Four megatrends—electrification, autonomous driving, connectivity and sharing vehicles—are converging to create unprecedented disruption in the automotive industry. In this hyper-competitive marketplace, automakers and their suppliers urgently need new capabilities—powered by new technologies—to create intelligent, agile and efficient automotive operations. Automotive companies must migrate from optimizing engineering to designing, building and servicing for amazing improved customer outcomes.

However, the industry is hampered by fragmented processes, outdated technology, information gaps between manufacturers and dealers, poor supply chain visibility and lack of customer insights. For automotive companies, there is a huge opportunity to innovate by harnessing digital to re-define the role the vehicle plays in our lives. The winners will be automakers that switch their operations to the New, transform core businesses and reallocate resources fast. New capabilities are urgently needed—many of them powered by new technologies—to create these intelligent, agile and efficient automotive operations.



An intelligent platform for automotive operations and experiences

To realize their enormous potential for innovative, lean business capabilities, automotive companies need to move away from old, monolithic ERPs and join an integrated platform-based landscape, with vertical functionalities and a data-centric approach.

To be able to leverage intelligence in everything they do, automotive companies must combine all the data at their disposal, through an integrated and digital platform, where new technologies can be applied to it, in real-time. Unlike today, where back-office technology limitations mean that processes lag actions, it will become possible to pick and choose where to apply intelligence, at the moment of need, to reshape execution, teams and business models.

As the automotive market undergoes such radical change—from driverless cars and new car-sharing models to connected in-vehicle technologies—companies realize they can’t create and operate a business for the 21st century with an enterprise platform that’s likely to have been custom-built for the pre-internet era.

But evolving to a new intelligent capability requires major transformation. Organizations need to invest wisely in new ways to operate both internally, and externally with ecosystem partners.

An intelligent platform is essential to support the new capabilities that will drive automotive companies’ competitive edge from now on.

Intelligent aftersales: A new engine for value

Aftersales is a good example of the value that an intelligent platform brings to automakers. Making aftersales lean and efficient is fundamental to maximizing value through higher sales and improved margins. What’s more, enhancing customer satisfaction and loyalty in this way will significantly boost brand reputation.

  • Spare parts management: Addresses the challenge of optimizing supply-chain and logistics networks, improving customer service and reducing OEM costs. This requires multi-echelon models that ensure a balance between maintaining lean stock levels and having the right parts for customers at the right time. And to enable all this requires "sense and respond" supply chain capabilities, real-time inventory analytics and real-time track and trace.
  • Warranty management: Using data flowing from in-car sensors, manufacturers will be able to redefine how warranties are managed. By applying advanced analytics to this data, it will be possible to identify patterns in driving behavior that enables manufacturers to shift from a product focus to much more granular customer segmentation.

Getting started:

How should automotive companies move forward and accelerate their journey to the intelligent enterprise?

1. Have a clear vision

Showcase the way ahead from thinking to doing (and measuring achievements along the way).

2. Develop a roadmap

Follow a transformation roadmap with predefined targets and outcomes, connecting strategy, objectives, operating model, processes and workforce to the enabling technology.

3. Master digital capabilities

Invest in digital capabilities such as IoT, data driven insights and business process automation.

4. Possess industry and functional expertise

Developing deep industry and functional expertise is essential to designing and guiding the transformation.

Finance transformation

Finance leaders recognize the need to move the finance function from the back office to an agile, predictive function powered by intelligent insights.

FIND OUT MORE

Automotive manufacturers that set the pace will continue accelerating to digital, developing connected services and putting the brakes on costs. What’s the key requirement to realize all this? An intelligent platform that can securely and rapidly drive automotive companies into the fast lane, with the right partners to manage the complexity.

About the Authors

Marco Paletti​

​Managing Director – Enterprise Technology for Industrial, Europe


Massimo Bailo

Principal Director – Enterprise Technology for Automotive

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