Vehicle Telematics Explained
Depending on who you ask, you may get different definitions for the word “telematics.” There are so many different companies that claim to be telematics providers, that the actual meaning of the word has been muddled.
So, what does telematics mean and why should you care? “Telematics” is used to describe any system that transmits data over a telecommunications network (the word itself is just a combination of telecommunications and informatics). However, most of the time when people refer to telematics, they really mean vehicle telematics, but the basic ideas are the same for both terms.
Vehicle telematics systems monitor and report information about vehicles. Seems like a no-brainer, right? Not so fast! The type of information reported, and techniques used to analyze data about a vehicle can vary widely and have some amazing benefits to companies that can leverage it well. For instance, some solutions will only report on GPS location data, while more advanced providers can monitor vehicle diagnostics, driver behaviors, and much more. By analyzing different types of vehicle, driver, customer, and road data, telematics solutions can provide incredible insights into critical areas of your operation that would otherwise go unseen.
Telematics providers have built solutions that use this data to help their customers in a variety of ways including increased productivity, greater cost control, and improved driver safety and customer service. Because all these systems use simple data coming from the vehicle, they can all technically be considered telematics.
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