Automotive Technology - Way Forward (Ver1)
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Automotive Technology - Way Forward (Ver1)

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Ideas for making automotive technology more user-friendly and value-added.

Ideas for making automotive technology more user-friendly and value-added.

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    Automotive Technology - Way Forward (Ver1) Automotive Technology - Way Forward (Ver1) Presentation Transcript

    • Automotive industry: technology vs. customer value Achal Raghavan Strategy & Business Excellence Consultant Bangalore, India achalraghavan@yahoo.co.in www.achalraghavan.com 1
    • Achal Raghavan: introduction  IIT Madras (1973); IIM Ahmedabad (1977)  30+ years of work experience  10+ years at Board level  Companies: L & T, Anand Group, Sundram Fasteners, Delphi Automotive, Ingersoll- Rand  Now: Teach, consult, write 2
    • Contents  Automotive technology: current status & trends  Aerospace to automotive: technology osmosis  The tipping point  Customer needs in developing markets  The way forward 3
    • Automotive technology: current status & trends  25% of cost of modern car (Europe/US) is electronics and software; projected to grow to 40% by 2020  Electronics expected to drive 90% of future innovations  Industry focus shifting to need for “dependable electronics”  Software defects costs rising at 17% CAGR 4
    • Automotive technology: current status & trends (contd.)  Car prices constant between 1990 and 2004 (adjusted for inflation)  Customers increasingly rate “safety” as most desirable feature of vehicles (JD Powers)  Models proliferating: 20 models/brand in 1994; grown to 34 in 2004  Beginnings of backlash against complex technology –”computer rage” 5
    • Aerospace to automotive: technology “osmosis” Technology “osmosis” 6
    • ABS – from aerospace to auto Originally developed to assist in landing heavy aircraft 7
    • Heads-up display F/A-18C jet fighter Wikipedia 8
    • Heads-up display Chevrolet Corvette Wikipedia 9
    • GPS / HUD – aerospace Integrated Primary Flight Display Honeywell Honeywell Runway Awareness and Advisory System 10
    • GPS: automotive navigation Stand-alone Navigation Systems (for cars) 11
    • US DoT 12
    • US DoT 13
    • 24X7 connectivity GM OnStar • Safety, security, convenience • Vehicle diagnostics • 24X7 connection to Advisor 14
    • Airbags – from auto to aero! 15
    • Aerospace vs. auto: comparison Aerospace Automotive  Highly trained and  User is an average expert pilot citizen  State of the art  Service backup still service backup “iffy”  Techno-savvy  Highly competitive buyers  Communicating  Limited competition “value” difficult  Less sensitive to  Highly price- price sensitive 16
    • The tipping point ? “Tipping point” ? Customer enthusiasm Fascination Frustration Technology 17
    • Class discussions  What are the pros and cons of this technology trend?  What does the “emerging market” customer really need? What is “value”?  What is the way forward? 18
    • Customer needs in emerging markets – finding the balance COST LIFESTYLE SAFETY CONVENIENCE 19
    • The way forward: some ideas  Offer basic platform which is a cost- effective amalgam of technology and value  Empower the customer with “build your own car” menu:  Customer chooses add-ons  Incremental costs for technology clearly known  Replace “tech transfer / localization” with “design for local” 20
    • Thank you! 21