Ford Sync 4 – Blank Canvas.

Sync 4 is encouraging but there is much more to do.

  • Ford Sync 4 is one of the most promising infotainment experiences I have seen from a manufacturer but despite solving some of the core user experience issues, the functionality needs to be richer and deeper to keep Google at bay.
  • The only commonality that Sync 4 has with its predecessors is its name as the software has been completely rewritten to free it from the shackles of its chequered legacy.
  • In terms of the user experience, this worked extremely well as a lot of work has gone into its design, look and feel and this is the first user experience from a vehicle maker other than Tesla that could be a joy to use.
  • I say could as I have not had access to it myself and so can only speculate based on what I have seen remotely.
  • However, the best that Ford has demonstrated so far is the obvious stuff to do with vehicle functions and driver personalisation.
  • Beyond that, there is very little leading me to think that Ford has a lot more work to do before it can offer a complete user experience that will entice the user to keep his phone in his pocket.
  • For example, Ford demonstrated driver profile customisation based on a smartphone, voice recognition or vehicle key where many vehicle settings could all be customised.
  • While this will work seamlessly and offers many more options than before, it is nothing new as driver profiles have been common in vehicles for well over 10 years.
  • Sync 4 also uses machine learning to learn driver habits and suggest navigation routes and communication options but there is very little around offering new services that take advantage of the fact this vehicle has been fully digitised.
  • This is where the weakness of this user experience lies because as it is, most users will get in the car and fire up either Android Auto or Apple Car Play and spend their vehicle time there.
  • This is what Ford needs to avoid as much as possible because when users are using either of these two systems they are engaged with the smartphone and not the vehicle.
  • This will make it very difficult for Ford to showcase any new services or functions that it comes up with to users as they will be spending all of their time outside of its digital domain.
  • This is what all of the OEMs have to avoid at all costs because when users are out of their domains, their scope for monetising the digitisation of the vehicle is drastically reduced.
  • This is crucial because RFM research has found that high margin digital-based revenues offer the greatest opportunity to offset the high likelihood that vehicle revenues fall significantly in the long-term.
  • Hence, Ford has made a great start with Sync 4 and has created an environment that has a good chance of enticing users to stay but at the moment that environment is largely empty.
  • Ford needs to step up and ensure that a vibrant series of functions that leverage the digital nature of the vehicle are present before it has a chance of earning a return from vehicle digitisation.
  • This can be done either by itself or with 3rd parties but I suspect that that 3rd party route has the greater chance of success.
  • Although there is still more to do, I think that Sync 4 puts Ford ahead of most of its competitors (except Tesla) on the journey to generate revenues from digital services.
  • There is light at the end of the tunnel but there is still more tunnel to be traversed before Ford can reach the light.

RICHARD WINDSOR

Richard is founder, owner of research company, Radio Free Mobile. He has 16 years of experience working in sell side equity research. During his 11 year tenure at Nomura Securities, he focused on the equity coverage of the Global Technology sector.