“Mastering innovative technologies and embracing new digital capabilities are key to manage digital transformation in Automotive.”
Markus Winkler, Head of Automotive

The automotive industry currently looks healthy, with the world car fleet expected to double by 2030, mostly as a result of growth in China. However, the industry is also on the verge of disruptive change and needs to prepare. This change has several elements, mostly relating to evolving expectations on the part of consumers and the digital disruption as a meta-trend. In emerging markets, consumers have quite different expectations from developed countries – but things are changing fast in established markets, too. This Digital Transformation will revolutionize the way OEMs interact with their customers and how they can listen to their needs.

FACING DIGITAL CHALLENGES

CONNECTED CUSTOMER

The usage of the internet, social media and mobile technologies dramatically change the way how consumers interact with automotive companies

  • Digital showroom
  • Ownership platforms
  • Customer data management
  • Mobile apps & online sales

FUTURE MOBILITY

Digital technologies enable the current and future mobility of people, on that new metropolitan designs will rely on

  • From product to service
  • E-mobility
  • New infrastructure
  • New mobility solutions

CONNECTED VEHICLES

Connected cars connect the vehicle, the driver and the environment and create new opportunities for all market players

  • Connected car features
  • Big data & Analytics
  • New players & partners
  • New business models

TRANSFORMING DATA INTO COMPETITIVE ADVANTAGE

“With Connected Insights we respond to disruptive changes in the automotive industry.”

Ingo Finck, Vice President

Data has become a key input into business decisions in the areas of marketing, sales, customer service, supply chain and beyond. Companies need to start treating data like the new oil powering this industry. Like oil, data can be difficult to find and expensive to extract, but becomes a hugely valuable asset once refined. The industry currently collects little usable customer or vehicle data, but this will change dramatically in the years to come. A lot of work needs to be done to agree issues around data management, data ownership, analytics and exploitation. In addition, a new disruptive data-driven approach is needed, with data shared between OEMs, dealers and other partners. Companies also need to work with customers, who own their data, and whose interests must always be at the heart of the business.

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The automotive industry needs, above all, to put the customer at the center of everything they do throughout the lifecycle (interest, purchase, ownership, repurchase), using customer management to eliminate the silos that exist today in finance, marketing, sales and service functions. Mobilization and collaboration tools like our Advanced Solutions Environment (ASE) can help to make this happen, and are ideally suited to digital innovation where the requirement needs to evolve rather than be defined up front. With our automotive insights lab we have the necessary capabilities to analyze and understand the available customer data and can define recommended courses of action.

OEMs must offer their clients what they’re interested in, and communicate in the way they prefer, individualizing the offer for each customer. This requires a significantly better understanding of the consumer than companies have today. By bringing segmentation down to the micro level, we can provide the right channel, for the right consumer, at the right time – especially important in growth markets and for today’s younger consumers: the group we call “Generation Connected”.

In order to put customers at the heart of everything they do, companies must interact with them effectively at each touchpoint throughout the lifecycle. In this way, it becomes possible to establish a connection between customer and brand, and recruit the customer as a powerful advocate.

Companies can gain competitive advantage by applying analytics to customer and vehicle data, producing insights to enable the actions and services discussed above. In this way, companies can build consumer loyalty, reducing the likelihood of defection to another brand. By sharing these insights on OEM, importer and dealer level everyone in the value chain can improve.

A major challenge for companies wanting to make the most of Big Data is the effectiveness to work with complex data, the barrier of organizational silos and a shortage of skilled people:

Source: The deciding factor: Big Data and Decision Making – Study by the Economist and Capgemini – February 2012

73%

Too many "silos" - data is not pooled for the benfit of the entire organization

47%

Big data is not viewed sufficiently strategically by senior management

40%

Shortage of skilled people to analyse the data properly

 

ACCELERATE THE JOURNEY TO A TRULY DATA-DRIVEN BUSINESS

To cope with the necessary speed of innovation and deployment, a new and more agile way of working is needed. After freeing our clients from old assumptions of the pre-digital age we build strong organizational & technology capabilities for delivering and scaling innovation. Leading OEMs start creating an advantage through the smart usage and intelligent combination of vehicle, customer and environment data. They change from a limited customer contact and a transaction scheme to a continuous and behavior-oriented data-driven approach.

 

CONNECTED INSIGHTSWE SHOW YOU HOW TO DRIVE THE DATA HIGHWAY
 

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ABOUT THE CAPGEMINI-GROUP

Capgemini

With more than 180,000 people in over 40 countries, Capgemini is one of the world's foremost providers of consulting, technology and outsourcing services. The Group reported 2015 global revenues of EUR 11.9 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

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Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.

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