TeleNav 2012 Annual Report Download - page 11

Table of Contents
Our competitive strengths
Automobile manufacturers procure the various elements of each car that they manufacture from a number of suppliers directly and through
OEMs. We work directly with automobile manufacturers such as Ford, as well as through OEMs, such as Delphi Automotive Systems LLC, or
Delphi. Our strong track record as a connected and personalized navigation services provider to wireless handsets and our history of working with
large wireless customers have provided us with skills and technology that are well suited to meet the demands faced by today's automobile
manufacturers. The sales cycle related to automobile manufacturers is long and consultative and requires direct and continuous management of the
customer and OEM providers to succeed in securing business. Often the automobile manufacturer uses the sales process to help them to define the
ultimate product that they choose to deliver to their end users. Our success with off and on-board navigation at Ford and the continuing shift in
emphasis to connected services has demonstrated the strength of our offerings to other automobile manufacturers and OEMs. As automobile
manufacturers look to more innovative offerings, historical navigation suppliers have less relevant knowledge having been providers of standalone
solutions rather than integrated connected offerings.
Our services and products: Scout for Cars
We entered the automotive navigation services business in fiscal 2008, initially with Ford, and our first off-board navigation product was
launched in Ford's 2010 model year vehicles. Since that time we have been working with automobile manufacturers and OEM customers to provide
our mobile navigation services and products through on-board or off-board systems. Our technology powers automotive navigation services and
products that provide accurate, easy to use and connected navigation services to drivers at a low cost. We currently provide our on-board GPS
navigation software for Ford's second-generation SYNC™ system in vehicles equipped with MyFord Touch and MyLincoln Touch. This product is
enhanced by Ford with the delivery of real-time and historical information to help drivers search, find and drive to places more reliably and
efficiently. In addition, we are working with Delphi to integrate white label versions of our Scout for Cars on-board automotive platform into
Delphi's new, connected infotainment system, which was introduced in model year 2013 vehicles for North America by General Motors. General
Motors plans to introduce the system in other markets worldwide in model year 2014 vehicles. Delphi also plans to distribute our product in China
with a major Chinese auto manufacturer in the coming fiscal year.
Our services and products allow our auto customers the flexibility to use the full range of technologies to deliver on-board or off-board services
as well as to enhance our on-board services with live data for enhanced user experiences by drivers. In addition, as the market transitions such that
cars are “always connected” our service offerings can become more personalized.
Platform and architecture
Our clients for on-board or off-board automotive navigation services are tailored to meet the requirements of the automobile manufacturers and
OEMs while leveraging our expertise with respect to client design and functionality, as well as offering the capability to connect to our SDP for
updated data and services. We have created an auto reference product, or ARP, which allows us to show manufacturers and OEMs our entire product
portfolio. The ARP incorporates our traditional navigation capabilities as well as connected services supported by our SDP. Auto manufacturers or
OEMs may then elect to configure the ARP to meet their needs as an on-board system or an on-board system with connectivity to live data services.
In addition, we have versions of our navigation products that we have designed to be off-board solutions for those manufacturers or OEMs seeking
off-board services.
Our history as a mobile navigation service provider, combined with our experiences to date in the automobile market have resulted in unique
capabilities to serve the wide variety of potential product demands of manufacturers and OEMs.
Advertising Network Services
Industry background
The convergence of several factors is fundamentally changing the way mobile users consume content on their mobile devices and has created a
significant opportunity for mobile advertising. It has become possible to deliver innovative, interactive and engaging consumer media experiences on
a wide variety of mobile devices. Consumers are increasingly using their mobile devices instead of their personal computers and other traditional
media to access content, particularly while they are on the go. The convergence of better mobile devices and faster connectivity has enabled
developers to create, and consumers to interact with, content instantly delivered to mobile devices.
Mobile advertising provides advertisers with a number of benefits over traditional advertising media and PC-based online advertising, such as
anytime, anywhere access, personalization, and location targeting and relevance. The development of the mobile advertising ecosystem has mirrored
the development for online PC-based advertising. However, a key differentiator of a
6