#7: How to be Digital-& AI Ready in Automotive

Digital, AI and Software-Defined-Vehicle (SDV) are more and more on the rise. That has been also an imprtant area of my projects in the last years and I decided to evaluate the broader scope on a scientific level in my Master Thesis at the Frankfurt School of Finance & Management .

Digital Ecosystem

At first, I described the Digital Ecosystem with its applications. There are two sides: The Customer-perspective and the organisational-Perspective.

Relevant Criteria

Based on Research, I identified the most relevant items in that area:

There are Technology-Parameters but also Organisational ones - do not forget them!

Technology:

• AI Readiness
• Blockchain
• Metaverse/Web 3.0
• Functions-on-Demand (FOD)
• Autonomous Drive
• Maas/RoboTaxi

Organisational:

• Customer Loyalty
• Local Sourcing
• Direct Sales
• Startup Venturing

The relevance of these parameters was evaluated by experts, considering their importance both (A) today and (B) in 5 years. The resulting delta highlights the anticipated growth in significance over the coming years.

Assessment of Parameters

As listed below the technology-Parameters are assessed with an estimated very high relevance in 5yrs, especially "AI Readiness", "Blockchain" and the "Metaverse/Web3.0". The Experts forecasted also a high relevane of "MaaS/RoboTaxis" in the near future.

Interestingly, all of the identified technologies are already on market and increased their maturity level in the last years. So from an economic standpoint the scalability into mass market and lower cost is very close.

How well are Companies prepared for the future?

I also asked the participants to differentiate into three Archetypes "OEM", "Supplier" and "Mobility Player"- with the following results:

• As-is status is mainly on medium readyness-level
• Overall, Mobility Players with the highest Readiness-Score (3,9) vs. Supplier (3,6) and OEMs lay behind (3,4)

Mobility Players with highest future-fit-level - OEMs with the lowest

• OEMs with HighScore in the more "classical parameters"
• Suppliers in the mid - illustrating many opportunities, but focus more needed
• Mobility Players are better positioned in digital/technological parameters

The way forward towards Digital and AI-Champion

So, if we know WHAT will be relevant and HOW GOOD are we today, the most important questions is about getting to a good level.

How big is the "Effort", which includes Expenditures in HR, Tech, Business and organisational Development to reach an "above-average" market position.

Highest Efforts are estimated for:

• ADAS
• AIReadiness
• Customer Loyalty
• RoboTaxi

OEMs with the biggest gap to bridge Today and Tomorrow

Conclusions & Take-Aways

• Technology Readiness is very high and allow mass-market use
• Several new Business models with significant opportunities will be based on new technology
• Companies are least prepared - Actions need to be taken RIGHT NOW

The Time is now to set-up your company towards AI Readyness

Action Points for Decision-Takers

You need to have a framework orchestrated; pls. see below a list of some impact items:

Product-Level

• Establish CI/CD-Product Development
• Digital & AI-Pilots with existing/new customers
• How can we adapt / re-design our Product portfolio?

Organization

• Awareness
• Skillset & Education
• Enable collaboration with Out-of-own-industry players
• Focus on innovation-culture
• Enable Excellence-Culture

Strategy

• Shape an Digital and AI-Company Culture
• Start with small Pilots in every part of the value chain
• Think about co-operatins and dealing with startups

Governance

• Awareness of AI Failures
• Attitude towards AI risks
• Tools to adress AI gov
• Dedicated Organisation with Experts
• Scoping of changing / regional legal frameworks

Follow-Up

If you want to discuss about Digital-and AI-Readiness in your Business - I am happy to talk to you.