Automotive Industry
Data is the new lubricant
Uncover future business possibilities
“This weekend, the IAA is coming to an end, presenting many different types of news in Automotive and drawing increased attention not only in trade media.
And I admit – having worked in Automotive for many years – I am somehow “impressed” by the pictures of demonstrating consumers outside the fair and in front of the so much “beloved” cars. Who could have imagined this movement, paradigm change only a few years ago? Probably not many of us…
However, if you take a moment and reflect, read the patterns in the market, stimulate your sense of what trends are growing and thus are going to draw the future (important in whatever industry) and finally: dare to act on them – then there are numerous possibilities to set new direction in the transformation Automotive is undergoing at the moment.
Many chances for consumers and all players in the market (OE and IAM) – small or large companies. Probably more than ever before – and speed will be one of the most distinguishing, competitive factors.
So what market trends are the most likely?
Let’s assume, that in future
- the car will remain a mobility possibility…
- … but will not remain the obvious means of transportation, thus earning models will turn upside down.
- connectivity will be a crucial factor and data the new lubricant.
Then you can think of different business development strategies, advanced and new business models. I consider the following possibilities as Top 3 chances:
- Innovation; R&D development and production of new, not yet developed / existing parts for advanced autonomous driving / E-vehicles = plenty of opportunities! Important here: The more car manufacturers and key suppliers will join forced into the future, the more they will succeed in meeting consumer needs and set new technology standards.
- To combine changing consumer desire towards mobility, ownership, sustainability etc. with offering services, e.g.
- car-sharing concepts
- user-based insurance models (dynamic policies)
- data-driven infotainment
- location-specific service as parking solutions etc.
- aftersales-models for maintenance, part maintenance, tires etc.
- services, that do not have anything to do with the car but with the journey the car is used for (hotels etc.)
Big data analysis will help you to anticipate costumer behavior. Learn also from other industries as e.g. retailers.
- Partnerships with IoT players: the digitalization of society opens up for additional opportunities into whatever area and partnering with tech experts can boost the business significantly.
There are plenty, new opportunities in IAM, too; why limit to the repair business only? “Think big, start small.”
I have been asked, how many of those business opportunities will be insourced / outsourced business? This depends among other things on what kind of player you are (OE, supplier, WH etc.) and which new direction / strategy you are going for.
All in all (and valid for most industries today), I believe, that the tailored business development strategy will be the most successful in future; especially because with those strategies you create “uniqueness” (aiming to offer value) and speed.
Have a great start into a new week.”