From technology-centric to outcome-centric: The next stage for automotive OEMs

The automotive industry has pledged over $500 Billion to achieve the Connected, Autonomous, Electric and Software-Defined Vehicle. In a recent video , I explored why many of these programs are increasingly delayed, struggle to resonate with users, and often do not deliver the value to OEMs that was originally promised. Ultimately, we’re at risk as an industry of making technology the primary goal, rather than a means of delivering better consumer and commercial outcomes.

Re-focusing on Outcomes

Despite all of the excitement around these technologies, the greatest products—both in and out of the automotive industry—tend to be created by companies with outcome-centric priorities. These companies stand out because they do not integrate technology for its own sake. They harness it to achieve specific, user-focused outcomes.

Outcome-centric companies prioritize the end goals, whether that be safety, efficiency, accessibility, sustainability. Their products resonate deeply with users because they are designed to solve real problems and enhance quality of life. They understand that technology should not overshadow the product's purpose but should instead enable and enhance the product's ability to meet its intended goals. It is this clear vision that has historically separated truly transformative products from the rest. Watch the first 10 seconds of this recent video from Volvo Group , and see how clearly they put technology in the right place:

As the automotive industry continues to evolve at a breakneck pace, it's vital that we assess whether we are allowing technology to lead us astray from our primary objectives. It's time to look beyond the silicon and circuits and refocus on the tangible outcomes that define the value and success of automotive products.

So, how can you tell whether you’re working at (or partnering with) an outcome-centric OEM?

The focus of a company significantly influences its products, its culture, and ultimately, its success. Two prevailing paradigms exist: technology-centric and outcome-centric. While the former can lead to short-term gains, it's is the latter that focuses on long-term value. Here are five signs for each that can help you determine the kind of OEM you work for.

Outcome-Centric Automotive OEMs

1. Focus on Solutions: The emphasis is on how each feature contributes to solving a specific problem or improving the customer's experience. This means prioritizing outcomes like safety, security, seamlessness and sustainability, over having the most advanced technology for the sake of it.
2. Long-Term Consistency: The company's direction remains steady, with long-term goals clear to every employee. Projects seldom get scrapped on a whim; instead, they evolve and adapt based on strategic objectives.
3. Holistic Vision: The company’s mission emphasizes safe, secure, seamless, and sustainable mobility. Every meeting and project aligns with these pillars, and technology is seen as a tool to achieve these ends, not the goal itself.
4. Customer Feedback Loops: There’s a strong culture of engaging with customers to understand their needs and challenges . Products are designed and iterated based on this feedback to genuinely improve the driving experience and quality of life.
5. Sustainable Success Metrics: Success is measured not just in units sold or short-term profits, but in customer satisfaction, reduction in environmental impact, and contributions to societal well-being. Financial returns are balanced with these outcome metrics to gauge the company's true impact.

Technology-Centric Automotive OEMs

1. Feature Overload: Vehicles from these manufacturers often display an overwhelming number of features. The complexity of these features can lead to a steep learning curve for customers (and dealers), leading to unused and even resented features.
2. Frequent distractions: Strategy shifts often as the company chases the next big technological silver bullet. This can lead to project cancellations, feature backtracking, and a lack of coherence in the product line-up, as each vehicle tries to be the big tech showcase, or is significantly pared back when features don’t see widespread consumer usage.
3. Competitive Paranoia: Decision-making is heavily influenced by competitors' moves, especially those perceived as disruptors. This reactive approach leads to “us-too” strategy decisions rather than an innovative, market-leading vision.
4. Marketing Hypes Technology Over Experience: Promotional material heavily features the vehicle's tech specs, with less emphasis on how the technology enhances the user’s experience. Technology and feature jargon likely eclipses the user benefits. When presenting new features to consumers, the response will be “Why?”, rather than “How?”
5. Underwhelming Financial Returns: Despite the high investment in technology, the returns are often not proportionate. The focus on technologies at the expense of user-centric outcomes can lead to a misalignment with what customers and investors truly value.

This isn't just about observing product offerings—it's about understanding the core values that drive decision-making and strategy. Outcome-centric OEMs, while rare, are able to provide a more balanced, sustainable, and ultimately successful approach to mobility that benefits customers, society, and shareholders alike.

By aiming for Outcome-Defined Vehicles, designed to achieve outcome-centric goals, built from the 4S pillars (Safe, Secure, Seamless, and Sustainable) that make mobility acceptable to users and society, OEMs get a framework through which they can make clear, outcome-centric decisions, and returns technology to being the enabler rather than the goal.