AV Value Chain — Data Perspective

Part 1 — Integration by Validation

Due to the complex and evolving landscape of the AV Industry at present, we must look deeper at each company in order to understand how the Data sub-tier specifically feeds into the AV Value Chain. This can be done by starting at the top of the value chain and drilling-down to draw a more detailed picture of the company’s alliance strategy.

Here is the first corresponding alliance model characterized by McKinsey that can help depict how data will be fed into the AV Value Chain:

1. Integration by Validation

An example of this alliance model is the acquisition of Cruise by GM. The companies co-develop and validate the AVs together but for ultimate mass-market adoption, the driver of the technology definition is the OEM. This means that the OEM may individually source some parts of the Data sub-tier as it is responsible for ensuring all solutions are in place, but the expertise usually lies with the AV Technology providers. As a result, the data collection and management solutions will normally be provided to the Tier 2 AV Software Suppliers who will then integrate the solutions into their AV Software. The cloud and on-prem data storage solutions are then sourced by the OEMs directly based on the amount of capacity and scalability they are looking for. Lastly, Data Labelling is outsourced by the OEM to an annotation company such as Scale which is currently partnered with Cruise.

This is the second post in a series of articles exploring the data value chain in Smart Mobility. Caliber AI is a design and deployment partner for AI Pioneers in Smart Mobility, Legal & Compliance, and Utilities & Resources. Start building your AI here.