Features on Demand

Features on Demand (FoD), also called On-Demand Features (ODF) or Functions on Demand, refers to the process in which businesses provide a particular function or feature that can be added whenever the consumer wants or needs it. FoD can also allow for subscription models to be added effectively, allowing monetary gain for businesses. However, this has led to situations involving tangible hardware being disabled via software, requiring a subscription to enable the feature.

How it works

Features on Demand is built on top of the general On-Demand business model, which allows consumers to order a product or service conveniently, and receive it quickly. Generally, FoD adds upon this by allowing consumers to add or later remove an additional feature or function whenever needed within a product they already own without human contact, allowing more customization and personalization. However, FoD is sometimes paired with a pay-per-use or subscription model, which charges the consumer to continue to have the feature or function activated.

In the Automotive industry, FoD is typically used with subscriptions. While FoD can be related to Over-The-Air (OTA) updates, OTA is used to update a vehicle's software wirelessly, while FoD uses OTA to enable or disable a feature or function after a subscription or fee is paid.

In a more software related environment, FoD is related to Software as a Service (SaaS), which often allows FoD to even function.

Why it can be a problem

Ability to be Abused

FoD features that require subscriptions can generate a lot of money for businesses. In the Automotive industry, FoD is projected to generate $5.2 billion in revenue by 2030. The large potential for monetary gain can potentially motivate companies to lock more features or functions behind paywalls, which previously may have been free. This can cause a negative reaction from consumers, who may perceive this as "unfair," and create distrust. If consumers believe that a practice is unfair or not trustworthy, it is likely that they will switch to a different brand or service, which can seriously damage a business.

Hardware Disabled From Software

In industries such as the Automotive industry, tangible hardware, or hardware that is physically present within the product, may be disabled via software, often requiring a subscription to reactivate. An example of this is the BMW Heated Seat Scandal. This practice has received a largely negative response from consumers, many of which may consider it "unfair." In a survey conducted by Norstat, 42% of respondents stated "I am not willing to pay on a regular basis for such additional functions," and 35% stated "It is outrageous to install useful functions in cars without activating them for the customer."

Potential Security Risk

The implementation of FoD will require internet-access through SaaS for the necessary software to function. However, this can open more areas of attack for cybercriminals if not handled correctly, for example: a connected car could experience a Denial of Service attack, which can manipulate the engine and car locks.

Examples

Microsoft

Microsoft uses FoD in the Windows Operating System to allow users to add at any time, an example of a feature that can be added is the language resources, such as handwriting recognition. There does not seem to be any subscription required to add these features.

Audi

Link to main article: Audi Basic HVAC "Sync" Function Paywalled

After an HVAC system had been paywalled via software, Audi has made a pivot in the direction of implementing more FoD features.

BMW

Link to main article: BMW's heated seat subscription

BMW used FoD to paywall heated seats within their vehicles, requiring a subscription to enable the previously free function. This, however, was eventually reverted due to consumer backlash.