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Gaining the agility to compete in Automotive and Industrial Equipment

Achieving operating efficiency to generate savings and increase profits

OVERVIEW

Growth is on the agenda for businesses across industrial sectors—even as market volatility remains at an all-time high. Increasing competition, disrupted operations models and rising costs all require industrial equipment and automotive companies to operate more efficiently. However, gaining the agility to compete in these industries is not a one-time exercise, and it is not just about reducing costs. Success comes from reinvesting those savings in product innovation and product lifecycle management, which will, in turn, increase efficiency and drive growth.

Automotive and industrial equipment companies can gain the agility to compete by taking the following steps:

  • Creating a more efficient operating model that frees up resources to invest in growth

  • Embedding process excellence throughout the organization to drive effectiveness

  • Building leading-edge capabilities to differentiate against competitors

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CLOSED-LOOP COST MANAGEMENT

Closed-loop cost management – An engine for growth

This approach helps companies build the finance and procurement capabilities they need to sustain and improve savings over the long term. Closed-loop cost management can increase operating efficiency and help drive ongoing savings that can be reinvested in more strategic growth initiatives, including better product lifecycle management, product innovation and digitization. It is time that automotive and industrial equipment companies realize the value of a streamlined process that can take a new product idea or other innovation to market more efficiently and cyclically in order to improve customer experience. Three essential components are needed to achieve this:

  • Transparency

  • Accountability

  • Agility

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ZERO-BASED BUDGETING

Reimaging zero-based budgeting: strategically managing costs to drive competitive advantage and growth

Zero-based budgeting (ZBB) allows automotive and industrial equipment companies to create more strategic cost management structures. Cost reduction efforts are often fragmented and disparate. ZBB enables them to compete by focusing on generating ongoing savings that can continuously be reinvested into growth initiatives. The key is to embed cost management in these companies’ culture in order for them to gain the agility to respond to changing customer demands in a more direct, efficient and sustainable manner.

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AUTOMOTIVE CONNECTIVITY

Connected vehicle: How to win with a disruptive technology

Connectivity is not a new trend, but it is a disruptive one. In response to this technology rollout, the automotive ecosystem is opening to powerful non-traditional players. To stay competitive, automakers need to deploy new operating models and capabilities that can generate value from the connected car ecosystem at a pace that can match technology companies. This strategy requires cooperation with a wide range of business partners to deliver solutions and the recognition that the connected car is a completely new business.

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Digitization

Digital PLM: Re-shaping your innovation and product development

Digital PLM offers a big opportunity for the automotive and industrial equipment industries to gain analytic insights into customer preferences as well as the flexibility to respond to changes in the market in a more rapid, direct and scalable manner. It is time companies take control to stay competitive. The real risk to adopting a digital model is simply to do nothing and get left behind.

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