Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Digital Transformation in Automotive

What does the customer expect from the manufacturer and dealer?

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all
  • Be the first to comment

Digital Transformation in Automotive

  1. 1. Is your company singing from the same digital hymn sheet? European Automotive Summit 11th of June in Amsterdam
  2. 2. Copyright © 2015 Capgemini Consulting. All rights reserved. 2 Let’s get connected ... Markus Winkler Senior Vice President Leading Global Market Unit Automotive at Capgemini Consulting Key Portfolio is around Digital Transformation, Customer Centricity, CRM, Digital Manufacturing and Insight & Data Delivering sustainable client value with strong focus in delivering large scale Digital Transformation programs from strategy to implementation in a joint collaborative approach
  3. 3. Copyright © 2015 Capgemini Consulting. All rights reserved. 3 WHY do we need a digital hymn sheet? Competitive Pressure Employee Demand Consumer „Pull“Digital Transformation in Automotive Technology „Push“
  4. 4. Digital Transformation is the use of digital technology to radically improve the performance and/or reach of a company. The Capgemini Consulting/MIT View on Digital Transformation 4 Our joint research with the MIT1) has shown that a successful digital transformation can have a strong impact on a company’s financial performance. +26% Profita- bility2) +12% Market Value2) 1) Massachusetts Institute of Technology: Sloan School of Business 2) Compared to average performance of analyzed companies, according to the benchmark study. See Appendix for more details. Telecom Travel and hospitality Retail Banking Pharmaceuticals Consumer Packaged Goods Insurance Utilities Suppliers High Technology Automotive OEMs C O N S E R V A T I V E S F A S H I O N I S T A S D I G I R A T I THE “HOW” - Transformation Management B E G I N N E R S THE“WHAT”-DigitalIntensity Digital Transformation can radically improve business performance
  5. 5. 5 Is your company singing from the same digital hymn sheet? Audience …so that each of them create an individual sound. Each Instrumentalist and Singer interpret the digital hymn sheet differently … Ideas Concepts Visions …with various ideas for the digital hymn sheet. Customers expect a „harmonized“ concert We are all Composers of the digitization…
  6. 6. Copyright © 2015 Capgemini Consulting. All rights reserved. 6 What does the digital hymn sheet of the automotive industry look like? Multi Channel Online Sales Future of Retail Future Mobility Connected Car Big Data ?
  7. 7. More than 5 billion people are texting, tweeting and browsing on mobile phones. Copyright © 2015 Capgemini Consulting. All rights reserved. 7 Connection is the name of the game and customers are the reason why. 30 billion pieces of content are shared on Facebook every month. People upload 48 hours of new video to YouTube every minute of every day. By 2020, internet transactions (b2c and b2b) could reach 450 billion per day. Customers are connected and the automotive industry needs to catch up.
  8. 8. Copyright © 2015 Capgemini Consulting. All rights reserved. 8 MercedesMe: Design your brand around the customer needs. How does the (Auto)mobile value proposition in 2020 look like! Are you ahead of the game?
  9. 9. Copyright © 2015 Capgemini Consulting. All rights reserved. 9 84% …expect digital innovation in the showroom. „At a dealer’s showroom I expect...” Digital showroom experience – it is a long, long way to go! 29% 29% 31% 47% Cars have digital info available Virtual test drive stations 3D virtual vehicle configurator Interactive touch screens up to 65%…would use new service offerings. 63% Mobile service technician coming home 67% 62% Remote diagnostics Digital service planning „Showrooming“ – customers are using smart gadgets when visiting. A digitalized dealership means more than having tablets! Capgemini Cars Online 2014
  10. 10. Copyright © 2015 Capgemini Consulting. All rights reserved. 10 Likelihood to purchase a vehicle online…? Many customers expect a change in the whole purchasing process! Alternatives to dealer for vehicle purchase? 18%Retail store 17%Car Rental company …would purchase their vehicle online 44% 42%Directly from manufacturer 21%Independent online vendors Capgemini Cars Online 2014 Online transactions will disrupt traditional Automotive sales. Support online vehicle sales with sophisticated tools.
  11. 11. Copyright © 2015 Capgemini Consulting. All rights reserved. 11 BMW: Piloting online sales via Amazon in Japan. Will we still need stationary dealers in the future?
  12. 12. Copyright © 2015 Capgemini Consulting. All rights reserved. 12 Shoppers consider alternatives for car ownership. OEMs can earn money with mobility solutions. Do they still build cars in the future? 40% …consider alternative ownership models. Primary reason to choose alternative mobility solutions Capgemini Cars Online 2014
  13. 13. Copyright © 2015 Capgemini Consulting. All rights reserved. 14 Customers expect the car to be an extension of their home, office, club etc. OEMs and dealers need to offer new consumer services. . Capgemini Cars Online 2014 Preferred connected car services (mature markets) 76% 75% 59% Driving & Safety Vehicle Management Customer Care & After Sales Services Infotainment 44%
  14. 14. Copyright © 2015 Capgemini Consulting. All rights reserved. 15 BMW: Augmented Reality glasses create new driving experience. New gadgets create a „Want to have“ and „Want to use“ feeling!
  15. 15. Copyright © 2015 Capgemini Consulting. All rights reserved. 16 Today, the industry has still very little customer or vehicle knowledge. Treat data like the new oil powering our industry! Capgemini Cars Online 2014 Willingness to share connected car data? …would share car data with manufacturer or dealer 80% ? New Sources of data? Customer Vehicle Driving Environment Intelligent Business Transform data into actionable insights
  16. 16. Better demand forecast Impulse for repurchase Copyright © 2015 Capgemini Consulting. All rights reserved. 17 Big data – New ways of doing business. OEM‘s need to use their information to connect to their customers and become more efficient. Micro Targeting & Loyalty Time Next best action
  17. 17. Copyright © 2015 Capgemini Consulting. All rights reserved. 18 Notes are written but HOW will you be capable to play and sing from the same digital hymn sheet? ? ? ? Companies need to focus not only on „the what“, but on „the how“ !
  18. 18. Copyright © 2015 Capgemini Consulting. All rights reserved. 19 Strong management capabilities are required in order to establish new digitization concepts and business models Innovation Companies need to conciliate a common understanding of innovation culture and vision in organisation and change management to succeed in their transformation. Change Management Leadership Innovation Culture Innovation Platform Change approach Coaching & Enabling Sustainability Vision & Mindset Management culture Mobilization
  19. 19. Copyright © 2015 Capgemini Consulting. All rights reserved. 20 Volkswagen opened an Electronics Research Laboratory (ERL) in Silicon Valley The team mainly focus on new services. Daimler and Volkswagen go “open”. OEMs use different possibilities to build up a separate start-up structure. CAR2GO used co-working spaces like “betahaus” in Berlin... ...to get new ideas from external sources.
  20. 20. Copyright © 2015 Capgemini Consulting. All rights reserved. 21 Tradition meets digital hip/hype-ness. Big players face organisational challenges to encourage disruptive innovations. Big Player Start-Up Rigidity Project Set-up Controlling Departmental hierarchies Agile Trial & Error Networking Management Brainstorming & Idea CreationSteering Committees Smart Fast Central
  21. 21. Copyright © 2015 Capgemini Consulting. All rights reserved. 22 Open Innovation – Magic formula or hollow promises. Closed Open Set an open innovation culture to create new opportunities in current and new markets. Set a culture of innovation • Listen to external & internal members • Stay open • Collaborate • Go flat • Embrace failures Establish innovation platforms • Create your own or use external platforms • Feed your community • Install incentives • Control brainstorming processNew Market Current market New market
  22. 22. Copyright © 2015 Capgemini Consulting. All rights reserved. 23 Change = Fail? Succeeding in transformation is still a big challenge for organisations and individuals. What causes a change to fail? 61% 56% 56% Insufficent engangement of management Unclear vision & targets Missing experience of change managers No change approach 47% Operational implementation & technical problems 17% Capgemini Consulting Market research ....of changes fail.70%
  23. 23. Copyright © 2015 Capgemini Consulting. All rights reserved. 24 Enablers for success in Change Management. When the wind of change blows, some build walls other build windmills.
  24. 24. Copyright © 2015 Capgemini Consulting. All rights reserved. 25 Are you superman? The expectations on change managers are high. Capgemini CM Study 2015 Much is expected of managers in change processes. 79% 78% 70% …needs to acts as a role model …actively communicates the change …is aware that his attitude to change has a great influence on the success Manager… 64% 57% …takes clear decicions …convinces staff that the change is for good reasons
  25. 25. Copyright © 2015 Capgemini Consulting. All rights reserved. 26 He is committed to the change.PASSION He brings the vision of change to the company.SPIRIT He is calm, independent, experienced and a person of integrity.STANDING He is open, clear and fair in his communication.DIALOGUE His leadership style recognises and values others.EMPATHY The attitude and behaviour of change leaders define five important characteristics of effective change makers. Find the right person for your change team.
  26. 26. Copyright © 2015 Capgemini Consulting. All rights reserved. 27 There is a lack of leadership understanding for the transformation process! Responsible management needs to put proper change management into all transformation projects. Capgemini CM Study 2015 Project control Freedom and collaboration of entire organisation often missing Incentive systems No exhaustive implementation of incentive systems Leadership team allocation Combination of teams with different leader types not guaranteed Leadership style Leadership style often not considered in the staffing of change maker positions Leadership development Systematic training with focus on change competencies not always offered
  27. 27. Copyright © 2015 Capgemini Consulting. All rights reserved. 28 Is your company singing from the same digital hymn sheet? Only a well coordinated orchestra creates the extraordinary customer experience!
  28. 28. KEEP IN TOUCH WITH CAPGEMINI CONSULTING… MARKUS WINKLER – SENIOR VICE PRESIDENT / HEAD OF AUTOMOTIVE CAPGEMINI STUDY - CARS ONLINE 2014 CAPGEMINI STUDY – CHANGE MANAGEMENT STUDY 2015 29 http://www.capgemini-consulting.com/digital-transformation Thank you for your attention!
  29. 29. 30 Within our Automotive service portfolio we help customers in current and future topics for Automotive market and customer strategy FUTURE RETAIL EXCELLENCE FUTURE MOBILITY FUTURE OPERATIONSDIGITAL DISRUPTION has dramatically changed consumers expectations and influenced the interaction between consumers and Automotive companies throughout the lifecycle. CONNECTED CUSTOMER CONNECTED VEHICLE CONNECTED INSIGHTS Connected Cars embrace the internet and connect THE CAR; THE DRIVER AND THE OFFLINE AND CLOUD-BASED ENVIRONMENT. Analysis of consumer segments, their behavior & preferences to evaluate distinct fields of action to ACQUIRE new customers, improve customer VALUE and MINIMIZE customer churning. STRATEGY & TRANSFORMATION DELIVERY CAPABILITIES
  30. 30. European Automotive Summit, 11th of June in Amsterdam

×