OVERVIEW

Telematics as a concept is often met with some confusion; many people think of telematics in terms of consumer-oriented systems, such as GM s in-car OnStar product, which provides drivers with navigation and information services. The technical definition of telematics is the integration of telecommunications and computing, but the term has come to be used to describe Internetconnected computing systems in vehicles. The real-world enterprise telematics market makes this definition much clearer.

There are the more obvious telematics verticals, such as trucking and shipping. Fleet management is definitely a top application Allied Business Intelligence estimates that the market for telematics-based commercial fleet management systems is expected to grow from under $2 billion in 2001 to nearly $6 billion by year-end 2007. But there are also some very interesting and lesser-known applications, such as leased-equipment tracking and agricultural yield management. What all of the markets have in common is that their primary work force is mobile within vehicles for much of their day, which presents some unique workflow management, safety and customer-service issues.

For many trucking companies, the savings on insurance premiums alone make a telematics system worthwhile. With post September 11 insurance-rate increases, even small-fleet owners are now turning to telematics to lower rates, increase security and better manage a mobile workforce. Accordingly, the price of deploying a telematics solution is dropping, making the decision easier for smaller companies.

Though it s helpful for many companies to have access to the wealth of data that telematics systems can collect (for analysis and...