Digital technologies have upended the automotive industry. Formerly based solely on a business model of car ownership, the industry is fundamentally redefining itself into a multifaceted digital ecosystem. In a recent study from the IBM Institute for Business Value, 80% of executives said “comprehensive connected vehicle services” will be a key differentiator for consumers. Today’s car manufacturers and suppliers face intense competition from startups and internet companies with new business models, agile processes and rapid releases. To innovate and scale, industry leaders will need to combine the creative skills of a startup with the traditional strengths of an industrial enterprise.
Developing digital products using the Garage Factory model
Today’s automotive consumers expect seamless, customized auto experiences. As their personal mobility expectations grow, OEMs are turning to companies that offer digital mobility services to help them with tasks such as dealing with traffic, parking or simply getting from place to place. Having direct access to customers through a digital platform with a diverse product and service ecosystem creates opportunities for new revenue streams. Ride-sharing, e-hailing, subscription pricing and platform marketplaces are a few examples of monetization opportunities that have emerged through digital technologies.
In this whitepaper, IBM Institute for Business Value discusses:
- Developing digital products using the Garage Factory model
- Adopting a new approach
- Incorporating the Garage Factory model through lean business innovation
- Implementing continuous delivery for shorter innovation cycles
- The exponential potential of platform business models
Click through to access the full whitepaper here.
