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.
Read More →Driving Digital Destiny: Digital Reinvention in Automotive
Automotive firms need to rethink their organizations from the ground up through a process which IBM calls Digital Reinvention. The global automotive industry is at the vanguard of a digital revolution. Digital technologies are changing how people and businesses interact, creating unprecedented levels of industry dislocation and changing business economics. Original equipment manufacturers (OEMs) and suppliers are reconceiving driving experiences through a prism of anywhere, anytime mobility. As a result, automotive firms need to rethink their organizations from the ground up. As the birthplace of traditional production chains, the automotive industry is transitioning from a vehicle-centric view to a state of deep, sustained customer centricity through a process called Digital Reinvention™. This requires automotive organizations to establish a new focus, new expertise, and new ways of working.
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