Digital services centered on increasingly empowered consumers will bring disruption to the automotive industry.
Economic value within this industry and across adjacent markets will be forever altered. In a world where the future is far from certain, automotive companies will need to develop new core capabilities to survive.
What is going to happen next and how to respond? Download the report or explore the infographic, below.
The automotive industry is experiencing disruption everywhere! Today’s vehicles are computers on wheels. There are more “lines of code” in today’s cars than a Boeing 777. According to McKinsey and Company, today’s connected cars create up to 25GB of data per hour. Moreover, OEM’s manufacturers are moving towards a “mobility model”, data warehousing, autonomous vehicles, subscription services and technology integrators while technology companies are also entering the space. Will you and your business be ready, willing and able to thrive or even survive the auto industry’s mass disruption? By reviewing this presentation, you will learn about the major technology disruptions occurring in the automotive industry and walk away with at least five ideas on what your business can do to survive and thrive!
This project is about the various strategies that are used by the Hero motocorp and the various aspects of the company. the contents in the project are.
COMPANY OVERVIEW:
• History of Hero Motocorp
• Mission, Vision and Objectives of Hero Motocorp
• Milestones of Hero Motocorp
• Organizational Structure of Hero Motocorp
• Product line of Hero Motocorp
• Major competitors of Hero Motocorp
Corporate governance at hero motocorp
Social responsibility at hero
Ethical practices at hero
Environmental analysis
Strategy formulation
Corporate strategies
Important strategic move of hero motocorp
Competitor analysis
The automotive industry is experiencing disruption everywhere! Today’s vehicles are computers on wheels. There are more “lines of code” in today’s cars than a Boeing 777. According to McKinsey and Company, today’s connected cars create up to 25GB of data per hour. Moreover, OEM’s manufacturers are moving towards a “mobility model”, data warehousing, autonomous vehicles, subscription services and technology integrators while technology companies are also entering the space. Will you and your business be ready, willing and able to thrive or even survive the auto industry’s mass disruption? By reviewing this presentation, you will learn about the major technology disruptions occurring in the automotive industry and walk away with at least five ideas on what your business can do to survive and thrive!
This project is about the various strategies that are used by the Hero motocorp and the various aspects of the company. the contents in the project are.
COMPANY OVERVIEW:
• History of Hero Motocorp
• Mission, Vision and Objectives of Hero Motocorp
• Milestones of Hero Motocorp
• Organizational Structure of Hero Motocorp
• Product line of Hero Motocorp
• Major competitors of Hero Motocorp
Corporate governance at hero motocorp
Social responsibility at hero
Ethical practices at hero
Environmental analysis
Strategy formulation
Corporate strategies
Important strategic move of hero motocorp
Competitor analysis
AI in Insurance: How to Automate Insurance Claim Processing with Machine Lear...Skyl.ai
About the webinar
Insurance companies are looking at technology to solve complexity created by presence of cumbersome processes and presence of multiple entities like actuaries, support team and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
What you'll learn
- How Insurance companies are using ML to drive more efficiency and business gain
- Best practices to automate machine learning models
- Demo: A deeper understanding of the end-to-end machine learning workflow for car damage recognition using Skyl.ai
Tesla Motors: A Silicon Valley Version of the Automotive Business ModelCapgemini
Think of the Model S as an app on four wheels,” says the Tesla website. If software is eating the world, then Tesla Motors sure is showing the automotive industry how by adding technology to the business model. In the few years that Tesla Motors has been around, the company has upended the traditional automotive industry model, using the silicon valley approach to development. The Tesla story is one of singular ambition and bold vision, fuelled by technology. The company has blazed a trail through a traditional industry, using digital to ensure it stays a lap ahead of the competition. Read our research note to understand how Tesla Motors is achieving this
In this presentation, we talk about below topics.
* Introduction to automobile platform.
* History of automobile.
* Evolution.
* New trends in automobile industry.
* Artificial intelligence in automotive industry.
* Data science.
* Connected cars.
* Future of mobility.
Mahindra Presentation : Analysis of Mahindra & Mahindra ScorpioAnand Tomar
Analysis and presentation of Mahindra as a part of my final 1st semester project report of my PGDM course.
Analysis is on following topics : Sector, Company,, Product, Services, Marketing Strategies, Financial Analysis ,Human Resource Management of Mahindra
The automotive industry is changing rapidly, leading some in the field to a conclusion that soon cars may become the most technologically advanced products that consumers will ever buy.
The transition from a primarily mechanical-based to a software-based industry leads some to claim that car manufacturing is focusing less on transportation but rather on technology.
Since those changes will sooner or later affect most of the world’s population, it is fascinating to take a closer look as to what is currently happening in the automotive industry.
The report presents the car industry based on the Customer Value Canvas and will highlight innovation within the core product, added-value services, customer/shopping experience and brand communication, and as they are all important in customer’s overall impression.
Digitization of the Automotive Industry: Connecting The New Mobility Value ChainAndreas Mai
The Internet of Everything is set to create $ 700 Billion benefits in personal transportation globally and will transform industries along the transportation value chain.
The race to win the future mobility business has begun. Will automakers win this race by digitizing their business with a new value chain ecosystem, or will “The Valley” win this race by transporting their virtual business models into the physical business of getting people to where they want, faster and at lower cost? This presentation will provide perspectives on some of the critical success factors and who controls them, at least for now…
Industry 4.0 Implementation, Challenges And Opportunities Of Industry 4.0 : C...Deepak Dudhate
Implementation, Challenges And Opportunities Of Industry 4.0 :
Case Studies From Automotive & Chemical Industry
Applications in Chemical industry and Automobile industry.
Concert interrupted - an agenda for the chief supply chain officer to develop...Tristan Wiggill
A presentation by Danie Schoeman Master’s Degree in Manufacturing Engineering, Managing Director, Danie Schoeman and Company, South Africa.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
Getting your beautiful supply chain concert of coordination interrupted is going to happen sometime. Supply chain disruptions are inevitable – from superstorms, human illness epidemics to factory fires, child labour and cyber-attacks. Managing risks that cause unpredictable supply chain disruptions have moved past the purview of operational risk managers to the C-suite and corporate boards, where they are increasingly being held accountable for organizational risk. The goal of this paper is to assist the chief supply chain officer to set an agenda for identifying supply chain vulnerabilities and risks, and how to develop a plan and countermeasures for these.
AI in Insurance: How to Automate Insurance Claim Processing with Machine Lear...Skyl.ai
About the webinar
Insurance companies are looking at technology to solve complexity created by presence of cumbersome processes and presence of multiple entities like actuaries, support team and customers in the claim processing cycle.
Today, a lot of insurance companies are opting for Machine Learning to simplify and automate the processes to reduce fraudulent claims, predict underwriting risks, improve customer relationship management. This automated insurance claim process can remove excessive human intervention or manual errors and can report the claim, capture damage, update the system and communicate with the customers by itself. This leads to an effortless process enabling clients to file their claims without much hassle.
In this webinar, we will discuss how insurers are increasingly relying on machine learning to improve claim processing efficiency and increase ROI.
What you'll learn
- How Insurance companies are using ML to drive more efficiency and business gain
- Best practices to automate machine learning models
- Demo: A deeper understanding of the end-to-end machine learning workflow for car damage recognition using Skyl.ai
Tesla Motors: A Silicon Valley Version of the Automotive Business ModelCapgemini
Think of the Model S as an app on four wheels,” says the Tesla website. If software is eating the world, then Tesla Motors sure is showing the automotive industry how by adding technology to the business model. In the few years that Tesla Motors has been around, the company has upended the traditional automotive industry model, using the silicon valley approach to development. The Tesla story is one of singular ambition and bold vision, fuelled by technology. The company has blazed a trail through a traditional industry, using digital to ensure it stays a lap ahead of the competition. Read our research note to understand how Tesla Motors is achieving this
In this presentation, we talk about below topics.
* Introduction to automobile platform.
* History of automobile.
* Evolution.
* New trends in automobile industry.
* Artificial intelligence in automotive industry.
* Data science.
* Connected cars.
* Future of mobility.
Mahindra Presentation : Analysis of Mahindra & Mahindra ScorpioAnand Tomar
Analysis and presentation of Mahindra as a part of my final 1st semester project report of my PGDM course.
Analysis is on following topics : Sector, Company,, Product, Services, Marketing Strategies, Financial Analysis ,Human Resource Management of Mahindra
The automotive industry is changing rapidly, leading some in the field to a conclusion that soon cars may become the most technologically advanced products that consumers will ever buy.
The transition from a primarily mechanical-based to a software-based industry leads some to claim that car manufacturing is focusing less on transportation but rather on technology.
Since those changes will sooner or later affect most of the world’s population, it is fascinating to take a closer look as to what is currently happening in the automotive industry.
The report presents the car industry based on the Customer Value Canvas and will highlight innovation within the core product, added-value services, customer/shopping experience and brand communication, and as they are all important in customer’s overall impression.
Digitization of the Automotive Industry: Connecting The New Mobility Value ChainAndreas Mai
The Internet of Everything is set to create $ 700 Billion benefits in personal transportation globally and will transform industries along the transportation value chain.
The race to win the future mobility business has begun. Will automakers win this race by digitizing their business with a new value chain ecosystem, or will “The Valley” win this race by transporting their virtual business models into the physical business of getting people to where they want, faster and at lower cost? This presentation will provide perspectives on some of the critical success factors and who controls them, at least for now…
Industry 4.0 Implementation, Challenges And Opportunities Of Industry 4.0 : C...Deepak Dudhate
Implementation, Challenges And Opportunities Of Industry 4.0 :
Case Studies From Automotive & Chemical Industry
Applications in Chemical industry and Automobile industry.
Concert interrupted - an agenda for the chief supply chain officer to develop...Tristan Wiggill
A presentation by Danie Schoeman Master’s Degree in Manufacturing Engineering, Managing Director, Danie Schoeman and Company, South Africa.
Delivered during the 38th annual SAPICS event for supply chain professionals in Sun City, South Africa.
Getting your beautiful supply chain concert of coordination interrupted is going to happen sometime. Supply chain disruptions are inevitable – from superstorms, human illness epidemics to factory fires, child labour and cyber-attacks. Managing risks that cause unpredictable supply chain disruptions have moved past the purview of operational risk managers to the C-suite and corporate boards, where they are increasingly being held accountable for organizational risk. The goal of this paper is to assist the chief supply chain officer to set an agenda for identifying supply chain vulnerabilities and risks, and how to develop a plan and countermeasures for these.
A MONTH OF IDEAS - APRIL 2016
by the Strategic Planning of Brand Union Paris
1 month, almost 30 days of good ideas, funny things, beautiful pictures or brillant initiatives that triggered our attention and that we wanted to share with you...
See you next month.
Ogni mese più di un milione di italiani usano lo smartphone per la ricerca di una nuova auto,
trovando informazioni essenziali per la scelta della vettura ideale.
La comparazione di caratteristiche e prezzi è solo una delle tante possibilità messe a disposizione dal web,
per cui è importante che i brand del settore forniscano informazioni chiare ed esaustive.
In questo contesto, rimane fondamentale il ruolo del negozio fisico in cui si conclude l’acquisto.
A MONTH OF IDEAS - MARCH 2016
by the Strategic Planning of Brand Union Paris
1 month, almost 30 days of good ideas, funny things, beautiful pictures or brillant initiatives that triggered our attention and that we wanted to share with you...
See you next month.
A MONTH OF IDEAS - OCTOBER 2015
by the Strategic Planning of Brand Union Paris
1 month, almost 30 days of good ideas, funny things, beautiful pictures or brillant initiatives that triggered our attention and that we wanted to share with you...
See you next month.
A MONTH OF IDEAS - MAY/JUNE 2016
by the Strategic Planning of Brand Union Paris
1 month, almost 30 days of good ideas, funny things, beautiful pictures or brillant initiatives that triggered our attention and that we wanted to share with you...
See you next month.
A MONTH OF IDEAS - OCTOBER 2015
by the Strategic Planning of Brand Union Paris
1 month, almost 30 days of good ideas, funny things, beautiful pictures or brillant initiatives that triggered our attention and that we wanted to share with you...
See you next month.
A MONTH OF IDEAS - NOVEMBER 2015
by the Strategic Planning of Brand Union Paris
1 month, almost 30 days of good ideas, funny things, beautiful pictures or brillant initiatives that triggered our attention and that we wanted to share with you...
See you next month.
Game changing trends for automotive parts manufacturers in 2020GeorgeSttaford
As per a recent report, the global Automotive Aftermarket Parts Industry is expected to stand at a whopping $723 billion in sales by 2020. The US alone would account for $296 billion. This includes both OE and aftermarket parts, equipment, service, and collision repair to name amongst a host of other facets. As we venture into the future of mobility, OEMs are rolling out a diverse and technologically advanced line-up of cars, trucks and commercial vehicles and this has opened a whole new world of possibilities. Here are some of the biggest trends that are expected for automotive parts manufacturers in 2020.
Interview: What is the main security and privacy risks associated with the ad...Ersin KARA
worldautomotiveconference.co.uk
"The methods of artificial intelligence and augmented reality have always been the substance of rumination and speculation since very recently, where they’ve started to take very a central role in our lives.
Intelligent technologies today are computer-aided systems that completely control all industrial pipelines. They can operate autonomously and on this account all processes can be managed independently.
Today’s logistics do not resemble one-way storage of goods seen up to a few years ago. This is due to new web technologies that allow an entirely new level of interaction within the moving parts of a given logistics eco-system. As these technologies continue developing at a rapid pace, several partially and fully automated logistic frameworks are already readying for deployment."
"When we compare Industry 4.0 advantages and classic ERP programs advantages We see below points ;
- Space-efficient storage. This will save in warehouse areas and volumes. Ex. Kardex Remstar applications, vertical storage solutions
- ERP’s are integrated warehouse management software.
So the error will be absolutely minimal. Prevention of losses due to lack of communication in monolithic systems that have one point of failure.
- Automatic and controlled product circulation. This will allow for increased work safety and fewer work accidents. This will naturally result in risk reduction resulting from controllability, especially in hazardous material logistics.
- Line feed, standby modules. So perfect stock management, “0” inventory loss.
- Automatic finished product warehouses. This will allow for unmanned warehouses, fast vehicle loading and unloading systems that can work 24 hours a day, 365 days a year. Cellular transfer storage systems.
For distribution centers and warehouse management systems that implement Industry 4.0 technologies, data needs to be collected, analyzed, acted on, and secured in order to partake in the data driven decision-making Industry 4.0 advertises."
Considering this vital factors, with great enthusiasm Insights Success has shortlisted, “The 10 Most Innovative Automotive Tech Solution Providers 2019”, which are changing the world of automotive technology.
With great enthusiasm Insights Success has shortlisted, “The 10 Most Innovative Automotive Tech Solution Providers 2019”, which are changing the world of automotive technology.
Get Automotive Smart - Automotive Futuresemmersons1
The automotive industry is ramping up to a period of transformation. But what does the future look like, and what do the predicted changes mean for existing players?
Women Edition: 5. World Automotive ConferenceErsin KARA
worldautomotiveconference.co.uk
Existence of women in an industry is the thing that makes the organization holistic and the work flawless. Recent studies on gender diversity say that there is a positive correlation between the presence of women in corporate leadership and performance in a magnitude that is not small. Companies, that understand that it is not a positive discrimination but an indispensable necessity to achieve diversity, and reserve seats for women from top to bottom positions, are the ones which climb the ladder in competition more quickly.
Although women hold only 30% of the entry-level roles in technology related positions, it is getting better by the day. As for the automotive industry, women participation in European Union in manufacture of motor vehicles, trailers and semi-trailers is less than 25% while they are only about one fourth in
US automotive industry despite the astonishing fact that nearly two thirds (65%) of new car buyers are women. Rates are almost the same in white-collar segment of Turkish automotive industry as well.
To welcome and thank for their existence in the World Automotive Conference 2018, we dedicate this month’s WAC Bulletin to existing and future women participants of the industry.
To understand how women see and manage the industry’s transformation, how they adapt to the changing world, and face challenges during the transition, we conducted interviews with some of the ladies who will participate in WAC 2018 conference as speakers. Their perspective also showed us that enormous change has only began and it has way to go within a fiercely competitive environment.
Hope you enjoy each of these valuable thoughts and insights,
Not all of the speakers were able to participate in the Bulletin and we will share their views in the upcoming issues.
The inaugural World Automotive Conference 2018 proudly hosts global leaders of industry from all over the world in October while we invite ladies to Women’ Breakfast to be held in October 5th at 8:00 a.m. Though we want to enjoy the conference with as much ladies as possible, we have limited number of seats available for the breakfast, hence it will be first 50 ladies that register to WAC will be able to gain a seat.
"The concept of autonomous driving cars are largely dependent on Internet of Things. This is due to the reason that this technology could be enabled only with the help of IoT. We can say that IoT will increase the connectivity between vehicles and together with AI solutions will further enhance the choices for buyers with providing all information regarding their preferences while buying and using the vehicle. I see these advantages below -With the help of IoT, vehicles will get more connected to the other stakeholders in the transportation and so more usage- based services will be provided. We see first products in insurance sector or aftersales business"
For this paper, we interviewed some of the leading voices in the connected car industry to uncover some of the trends influencing the market, and what it might mean for the future of any business seeking to capitalize on this radical change in how we live and move. We examine how these changes are fundamentally altering the talent landscape in the industry, heralding the arrival of a new breed of executives to fill an evolving talent gap in the mobility sector; created by the convergence of the traditional automotive sector and a myriad of outside influences.
Presentation at Automotive Leaders Summit on April 7, 2016
Connecting the automotive value chain from design through consumer information and vehicle usage
This Deloitte publication describes three major success factors that can help automotive CIOs future-proof their IT organizations to cope with current macro technology and automotive megatrends as well as the specific challenges of COVID-19.
Accenture's Automotive Technology Vision 2019 explores es a look at the "post-digital" technologies (DARQ) that power new innovations in the post-digital future in the automotive industry. Read more.
With increasingly autonomous capabilities and a declining interest in ownership, the auto industry needs to focus on in-transit innovation, purpose-driven design and a transition to a service-based business model.
Ey semiconductor-supplies-hitting-vehicle-salesEYIndia1
How Supply Chain challenges can be effectively managed through Digital Technology & Solutions for planning
URL:- https://assets.ey.com/content/dam/ey-sites/ey-com/en_in/news/2021/03/ey-semiconductor-supplies-hitting-vehicle-sales.pdf
Smartphone friend or foe for Automotive OEMs?Mahbubul Alam
With the millennials becoming more and more concerned
about connectivity, the smartphone-driven automotive
revolution is inevitable. The automotive OEMs who will
win in this space will be those who can keep pace with their
continuously evolving roles of the IoT connected world
and yet are flexible enough to meet the demands of the
next generation drivers. What needs to be seen is how the
automotive OEMs will go beyond their current roles to where
they make smartphones a core mobility offering to deliver
the increasingly personalized information-centric experience
to its customers. Irrespective of the role of the OEM, the
IoT revolution driving smartphone-based connectivity in
the automotive industry is too big an opportunity to miss.
This document brings together a set
of latest data points and publicly
available information relevant for
Automotive Industry. We are very
excited to share this content and
believe that readers will benefit from
this periodic publication immensely.
Similar to Digital disruption and the future of the automotive industry (20)
Is the next Uber coming your way?
CxOs are on high alert for competitors coming out of nowhere. Prepare for disruption – read the Global C-suite study.
Digital disruption and the future of the automotive industryPeter Tutty
Digital services centered on increasingly empowered consumers will bring disruption to the automotive industry.
Economic value within this industry and across adjacent markets will be forever altered. In a world where the future is far from certain, automotive companies will need to develop new core capabilities to survive.
What is going to happen next and how to respond? Download the report or explore the infographic, below.
Digital is not the destination but the foundation for a new era of business; we call it cognitive business, and IBM Watson
is the platform. Today Watson is helping doctors reimagine medicine, and leaders reshape industries as diverse
as retail, banking and travel. And Watson is taught by industry experts, so their know-how can reach more practitioners.
IBM Security Guardium Data Activity Monitor (Data Sheet-USEN)Peter Tutty
The IBM Security Guardium Data Activity Monitor data sheet describes a simple, robust solution for continuously monitoring access to high-value databases, data warehouses, file shares, document-sharing solutions and big data environments.
2015 Global Identity and Access Management (IAM) Market Leadership AwardPeter Tutty
With its strong overall performance, IBM has achieved a leadership position in the IAM market, and Frost & Sullivan is proud to bestow the 2015 Market Leadership award to IBM.
We are pleased to present the findings of The State of Mobile Application Insecurity sponsored by IBM. The purpose of this research is to understand how companies are reducing the risk of unsecured mobile apps in the workplace.
Fleet management these days is next to impossible without connected vehicle solutions. Why? Well, fleet trackers and accompanying connected vehicle management solutions tend to offer quite a few hard-to-ignore benefits to fleet managers and businesses alike. Let’s check them out!
Things to remember while upgrading the brakes of your carjennifermiller8137
Upgrading the brakes of your car? Keep these things in mind before doing so. Additionally, start using an OBD 2 GPS tracker so that you never miss a vehicle maintenance appointment. On top of this, a car GPS tracker will also let you master good driving habits that will let you increase the operational life of your car’s brakes.
Why Is Your BMW X3 Hood Not Responding To Release CommandsDart Auto
Experiencing difficulty opening your BMW X3's hood? This guide explores potential issues like mechanical obstruction, hood release mechanism failure, electrical problems, and emergency release malfunctions. Troubleshooting tips include basic checks, clearing obstructions, applying pressure, and using the emergency release.
What Does the PARKTRONIC Inoperative, See Owner's Manual Message Mean for You...Autohaus Service and Sales
Learn what "PARKTRONIC Inoperative, See Owner's Manual" means for your Mercedes-Benz. This message indicates a malfunction in the parking assistance system, potentially due to sensor issues or electrical faults. Prompt attention is crucial to ensure safety and functionality. Follow steps outlined for diagnosis and repair in the owner's manual.
"Trans Failsafe Prog" on your BMW X5 indicates potential transmission issues requiring immediate action. This safety feature activates in response to abnormalities like low fluid levels, leaks, faulty sensors, electrical or mechanical failures, and overheating.
Ever been troubled by the blinking sign and didn’t know what to do?
Here’s a handy guide to dashboard symbols so that you’ll never be confused again!
Save them for later and save the trouble!
Comprehensive program for Agricultural Finance, the Automotive Sector, and Empowerment . We will define the full scope and provide a detailed two-week plan for identifying strategic partners in each area within Limpopo, including target areas.:
1. Agricultural : Supporting Primary and Secondary Agriculture
• Scope: Provide support solutions to enhance agricultural productivity and sustainability.
• Target Areas: Polokwane, Tzaneen, Thohoyandou, Makhado, and Giyani.
2. Automotive Sector: Partnerships with Mechanics and Panel Beater Shops
• Scope: Develop collaborations with automotive service providers to improve service quality and business operations.
• Target Areas: Polokwane, Lephalale, Mokopane, Phalaborwa, and Bela-Bela.
3. Empowerment : Focusing on Women Empowerment
• Scope: Provide business support support and training to women-owned businesses, promoting economic inclusion.
• Target Areas: Polokwane, Thohoyandou, Musina, Burgersfort, and Louis Trichardt.
We will also prioritize Industrial Economic Zone areas and their priorities.
Sign up on https://profilesmes.online/welcome/
To be eligible:
1. You must have a registered business and operate in Limpopo
2. Generate revenue
3. Sectors : Agriculture ( primary and secondary) and Automative
Women and Youth are encouraged to apply even if you don't fall in those sectors.
5 Warning Signs Your BMW's Intelligent Battery Sensor Needs AttentionBertini's German Motors
IBS monitors and manages your BMW’s battery performance. If it malfunctions, you will have to deal with an array of electrical issues in your vehicle. Recognize warning signs like dimming headlights, frequent battery replacements, and electrical malfunctions to address potential IBS issues promptly.
In this presentation, we have discussed a very important feature of BMW X5 cars… the Comfort Access. Things that can significantly limit its functionality. And things that you can try to restore the functionality of such a convenient feature of your vehicle.
𝘼𝙣𝙩𝙞𝙦𝙪𝙚 𝙋𝙡𝙖𝙨𝙩𝙞𝙘 𝙏𝙧𝙖𝙙𝙚𝙧𝙨 𝙞𝙨 𝙫𝙚𝙧𝙮 𝙛𝙖𝙢𝙤𝙪𝙨 𝙛𝙤𝙧 𝙢𝙖𝙣𝙪𝙛𝙖𝙘𝙩𝙪𝙧𝙞𝙣𝙜 𝙩𝙝𝙚𝙞𝙧 𝙥𝙧𝙤𝙙𝙪𝙘𝙩𝙨. 𝙒𝙚 𝙝𝙖𝙫𝙚 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙥𝙡𝙖𝙨𝙩𝙞𝙘 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙪𝙨𝙚𝙙 𝙞𝙣 𝙖𝙪𝙩𝙤𝙢𝙤𝙩𝙞𝙫𝙚 𝙖𝙣𝙙 𝙖𝙪𝙩𝙤 𝙥𝙖𝙧𝙩𝙨 𝙖𝙣𝙙 𝙖𝙡𝙡 𝙩𝙝𝙚 𝙛𝙖𝙢𝙤𝙪𝙨 𝙘𝙤𝙢𝙥𝙖𝙣𝙞𝙚𝙨 𝙗𝙪𝙮 𝙩𝙝𝙚 𝙜𝙧𝙖𝙣𝙪𝙡𝙚𝙨 𝙛𝙧𝙤𝙢 𝙪𝙨.
Over the 10 years, we have gained a strong foothold in the market due to our range's high quality, competitive prices, and time-lined delivery schedules.
Symptoms like intermittent starting and key recognition errors signal potential problems with your Mercedes’ EIS. Use diagnostic steps like error code checks and spare key tests. Professional diagnosis and solutions like EIS replacement ensure safe driving. Consult a qualified technician for accurate diagnosis and repair.
Core technology of Hyundai Motor Group's EV platform 'E-GMP'Hyundai Motor Group
What’s the force behind Hyundai Motor Group's EV performance and quality?
Maximized driving performance and quick charging time through high-density battery pack and fast charging technology and applicable to various vehicle types!
Discover more about Hyundai Motor Group’s EV platform ‘E-GMP’!
Core technology of Hyundai Motor Group's EV platform 'E-GMP'
Digital disruption and the future of the automotive industry
1. Digital disruption and the
future of the automotive industry
Mapping new routes for customer-centric connected journeys
ibm.com/ibmcai | ibmcai.com
IBM Center for Applied Insights
2. Digital services
centred on increasingly
empowered consumers
will bring disruption to
the automotive industry.
Economic value within
this industry and across
adjacent markets will
be forever altered. In a
world where the future
is far from certain,
automotive companies
will need to develop
new core capabilities
to survive.
About the IBM Center for Applied Insights
ibm.com/ibmcai
ibmcai.com
The IBM Center for Applied Insights introduces new ways
of thinking, working and leading. Through evidence-based
research, the Center arms leaders with pragmatic
guidance and the case for change.
Imagine that you are a middle manager in an automotive
manufacturer. Your career has progressed steadily as you
gained experience in the various aspects of this complex
business. You understand how the development cycle works,
how to work with suppliers and dealers and how to drive sales.
Everything you have done has built on each experience
and you were looking forward to continued progression.
But something seems to have changed. Your career foundations
are not feeling as solid as they used to and you no longer feel
as confident about the future. The sudden emergence of
companies like Uber and many others has changed the rules
of the game. What is going to happen next and how can
you respond?
“The auto industry is poised
for more change in the next
five to ten years than it’s
seen in the past 50.”
– Mary Barra, CEO, General Motors 1
About the research
This paper is based on in-depth interviews with 20 IBM connected
car subject matter experts (SMEs) who regularly consult and advise
clients across the automotive industry in the United States of America,
Japan, China, India and across various European countries. Many have
worked previously in roles within auto OEMs and tier-one suppliers. Their
collective experience totals 300 years in the auto industry.
3. IBM Center for Applied Insights 3
Ever since the first Ford Model T rolled off the production
line, mankind has obsessed about what the “car of the future”
might look like. That question has been asked even more in
the last few years as the connected car and what it may
eventually spawn – the prospect of driverless or fully
autonomous vehicles – has increasingly looked within reach.
The car of the future will be smarter. It will be increasingly
intelligent, inter-connected and instrumented. Cars will
ultimately communicate, socialise and collaborate with other
things, including other vehicles, traffic lights, parking bays
and retailers, thereby becoming a participant in a wider
“system of systems”.
Automotive manufacturers need to quickly
decide how they are going to respond
strategically to digital disruption
Connected cars will also bring forth an array of digital services
created out of the vast amounts of data this connectivity will
unleash. These digital services (conceptualised in Figure 1, see
following page), many of which are yet to be imagined, are
likely to be highly disruptive to the auto industry. They will
reinvent existing business models, create new models, change
the auto ecosystem and redesign customer engagement and
expectations. Along this journey, control points and profit
pools will change, and economic value within the auto industry
and across adjacent markets will be forever altered.
While there is no room for complacency, we don’t
anticipate an immediate “big bang” disruptive event for auto
manufacturers (or OEMs) brought about by increased vehicle
connectivity and digital services. Disruption is a journey, not
a one-time event. However, OEMs face strategic choices
regarding their response to digital disruption, and they cannot
afford to simply wait and see. With markets and adjacent
spaces changing rapidly, there is a real need to keep revisiting
strategic responses in a very fluid, agile way. The days of the
annual plan are gone.
Not all digitally disruptive services are created equally: our
findings reveal some digital services will be significantly more
disruptive and have the potential to be more lucrative than
others. However, it is by no means guaranteed that OEMs
will take all the prizes that digital disruption will bring.
All participants across the auto industry value chain need
to be mindful of the speed and dramatic transformation
experienced in other industries.
1908 Today The future
4. 4 Digital disruption and the future of the automotive industry
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120
100
80
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Services that are sold and delivered digitally are
disrupting today’s business processes or models
and providing entirely new capabilities
Ecosystems morph
to a new plane
Customers demand
their “digital DNA”
is recognised
Old business models
get reinvented or die –
new business models are born
Control points, profit pools and economic value is re-cast
Alternatives to
ownership
Commerce
services
Vehicle health
diagnostics
Driver health
services
Pay how
you drive
insurance
Concierge
services
Infotainment
Internet of things:
System of Systems
Multimodal
travel services
Services as yet
unknown
Figure 1. Consumer-centric digital services are disrupting the automotive industry
5. IBM Center for Applied Insights 5
For more than 100 years the automotive industry has
created competitive advantage mainly through
engineering excellence. Going forward, this will no
longer be sufficient
The automotive industry will not be immune
to digital disruption
Over the last two decades we have witnessed how some
industries have been dramatically transformed by a wave of
technological forces. Brands like Uber and Airbnb have
rewritten the rules of the markets they have entered. In fact,
they’ve spawned a new term for the whole notion of disruptive
forces transforming industries and incumbents: “Uberfication”.
Since its inception, the automotive industry has been a vast
playground of continuous innovation as manufacturers have
endeavoured to create competitive advantage through
advancements in mechanical and electrical engineering.
Despite this, the auto market today still remains relatively
closed – controlled mainly by the auto manufacturers.
Barriers to entry in auto, compared to other industries, remain
relatively high and until now the consumer has been largely a
passive passenger in this virtuous circle of innovation. The auto
industry, like many industries, is now on the brink of significant
change, altering these historical market conditions. The
changes are due in large part to the digital revolution brought
about by a perfect storm of technological influences such as big
data and analytics, cloud computing, the socialisation of
business through mobile devices, and at the eye of the storm,
the Internet of Things (IoT).
The connected car is the poster child for the
Internet of Things
While auto OEM marketers have sought to win our
hearts and minds for decades – tempting and alluring us to
their brands – there is, potentially, a new cold-heartedness
emanating from the connected car. From a pure data point of
view, the car itself is another ‘thing’ in the grand scheme of the
IoT – just a node on a network. In the IoT, the car is literally a
big data in motion problem.
The connected car is likely to become the poster child of the
IoT revolution because it is part of a wider system of systems
(encompassing not only cars but also cities, physical
infrastructure, retail, insurance and many others) and leverages
key IoT enabling technologies, such as sensors, analytics, big
data, natural language processing and cloud computing.
The modern connected car – with around one million lines
of software code and producing up to 25GB of data every
hour2
– has the potential to create a dazzling array of new
digital service possibilities. And here, entities in the physical
world, such as vehicles, start to create new economic value
that we are only just beginning to understand.
Data is fast becoming the world’s new natural resource.
Those in the automotive industry that recognise this and seek
ways to tap into the new natural resource will have an edge.
Future control points in the auto industry will be defined by
who can best leverage data to adapt and improvise business
models, identify ways to engage old and new partners and
materially enhance the customer experience.
Where there is data and connectivity, of course, there is always
risk. Consumers are generally happy to share data as the ‘cost’
for services, provided they see the benefit and know their data
and safety are not compromised. A recent high-profile security
incident highlighted the risk to OEMs of keeping everything
in-house compared to partnering with experts.
“Security is the foundation to everything in the Internet of Things.
This becomes particularly apparent with the connected car, as
it is such an active participant in our daily lives. Just like health
insurance, you have to be sure that you are adequately covered,
otherwise the consequences can be disastrous.”
– Dirk Wollschlaeger, General Manager, IBM Automotive Industry
6. 6 Digital disruption and the future of the automotive industry
SALE
Today’s automotive industry is trying to spin many
strategic plates
As global entities working in markets that are in a state of
considerable flux and where it is difficult to forecast the future,
OEMs are facing many strategic options.
In various markets, they need to plan for multiple likely
scenarios, while balancing the potential risk of maverick
scenarios. Make no mistake – this is a tough strategic
challenge: auto manufacturers still see brand penetration into
growth markets as a key strategy. But entering new markets
with tried and tested models and marketing campaigns is
relatively straightforward compared to the strategic shifts
needed to be successful in digital services for the connected car.
The key DNA requirements are to be fluid and agile, and
embrace the idea of “fail fast”.
“OEMs have to cover a huge number of bases...
they have to be selective. It’s a strategically
expensive time to be an auto OEM.”
– Ben Stanley, Global Automotive Research Lead, IBM Institute for Business Value
Growth market
land and expand
Business as
usual R&D
Transactional
one-time sales
Aspiration to
own cars
Engineering
heritage
Sustainability of
dealerships
Non-traditional
partner
collaboration
Alternative to
ownership
markets
Always connected
digital natives
Services
businesses
New retail
formats
Multimodal
experimentation
Shrink
development times
The sharing
economy
Lifetime
customer value
Business unusual
Market development and diversification
Business as usual
Market penetration, product development
“As one OEM told me,‘I am certain that what we are
building today is not what we are going to end up with, but
we have to start somewhere.’”
Mitigate the chances of being “Ubered”
As cars increasingly become connected, the potential of such
digitally disruptive scenarios is not lost on the auto industry.
In fact, auto executives not only anticipate the potential
disruption ahead, but they are already thinking about what
they need to do to take advantage of the opportunities and
counter the threats.
Figure 2. OEMs are facing many strategic options
7. IBM Center for Applied Insights 7
The IBM Institute for Business Value “Automotive 2025
- Industry without borders” study reveals that over the
course of the next decade, around three in four executives
expect greater collaboration with other industries to be a
key growth driver, and many are already thinking about
mobility services as a significant area for co-creation with
consumers. However, by its own admission, the auto
industry feels ill-prepared: fewer than one in five auto
executives describe their organisations as prepared for the
challenges on the way to 2025, and only one in three say
their organisations are adaptable to face the challenges.3
“OEMs are worried about an Uber or Airbnb
moment, but it’s hard to predict it happening in the
auto business.”
“OEMs are not short of ideas or vision,
but struggle with how to implement
on a practical basis.”
– Stefan Schumacher, WW Director, IBM Global Automotive Solutions
3 in 4 auto executives
expect greater
collaboration with
other industries to be
a key growth driver4
But fewer than 1 in 5
consider their company
prepared for the
challenges in the
decade ahead5
And only 1 in 3 say
their organisations are
adaptable to face the
challenges ahead6
This growing complexity mandates a fresh approach
towards partnering and co-creation and away from
conventional approaches
Whatever digital services the auto industry develops, it will
likely require collaboration with non-traditional players.
New companies entering the ecosystem (such as Trakm8,
Automatic.com, Mojio) are seeking to capitalise on opportunities
created by this disruption. And we are starting to see the auto
market morph in ways that are becoming less predictable.
For example, Uber recently acquired Bing’s mapping assets,
absorbing around 100 Microsoft employees in the process.7
“Determining who they have to work with is a significant
challenge for OEMs ... there’s a much expanded group of
players, including commercial partners and government.”
8. 8 Digital disruption and the future of the automotive industry
Partnering with non-traditional entities, outside the OEM’s
usual tier-one supply network, opens up opportunities around
potential new business models – 51% of OEMs and 72% of
suppliers see new business models as growth opportunities in
the next decade.8
Creating new business models is very
appealing to those OEMs whose profit margins on vehicle sales
are typically low. However, it requires something of a mind-
shift away from the one-time transactional sales model to a
recurring services sales model. In addition, new business
models may call for different thinking in terms of agility, taking
greater risk and adhering to the notion of fail fast rather than
conventional business wisdom around point-project return on
investment.
The “new deal” brought about by the whole socialisation of
business movement is that the customer has finally become
king. The success or failure of any business is invariably
conducted under the spotlight of social media.
“OEMs are currently very secure in their
old revenue model, with pricing of options
traditionally a very high one-time charge.
But they are very unsure how to translate this
into new models of revenue generation.”
– Ron Dombroski, Vice President, IBM Market Development
“Consumers previously went four to five times to a dealer,
but many only visit at the final decision point, preferring to
use social media instead. OEMs have been relatively slow in
picking up this shift.”
OEMs have solicited traditional feedback (e.g. via user groups
and focus groups) for a long time, but this has often been
limited to design and ergonomics rather than a genuine desire
to seek co-creation opportunities with customers from the
outset. The auto industry has been relatively conservative and
slow to respond, particularly in comparison to other industries.
This is increasingly going to be a requirement as customers
invariably turn to social media – particularly at the decision
point but also throughout their ongoing experience with their
brand. The Institute for Business Value study reveals 73% of
OEMs expect to use co-creation for mobility services over the
next decade.9
9. IBM Center for Applied Insights 9
In our discussions with SMEs, we explored the extent to which
digital services would act as an agent of disruption in the auto
industry. We looked at pathways to market evolution through
three lenses:
1. The likelihood such digital services would be
owned/controlled by the OEMs in the future
2. The extent of the disruption to the OEMs from
these digital services
3. The timescale for such services to reach
mainstream adoption.
We asked SMEs about eight different services ranging from
remote diagnostics to multimodal transportation, and saw
three distinct groups appear (see Figure 3). One group
centered on the in-vehicle experience, which was not very
disruptive, delivered on the smartphone or an in-car
alternative and likely to reach the mainstream soon. Another
group was based around the vehicle data, with a degree of
control possible for the OEMs as well as some opportunity to
monetise the service. The third group had the greatest
potential for disruption based on alternative models of vehicle
ownership. Although when we asked about the likelihood for
OEMs to control these services, we did find an interesting
distinction between controlling the service and controlling
the data that enables the service. A number of our SMEs
thought it more likely that the OEMs would simply control
and potentially monetise the data.
IBM subject matter experts provide valuable clues to
where future control points and value will be found
Alternatives to
ownership
Driver health
services
Vehicle
health
diagnostics
Pay how
you drive
insurance
Concierge
services
Infotainment
Multimodal
travel services
Commerce
services
Vehicle
ownership
Vehicle
data
In-vehicle
experience
Figure 3. How various digital services will likely impact the auto industry
Disruptive
to OEMs
Controlled by OEMs
HighLow
HighLow
10. 10 Digital disruption and the future of the automotive industry
The in-vehicle experience will be the battle ground
between the dumb car and the smartphone
For many years, OEMs have offered built-in options for
navigation, usually as a one-time charge at point of vehicle
configuration. Over time, the sophistication of systems has
increased, to include services beyond navigation, such as
automatic crash response. These services may be packaged
with monthly pricing based on service levels and may include
data roaming plans.
Much of the debate is around the extent to which smartphones
may displace built-in as the most common option in the future.
This is all centred on the consumer experience battleground.
Over time, smartphones and wearables might provide the
default interface to these types of digital services, since the
devices already capture a user’s preferences, behaviour and
loyalty. Some OEMs are already beginning to head down
this path.10
Services via smartphone apps that use location-based data are
usually free to download. The ability to monetise such services
through built-in options and monthly service fees is likely to
have less customer appeal going forward. The mind-set of
OEMs has traditionally been how to monetise these services.
This contrasts sharply with internet companies who seek mass
customer adoption and burn cash to obtain it. In addition,
updates to services (apps) are practically continuous and
customers update their smartphones every one to two years.
Again this contrasts with OEMs, whose development cycles are
typically 5 to 7 years.
“OEMs have a default mind-set that they own and design
and make the cars and that’s what sets the control points.”
New applications that can potentially be seamlessly linked to
open dashboards are likely to make built-in options look
increasingly clunky and obsolete. There is even an argument
that connected car is something of a misnomer: in reality, on
our roads today, we have a spectrum of “dumb cars”, “smartish
cars” with relatively expensive built-in options and (very)
smartphones that users either dock manually or tether.
“Is it the car that’s being connected or is it the person that’s
in the car who is connected?”
The vast majority of consumers, particularly the new
upcoming generation of drivers, have already made it clear that
their digital DNA will be represented by existing mobile
devices, particularly the smartphone.
“Millennials have multiple always-connected devices that
represent a signature of their own life and personal brand.
OEMs need to help their customers transfer their
preferences and services between vehicles like they transfer
between phone handsets.”
“Consumers expect to bring their own functionality
into the car, whether this is music, email or
navigation… if you can bring the elements of your
life that make you happy into the car, it makes for
a more positive experience.”
– Andreas Gupta, Global Solutions Leader for Marketing, Sales and Services, IBM Automotive
11. IBM Center for Applied Insights 11
Any efforts by OEMs to somehow control the connected car
via proprietary systems, as opposed to the smartphone, are
unlikely to succeed in the long run.
Ultimately, we expect a tipping point where forward-thinking
OEMs recognise there is high customer demand for a more
open interface, which becomes a differentiator among
competing auto brands. At that point, the smartphone wins
out, potentially raising questions about OEM brand value in
the long term.
Interestingly, a German auto consortium consisting of Daimler,
BMW and Audi are in the process of acquiring Nokia’s HERE
mapping unit.11
This represents a battle being fought over a key
connectivity control point, since mapping is fundamental to
various digital services such as commerce. The likely intent
of this acquisition is to counteract the threat of Apple’s
CarPlay and Google’s Android Auto in the battle to win
the in-car experience.
“My first car was in a video game”
This quote from one of our younger SMEs highlights the difference between the older generation
of car owners/drivers and an emerging cohort of millennials with radically different experiences
and expectations. This demonstrates a clash between a long-term, relatively stable environment
and the expectations associated with having an always-connected mobile app. The generational
difference highlights the challenge for auto OEMs: how do you deal with small but very distinct
market segments when you may not enjoy past economies of scale?
“The fear of OEMs is that a car will become
a smartphone on wheels, with cars built
around their entertainment value rather
than their hardware value.”
– Paul Fielden, Global Center of Competence Lead, IBM Automotive
OEMs are the likely winners when it comes to
controlling services based on vehicle data
OEMs are in prime position to own the control points (and
hence services) generated by data from within the vehicle, such
as data associated with diagnostic trouble codes (DTCs).
However, there is no guarantee that the OEM will definitively
own and control all such services. The alternative school of
thought suggests that after-market devices will access some
vehicle data elements, with others then aggregating data,
applying analytics and building new services. However, there is
a double-edged sword here between time-to-market and the
need for control.
“Development time for OEMs to bring new technology to
market means they are at risk of new entrants picking up a
greater share of market, unless the OEMs ‘lock down’ the
vehicle systems in terms of security and access.”
12. 12 Digital disruption and the future of the automotive industry
Digital services around vehicle diagnostics and predictive/
preventative maintenance have significant untapped potential.
If OEMs get this right, it could present not only a lucrative
recurring services revenue model, but also increased customer
stickiness long after the sale of the vehicle.
“One OEM is using connected car diagnostics and seeing a
20 percent increase in consumers visiting the dealership.”
Providing a transparent link between a vehicle’s component
health and parts that need replacing or fixing, and then
creating seamless pricing and scheduling presents a very
appealing customer hook. Such services may cause channel
disintermediation as the ownership of the customer could
move away from dealership networks to the OEM. With
greater centralisation of data, no longer fragmented at a local
dealership level, there is potential to create much deeper
insights and enhanced business value. For example, there have
been many high-profile recall situations faced by a number of
OEMs recently. A holistic approach to centralisation and
integration of vehicle health data goes way beyond merely
fixing cars to preserving OEM brand value.
Telematics-based insurance as a third-party, after-market
service has been around for some years. As the level of
connectivity in vehicles increases to include sensors and
cameras, there arises an opportunity to shift the basis of
insurance risk from generic (e.g., males under 25 are high risk)
to one where risk is based on actual data – achieved by
monitoring how, when and where the vehicle is driven.
This could have significant customer appeal, and the majority
of our panellists suggest OEMs will act as data facilitators to
insurance companies and are likely to play a partnership role.
Today, banks and even grocery retailers act as insurance
providers. It seems reasonable that capabilities to capture
data that really defines risk could transform the car insurance
market away from generic to data-defined risk, even to the
point where car insurance control points and value migrate
entirely to auto OEMs. There could be significant scope for
auto OEMs to materially disrupt this market, particularly if
they were to bundle other key services dependent upon data,
such as vehicle diagnostics and predictive maintenance. Such
services could help foster lifetime customer value and enhance
brand equity beyond the physical car.
“OEMs are putting predictive analytics in place
to try to get ahead of recall situations.”
– Marc Andrews, Vice President, IBM Industry Analytics Solutions
In an uncertain world, there is no single version of the future
Interestingly, we did not find a uniform set of responses across our interviews. In fact, quite
the contrary: we heard a divergence of opinion about the digital services and themes we tested.
What does this tell us? It is clear that we have not arrived at a single “group-think” set of
answers. Moreover, it underlines the significant levels of uncertainty about how the auto industry
will evolve, how difficult it is to envision where the market is heading and that the market
scenarios going forward will be many and varied. For OEMs, this means that rigorous and agile
strategic planning, monitoring of key leading indicators, and observing both traditional and
non-traditional competitor activities, will be more vital than ever.
13. IBM Center for Applied Insights 13
Services around alternatives to vehicle ownership
will be the most disruptive
Although the business model of car sharing (all-in
pay‑per‑hour models popularised by the likes of Zipcar) has
been around for a while, it is increasingly coming to wider
attention with OEMs entering the market. Examples include
Daimler Car2Go, BMW DriveNow and most recently Ford
GoDrive.
Car-sharing type services potentially represent a significant
game-changer for the auto industry. According to our SME
panel, these types of services will take a longer time to reach
mainstream adoption and are likely to appeal most in urban
settings. So far, this market generally has been limited to
start-ups and OEMs responding to this potential threat.
Figures vary across the industry, but one estimate suggests car
sharing on average leads to 20 vehicle sales being deferred for
each car-sharing vehicle.12
This could represent a major
revenue threat to OEMs.
Multimodal, integrated transport solutions (linking intelligent
transport elements and networks from door to door) and
alternatives to ownership transcend notions about the
physical entity of the automobile to focus on the efficacy
and inherent inefficiencies in transporting humans and goods.
This has potentially massive implications for the future of
car ownership.
Cars can appear as expensive and inefficient from a buyer’s
perspective. Vehicles sit idle for a significant part of their life
and represent a major investment that depreciates with every
day and every journey. New technologies and social business
are starting to remove these inefficiencies – recasting economic
value and future profit pools. Furthermore, as consumers, our
belief systems are being reshaped fundamentally by the notion
that it is better, both from an experience and economic
perspective, to eschew ownership.
Everything becomes a service
We expect this fundamental principle to be the most dramatic
disruption to the auto industry over the next decade.
Alternatives to ownership, such as ridesharing services like
Google RideWith and BlaBlaCar.co.uk are less about the car
and more about minimising economic waste and optimising
allocation of resource on some or all of the journey from A to
B. In this sense, ridesharing services tap into spare capacity,
provisioned via an e-marketplace. Some OEMs are
experimenting with employee schemes around multimodal and
ridesharing services, and these types of business models
potentially have vast unexploited opportunities, particularly
within the fleet car segment.
“Disruption will take time but it is starting. Industry walls
are breaking down. In ten years, the value providers, as
judged by what customers value the most, may be found in
companies like Google,Verizon or Apple as opposed to
GM, Kia or Ford.”
This type of disruption has the potential to change where
the balance of power is in the industry. We think OEMs have
some strategic breathing space in this area, but need to start
formulating longer-term strategies. So far, OEM activity has
been fairly low key and piecemeal. For example, we see OEMs
entering the market in large cities by providing a handful of
vehicles on the streets. This is an acceptable strategy if the
intention is to learn by experience and fail fast. The potential
maverick scenario is that a non-OEM, for example a large
media company, sees car sharing as a means of mass brand
visibility by putting thousands of vehicles on the streets
(see Maverick scenarios box).
“Car building is becoming a commodity business.
Value-add comes from the customer experience,
connectivity and mobility possibilities.”
– Frank Gross, Associate Partner for Daimler AG, IBM Global Business Services
14. 14 Digital disruption and the future of the automotive industry
Maverick scenarios: Is the auto industry on a burning platform?
Inflection points in markets create clear winners and losers with the winners sometimes coming
from unexpected places. The inflection point witnessed in the mobile phone market is analogous
to the type of disruption that may play out in the auto industry. In mobile, we saw a dramatic shift
away from “dumb phones” (only calls and texts) to smartphones – intelligent, personally
configurable, small-form networked computers. Along the way and in a short period of time, the
value and control points shifted away from the hardware to software and applications. With it,
incumbency also shifted quickly and dramatically from the mobile establishment, Nokia and
Blackberry, to the “new kids” – Apple iOS and Google Android. This disruption was subsequently
referred to by Nokia’s CEO at the time as its “burning platform moment”.13
So could some OEMs face their own burning platforms? Here are some maverick yet
plausible scenarios:
• A significant shift away from ownership to car sharing
• An amalgam of core tier-one suppliers working with an Internet-based company to enter the auto
market on a grand scale
• The regulatory environment on purchasing relaxes, allowing for Internet-based vehicle purchases
and dismantling dealership franchises
• A large-scale joint venture between a giant Internet brand such as Google and Tesla
• Fully autonomous vehicles become a reality far quicker than anyone expects
“Imagine UBER but with a driverless vehicle in three to five years ... they could unleash
numerous disruptive impacts on the automotive industry.”
“OEMs are scared about the future of their businesses,
but they are unsure which future direction the market
will go. They are okay for the next three to five years,
but beyond that is a big unknown.”
– Dr. Alexander Scheidt, Global Automotive Industry Leader, IBM Global Business Services
15. IBM Center for Applied Insights 15
So, how do we sum up for the middle manager we
introduced at the start? After all, this person is still looking
for guidance.
Clearly a shift is happening in the auto industry, changing
where and how value is created. To borrow from Darwin,
the key to survival is going to be how well the current
players can adapt. Their DNA has been successful for the
last 100 years, but new strands will need to be developed
in order to thrive in the new environment.
Digital disruption will require OEMs to ask themselves a
fundamental strategic question: what business are we really
in? Our SME panel suggests that some OEMs
(but by no means all) are already wrestling with this
question (see OEMs thinking outside the box).
There are strong clues in our SME responses. OEMs will
need to develop new core capabilities – such as agile
operations, partnering, an ability to sense and respond to
constantly changing customer needs, collaboration across
disparate teams and testing new business models.
We don’t know what the future will look like, but
organisations with these capabilities are better positioned
to grab a larger slice of the value when it becomes clear.
One final thought: our middle manager is not relegated
to just being disrupted. There is opportunity to be a
disruptor too!
How can the auto industry
adapt and thrive?
OEMs thinking outside the box
BMW has launched an incubator called i Ventures
to recruit start-ups and create mobility services,
particularly in urban areas.14
Specific services in focus
include intermodal travel and smart parking. BMW
will provide an open workspace in New York.
This approach seems similar to how we have seen
the FinTech market around digital disruption in
banking and financial services develop in London.
Ford has launched “mobility experiments” in 25
locations around the globe.15
The services include
car sharing, data-driven insurance, and on-demand,
point-to-point ride services. Ford’s president
Mark Fields described this initiative as taking the
company “to the next level in connectivity, mobility,
autonomous vehicles, the customer experience and
big data.”
“If you do not change direction, you
end up where you are heading.”
– Lao-Tzu, Philosopher and poet of ancient China
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