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Unleashing the full potential of MongoDB in automotive applications

Daniel Bryła
Technical Leader | Expert Software Engineer
October 21, 2025
•
5 min read

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Welcome to the second part of our article series about MongoDB in automotive. In the  previous installment , we explored the power of MongoDB as a versatile data management solution for the automotive industry, focusing on its flexible data model, scalability, querying capabilities, and optimization techniques.

In this continuation, we will delve into two advanced features of MongoDB that further enhance its capabilities in automotive applications: timeseries data management and change streams. By harnessing the power of timeseries and change streams, MongoDB opens up new possibilities for managing and  analyzing real-time data in the automotive domain. Join us as we uncover the exciting potential of MongoDB's advanced features and their impact on driving success in automotive applications.

Time-series data management in MongoDB for automotive

Managing time-series data effectively is a critical aspect of many automotive applications. From sensor data to vehicle telemetry, capturing and analyzing time-stamped data is essential for monitoring performance, detecting anomalies, and making informed decisions. MongoDB offers robust features and capabilities for managing time-series data efficiently. This section will explore the key considerations and best practices for leveraging MongoDB's time-series collections.

Understanding time-series collections

Introduced in MongoDB version 5.0, time-series collections provide a specialized data organization scheme optimized for storing and retrieving time-series data. Time-series data consists of a sequence of data points collected at specific intervals, typically related to time. This could include information such as temperature readings, speed measurements, or fuel consumption over time.

MongoDB employs various optimizations in a time-series collection to enhance performance and storage efficiency. One of the notable features is the organization of data into buckets. Data points within a specific time range are grouped in these buckets. This time range, often referred to as granularity, determines the level of detail or resolution at which data points are stored within each bucket. This bucketing approach offers several advantages.

Firstly, it improves query performance by enabling efficient data retrieval within a particular time interval. With data organized into buckets, MongoDB can quickly identify and retrieve the relevant data points, reducing the time required for queries.

Secondly, bucketing allows for efficient storage and compression of data within each bucket. By grouping data points, MongoDB can apply compression techniques specific to each bucket, optimizing disk space utilization. This helps to minimize storage requirements, especially when dealing with large volumes of time-series data.

Choosing sharded or non-sharded collections

When working with time-series data, you have the option to choose between sharded and non-sharded collections. Sharded collections distribute data across multiple shards, enabling horizontal scalability and accommodating larger data volumes. However, it's essential to consider the trade-offs associated with sharding. While sharded collections offer increased storage capacity, they may introduce additional complexity and potentially impact performance compared to non-sharded collections.

In most cases, non-sharded collections are sufficient for managing time-series data, especially when proper indexing and data organization strategies are employed. Non-sharded collections provide simplicity and optimal performance for most time-series use cases, eliminating the need for managing a sharded environment.

Effective data compression for time-series collections

Given the potentially large volumes of data generated by time-series measurements, efficient data compression techniques are crucial for optimizing storage and query performance. MongoDB provides built-in compression options that reduce data size, minimizing storage requirements and facilitating faster data transfer. Using compression, MongoDB significantly reduces the disk space consumed by time-series data while maintaining fast query performance.

One of the key compression options available in MongoDB is the WiredTiger storage engine. WiredTiger offers advanced compression algorithms that efficiently compress and decompress data, reducing disk space utilization. This compression option is particularly beneficial for time-series collections where data points are stored over specific time intervals.

By leveraging WiredTiger compression, MongoDB achieves an optimal balance between storage efficiency and query performance for time-series collections. The compressed data takes up less space on disk, resulting in reduced storage costs and improved overall system scalability. Additionally, compressed data can be transferred more quickly across networks, improving data transfer speeds and reducing network bandwidth requirements.

Considerations for granularity and data retention

When designing a time-series data model in MongoDB, granularity and data retention policies are important factors to consider. Granularity refers to the level of detail or resolution at which data points are stored, while data retention policies determine how long the data is retained in the collection.

Choosing the appropriate granularity is crucial for striking a balance between data precision and performance. MongoDB provides different granularity options, such as "seconds," "minutes," and "hours," each covering a specific time span. Selecting the granularity depends on the time interval between consecutive data points that have the same unique value for a specific field, known as the meta field. You can optimize storage and query performance by aligning the granularity with the ingestion rate of data from a unique data source.

For example, if you collect temperature readings from weather sensors every five minutes, setting the granularity to "minutes" would be appropriate. This ensures that data points are grouped in buckets based on the specified time span, enabling efficient storage and retrieval of time-series data.

In addition to granularity, defining an effective data retention policy is essential for managing the size and relevance of the time-series collection over time. Consider factors such as the retention period for data points, the frequency of purging outdated data, and the impact on query performance.

MongoDB provides a Time to Live (TTL) mechanism that can automatically remove expired data points from a time-series collection based on a specified time interval. However, it's important to note that there is a known issue related to TTL for very old records in MongoDB at the time of writing this article. The issue is described in detail in the MongoDB Jira ticket SERVER-76560.

The TTL behavior in time series collections differs from regular collections. In a time series collection, TTL expiration occurs at the bucket level rather than on individual documents within the bucket. Once all documents within a bucket have expired, the entire bucket is removed during the next run of the background task that removes expired buckets.

This bucket-level expiration behavior means that TTL may not work in the exact same way as with normal collections, where individual documents are removed as soon as they expire. It's important to be aware of this distinction and consider it when designing your data retention strategy for time series collections.

When considering granularity and data retention policies, evaluate the specific requirements of your automotive application. Consider the level of precision needed for analysis, the data ingestion rate, and the desired storage and query performance. By carefully evaluating these factors and understanding the behavior of TTL in time series collections, you can design a time-series data model in MongoDB that optimizes both storage efficiency and query performance while meeting your application's needs.

Retrieving latest documents

In automotive applications, retrieving the latest documents for each unique meta key can be a common requirement. MongoDB provides an efficient approach to achieve this using the `DISTINCT_SCAN` stage in the aggregation pipeline. Let's explore how you can use this feature, along with an automotive example.

The `DISTINCT_SCAN` stage is designed to perform distinct scans on sorted data in an optimized manner. By leveraging the sorted nature of the data, it efficiently speeds up the process of identifying distinct values.

To illustrate its usage, let's consider a scenario where you have a time series collection of vehicle data that includes meta information and timestamps. You want to retrieve the latest document for each unique vehicle model. Here's an example code snippet demonstrating how to accomplish this:

```javascript
db.vehicleData.aggregate([
 { $sort: { metaField: 1, timestamp: -1 } },
 {
   $group: {
     _id: "$metaField",
     latestDocument: { $first: "$$ROOT" }
   }
 },
 { $replaceRoot: { newRoot: "$latestDocument" } }
])
```

In the above code, we first use the `$sort` stage to sort the documents based on the `metaField` field in ascending order and the `timestamp` field in descending order. This sorting ensures that the latest documents appear first within each group.

Next, we employ the `$group` stage to group the documents by the `metaField` field and select the first document using the `$first` operator. This operator retrieves the first document encountered in each group, corresponding to the latest document for each unique meta key.

Finally, we utilize the `$replaceRoot` stage to promote the `latestDocument` to the root level of the output, effectively removing the grouping and retaining only the latest documents.

By utilizing this approach, you can efficiently retrieve the latest documents per each meta key in an automotive dataset. The `DISTINCT_SCAN` stage optimizes the distinct scan operation, while the `$first` operator ensures accurate retrieval of the latest documents.

It's important to note that the `DISTINCT_SCAN` stage is an internal optimization technique of MongoDB's aggregation framework. It is automatically applied when the conditions are met, so you don't need to specify or enable it in your aggregation pipeline explicitly.

Time series collection limitations

While MongoDB Time Series brings valuable features for managing time-series data, it also has certain limitations to consider. Understanding these limitations can help developers make informed decisions when utilizing MongoDB for time-series data storage:

●  Unsupported Features : Time series collections in MongoDB do not support certain features, including transactions and change streams. These features are not available when working specifically with time series data.

● A  ggregation $out and $merge : The $out and $merge stages of the aggregation pipeline, commonly used for storing aggregation results in a separate collection or merging results with an existing collection, are not supported in time series collections. This limitation affects the ability to perform certain aggregation operations directly on time series collections.

●  Updates and Deletes : Time series collections only support insert operations and read queries. This means that once data is inserted into a time series collection, it cannot be directly modified or deleted on a per-document basis. Any updates or manual delete operations will result in an error.

MongoDB change streams for real-time data monitoring

MongoDB Change Streams provide a powerful feature for real-time data monitoring in MongoDB. Change Streams allow you to capture and react to any changes happening in a MongoDB collection in a real-time manner. This is particularly useful in scenarios where you need to track updates, insertions, or deletions in your data and take immediate actions based on those changes.

Change Streams provide a unified and consistent way to subscribe to the database changes, making it easier to build reactive applications that respond to real-time data modifications.

```javascript
// MongoDB Change Streams for Real-Time Data Monitoring

const MongoClient = require('mongodb').MongoClient;

// Connection URL
const url = 'mongodb://localhost:27017';

// Database and collection names
const dbName = 'mydatabase';
const collectionName = 'mycollection';

// Create a change stream
MongoClient.connect(url, function(err, client) {
 if (err) throw err;

 const db = client.db(dbName);
 const collection = db.collection(collectionName);

 // Create a change stream cursor with filtering
 const changeStream = collection.watch([{ $match: { operationType: 'delete' } }]);

 // Set up event listeners for change events
 changeStream.on('change', function(change) {
   // Process the delete event
   console.log('Delete Event:', change);
   // Perform further actions based on the delete event
 });

 // Close the connection
 // client.close();
});
```

In this updated example, we use the `$match` stage in the change stream pipeline to filter for delete operations only. The `$match` stage is specified as an array in the `watch()` method. The `{ operationType: 'delete' }` filter ensures that only delete events will be captured by the change stream.

Now, when a delete operation occurs in the specified collection, the `'change'` event listener will be triggered, and the callback function will execute. Inside the callback, you can process the delete event and perform additional actions based on your application's requirements. It's important to note that the change stream will only provide the document ID for delete operations. The actual content of the document is no longer available. If you need the document content, you need to retrieve it before the delete operation or store it separately for reference.

One important aspect to consider is related to the inability to distinguish whether a document was removed manually or due to the Time to Live (TTL) mechanism. Change streams do not provide explicit information about the reason for document removal. This means that when a document is removed, the application cannot determine if it was deleted manually by a user or automatically expired through the TTL mechanism. Depending on the use case, it may be necessary to implement additional logic or mechanisms within the application to handle this distinction if it is critical for the business requirements.

Here are some key aspects and benefits of using MongoDB Change Streams for real-time data monitoring:

●  Real-Time Event Capture : Change Streams allow you to capture changes as they occur, providing a real-time view of the database activity. This enables you to monitor data modifications instantly and react to them in real-time.

●  Flexibility in Filtering : You can specify filters and criteria to define the changes you want to capture. This gives you the flexibility to focus on specific documents, fields, or operations and filter out irrelevant changes, optimizing your monitoring process.

●  Data Integration and Pipelines : Change Streams can be easily integrated into your existing data processing pipelines or applications. You can consume the change events and perform further processing, transformation, or analysis based on your specific use case.

●  Scalability and High Availability : Change Streams are designed to work seamlessly in distributed and sharded MongoDB environments. They leverage the underlying replica set architecture to ensure high availability and fault tolerance, making them suitable for demanding and scalable applications.

●  Event-Driven Architecture : Using Change Streams, you can adopt an event-driven architecture for your MongoDB applications. Instead of continuously polling the database for changes, you can subscribe to the change events and respond immediately, reducing unnecessary resource consumption.

MongoDB Change Streams provide a powerful mechanism for real-time data monitoring, enabling you to build reactive, event-driven applications and workflows. By capturing and processing database changes in real-time, you can enhance the responsiveness and agility of your applications, leading to improved user experiences and efficient data processing.

Another consideration is that low-frequency events may lead to an invalid resume token. Change streams rely on a resume token to keep track of the last processed change. In cases where there are long periods of inactivity or low-frequency events, the resume token may become invalid or expired. Therefore, the application must handle this situation gracefully and take appropriate action when encountering an invalid resume token. This may involve reestablishing the change stream or handling the situation in a way that ensures data integrity and consistency.

It's important to note that while Change Streams offer real-time monitoring capabilities, they should be used judiciously, considering the potential impact on system resources. Monitoring a large number of collections or frequently changing data can introduce additional load on the database, so it's essential to carefully design and optimize your Change Streams implementation to meet your specific requirements.

Conclusion

By harnessing the capabilities of MongoDB, developers can unlock a world of possibilities in modern application development. From its NoSQL model to efficient time-series data management, batch writes, data retrieval, and real-time monitoring with Change Streams, MongoDB provides a powerful toolkit. By following best practices and understanding its limitations, developers can maximize the potential of MongoDB, resulting in scalable, performant, and data-rich applications.

MongoDB can be likened to a Swiss Army Knife in the world of database systems, offering a versatile set of features and capabilities. However, it is important to note that MongoDB is not a one-size-fits-all solution for every use case. This article series aim to showcase the capabilities and potential use cases of MongoDB.

While MongoDB provides powerful features like time-series data management and change streams for real-time data monitoring, it is essential to consider alternative solutions as well. Depending on factors such as team skills, the company-adopted tools, and specific project requirements, exploring other options like leveraging IaaS provider-native solutions such as DynamoDB for specific use cases within the automotive domain may be worthwhile.

Furthermore, it is important to highlight that both articles focused on using MongoDB in automotive primarily for hot storage, while the aspect of cold storage for automotive applications is not covered.

When starting a new project, it is crucial to conduct thorough research, consider the specific requirements, and evaluate the available options in the market. While MongoDB may provide robust features for certain scenarios, dedicated time-series databases like InfluxDB may offer a more tailored and specialized solution for specific time-series data needs. Choosing the right tool for the job requires careful consideration and an understanding of the trade-offs and strengths of each option available.

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Driving success in automotive applications: Data management with MongoDB

MongoDB, a widely used NoSQL document-oriented database, offers developers a powerful solution for modern application development. With its flexible data model, scalability, high performance, and comprehensive tooling, MongoDB enables developers to unlock the full potential of their projects. By leveraging MongoDB's JSON-like document storage and robust querying capabilities, developers can efficiently store and retrieve data, making it an ideal choice for contemporary applications. Read the article to learn about data management with MongoDB.

Flexible data model for adaptability

One of the primary advantages of MongoDB's NoSQL model is its flexible data model, which allows developers to adapt swiftly to changing requirements and evolving data structures. Unlike traditional relational databases that rely on predefined schemas, MongoDB's schema-less approach enables developers to store documents in a JSON-like format. This flexibility allows for easy modifications to data structures without the need for expensive and time-consuming schema migrations.Consider an automotive application that needs to store vehicle data. With MongoDB, you can store a vehicle document that captures various attributes and information about a specific car. Here's an example of a vehicle document in MongoDB:[code language="javascript"]{"_id": ObjectId("617482e5e7c927001dd6dbbe"),"make": "Ford","model": "Mustang","year": 2022,"engine": {"type": "V8","displacement": 5.0},"features": ["Bluetooth", "Backup Camera", "Leather Seats"],"owners": [{"name": "John Smith", "purchaseDate": ISODate("2022-01-15T00:00:00Z")},{"name": "Jane Doe","purchaseDate": ISODate("2023-03-10T00:00:00Z")}]}[/code]In the above example, each document represents a vehicle and includes attributes such as make, model, year, engine details, features, and a sub-document for owners with their respective names and purchase dates. This flexibility allows for easy storage and retrieval of diverse vehicle data without the constraints of a fixed schema.

Scalability for growing demands

Another key aspect of MongoDB's NoSQL model is its ability to scale effortlessly to meet the demands of modern automotive applications. MongoDB offers horizontal scalability through its built-in sharding capabilities, allowing data to be distributed across multiple servers or clusters. This ensures that MongoDB can handle the increased load as the volume of vehicle data grows by seamlessly distributing it across the available resources.For instance, imagine an automotive application collecting data from a connected car fleet. As the fleet expands and generates a substantial amount of telemetry data, MongoDB's sharding feature can be employed to distribute the data across multiple shards based on a chosen shard key, such as the vehicle's unique identifier. This allows for parallel data processing across the shards, resulting in improved performance and scalability.[code language="javascript"]// Enable sharding on a collectionsh.enableSharding("automotive_db");// Define the shard key as the vehicle's unique identifiersh.shardCollection("automotive_db.vehicles", { "_id": "hashed" });[/code]In the above example, we enable sharding on the „automotive_db” database and shard the „vehicles” collection using the vehicle’s unique identifier („_id”) as the shard key. This ensures that vehicle data is evenly distributed across multiple shards, allowing for efficient data storage and retrieval as the number of vehicles increases.

Leveraging MongoDB's querying capabilities for automotive data

MongoDB provides a powerful and expressive querying language that allows developers to retrieve and manipulate data easily. MongoDB offers a rich set of query operators and aggregation pipelines to meet your needs, whether you need to find vehicles of a specific make, filter maintenance records by a particular date range, or perform complex aggregations on vehicle data.Let's explore some examples of MongoDB queries in the context of an automotive application:[code language="javascript"]// Find all vehicles of a specific makedb.vehicles.find({ make: "Ford" });// Find vehicles with maintenance records performed by a specific mechanicdb.vehicles.find({ "maintenanceRecords.mechanic": "John Smith" });// Retrieve maintenance records within a specific date rangedb.vehicles.aggregate([{$unwind: "$maintenanceRecords"},{$match: {"maintenanceRecords.date": {$gte: ISODate("2022-01-01T00:00:00Z"),$lt: ISODate("2022-12-31T23:59:59Z")}}}]);[/code]In the above examples, we use the `find` method to query vehicles based on specific criteria such as make or mechanic. We also utilize the `aggregate` method with aggregation stages like `$unwind` and `$match` to retrieve maintenance records within a particular date range. These queries demonstrate the flexibility and power of MongoDB's querying capabilities for handling various scenarios in the automotive domain.

Optimizing data management with MongoDB

Efficient data management is crucial for maximizing the performance and effectiveness of automotive applications. MongoDB provides various features and best practices to optimize data management and enhance overall system efficiency. This section will explore practical tips and techniques for optimizing data management with MongoDB.

Data compression for large result sets

When dealing with queries that return large result sets, enabling data compression can significantly reduce the time required for data transfer and improve overall performance. MongoDB supports data compression at the wire protocol level, allowing for efficient compression and decompression of data during transmission.You can include the `compressors` option with the desired compression algorithm to enable data compression using the MongoDB URI connection string.[code language="javascript"]mongodb+srv://<username>:<password>@<cluster>/<database>?compressors=snappy[/code]In the above example, the `compressors` option is set to `snappy,` indicating that data compression using the Snappy algorithm should be enabled. This configuration ensures that data is compressed before being sent over the network, reducing the amount of data transmitted and improving query response times.The technology-independent nature of MongoDB is exemplified by its ability to configure data compression directly within the URI connection string. Whether you are using the MongoDB Node.js driver, Python driver, or any other programming language, the consistent URI syntax enables seamless utilization of data compression across different MongoDB driver implementations. By employing data compression through the URI connection string, automotive applications can optimize the data transfer, reduce network latency, and achieve faster query execution and improved system performance, regardless of the programming language or driver in use.

Optimizing read preferences

When it comes to optimizing read preferences in MongoDB for automotive applications, it is crucial to choose wisely based on the specific use case and the trade-offs dictated by the CAP (Consistency, Availability, Partition tolerance) theorem. The CAP theorem states that in a distributed system, achieving all three properties simultaneously is impossible.In scenarios where data consistency is of utmost importance, opting for the `primary` read preference is recommended. With the `primary` preference, all reads are served exclusively from the primary replica, ensuring strong consistency guarantees. This is particularly valuable in applications where data integrity and real-time synchronization are critical.However, it's important to recognize that prioritizing strong consistency might come at the cost of availability and partition tolerance. In certain automotive use cases, where read availability and scalability are paramount, it may be acceptable to sacrifice some level of consistency. This is where the `secondaryPreferred` read preference can be advantageous.By configuring `secondaryPreferred,` MongoDB allows reads to be distributed across secondary replicas in addition to the primary replica, enhancing availability and load balancing. Nevertheless, it's essential to be aware that there might be a trade-off in terms of data consistency. The secondary replicas might experience replication delays, resulting in potentially reading slightly stale data.In summary, when optimizing read preferences for automotive applications, it's crucial to consider the implications of the CAP theorem. Select the appropriate read preference based on the specific requirements of your use case, carefully balancing consistency, availability, and partition tolerance. Prioritize strong consistency with the `primary` preference when real-time data synchronization is vital and consider the `secondaryPreferred` preference when reading availability and scalability are paramount, acknowledging the possibility of eventual consistency.

Utilizing appropriate clients for complex queries

While MongoDB Atlas provides a web-based UI with an aggregation pipeline for executing complex queries, it is important to note that there are cases where the web UI may not work on the full data set and can return partial data. This limitation can arise due to factors such as query complexity, data size, or network constraints.To overcome this limitation and ensure accurate and comprehensive query results, it is recommended to utilize appropriate clients such as `mongosh` or desktop clients. These clients offer a more interactive and flexible environment for executing complex queries and provide direct access to MongoDB's features and functionalities.Using `mongosh,` for example, allows you to connect to your MongoDB Atlas cluster and execute sophisticated queries directly from the command-line interface. This approach ensures that you have complete control over the execution of your queries and enables you to work with large data sets without encountering limitations imposed by the web-based UI.Here is an example of using `mongosh` to execute a complex aggregation query:[code language="javascript"]// Execute a complex aggregation queryconst pipeline = [{$match: {make: "Tesla"}},{$group: {_id: "$model",count: { $sum: 1 }}},{$sort: {count: -1}}];db.vehicles.aggregate(pipeline);[/code]Additionally, desktop clients provide a graphical user interface that allows for visualizing query results, exploring data structures, and analyzing query performance. These clients often offer advanced query-building tools, query profiling capabilities, and result visualization options, empowering developers to optimize their queries and gain valuable insights from their automotive data.

Handling large data loads

In automotive applications, dealing with large data loads is common, especially when collecting time-series data from multiple sensors or sources simultaneously. MongoDB provides several features and best practices to handle these scenarios efficiently.

  •     Bulk Write Operations    : MongoDB offers bulk write operations, which allow you to perform multiple insert, update, or delete operations in a single request. This can significantly improve the performance of data ingestion by reducing network round trips and server-side processing overhead. By batching your write operations, you can efficiently handle large data loads and optimize the insertion of time-series data into the collection.
  •     Indexing Strategies    : Efficient indexing is crucial for handling large data loads and enabling fast queries in MongoDB. When designing indexes for your automotive application, consider the specific queries you'll perform, such as retrieving data based on vehicle models, sensor readings, or other relevant fields. Properly chosen indexes can significantly improve query performance and reduce the time required to process large data loads.
  •     Parallel Processing    : In scenarios where you need to handle massive data loads, parallel processing can be beneficial. MongoDB allows you to distribute data ingestion tasks across multiple threads or processes, enabling concurrent data insertion into the collections. By leveraging parallel processing techniques, you can take advantage of the available computing resources and speed up the data ingestion process.
  •     Connection Pooling    : Establishing a connection to the MongoDB server for each data load operation can introduce overhead and impact performance. To mitigate this, MongoDB provides connection pooling, which maintains a pool of open connections to the server. Connection pooling allows efficient reuse of connections, eliminating the need to establish a new connection for every operation. This can significantly improve the performance of large data loads by reducing connection setup overhead.

Conclusion

MongoDB, a leading NoSQL document-oriented database, is providing a versatile data management solution for the automotive industry. Its flexible data model allows developers to adapt swiftly to changing requirements and evolving data structures without the need for expensive schema migrations. With scalable sharding capabilities, MongoDB effortlessly handles the growing demands of modern automotive applications, ensuring efficient data storage and retrieval as the volume of vehicle data increases. Leveraging MongoDB's powerful querying language, developers can easily retrieve and manipulate automotive data with rich query operators and aggregation pipelines. By optimizing data management techniques such as data compression, read preferences, appropriate client usage, and efficient handling of large data loads, MongoDB empowers automotive applications with enhanced performance and scalability.But our exploration doesn't stop here. In the next part of this article, we will delve into MongoDB's time-series and change stream features, uncovering how they further enhance the capabilities of automotive applications. Stay tuned for the second installment, where we will discover even more ways to drive success in automotive applications with MongoDB. Together, we will unlock the full potential of MongoDB's advanced features and continue shaping the future of data management in the automotive industry.

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How to choose a technological partner to develop data-driven innovation

 Insurance companies, especially those focused on life and car insurance, in their offers are placing more and more emphasis on big data analytics and driving behavior-based propositions. We should expect that this trend will only gain ground in the future. And this raises further questions. For instance, what should be taken into account when choosing a technological partner for insurance-technology-vehicle cooperation?

Challenges in selecting a technology partner

The potential of  telematics insurance programs encourages auto insurers to move from traditional car insurance and build a competitive advantage on collected data.

No wonder technology partners are sought to support and develop increasingly innovative projects. Such synergistic collaboration brings tangible benefits to both parties.

As we explained in the article     How to enable data-driven innovation for the mobility insurance   , the right technology partner will ensure:

  •  data security;
  •  cloud and IoT technology selection;
  •  the reliability and scalability of the proposed solutions.

Finding such a partner, on the other hand, is not easy, because it must be a company that efficiently navigates in as many as three areas:  AI/cloud technology, automotive, and insurance . You need a team of specialists who operate naturally in the  software-defined vehicle ecosystem , and who are familiar with the characteristics of the P&C insurance market and the challenges faced by insurance clients.

Aim for the cloud. The relevance of AI and data collection and analytics technologies

Information is the most important asset of the 21st century. The global data collection market in 2021 was valued at $1.66 billion.  No service based on the Internet of Things and AI could operate without a space to collect and analyze data.  Therefore,     the ideal insurance industry partner must deliver proprietary and field-tested cloud solutions   . And preferably those that are dependable. Cloud services offered these days by insurance partners include:

  •  cloud R&D,
  •  cloud and edge computing,
  •  system integration,
  •  software engineering,
  •  cloud platforms development.

Connectivity between the edge device and the cloud must be stable and fast. Mobility devices often operate in limited connectivity conditions, therefore car insurance businesses should leverage multiple methods to ensure an uninterrupted connection. Dynamic switching of cellular, satellite, and Wi-Fi communications combined with globally distributed cloud infrastructure results in reliable transmission and low latency.

A secure cloud platform is capable of handling an increasing number of connected devices and providing them all with the required APIs while maintaining high observability.

As a result, the data collected is precise, valid,  and reliable . They provide full insight into what is happening on the road, allowing you to better develop insurance quotes. No smart  data-driven automation is possible without it.

Data quality, on the other hand, also depends on the technologies implemented inside the vehicle ( which we will discuss further below) and on all intermediate devices, such as the smartphone.  The capabilities of a potential technology partner must therefore reach far beyond basic IT skills and most common technologies.

Telemetry data collection

Obviously, data acquisition and collection is not enough, because information about what is happening on the road, usage and operation of components in itself is just a "record on paper". But to make such a project a reality, you still need to implement  advanced analytical tools and telematics solutions.
Real-time data streaming from telematics devices, mobile apps, and  connected car systems gives access to driving data, driver behavior analysis, and car status.  It enables companies to     provide insurance policies based on customer driving habits    .

Distributed AI

AI models are an integral part of modern vehicles. They predict front and rear collision, control damping of the suspension based on the road ahead, recognize road signs, or lanes.  Modern infotainment applications suggest routes and settings depending on driver behavior and driving conditions.

Empowering the automotive industry to build software-defined vehicles. Automotive aspect

 Today it is necessary to take into consideration a strategy towards modern, software-defined vehicles. According to Daimler AG, this can be expressed by the letters “CASE”:

  •     C    onnected.
  •     A    utonomous
  •     S    hared.
  •     E    lectric.

This idea means the major focus is going to be put on making the cars seamlessly connected to the cloud, support or advancements in autonomous driving based on electric power.
Digitalization and evolution of the computer hardware caused a natural evolution of the vehicle. New SoC’s (System on a Chip, integrated board containing CPU, memory, and peripherals) are multipurpose and powerful enough to handle not just a single task but multiple, simultaneously. It would not be an exaggeration to say that the cars of the future are smart spaces that combine external solutions (e.g. cloud computing, 5G) with components that work internally (IoT sensors).  Technology solution providers must therefore work in two directions, understanding the specifics of both these ecosystems. Today, they cannot be separated.

The partner must be able to operate at the intersection of cloud technologies, AI and telemetry data collection.  Ideally, they should know how these technologies can be practically used in the car. Such a service provider should also be aware of the so-called bottlenecks and potential discrepancies between the actual state and the results of the analysis. This knowledge comes from experience and implementation of complex software-defined vehicle projects.

Enabling data-driven innovation for mobility insurance. Insurance context

There are companies on the market that are banking on the innovative combination of automotive and automation. Although  you have to separate the demand of OEMs and drivers from the demand of the insurance industry.

It's vital that the technology partner chosen by an insurance company is aware of this. This, naturally, involves experience supported by a portfolio for similar clients and specific industry know-how.  The right partner will understand the insurer's expectations and correctly define their needs, combining them with the capabilities of a     software-defined vehicle    .
From an insurer's standpoint, the key solutions will be the following:

  •     Roadside assistance    . For accurately determining the location of an emergency (this is important when establishing the details of an incident with conflicting stakeholders’ versions).
  •     Crash detection.    To take proactive measures geared toward mitigating the consequences.
  •     UBI and BBI.    The data gathered from mobile devices, plug-in dongles, or the vehicle embedded onboard systems can be processed and used to build risk profiles and tailored policies based on customers’ driving styles and patterns.

Technology and safety combined

The future of  technology-based insurance policies is just around the corner. Simplified roadside assistance, drive safety support, stolen vehicle identification, personalized driving feedback, or crash detection- all of these enhance service delivery, benefit customers, and increase profitability in the insurance industry.

Once again, it is worth highlighting that the real challenge, as well as opportunity, is  to choose a partner that can handle different, yet consistent, areas of expertise.

 If you also want to develop data-driven innovation in your insurance company, contact GrapeUp. Browse our portfolio of     automo    tive & insurance projects .

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