Telematics is now much more than just a technical term. It is a key technology that is already helping numerous companies from various industries to maintain an overview and optimise processes. Find out how telematics works and in which industries it is already being used in this article.
Telematics is a portmanteau word made up of "telecommunication" and "information technology". It refers to the networking of at least two IT systems. A telematics system therefore always needs a transmitter and a receiver on the other side to ensure the exchange of information. As soon as the systems are linked together, they can exchange information via the telecommunications network and a special data processing system. In this way, data can be reliably collected, transmitted and processed.
At first, telematics sounds like physics in itself. However, the technology behind it is far simpler than it seems. It works by transmitting data via the mobile phone network.
A good example to explain the functions is the use of telematics systems in lorries (fleet management). So that it can collect all the data, the company installs a telematics box in the lorry that is fitted with a sensor. You can think of this box as a small black box in an aeroplane. This box collects and stores all available data.
A box normally consists of the following components:
The telematics box retrieves the data generated by the vehicle, such as speed or GPS position. The box then transmits all the collected data via a satellite and the mobile phone network to the company.
In particular, the following data can be collected:
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However, in order to read and receive the data, the company needs an interface. In practice, it uses a special fleet management software solution for this. All transferred data can be viewed there, allowing the company to optimise its fleet management.
Companies that rely on telematics for fleet management enjoy several advantages. For example, if a driver stands out due to particularly high fuel consumption, the company can register them for ECO training. An abrupt driving style, on the other hand, increases wear and tear on the vehicle. Companies can thus take targeted countermeasures (driver training, etc.) to reduce repair and maintenance costs. Driver training may also reduce the risk of accidents, as the driver learns to keep a better overview, for example.
There are now countless providers who have specialised in the development of the telematics infrastructure. These include
In fact, telematics is interesting for (almost) all sectors, even if it has not yet become established everywhere. In practice, there are a number of areas of application and industries that can already benefit from this system now or in the future. In the following lines, we would like to introduce you to some industries that already rely on telematics systems.
Telematics is already revolutionising the healthcare sector! The telematics infrastructure (TI) is the centrepiece of the healthcare system. It enables doctors, surgeries and hospitals to communicate faster and more securely. Medical patient data can be sent via this telematics infrastructure with just a few mouse clicks. This eliminates the long postal route of 2 to 3 days, for example, and doctors can treat patients faster and more specifically.
It is important that all doctors connect to the TI - the connection to the telematics infrastructure is handled by CGM. Medical practices, on the other hand, need the TI not only for insured person master data management(VDSM), but also, for example, to issue an electronic prescription (e-prescription). The e-prescription replaced the classic pink paper prescription on 01/01/2024. From now on, patients simply show their health card at the pharmacy and receive the prescribed medication.
When it comes to medical data, the question quickly arises: How secure is the whole thing? Security is in the hands of Gematik GmbH. Together with the Federal Commissioner for Data Protection and Freedom of Information (BfDI) and the Federal Office for Information Security (BSI), it has developed a special security application for the telematics infrastructure. The BSI regularly scrutinises the TI to ensure security at all times.
From car sharing to logistics companies, telematics systems can be found in almost every vehicle. These systems give companies more control over their own vehicle fleet. They can record and read out all vehicle data. In addition to fuel consumption, the installed sensor also measures the GPS location and driving speed, for example.
Telematics thus provides valuable data that helps a company to optimise its fleet or fleet management. It also improves theft protection thanks to GPS localisation. It is a system that has become firmly established in this sector in recent years. However, for a company to be able to utilise the data in a meaningful way, it is important to install a sensor in every vehicle.
Telematics is now also being used in the motor insurance sector. Some insurance companies offer policyholders so-called telematics tariffs. In these tariffs, the insurance companies use the systems to find out more about the driving style and behaviour of the insured. The data can be used to assess the accident risk, for example. However, it is important that policyholders also know what data the insurance company collects and analyses from them.
The following data plays a major role for insurance companies:
The insurance companies then use the collected data to calculate the contributions according to driving style. At least that is the basic idea behind the concept. However, this is actually much fairer than the pure categorisation according to no-claims classes. This is particularly interesting for new drivers, who would otherwise pay higher insurance premiums.
As you can see, telematics is already helping some sectors! Another sector will follow in the middle of the year. From July 2025, connection to the telematics infrastructure will also be mandatory in the care sector. Care services and care facilities will then have to be connected to the TI in order to improve communication with doctors, for example, or to be able to order medication from pharmacies more quickly. In the future, even more sectors are sure to benefit from the advantages of telematics.
Our tariff portfolio is as versatile as the world of the Internet of Things. It includes both standard tariffs and individual offers for highly specific solutions that require a high level of service and consulting. This allows us to find the perfectly suited tariff for every IoT idea.
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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