Digital core for automotive

“Understanding the customer’s point of view and putting their feedback at the center of every decision are key prerequisites for success in the digital age. These insights must be applied not only in the sales department but also to determine which products are built, how customers are treated, and what services or mobility options are offered. Together with Capgemini we are well positioned to deliver the most customer-centric approach in the automotive industry.“

Hagen Heubach, Global VP – Industry Business Unit Automotive, SAP SE, SA

Together, SAP and Capgemini are bringing ‘Digital Core for Automotive’ to life, an automotive-specific architecture around a new SAP S/4HANA digital core that includes cloud-native solutions and intelligent technologies from Capgemini, SAP and third parties.

This provides our customers with all the key ingredients for the Renewable Enterprise: ​

• A highly industrialized implementation of SAP S/4HANA and other SAP core applications that delivers a clean and touchless ERP with industry best practice processes.
• Automotive-specific cloud extensions that enable smart connection with partner ecosystems in the industry for superior performance in the core value chain and customer experience. ​

Enabled by the right architecture that allows agility in introducing innovation.

2020 saw double-digit declines in car sales in most geographies. However, in 2021, retail demand bounced back quickly, although sales have been impacted by supply chain shortages. This V-shaped recovery, however, is not the biggest story – it is underpinned by huge changes that will transform the automotive industry over the next decade.

Following eras of industrialization (1920s to 1970s), globalization (late 1970s to 2015), and digitalization, a new era of change is emerging, driven by three megatrends that automotive companies are recognizing as critical to their future.

These megatrends are:

• Customer-centricity
• Intelligent industry
• Sustainability

The industry’s response to these megatrends will depend on three critical success factors:

Technology and software competency
Automotive companies must focus on software as much as hardware, eventually resembling technology companies, with competency in cloud, data, connectivity, AI, and cybersecurity.

People and organization
New hard and soft skills are demanded; new leadership styles and collaborative ecosystem ways of working. More data and technology-driven cultures must be embraced without sacrificing customer trust.

Operational excellence
A disciplined approach to efficiency will be vital: achieved by using analytics and AI to improve processes and developing a continuous change culture to resiliently react to disruptions – internal and external.

Capgemini’s unique perspective enables transformation of the digital cores of automotive companies – impacting all three success factors – using industry-specific frameworks plus transferable knowledge from other sectors.

Our automotive experience spans from complex migrations for global OEMs, to helping rapidly launch new EV companies. Delivered by the world’s largest base of strategists, process consultants and certified SAP S/4HANA and classic SAP experts.

We have deep domain knowledge, distilled into specific automotive-oriented solutions and accelerators. We don’t force a choice between greenfield implementations or full brownfield migrations but offer a tailored and flexible right-field approach that allows for selective data transition – right for the demands of real-world automotive.