“We sell engines; the body comes for free,” said Enzo Ferrari. From a man born in the nineteenth century, who worked thru the twentieth century and a better part of the twenty-first century, and owned over quarter of the luxury car market share, these are words of wisdom. With disruptions across the entire ecosystem of automotive manufacturers, suppliers, mobility operators, local authorities, and consumers, intelligent technology solutions are painting new end-to-end transformation possibilities, especially in the automotive supply chain area. How can Capgemini and SAP help become your digital platform provider and Agile innovation and transformation partner?
The automotive industry is witnessing a pivotal shift when it comes to technology-driven transformation. On one hand are opportunities for manufacturers and service providers who are fast, agile, and innovative. On the other, disruptions for those who aren’t. The need for adoption of technologies at an unprecedented scale is causing major challenges for everyone, especially automotive suppliers, making them grapple with a fundamental question: How do we reinvent our business?
Call it vendor consolidation, volume concentration, or reduction of part-number proliferation, the endgame, traditionally has always been reduction to help drive cost efficiencies. This approach enabled OEMs to meet aggressive cost targets but unexpected events such as COVID-19 in today’s interwoven global supply chains disrupt the “consolidated vendor” concept. What can the automotive industry do to reduce supply-chain risk from a vendor-proliferation perspective and mange a diversifying supply base transparently in real time?
Reshaping the value proposition to differentiate products and services from traditional models of sales and maintenance is key. Integrating the fusion of the physical and virtual worlds into cyber-physical systems with the ability to adapt fast is key to thriving in the new world. Being a renewable enterprise will help transform the businesses and make the shift from a purely engineering focus to embrace customer centricity and new megatrends. The comprehensive rapid reorganization of the automotive industry must be agile since it has far-reaching consequences for the entire ecosystem and value chains.
According to McKinsey & Company, the car-generated data market could grow to as much as $750B by 2030, and Statista reports the Mobility-as-a-Service market is projected to grow to $9.2 trillion in the same timeframe. A renewable enterprise builds a right technology foundation, which enables resources to extract value, increase revenues, maintain and grow a loyal customer base, and respond to future business disruptions.
How can enterprises become agile with smart approaches to innovation and adopt intelligent technologies? Capgemini is showing why SAP is significantly well equipped to win the automotive battle with global initiatives around new SAP-certified, preconfigured solutions such as AutoPATH and co-innovating on the SAP Cloud Platform (SCP) building the CIA4Auto app that tracks sales orders, pricing, deliveries, receipts, IDOC/EDI inbound and outbound, and invoices to improve operations.
The SAP S/4HANA Cloud for Automotive Suppliers initiative has plug-and-play accelerators and solutions for organizations that want to align different operational/production plans with execution and review performance measures for continuous improvement by balancing capacity.
At Capgemini, we have helped hundreds of customers get the best in their transformation journey, starting with assessments focusing on the business ambition and levers of change, translating them into achievable target business models and operating models to deliver business value faster. To learn more, see our demos and accelerators live in action, or sign up for a demo on the CIA4Auto app, visit us, or contact me directly.