Research such as Capgemini’s Cars Online program tells us that the market is changing dramatically because of the possibilities introduced by digitization and because of changing customer expectations.
Consumers’ evolving expectations about cars – and about relationships with organizations that supply them – are driving disruptive change in the automotive industry, and the pace of change is accelerating. At the same time, the growth of the digital economy is causing OEMs to set themselves different, more demanding key performance indicators (KPIs). For example, new digital channels need to be harnessed in order to meet customer demands in marketing, sales and service.
Companies now have an opportunity to become digital masters – gaining major competitive advantage – by fully understanding these disruptive changes and getting ahead of them. To do so, they must become truly customer-centric – something that few OEMs have achieved to date. This means establishing management focus and governance to bring about enterprise-wide transformation; putting in place new processes, systems and structures that facilitate the piloting of innovative ideas; and managing the development portfolio in such a way as to prioritize the initiatives that either bring strategic value, or are essential enablers of other initiatives that do bring such value.