New
AI Processed Human Approved
What stops carmakers and software developers from creating shared data platforms, and what pushes them forward?
Key findings
- External software developers drive early data access through workarounds like diagnostic hardware dongles and sustained pressure on carmakers.
- Vehicle manufacturers implement APIs largely due to regulatory and standardization pressures rather than voluntary ecosystem growth, while maintaining tight gatekeeping.
- The absence of proven commercial value propositions and fears of legal liability significantly delay manufacturer participation in open data sharing.
- Intense competition over platform ownership and vehicle operating system control prevents manufacturers from standardizing on a common platform.
- Emerging mobility trends, particularly autonomous driving, create future expectations that incentivize gradual steps toward open API ecosystems.
What it means for you
- CIO / IT Executive: Initiate a legal risk-assessment workshop with compliance and legal counsel to draft clear liability frameworks for third-party API data sharing, removing internal roadblocks to manufacturer participation.
- IT Manager: Audit all current vehicle diagnostic APIs and technical boundary resources to ensure they meet existing regulatory standards while safely accommodating third-party developer workarounds.
- Business Strategist: Schedule a stakeholder alignment meeting to model a low-risk, shared-value commercial pilot focusing on autonomous driving data use cases, bypassing platform ownership deadlocks.
- Researcher: Design a comparative interview study tracking how external software developers leverage diagnostic hardware dongles to pressure incumbent automakers into data access.
- Policymaker: Draft standardized data-sharing guidelines that reduce legal liability fears for automotive manufacturers while mandating fair API access for third-party mobility start-ups.
Summary
This study explores how application programming interfaces (APIs) serve as drivers or barriers to the emergence of data-sharing platforms in the German automotive sector. The researchers conducted 21 qualitative interviews with industry experts across vehicle manufacturers, suppliers, mobility start-ups, and industry associations. Using grounded theory and platform boundary resource theory, the authors analyze the early-stage dynamics that facilitate or hinder platform creation.ProblemDespite connected vehicles generating valuable data and existing technical standards, an industry-wide data-sharing platform has failed to emerge. Most platform research focuses on mature, successful ecosystems with a single dominant firm, leaving significant gaps in understanding the early barriers faced by decentralized, multi-stakeholder ecosystems.
Transcript
Host: Hello and welcome to A.I.S. Insights — powered by Living Knowledge. I'm Anna Ivy Summers, and today we're exploring the world of digital platforms and data sharing. We are discussing a fascinating study titled "JUST LINKING THE DOTS? BARRIERS AND DRIVERS TO CREATING VALUE FROM APPLICATION PROGRAMMING INTERFACES." Joining me to break it down is our analyst, Alex Ian Sutherland. Welcome, Alex!
Expert: Thanks, Anna. It is great to be here. At its heart, this study is about how Application Programming Interfaces, or APIs, can either drive or block the creation of new digital business platforms. The researchers specifically looked at the German automotive sector to see why an open, industry-wide platform for vehicle data hasn't truly taken off yet.
Host: That brings us straight to the big problem. Today's cars are essentially computers on wheels, packed with sensors generating massive amounts of valuable data. The technical capabilities and standards are there, so why hasn't an industry-wide data-sharing platform emerged?
Expert: Exactly, Anna. In traditional platform research, we usually look back at mature success stories with one dominant player in charge—think Apple with iOS and the App Store. But in industries like automotive, there is no single entity in control. You have established manufacturers, suppliers, mobility startups, and regulators all vying for position. The study points out that despite the immense market hype and existing connectivity standards, progress has been surprisingly slow because of the friction in these decentralized, multi-stakeholder environments.
Host: How did the researchers investigate this complex landscape? What was their approach?
Expert: The research team used a qualitative grounded theory approach. They conducted 21 in-depth interviews with industry experts across Germany, representing original equipment manufacturers, automotive suppliers, mobility startups, industry associations, and consultancies. By gathering accounts from experts while this ecosystem is still forming, they were able to examine the real-time forces shaping boundary resources—like APIs and data connectors—before a single dominant platform emerged.
Host: Let's talk about what they found. What is really happening between the car manufacturers and third-party software developers?
Expert: One of the most interesting findings is how third-party developers pushed their way into the market. Because carmakers were not offering open APIs early on, startups created their own workarounds using on-board diagnosis, or OBD, hardware dongles plugged directly into the car. The authors call this self-resourcing. Developers essentially bypassed the manufacturers to capture data and build new services like pay-as-you-drive insurance and digital driver logs.
Host: And how did the car manufacturers respond to that kind of developer pressure?
Expert: The carmakers eventually started offering APIs and neutral server connections, but the study notes this was mostly "enforced resourcing." In other words, they acted due to regulatory scrutiny, competitive pressure, and standardization initiatives rather than a genuine desire to open up. Even when providing access, manufacturers introduced strict gatekeeping, like pricing models and lengthy vetting processes, often citing vehicle safety and cybersecurity concerns.
Host: But surely there is a lot of money to be made from this vehicle data. Why are manufacturers still hesitating?
Expert: That touches on a major barrier identified in the study: missing value propositions. Right now, manufacturers simply don't see a clear, empirical business case for sharing this data. When you weigh vague revenue promises against tangible legal liabilities, intellectual property concerns, and cybersecurity risks, sharing data feels like a gamble to them. Furthermore, there is an intense turf war over platform ownership. Whenever the idea of a common operating system or shared platform is brought up, every manufacturer wants everyone else to adopt their proprietary system.
Host: What about the drivers? Is there anything pushing the industry forward toward collaboration?
Expert: Yes, two big things. First, developers are consistently demonstrating innovative use cases that prove customer demand without requiring direct OEM capital investment. Second, future industry trends—especially autonomous driving—loom large. Industry leaders recognize that self-driving vehicles will mandate real-time data sharing across brands and infrastructures. That future reality is forcing companies to lay the API groundwork today.
Host: For business professionals and executives listening, why does this study matter? What are the practical takeaways?
Expert: The major takeaway is that opening an API is not merely a technical exercise—it's not "just linking the dots." Launching an API will not magically create a platform ecosystem if you haven't solved the underlying governance, trust, and business model issues. In multi-sided markets, you cannot treat third parties as passive consumers of your technology. Companies need to design clear commercial incentives, address legal and security fears head-on, and figure out how different players can complement each other rather than clash over platform control.
Host: It really highlights that technology is only one piece of the puzzle; the economic architecture has to work too. Alex, thank you for breaking down this insightful study for us.
Expert: My pleasure, Anna.
Host: And thank you to all our listeners for tuning into A.I.S. Insights — powered by Living Knowledge. Join us next time as we continue to explore the strategies shaping the future of technology and business.
Expert: Thanks, Anna. It is great to be here. At its heart, this study is about how Application Programming Interfaces, or APIs, can either drive or block the creation of new digital business platforms. The researchers specifically looked at the German automotive sector to see why an open, industry-wide platform for vehicle data hasn't truly taken off yet.
Host: That brings us straight to the big problem. Today's cars are essentially computers on wheels, packed with sensors generating massive amounts of valuable data. The technical capabilities and standards are there, so why hasn't an industry-wide data-sharing platform emerged?
Expert: Exactly, Anna. In traditional platform research, we usually look back at mature success stories with one dominant player in charge—think Apple with iOS and the App Store. But in industries like automotive, there is no single entity in control. You have established manufacturers, suppliers, mobility startups, and regulators all vying for position. The study points out that despite the immense market hype and existing connectivity standards, progress has been surprisingly slow because of the friction in these decentralized, multi-stakeholder environments.
Host: How did the researchers investigate this complex landscape? What was their approach?
Expert: The research team used a qualitative grounded theory approach. They conducted 21 in-depth interviews with industry experts across Germany, representing original equipment manufacturers, automotive suppliers, mobility startups, industry associations, and consultancies. By gathering accounts from experts while this ecosystem is still forming, they were able to examine the real-time forces shaping boundary resources—like APIs and data connectors—before a single dominant platform emerged.
Host: Let's talk about what they found. What is really happening between the car manufacturers and third-party software developers?
Expert: One of the most interesting findings is how third-party developers pushed their way into the market. Because carmakers were not offering open APIs early on, startups created their own workarounds using on-board diagnosis, or OBD, hardware dongles plugged directly into the car. The authors call this self-resourcing. Developers essentially bypassed the manufacturers to capture data and build new services like pay-as-you-drive insurance and digital driver logs.
Host: And how did the car manufacturers respond to that kind of developer pressure?
Expert: The carmakers eventually started offering APIs and neutral server connections, but the study notes this was mostly "enforced resourcing." In other words, they acted due to regulatory scrutiny, competitive pressure, and standardization initiatives rather than a genuine desire to open up. Even when providing access, manufacturers introduced strict gatekeeping, like pricing models and lengthy vetting processes, often citing vehicle safety and cybersecurity concerns.
Host: But surely there is a lot of money to be made from this vehicle data. Why are manufacturers still hesitating?
Expert: That touches on a major barrier identified in the study: missing value propositions. Right now, manufacturers simply don't see a clear, empirical business case for sharing this data. When you weigh vague revenue promises against tangible legal liabilities, intellectual property concerns, and cybersecurity risks, sharing data feels like a gamble to them. Furthermore, there is an intense turf war over platform ownership. Whenever the idea of a common operating system or shared platform is brought up, every manufacturer wants everyone else to adopt their proprietary system.
Host: What about the drivers? Is there anything pushing the industry forward toward collaboration?
Expert: Yes, two big things. First, developers are consistently demonstrating innovative use cases that prove customer demand without requiring direct OEM capital investment. Second, future industry trends—especially autonomous driving—loom large. Industry leaders recognize that self-driving vehicles will mandate real-time data sharing across brands and infrastructures. That future reality is forcing companies to lay the API groundwork today.
Host: For business professionals and executives listening, why does this study matter? What are the practical takeaways?
Expert: The major takeaway is that opening an API is not merely a technical exercise—it's not "just linking the dots." Launching an API will not magically create a platform ecosystem if you haven't solved the underlying governance, trust, and business model issues. In multi-sided markets, you cannot treat third parties as passive consumers of your technology. Companies need to design clear commercial incentives, address legal and security fears head-on, and figure out how different players can complement each other rather than clash over platform control.
Host: It really highlights that technology is only one piece of the puzzle; the economic architecture has to work too. Alex, thank you for breaking down this insightful study for us.
Expert: My pleasure, Anna.
Host: And thank you to all our listeners for tuning into A.I.S. Insights — powered by Living Knowledge. Join us next time as we continue to explore the strategies shaping the future of technology and business.