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Valuating and Pricing of Vehicle Generated Data as a Marketable Product in the Automotive Industry

Authors:
Frank Bodendorf
Tobias Meissner
Joerg Franke

Keywords: Automotive Industry; Car Data; Business Model; Value Estimation

Abstract:
Data-driven business models play a significant role in the digital transformation of traditional value-added industries. More and more existing and potential partners of automobile manufacturers show interest in the vehicle data generated by their products. However, there is still no monetary value assessment to support decisions regarding the release of data. Traditional pricing approaches for material goods are based on cost, margin, and volume. However, these bottom-up calculation approaches are not applicable to digital goods. The background to this is, among other things, the uncertainty about the potential sales volume, the difficulty of cost splitting, and the high cost degression per unit of digital goods. This paper provides decision support for selling data to third parties as an intangible product. It introduces a concept that allows to value data generated by a motor vehicle in order to determine potential prospects and prices for sale. The evaluation model developed supports the car manufacturer's negotiating position towards potential data buyers.

Pages: 16 to 21

Copyright: Copyright (c) IARIA, 2019

Publication date: June 30, 2019

Published in: conference

ISSN: 2327-2058

ISBN: 978-1-61208-720-7

Location: Rome, Italy

Dates: from June 30, 2019 to July 4, 2019