Telematics in action: Industry-wide visibility
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Telematics in action: Industry-wide visibility
05.05.2025by
Annalena Rauen
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Telematics is now much more than just a technical term. It’s a key technology already helping numerous companies across different industries to stay on top of things and optimize their processes. This article explains how telematics works and where it’s already being used.
Definition: What is telematics?
Telematics is a portmanteau of “telecommunication” and “informatics.” It refers to the networking of at least two IT systems. A telematics system always requires a sender and a receiver to ensure the exchange of information. Once the systems are connected, they can exchange data via the telecommunications network and specialized data processing. This allows for the reliable collection, transmission, and processing of data.
How does telematics work?
Telematics may sound complex at first – almost like a science of its own. However, the technology behind it is much simpler than it seems. It operates via data transmission over the mobile network.
A good example to explain the functionality is the use of telematics systems in trucks (fleet management). To collect all data, the company installs a telematics box in the truck, equipped with a sensor. You can think of this box as a small black box like in an airplane. This box collects and stores all available data.
A telematics box typically includes the following components:
The telematics box retrieves vehicle-generated data, such as speed or GPS position. It then transmits all collected data to the company via satellite and the mobile network.
To read and receive the data, the company needs an interface. In practice, a specialized fleet management software solution is used. All transmitted data can be viewed there, allowing the company to optimize its fleet management.
Companies that use telematics in their fleet management enjoy several advantages. For example, if a driver is found to have particularly high fuel consumption, the company can enroll him in eco-training. Abrupt driving, on the other hand, increases vehicle wear and tear. With targeted measures (such as driver training), companies can counteract and reduce repair and maintenance costs. Training may also reduce the risk of accidents, as drivers learn how to maintain better oversight.
Which providers have developed the telematics infrastructure?
There are now numerous providers specializing in the development of the telematics infrastructure. These include:
CCV Deutschland GmbH
Cherry GmbH (formerly ZF Friedrichshafen AG)
GT German Telematics Gesellschaft für Telematikdienste GmbH
HID Global GmbH
Identive Group Inc. (Support)
Ingenico Healthcare GmbH
Verifone GmbH
ZEMO EDV Handels GmbH
Where is telematics already being used?
Telematics is potentially relevant for (almost) all industries, even if it hasn’t yet been widely adopted everywhere. In practice, there are numerous areas and sectors that are already benefiting from this system or could do so in the future. Below, we introduce a few industries that already rely on telematics systems.
Telematics in healthcare
Telematics is already revolutionizing healthcare! The central element here is the telematics infrastructure (TI), which enables faster and more secure communication between treating physicians, practices, and hospitals. With just a few clicks, patient medical data can be sent via the telematics infrastructure. This eliminates the traditional postal route, which took 2 to 3 days, and allows doctors to treat patients more quickly and effectively.
It is important that all doctors are connected to the TI – the company CGM handles the connection to the telematics infrastructure. Medical practices require the TI not only for the management of insured persons’ master data (VDSM) but also to issue electronic prescriptions (e-prescriptions), for example. On 01/01/2024, the traditional pink paper prescription was replaced by the e-prescription. From then on, patients simply present their health insurance card at the pharmacy to receive their prescribed medication.
Of course, when it comes to medical data, the question quickly arises: how secure is all of this? Responsibility for security lies with Gematik GmbH. Together with the Federal Commissioner for Data Protection and Freedom of Information (BfDI) and the Federal Office for Information Security (BSI), it developed a specialized security application for the telematics infrastructure. To ensure ongoing data protection, the BSI regularly audits the TI.
Telematics in fleet management
From car sharing to logistics companies, telematics systems are now found in nearly every vehicle. These systems give companies greater control over their own fleets, allowing them to record and analyze all relevant vehicle data. In addition to fuel consumption, the installed sensor also measures the GPS location and driving speed.
Telematics thus provides valuable data that helps a company optimize its fleet management. GPS tracking also improves theft protection. It’s a system that has become firmly established in this industry over recent years. To make meaningful use of the data, however, it is essential that every vehicle is equipped with a sensor.
The use of telematics in car insurance
Telematics is now also being used in the car insurance sector. Some insurers offer so-called telematics tariffs. These plans allow insurance providers to use telematics systems to gain insights into how policyholders drive. The data can be used to estimate accident risk. It is important, however, that policyholders are informed about which data the insurer collects and analyses.
The following types of data are especially relevant to insurers:
• Braking behavior • Acceleration while driving • Curve handling • Driving speed • Time and location of driving
Insurers then use the collected data to calculate premiums based on driving behavior. That’s the core idea of the concept. In fact, this approach is considered much fairer than classifications based purely on no-claims bonuses. It is particularly attractive to young drivers, who would otherwise pay higher premiums.
Telematics is just the beginning of a long-term development
As you can see, telematics is already providing crucial support in several industries! Another sector will follow in mid-2025. From July 2025, connection to the telematics infrastructure will also become mandatory in the nursing care sector. Care services and care facilities must then connect to the TI to improve communication with doctors and, for example, place medication orders at pharmacies more quickly. In the future, many more industries will likely embrace the benefits of telematics.
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Back in 2016, Anna worked on IoT topics at Deutsche Telekom for the first time. Since then, she has been supporting customer best practices in a wide range of industries – always focusing on the benefits that the Internet of Things can provide. Her IoT blogposts describe real use cases and the value these innovations add to market players, their business models, and even entire industries.
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