The rapid pace of digitalization is transformative
The automotive industry has been going through rapid changes and is currently being dominated by four equally important trends: electromobility, connectivity, autonomous driving and new business models and services. The changes have also massively impacted the culture around car purchases and driving. Traditional dealership models are no longer interesting for consumers as these are highly time consuming and stressful. Due to a growing awareness for environmental causes many consumers prefer to share a car than own one.
As a result, digital transformation trends are used in the automotive industry to personalize the consumer’s experience and cater to their needs, from digitizing the connected supply chain to effectively engaging the consumers through collecting and using data. In specific, the increasing importance of mobile devices and rising customer expectations are driving in-vehicle connectivity.
The ultimate challenge for the automotive industry will be to ensure that all digital transformation initiatives are planned from the beginning as part of the overall business model and influence the key business processes. One major opportunity here is to redefine the relationship between OEMs and end consumer though digital channels, eco systems and considering this along the whole customer journey.
- Research shows that digital channels are already the primary information source for customers. This means there is potential threat of competition from online retailers, which puts pressure on the existing dealership structure
- Sales processes need to be updated and improved through digital transformations to fulfil customer demands
- Original Equipment Manufacturers (OEMs) and their respective partners will need to embrace new technologies or will otherwise risk competing only on their business model and product
- Original Equipment Manufacturers need to separate themselves from their competitors. Hence, increasing investments in connected, autonomous, sharing and electric strategies are a necessary part of the digital transformation process
- Due to an increase in regulations regarding environmental and safety standards, Original Equipment Manufacturers and their partners will need to be able to anticipate consumer trends
Digital Value Chain
It is expected that all aspects of the mobility value chain will be digitalized, which for instance include shorter product life cycles due to a higher dependency on software technology. The transformation of cars will also change dealership structures, sales processes and maintain relationships with the consumer
Increased Revenue Potential
Currently 40 million people use app-enabled carpooling services and the usage of ride-hailing apps has grown rapidly to over 70 million users. The revenue potential of digital mobility services is expected to rise to ~$2 trillion by 2025 globally
The seamless channel integration for instance between smartphone, car navigation and entertainment systems are evolving on a day to day basis, which is why customer centricity is key for future success
Peer and industry benchmarking
The connected vehicle offers exciting new digital capabilities for consumers, changing how they use and interact with their vehicles since trends like eco-lifestyle, personalization and sharing are becoming more relevant
Mobility as a Service
Consumers massively benefit from the usage of Mobility as a Service (MaaS) through ride-sharing apps. New technologies such as cloud computing and analytics could lead to consumer specific information and further improvements of MaaS
As an experienced partner in providing digital transformation solutions, we identify, analyze, and evaluate digital targets and their potential, as well as performance improvement opportunities. We combine our inimitable capabilities in digital strategy, operations, technology, and digital marketing and leverage our cross-functional team. Based on well-researched and integrated data analysis, we cover all aspects of a highly customized and digital transformation.
Our international team has assisted >600 realized projects in digital strategy, digital operational excellence, data science, and transaction advisory services. With a team that speaks over 20 languages, and a 50% female-male ratio, we ensure both effective communication and representation throughout the advisory process.