers “more efficiently” to offer services based on their profiles.

Telecom service providers are also discovering the potential for value-added services and are taking steps to provide systems that can be put quickly into place.

Data about the status of the car, through live “real-time” diagnostics, can be of great use to a dealership looking to strengthen the Dealer-Customer relationship and provide a competitive advantage over independent auto repair shops and instant oil change stores.

Make it easy and fun

Reaping the benefits of telematics for CRM is all about technique and approach. It’s a matter of “providing advice to the driver in order to improve the way he’s managing his asset, the car itself,”

Not only can dealerships alert drivers when they need to bring their car in for maintenance, they can let them know when their tire pressure could use adjustment and why that benefits them through improved safety, more reactive brakes, and lower fuel consumption.

But the most effective CRM communications will be more than just directives and data. OEMs need to make it “easy and fun” for drivers to access data about their behavior behind the wheel.

Add an element of gaming or social networking so people can compare data and behavior or their fuel consumption. This makes it more digestible.

These ideas fall under ‘vehicle relationship management’;

Diagnostics, maintenance, and perhaps vehicle-centric firmware updates. But the larger umbrella of CRM is about a more complete experience,including offering or up selling content and apps to drivers, navigation, and better entertainment and better information.

Off-the-shelf solutions

Perhaps the biggest boon for dealerships is the fact that CRM systems don’t have to be built from scratch.

Often OEM’s, such as Lynx Telematics in Cincinnati, can adapt their existing telematics systems and “fine tune them to add a customer dimension,” A CRM system just needs access to vehicle data, which is already in place.

We use what is already existing, already tested, already successful on the market, but we have decided to reshape and reconfigure that in a different way to provide value.

Dealing with dealerships

As OEMs move into the CRM game, their relationships with dealers as well as drivers is likely to change.

Maintenance updates and scheduling are likely appreciated not only by drivers but by dealers as well, because advance notice about which vehicles are coming in for service helps them better manage their resources, including space and staff.

Right now the dealer is an important touch point for OEMs to contact customers regarding sales and maintenance as well as up selling services and apps. .

In addition, as CRM grows in popularity, other parties will be involved in communicating with customers, telematicsenabled insurance companies, for example, or TSP call centers.There’s a big risk if everyone is reaching out to the driver but not in a coordinated way. There’s a big objective to get the players working together.

For information on the value of telematics data and how positive customer relationships improve dealership ROI contact Vincent Rush at Lynx Telematics and for a tutorial on using marketing partnerships to build brands and Telematics revenue opportunities.

Re-posted by Lynx Telematics, Cincinnati, Ohio (513)-965-6318

Vincent Rush VP of Business Development and Dealer Opportunities, Cincinnati, Ohio. (513) 965-6318 or vrush@lynxtelematics.com

AAA Study: Teen Drivers with Passengers are Riskier

By SARAH CRICHTON sarah.crichton@newsday.com

About one-third of all fatal car crashes are caused by speeding, but for 16- and 17-year-old drivers, the numbers rise to almost half when there are three or more passengers, according to a new study.

Motor vehicle crashes are the leading cause of death for teens, according to the Federal Highway Safety Administration.

This week is National Teen Driver Safety Week, and the AAA Foundation for Traffic Safety released its latest findings to highlight how the prevalence of risky behavior generally grows for drivers ages 16 and 17 when teen passengers are present.

For 16- and 17-year-old drivers involved in fatal crashes, the analysis found:

Prevalence of speeding increased from 30 percent with no passengers to 44 percent with two and to 48 percent with three or more.

Prevalence of alcohol similarly rose from 13 percent to 17 percent and 18 percent.

The foundation analyzed data on fatal crashes in the United States from 2005 through 2010. Researchers found 9,578 drivers age 16 and 17 were involved in fatal crashes, and that 3,994 of these included at least one teen passenger. All risk factors were more common among male drivers.

New York State’s graduated driver licensing program, which took effect Sept. 1, 2003, limits teens with learner permits and junior licenses to driving only from 5 a.m. to 9 p.m. in Nassau and Suffolk, except for limited travel to work, school and driver’s education, with proof required. It also caps the number of passengers under 21, among other restrictions.

An earlier foundation report found loud conversation and horseplay were substantially more common with multiple teen passengers than with siblings or adult passengers.

Re-posted by Vincent Rush of Lynx Telematics, developers of the LynxSafe Teen Driving Monitor.

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These are some of the very reasons that we developed the LynxSafe Teen Driving Monitor.

One of the scariest days in any parent’s life is that moment you hand them the keys for their first night out on the town.

As my own Mother has often said; “I would lie awake every night, until I heard the garage door open. Only then, could I get good nights sleep!”

Actually, if Mom had known the way I was driving; those nights would have been even more restless!

After a personal family tragedy involving teen driving, I began to really think about my two children that had yet to begin the driving process and made the determination that I would not sit back and do nothing, other than say a prayer and keep my fingers crossed.

Telematics has been on the rise over the past few years and has really made a leap into mainstream public, thanks to a gal named Flo and Progressive Insurance’s product offering called “Snap Shot”

“Snap Shot” is a product that simply plugs into your vehicles diagnostic port and harvests data, based on driving habits, for the insurance company.

Known as UBI (User Based Insurance), the insurance company’s actuaries will assign a risk assessment profile to the individual driver and either slightly increase or lower premiums based on the data accumulated.

As one insurance company CEO recently remarked to me; “Telematics is to the insurance industry, what credit score was five years ago.”

Credit scores used to be accurate indicators of a drivers risk profile and predictors of the likelihood to be involved in an accident.

However, now that credit laws and new regulations on lending have changed due to the economy, many people who were previously considered “good credit profiles” are now considered marginal to poor, due to no fault of their own.

What was once an accurate indicator of risk factor for an individual driver was now becoming viewed as increasingly inaccurate?

Telematics provided a “game changer” to the insurance industry, with accurate indisputable driver profiling as a result of individual driving habits and real-time monitoring.

While this is a great product and many of the top insurance companies are now moving to a UBI model, there is still a basic flaw to me; As a parent, I want to know my kid is a bad driver….the second he is a bad driver and not…2 weeks after it’s too late, when my insurance company tells me his driver score went down 3 points.

The LynxSafe Teen Driving Monitor, by Lynx Telematics has allowed us to develop device that simply plugs into the drivers diagnostic port that allows a parent to monitor in real-time EXACTLY what their teen drivers are doing behind the wheel.

Once the LynxSafe device is installed, a parent logs onto their personal website and sets up parameters or rules, that they expect their teenager to follow when behind the wheel.

Along with rules and boundaries, a parent or loved one, chooses how they want to be notified, either by smart phone, with live map locations when violations occur, or by any internet enabled device. As for me, I like seeing on my smart phone exactly where my kid is…the moment they have broken a rule.

For example, I want to eliminate his or her ability to text and drive or browse his web enabled smart phone, I can now take full control over that deadly habit with our Anti-Texting” technology.

Next, thanks to a “Speed by Street” feature, I only want my son to drive no more than 5mph over the speed limit on any given highway or street.

With our “On Star” like capabilities, I can set up a collision alert and have the peace of mind to know that if any fender bender occurs, our 24/7 call center has already contacted my child before I even have a chance to call.

I can also set up other parameters such as excessive RPM’s, jack rabbit starts, panic breaking, cornering too hard as well as a special feature called “Boundaries”

If my son or daughter happens to be grounded and I only want to allow them to drive back and forth to school and work, I can set up a boundary that will notify me the second they leave that zone or if they cut out of school early, I will know the moment they leave the lot.

As a parent, I can also monitor specific engine diagnostics such as low fluids, mechanical glitches and head off future expensive repairs.

Or if my daughter is at the movies and leaves her lights on, I can be at home and receive an urgent alert that her battery has dipped below 12 volts thereby calling her to go start her car and avoid the potentially unsafe practice of asking a stranger in a movie parking lot at 11:30pm for assistance.

And thanks to a login screen that shows a live GPS location of where my monitored vehicle is, I now never have to hear that excuse; “Sorry Dad, my phone battery was dead.” Or “I apparently had no coverage.”

By the way, guess what car my Daughter will use for her dates!

Our goal at LynxSafe, is not to “bust” our kids and have cause to punish them rather to let them know that Mom and Dad, are still along for the ride.

As our slogan says; “They have the license, they have the keys…and now you have peace of mind!”

For more information on the LynxSafe Product by LynxTelematics, contact Vincent Rush at (513) 965-6318 or at vrush@lynxtelematics.com or visit http://lynxtelematics.com

All OBD “Plug In” Fleet Management Devices Are Not the Same

In today’s market place it seems that there are a variety of GPS tracking devices that plug into the OBD, on board diagnostic plug, in the vehicle. The consumer might be lead to believe that all of these devices are the same or that they provide the same data. Some devices on the market plug in to the diagnostic port to power the device only. Others provide data about the faults occurring in the vehicles engine. The Geotab engine diagnostic tools offer the user the broadest selection of protocols supported and the richest dataset available to ensure the efficient, safe operation of the fleet’s assets. According to Colin Sutherland, Geotab’s Vice President of Sales, Geotab’s technology can be referred to as “the Rosetta Stone” of the telematics market. Geotab understands and translates a comprehensive set of vehicle diagnostic codes, including those of hybrid and electric vehicles.

Understanding OBD Compliance

The term “OBD compliant” refers not to one standard but rather to a multitude of protocols all of which exist under the OBD umbrella. These protocols are typically identified by alpha numeric code that defines the communications methods that the vehicle uses to communicate. These protocols span a variety of different manufacturers and a manufacturer may alter the protocols from model year to model year.

Vehicles first started being equipped with a diagnostic port in the mid 1990’s vehicles. Since the first diagnostic ports were installed in the vehicles the protocols and the data they make available have changed greatly. OBD over CAN is the latest variation. CAN refers to the “Controller Area Network” – in an OBD over CAN a central network combines the data from additional inputs in the vehicle to allow Geotab to report non-engine related data using the same OBD connection in the vehicle. An example of non-engine data would include: seatbelt use monitoring and passenger detection in light duty vehicles or the automatic detection and reporting on PTO use in heavy duty vehicles.

It is important to consider the variety of vehicles in a fleet when evaluating an OBD plug and play solution. While all newer vehicles have a diagnostic plug not all telematics solutions are designed to work with all of the vehicle types that exist today. Does your proposed solution work on all light duty and heavy duty trucks or do you need different devices for different assets? Will the solution work on the new hybrid vehicles that are gaining in popularity? Can the solution provide the complete data set from the heavy trucks two engine data protocols that run simultaneously on the newer vehicles? Remember to keep in mind the data you wish to consume today as well the long term goals for telematics: How can the technology ease the administration of maintenance and total cost of ownership calculations on all of the assets in your fleet.

Posted by Vincent Rush of Lynx Telematics in Cincinnati, Ohio.

Lynx Telematics is a proud supplier of the GeoTab technology for fleet asset management.

If you have a fleet of 10 vehicles or 10,000, and would like to discover how Lynx Telematics and the GeoTab solution could reduce operating expenses, improve CSA scores and reduce risk liability, please contact Vincent Rush, VP of Business Development for Lynx Telematics at (513) 965-6318 or by email at vrush@lynxtelematics.com

Is telematics the cure for the ills of the insurance market?

Post Blog: The telematics white elephant

Is telematics the cure for the ills of the motor market? Or is the rise in the use of black box technology a false dawn? Greg Bannister explains.

Much has been written on the subject of telematics, its potential to help fight against fraud and the whiplash epidemic. But is it the panacea that the industry has been looking for? Or will the practicalities render it a white elephant – at least as far as claims are concerned?

While the industry’s PR machine has touted lower premiums as its main benefit, its use in the claims arena is perhaps more important to insurers. Given the fact the devices can detail the time, date, location, distance traveled, speed, acceleration/deceleration and the time spent idling a vehicle in any journey, it is easy to appreciate the value of the information in considering claims where causation or fraud is suspected or liability disputed.

But before the industry gets too excited, there are a number of logistical issues to address. How easy will it be for lawyers to apply for black box evidence from a defendant’s insurer? What data protection issues are there to overcome? How likely is it that an insurer would disclose data to a third party unless it assists their own defense?

There appears to be a reticence by insurers to disclose the information gathered and of course, the barriers are clear.

Nobody likes unilateral disclosure and the issue here is only one side will have the data to prove or disprove a claim. The temptation to only disclose when favorable is understandable, but a court’s likely view of this action needs careful consideration.

Data protection is rightfully of utmost concern for telematics insurance providers however, with the Insurance Fraud Bureau estimating motor insurance fraud costs running at $4 Million per week, all available weapons to defeat the fraudsters must be considered.

Telematics-based motor insurance products are sold on the basis that utmost care will be taken with the data collated, including that the information will not be passed on to the prosecuting authorities when an offense is detected, such as a breach of the speed limit.

The holders of the data have a duty under the Data Protection Act to use the information “fairly and lawfully” and so in reality, whilst a proactive report to the police will clearly not be made, where the police are investigating a crime then there will be a duty to disclose the information. Similarly, where insurance fraud is reasonably suspected, a defendant will be able to apply for release of the relevant data under the Act.

So how can the industry overcome the barriers to ensure that its customers are treated fairly an the industry itself can harness the power of the data to combat fraud?

The ideal scenario is that drivers are told that telematics data will be disclosed. There are clear benefits to this approach, it provides certainty for the insurer as fault claims will be settled at the earliest opportunity, reducing its costs.

Equally important, disputes and suspected fraud cases will be vigorously fought with the benefit of this scientific data, increasing the prospects of success. And to ‘sell’ it to the customer, perhaps greater transparency is required regarding the impact of fraud on motor premiums and how disclosure of telematics data can help fight the good fight?

If people can be persuaded of the merit in being careful, but not overly protective of their data as well as their driving, then it really could be a case of fraudsters beware.

Greg Bannister, Technical Assurance Manager for Motor, Questgates

Re-posted by Vincent Rush of VP of Business Development for Lynx Telematics.

Lynx Telematics is a Cincinnati based OEM of Telematic technology and provider of the Geo Tab product along with patented “Anti Texting and Web Browsing” technology for fleet based companies.

Lynx Telematics is also the innovator and pioneer of the Lynx Safe Teen Driving Monitor that grants parents real-time data on their teenagers driving habits while blocking and disabling texting and driving.

For more information, contact Vincent Rush at (513) 965-6318 or by email at vrush@lynxtelematics.com

How Do I Choose the Right Telematics Company?

How Do I Choose the Right Telematics Company
By Michael T. Sprouse, President G&A Research, Inc.

I was reading a copy of Fleet Owner magazine the other day, trying to make sense of the world of telematics, and lo and behold; I received a call from an old fleet client of mine that I have done consulting for several times over the past few years.

“What can you tell me about telematics?” Jim asked of me.

Trying to buy some time so that I did not sound unprepared for his inquiry, I responded with my patented, “Jim, could you please clarify the nature of that question. There are many answers to that.”

Having deflected the conversation and bought some time to collect my thoughts, my friend, who owns a beverage company, with a fleet of 250 trucks, went on to say that, while he believed that telematics time has come and realized that he needed to make the move to reduce his operational expenses and get a handle on the overall management of his assets, his concern was over…”How do I BUY telematics and what should I look for in a company?”

Trying to sound like the ever wise and knowledgeable oracle of fleet management solutions, I replied, “Ahhh Jim, you have stumbled upon one of the great mysteries in the modern-day telematics that holds as many theories as a government conspiracy. Let me get back to you in a few weeks and give you a thorough report, so that you can have enough information to make the right choice for your company.”

My journey for the proverbial “Arc of the Covenant” led me to interview several fleet based companies of various industries, from trucking to sales organizations and fleet sizes of 30 to 1200 vehicles, as well as ten telematics companies, all of which were “pioneers” and self-described “industry leaders”.

Allow me to digress.

First, it is important to look back and reflect on the fleet based telematics market and how it has evolved to this point and is beginning to approach critical mass.

For the purpose of this article, I will take a “Telematics for Dummies” approach.

Much like technological innovations that hit the market every few years and spawn a host of companies looking to cash in on the “Gold Rush” of that industry, telematics really burst onto the scene about three and a half years ago.

And much like the previous races to acquire market space, a whole plethora of “pioneers” aligned themselves with an OEM and set out to grab as much market share as possible.

Companies began assembling sales teams, armed them with marketing lists that divided the country up into territories, and began calling on companies that met certain fleet size criteria.

If your company had a fleet size of 100 vehicles or more, you have been called once for each of those vehicles, if not more.

Telematics was a new and shiny toy that carried the promise of reducing fuel budgets through decreased idling times and safer driving habits and was very attractive to companies looking to reduce operational expenses.

The asset management aspect of keeping tabs on all of your vehicles was very appealing as well.

Once a web demo would show all of a companies vehicles and give a CEO or fleet manager the vision of how they could keep an eye on all of their employees, a company would then sign a three-year agreement with a telematics provider, have a solution installed and then begin trying to make sense of the myriad of data that began flooding the fleet managers desk top.

While many companies could see the advantages of telematics and the financial impact that a properly run system could provide, a majority of companies, over the past three years chose to take a “wait and see” approach, either believing it sounded too good to be true, or not willing to part with financial resources due to the precarious state of the economy.

Now three years later, the telematics industry is approaching critical mass and the mountain of evidence is nothing short of overwhelming.

In fact, as one CFO recently told me, “The very reason we did not make the move, was the very reason we SHOULD have made the move. We believe that waiting two years has cost us nearly a $500,000. That’s money we could have used for marketing or other infrastructure.”

So with the mystery of telematics no longer unsolved, the only question being asked now is, “What should I look for in a provider?”

What I found to be most interesting in my research of companies that had purchased a solution, was not dissatisfaction in the technology or the results but rather in their provider.

A common theme that I kept encountering was that once the contract was signed and the support and the “romance” ended, they were stuck with a solution that, while not as complete as they needed, still came with three years of monthly monitoring fees.

As one of my clients remarked, “I was told that I was purchasing the most complete solution, which I later found out that I wasn’t and then a month later, I couldn’t find my sales representative with a search warrant. Now I am stuck with minimal tech support and have to figure out on my own how to maximize the capabilities. I don’t have time for that. I have a company to run!”

His language was more colorful than that; however for the sake of this article……

So what I have compiled, after a couple of months of research which included conversations with 18 end users as well as 10 randomly chosen telematics providers is a helpful guide on how to choose a telematics provider that will be right for your company.

I would like to point out that, I purposely do not mention company names, as this paper is designed to simply be a guide based on my research and not an endorsement of any one company or solution.

If you are a company owner or fleet manager, first of all, let me start by saying, congratulations on making the conscious decision to move your fleet into the world of telematics technology.

CEO’s and Fleet Managers for all companies reviewed have universally seen and experienced, without exception, the impact of a successfully implemented telematics program to an organization, from simply a fiscal aspect to a safety and productivity bottom line.

However, it can be very confusing in the telematics world, with hundreds of providers and as many solutions. I hope to be able to help you in your decision-making process with this list of the most commonly asked questions that Managers said that they wished they would have asked or researched further before making their decision.

The following is a list of questions to ask you potential service providers and an explanation of why it is important to know.

Q: Are you partnering with a telematics company or a company that simply sells telematics devices?

A: There are many companies that simply sell devices and monitoring but no real service and long-term support. Do you want to work with a re-seller or a company that is constantly innovating and working closely with you in partnership to insure that you maximize your ROI?

Q: Is your provider a local company that can work closely with you and your team, even after you’ve signed the contract? Or will your consultant, who is only an account rep, not be able to help you beyond the signing of the contract?

A: This may seem redundant of the previous question, but it is important to make sure that once you sign the contract, you are in essence “married” to your choice for the next 3 years. You are going to need help and support as you learn more about the capabilities of your solution and how to use it within your company.

Q: Are future upgrades automatically included or are you married to current technology for the length of contract…unless you pay for an upgrade?

A: Ever bought the latest and greatest cell phone, only to have version 2.1 come out 30 days later? Ten you know the frustration, Technology is always changing and there is an old saying, “Today’s innovations are will be out of date as of yesterday.” Telematics is no different. It’s best to beginning to take advantage of today’s technology with a company that provides free firmware and software upgrades. Why wait 6-9 months for future advances when it is costing you money today?

Q: Are they a “Plug and Play” solution vs. a “Wired In” Solution?

A: It was interesting how companies that don’t offer a “plug and play”, will do everything they can to convince you that it could be the death of your company if you choose to go that route. The truth is that there are very good plug and play solutions that are fully robust and give you everything you need. The long-term benefits are that there is no installation costs (typically $100 per unit) and un-wiring and transfer costs (typically $150). “Plug and Play” solutions make transfer from one vehicle to another a 30 second procedure.

Q: Do the have “speed by street” capabilities?

A: Most telematics solutions offer a generic speed monitoring solution. That solution usually only allows a fleet manager to establish an interstate speed limit. The truth is that in today’s safety conscious environment we live in, speeding on a residential or business district street is even more dangerous that being 10 mph over the speed limit on the interstate.

Q: Do they have “Anti-Texting” capabilities?

A: This really needs no explanation. When your company has an accident that results in an injury or even worse, a fatality, the victims lawyers will subpoena your drivers phone records and attempt to match a texting incident or phone conversation to the time of the accidents occurrence. At that point it is simply “Game Over” from a financial perspective.

While every company I interviewed said that they had a “very strict” no texting policy, none of the companies I spoke with had the ability to enforce that policy, leading to the adage that “A policy that is unenforceable is not really a policy”. And with today’s new texting laws, your company could be subject to an $11,000 fine if your driver is observed to be in violation.

Q: Do they have seat belt notification?

A: I found it very rare when speaking to telematics providers that this feature existed but it in fact does. Obviously this is a safety related feature and will please many insurance companies that recognize the value of telematics in a fleet.

Q: Do they provide “real-time” ECM diagnostics?

A: Real time is just what it says…happening now! I spoke with a few fleet managers that shared stories with me of solutions that saved thousands of dollars in costly repairs by alerting them that there was trouble beginning to emerge in their fleet and they were able to treat the symptoms before they became illnesses that could shut down a vehicle for days, if not weeks. Lost productivity aside, maintaining the health of the fleet is just as important as maintaining our personal health before an incurable illness occurs.

Q: Can they generate IFTA mileage logs and reports?

A: How important is this? I was surprised to find out that it was one of the key benefits of a fully robust telematics solution. One fleet manager informed me that by automating this process, he took one weeks worth of effort, every quarter and reduced it to a few days for the entire year.

Q: Do they have H.O.S. (Hours of Service) reporting capabilities?

A: This is important, especially for trucking companies that are concerned with D.O.T. reporting. It’s also valuable from a productivity perspective. As one Fleet Manager told me, “I like to be able to look and see how many more hours my drivers have left so that I can make the best use of our available fleet.”

Q: Is the product made in North America?

A: This comes down to a dependability issue as well as language and semantics of your implemented solution.

Q: Is design and manufacturing under the same roof?

A: An important characteristic of your telematics provider for the purpose of innovation and expedition of those technological advances.

Q: Do they have a Software Development Kit (S.D.K.)?

A: Why is this important? No one fleet is exactly the same and every fleet manager has different needs and desires. An S.D.K allows your IT department to write code and interface with other applications that in play in your fleets form Garmin solutions to snow plows and devices that measure salt tonnage per street.

And finally…..

Q: Does your company have references…that you are familiar with?

A: In my research, I found that every telematics company I spoke with had a ready-made list of references. However, upon examining those lists, I realized that I had only heard of 1 out of each 10 that I was given. I realize that there are companies such as UPS, Orkin, Frito Lay and more that have devoted thousands of hours and months of test piloting to determine the proper solutions for their companies. Before I make an investment, or “go to the altar” with a provider, I want to make sure that I am not their guinea pig.

I hope that this has been helpful to you and sheds some light on your telematics search.

While there are variables to every situation and probably no one solution that is perfect for every company, it became my experience through research and interviews that these are questions and requirements that repeated themselves most often.

Michael T. Sprouse
President, G&A Research Institute
Cincinnati, Ohio

Insurance telematics could ‘flip the underwriting model on its head’

Your insurance provider may soon be asking for access to your telematics data. What’s in it for you?

By: James Menzies of “Truck News” 2012-08-20

Insurance brokers and providers may soon be asking fleets for access to their telematics data, in an effort to provide more accurate insurance pricing and to help fleets better utilize that data.

It’s a bold new approach that’s already happening in other parts of the world, including Europe and Australia. Here in Canada, Industrial Alliance made waves earlier this year, when it launched a program in Quebec that allowed young drivers to install data recorders in their car and then pay premiums based on their specific driving habits.

Truck News has learned that the concept – sometimes referred to as Pay How You Drive or Pay As You Drive – will soon be rolled out to the Canadian trucking industry. Insurers realize telematics provides the basis for a more accurate means of underwriting risk. Today, brokers and insurers collect the same old data (such as CVOR and CSA scores as well as a five-year claims history) to determine premiums. But insurers have come to realize that basing premiums on past claims isn’t the best way to do things. For starters, it doesn’t address those fleets that employ risky drivers but have avoided accidents through sheer luck.

Using telematics, insurance providers will be able to identify risky driving behavior that will most likely result in accident over time and can push a fleet to intervene with offending drivers and address unsafe behavior before that accident occurs. Insurers who tap into their customers’ telematics data will be looking for information on speed, hard braking, abrupt lane changes and rapid acceleration, among other risky behaviors.

“From an underwriting standpoint, it flips the underwriting model on its head,” Scott Cober, vice-president, national leader with Marsh Canada’s trucking practice told Truck News in an interview. “It becomes more of a predictive underwriting model.”

At the very least, using telematics to determine insurance pricing will allow insurers to charge premiums that better reflect a fleet’s likelihood of being involved in a crash. But ideally, insurance providers will use that valuable information to alert a fleet to worrisome trends and encourage interventions before such accidents even occur.

“Fleet insurance underwriters currently review driver abstracts for tickets and look at accidents to assess a high-risk driver in the fleet,” Cober explained. “A fleet’s risky drivers may not be the ones with tickets or accidents, but those who are trending towards bad behaviors on the road – making unsafe lane changes, cornering at high speeds, etc. These drivers are potentially your future accidents and claims. The driver behavior data (collected through telematics) will help safety managers prevent accidents before they happen.”

In most cases, insurers will be able to tap into data collected by existing and widely used telematics systems. Other programs may encourage fleets to invest in specific real-time monitoring and coaching systems such as those that alert drivers to risky behaviors in the cab as they occur, while also sending reports to the fleet manager. Some “Live View” systems feature an in-cab camera that captures video of what transpired in the moments immediately before and after a risky maneuver occurred. In-cab camera technology provides insurers with a useful tool when trying to reconstruct an accident or determine who was at fault.

“We’re using that not only as a behavioral tool, but as a claims tool,” Cober said. “For the first time, we’re gaining insight into what happened and we’re seeing drivers become exonerated from the claim. I think video is going to have a fundamental change on the whole claims process. A fleet can say ‘My driver wasn’t at fault, he was cut off by this driver,’ and on the reverse side, he may know the driver was at fault right away and from the insurance standpoint we can set the reserve up and get ready to pay the claim.”

Some fleets, naturally, will be reluctant to share their telematics data with their insurer. But insurance companies insist fleets have plenty to gain by doing so. This applies both to safe fleets (because they’ll pay premiums that better reflect the skills of their driving force) as well as unsafe fleets (because their insurer will work with them to identify unsafe practices and provide corrective training measures proactively).

“The safest fleets are already being very proactive and are more advanced than the other fleets,” Cober said. “But if you have claims, there’s an issue with your drivers on the road. Fleets that want to improve and become more efficient will turn to technology. To be competitive in this marketplace going forward, those fleets are going to have to do this.”

It’s likely that such programs will be voluntarily, at least initially. But don’t rule out the possibility of an insurance provider requiring the use of telematics for fleets with frequent claims.

“I can see possibly in the future, if a fleet cannot control its claims, that an insurer will say ‘We will insure you, but you need to put these measures in’,” Cober predicted. “I can see insurers using that as an underwriting tool.”

Zurich’s Magi says fleets she has spoken to about sharing their telematics data have so far been receptive, though she is quick to point out Zurich insures mostly large fleets with high US exposure, and the majority of those carriers already employ and understand the benefits of collecting and analyzing telematics data.

“I have never had a customer say ‘I’m not giving you the data you need’,” Magi said. “If anything, they’re asking ‘How can you help me analyze this information so I can utilize it better?’ What telematics does is it gives you a granular view of what’s happening with each particular driver and vehicle on a daily basis. You’re going to see a picture there. Insurers are going to see there is something there and it’s to the customer’s benefit to be able to speak with an educated risk services representative who’s going to be able to dig deeper and find out where the big issues are.”

Eventually, insurance providers may look to provide insight into the operational side of a fleet’s business, in ways that extend beyond managing driver behavior. As an example, Magi foresees an opportunity to assist with route planning. Insurers may look at a carrier’s lanes and then suggest a route that avoids litigious states or areas where there are weather-related risks at certain times of the year. Carriers would then be faced with the decision of taking the most direct route and possibly paying a higher premium, or a safer route that will provide insurance savings. All this while meeting the demands of the shipper, which in many cases will be looking for the most expedient delivery of its goods.

“Ideally in the future the technology will get to a point where you look at ‘What is the safest route to get to a point?’ and there’s a charge for that,” Magi said. “If you (as an insurance company) have a true partnership with a customer, you’re going to sit down together and talk about this from a pure business perspective. What is the cost-benefit analysis for your operation to take this particular route versus the potential loss if you take a different route? It factors into their deductible. There are going to be customers that are going to be absolutely operations-minded and some customers will look at route utilization with a holistic approach as to how it’s going to affect their insurance.”

Magi noted insurance, in many cases, is a carrier’s third largest expense and so she expects fleets will be willing to alter their routes to lower costs.

Proponents of insurance telematics insist the data that’s collected and shared will always belong to the carrier.

“This isn’t about Zurich going in and mining information from the customers,” Magi stressed. “The customers can share this information with us if they choose to. Ideally, the purpose of what we’re trying to do is to show them how to better utilize that particular data.”

There are privacy issues, as well, to consider. Cober noted Canada’s stringent privacy laws mean insurers won’t be drilling down to assess drivers on an individual basis, but will be looking at a company’s fleet-wide performance.

“Because of the privacy laws, we are saying to trucking companies “You supply the data to your insurer in a condensed manner without giving driver names, without giving vehicle numbers, just give a holistic view of how the fleet is doing,’ and we’ll take that monthly or quarterly and what we want to see is continuous improvement,” he explained. “Canada has some pretty tough privacy rules.”

While fleet managers may see the benefit in participating in a telematics-based Pay How You Drive-type system, drivers themselves may be more resistant. Cober insisted the systems endorsed by insurers will be sophisticated enough to account for false alerts caused by other motorists.

“We know things happen on the road and it’s going to be quite common to have errors because of third-parties cutting in front (of the truck),” Cober said. He suggested fleets employing driver behavior monitoring use it to reward the best drivers rather than installing the systems for strictly punitive or corrective reasons.

“If it’s seen as a penalty or Big Brother, I think the safety culture of the company won’t flourish,” he noted. “It needs to be promoted as positive reinforcement for the drivers and to reward drivers for good behavior.”

Regardless of how drivers and fleet owners feel about sharing telematics data with their insurer, it seems inevitable. Canada is late to the party, but globally the auto insurance industry is already moving in this direction.

An Oliver Wyman Financial Services report, titled Uneven Road Ahead: Telematics Poised to Reshape Auto Industry, concluded: “As technology costs fall, privacy concerns recede and regulations become more supportive, telematics is fast moving into the mainstream and will fundamentally disrupt the auto insurance business. The threat to late adopters is real: better drivers will enroll in telematics programs, leaving behind a shrinking pool of poorer risks to the traditional insurers.”

The same could be said for trucking companies.

Cober noted that by 2017, it’s expected that new vehicles manufactured in North America will come equipped with some form of telematics hardware already installed, “making the insurance telematics process easier for consumers who may be confused on what actual hardware is required in their vehicle.”

Another objection likely to be faced by insurers is the cost of implementing the necessary technology, particularly for smaller fleets that don’t already employ some form of telematics. But Cober said the cost of the technology is rapidly dropping and the potential savings extend beyond lower insurance costs, delivering a quick payback.

“Traditionally, only the big fleets could afford the technology. But because the technology costs have been dropping, we’re beginning to see the middle market fleets – the fleets with 10-50 power units – can now afford this technology and can see the return on investment,” he said.

Because telematics can improve driver behavior and address bad habits like rapid acceleration and hard braking as well as speeding, Cober said many fleets are realizing fuel savings of 5-10% when employing a telematics system that monitors driver behavior.

“We’re seeing fleets that in the first three to six months, are seeing their investment returned,” Cober said.

And for fleets that proactively monitor and address poor driving habits, the insurance savings will also be tangible, he noted. While premium reductions are generally a reward for lower claims costs achieved over a period of time, Cober said it’s possible insurers will provide some up-front savings for fleets that enroll in a telematics program.

And when fleets discover the additional savings that are achievable by analyzing their telematics data with some help from their insurance provider, Magi said the idea will become an easier sell.

“At the end of the day, really, they’re truckers,” she said. “They want to be able to move freight and run their business. They’re not actuaries that deal with statistics. If we can provide them with the tools and solutions that make it easier for them to very quickly analyze (data) and see a problem, we’ve done them a huge benefit but we’ve also done our bottom line a benefit as well.”

– The above feature article appears in the September issues of Truck News and Truck West

Re-posted by Vincent Rush of VP of Business Development for Lynx Telematics.

Lynx Telematics is a Cincinnati based OEM of Telematic technology and provider of the Geo Tab product along with patented “Anti Texting and Web Browsing” technology for fleet based companies.

Lynx Telematics is also the innovator and pioneer of the Lynx Safe Teen Driving Monitor that grants parents real-time data on their teenagers driving habits while blocking and disabling texting and driving.

For more information, contact Vincent Rush at (513) 965-6318 or by email at vrush@lynxtelematics.com

Lynx Telematics Signs Major Contract

Lynx Telematics, in Cincinnati, Ohio recently has signed a deal to partner and provide services to an industrial company that employs a fleet of more than 700 trucks and is the number 3 company in their industry.

It was learned through conversations after the decision had been made to work exclusively with Lynx Telematics, that this was the 4th test pilot that the company had been through over the past 3 years.

The reasons sited for making their decision were the complexity and robustness of the solutions we provided as well as the customer service and attention to detail that we demonstrated while servicing the test pilot program.

Vice President of Business Development, Vincent Rush, who handled the account from inception to delivery, explains the process and what led to the acquisition;

We began by picking a total of 16 large box trucks in two different locations.

Location A had 9 trucks on pilot while location B had 7.

Before we began stage one, we crafted a team “Roll Out” letter to the employees explaining the purpose installing this technology.

We called the program “The Safe Driving and Operational Efficiency Program”. One of the problems with many telematics projects, is failure to properly implement the program. That not only takes into consideration the explanation of why, but when, how and the name of the project.

The main objectives of the program were, safety compliance, reduction in fuel consumption, lowering insurance costs and allowing drivers to earn more through improved route efficiency.

The telematics landscape is littered with programs gone wrong, due to an improper roll out with unclear expectations.

When dealing with employees, it is very important to make sure team members see the project as a good thing for the company and not a “Covert Spying Project”.

This has always been one of our specialties and what differentiates us from many of our competitors.

There is a big difference in building a successful and sustainable telematics company and simply selling telematics devices.

Phase 1 of our program consisted of setting up our “plug and play” system in the trucks and then monitoring and collecting data for the Operations Manager for a period of 2 weeks.

During this time period we focused on idling time and discovered that each truck would idle an average of 8:30 per stop or an average of 7 hours per week, per truck.

It was during this phase that we were able to show, that by getting control of the idling time, we could reduce the company’s annual fuel expense of approximately $9 Million dollars by a conservative $720,840, using just one element of savings.

In phase two we split the locations and the fleet into two separate groups.

One with audible alerts for idling over 3 minutes and the other location, with only 6 trucks, without audible alerts.

The results were staggering!!!!

Location 1 accumulated a total of 280.5 hours with 9 trucks for an average of 1:52 per stop, while Location 2 with 3 fewer trucks, totaled 592 hours for an average of 6:12 per stop.

We were able to show our client an estimated annual savings in fuel expense, based on idling alone, of $902,415 or roughly 10% of their annual fuel budget.

We didn’t stop there.

The next phase of our test pilot was a meeting with their insurance company.

Not only did we get a verbal estimate of $75,000 dollars in annual savings, we received an endorsement from the company as well.

With an additional estimated savings of $129,600 in maintenance expenses we were able to show our client a projected annual savings of $1.1 million or $3.3 over the next 3 years.

Sure, these numbers are great and alone they should be enough to help any company pull the trigger on making the investment into telematics.

We also added the ability to monitor texting and driving through our partnership with ZoomSafer. In fact, 3 days before our final meeting, one of the company drivers was ticketed for texting while driving

However, for a company that has been down the road with 3 other test pilots, all lasting 90-120 days, the real thing that sealed the deal, after only 52 days, was our level of customer service and attention to detail for the client.

“Lynx Telematics did not simply install a bunch of units and accumulate data for us”, commented the company Fleet Operations Manager. “They actually took personal responsibility and helped us manage and understand what the data was telling us.”

“Lynx also monitored our fleets ECM data and alerted us to possible mechanical issues as they were happening. That alone saved us thousands in productivity and lost product.”

“When I wanted reports or samples of data, my Account Manager, Vincent Rush, didn’t just email it to me, he hand delivered it and explained how the data was presented. They were the most thorough company we had tested.”

“What has really impressed us to this point is that now that we are partnered with Lynx, we are still getting help and attention, like we did in the testing phase. Very impressive level of service from a telematics company”

For more information or an analysis on how Lynx Telematics can help your company fleet reduce operating expenses, improve safety compliance and productivity while reducing risk liability, contact Vincent Rush at (513) 965-6318 or vrush@lynxtelematics.com

Telematics – Can you afford NOT…to have it in your vehicles?

Monday 6 August 2012. Fleet Voice Column. by Alisdair Suttie

How far would you go to save fuel?

According to research by ALD Automotive, around nine out of 10 drivers in the UK would be happy to have telematics fitted to their car to help cut fuel bills.

As fleets have ever more pressure applied to them to reduce fuel costs and emissions, finding ways to make cars and drivers more efficient is essential. This is a more accessible and quicker to implement solution, too, than simply replacing a fleet with newer, more economical vehicles.

Managing Director of ALD Automotive, Keith Allen, says: “Over the last seven years, the technology surrounding telematics has improved and evolved dramatically.

“It now delivers a functionality that can help businesses better manage the costs and risks associated with their fleets. Drivers are also now far more aware of what telematics are and how they can help, benefiting themselves and their employers.”

By monitoring the data of individual drivers, fleet managers can not only work out how to best improve the efficiency of that user, but also the car itself. The fleet manager can also build up a detailed picture of overall fleet performance, whether that means using different vehicles for specific roles or deciding on driver training.

Not Big Brother

ALD’s Keith Allen is quick to assure drivers this is not a Big Brother operation to spy on company drivers, but it is a chance for all concerned to get the best from themselves and the vehicle.

This type of technology has been in use for some time, notably in larger commercial vehicles as a supplementary system to the existing tachograph and for young drivers keen to cut their insurance premiums.

With the spread of the technology to the wider fleet business, there is a chance for company drivers to show they are among the safest and most considerate on the road. The popular image of a stressed-out, mobile phone-wielding road rage incident in waiting is very far from the truth as we all adhere to health and safety guidelines and remember corporate manslaughter legislation. Yet, the public perception of company drivers is closer to that popping blood vessel behind the wheel of urban myth.

Introducing telematics to the wider company car fleet, can only help stamp out the last remaining examples of such bad driving that brand us all with the same iron.

Younger drivers

Talking about the use of telematics for younger drivers, Simon Douglas of the AAa says: “Telematics can help moderate driver behavior and ensure young drivers are more likely to drive safely rather than roar around in their cars”

Douglas also talks about telematics’ advantages for the wider driving community and points out that anyone who is afraid of having such a device fitted is possibly just the sort of driver who needs it most. If you drive responsibly, why should you fear having your driving habits recorded?

This raises the question of personal freedom and the associated liberties and laws that go with it. However, simple telematics that tell a fleet manager where a car is, the duration of its use and fuel consumption need not spark concern among business drivers.

It is tacitly acknowledged that many drivers exceed the speed limit regularly but not excessively. If this behavior is moderated by fitting telematics, that is a boon to a fleet’s safety record, especially if this speeding is in town or areas where there are lower speed limits in force.

If the telematics identify a particular driver has little regard for speed limits or the places where he or she speeds, such as near schools or in heavily inhabited areas, then it’s a chance to offer further training and education to that individual.

Equally, telematics can also offer an element of praise for those drivers who get the best economy from their car through safe, correct driving techniques. As has been seen in studies in the USA, by making good driving habits and standards a competition between those in a company or organization, often it is the previously worst offenders who rise to the top as the standard bearers for better driving.

Greater role

The competitive element appeals to many drivers natures, even those who are otherwise placid souls outside of the car. Behind the wheel, many people change their attitudes as they are ensconced in a steel box that becomes their personal fiefdom.

By adding telematics into the mix, it makes these drivers more aware there is a world beyond their windscreen and they have to be part of it in a responsible, courteous and safe manner.

Trials of telematics have shown individual drivers can save as much as 25% in fuel spent without noticing any great shift in their driving. Apply this across the whole of the countries company car fleets and the savings run into the billions of dollars per year. Those are savings we’d all like to see on a bottom line, recession or no recession.

With the vast majority of fleet drivers now open to the idea of telematics being fitted to their vehicle, and with the cost of installing such technology now dropping to very affordable levels, the question we ask ourselves must surely change. It has to shift from “Do we want telematics in our vehicles”? to “Can we afford not to have telematics in our vehicles”?

Such a fundamental change in attitudes and approach may seem radical or even unlikely to some, but look at the great changes that have happened in the recent past we now all accept as the norm: diesel is the predominant fuel for company car drivers, carbon dioxide-based taxation, and hybrid technology being used on ever more cars.

But have no doubt, telematics will play a much greater role in all of our working lives behind the wheel of a car very soon. Not only will it save companies money, it could positively help to reduce stress for business users as time limits can be more appropriately enforced and safety improved as a result.

Another spin-off benefit of telematics in a vehicle is, should the worst happen and you’re involved in a collision, the technology will be able to establish liability more easily and save a great deal of red tape and form-filling by innocent parties.

Just think: technology that actually saves on paper work.That really is a future worth dreaming of.

Re-Posted by Vincent Rush of Lynx Telematics

For more information, contact Vincent Rush of Lynx Telematics at (513) 965-6318

For more information on how Lynx Telematics, an OEM located in Cincinnati, Ohio can help your fleet become more operationally efficient or custom design a solution to meet your fleet management needs, contact Vincent Rush at (866) 314-0461

Lynx Telematics is an OEM that controls design, engineering, firmware, software development, IT support and manufacturing processes of our product, allowing us to produce the highest quality product in our industry, while offering our customers competitive pricing.

As your partner, we provide ongoing training and support to insure that the product is properly sold to the end user, maximizing the re-sellers profitability.

As one of the pioneers in telematics technologies, Lynx Telematics provides our clients with powerful end-to-end vehicle telematics tools. Our technology offers a real solution that delivers safety, saves money and provides an unprecedented level of peace of mind to our customers.

Our product, LynxSafe, is the newest and most advanced in-vehicle communication system currently on the market. It combines GPS/satellite and GSM cellular technology to provide users and family members with immediate access to real-time information delivered directly via any internet enabled device including I Phone and Android smart phones.