#5: Automotive Company of the Future

Currently the Automotive Sector is under pressure - on all levels; OEMs, Suppliers and Dealers are facing problems. Is there a pattern behind? Individual Situation of companies differs vastly - but there are base principles to succed in the future.

#1: Massive Change of Boundary Conditions

In the last 5 years the Automotive Sector is faced with a significant change in the "rules of the Game", just to mention some of them.

Many factors impact Operations & Management AT THE SAME TIME, leading to high complexity

• New Players: Chinese OEMs and Suppliers went international
• New technologies: UX, Digital Car, Updateability, Battery, Gamification, ADAS
• Electric Drive: BEVs with rapid increasement in sales comes along with heritage/New Drivetrains at the same time
• Shift to Asia: Stagnating European & US Markets and high grwoth rates in Middle-East, Asia-Pacific

#2: What is your Companies' status at the moment?

To shape the future - Management needs to know what is going on in the company. Understanding Operational Business and their problems is essential to build on a strategic framework. Maybe you think these things are obvious - But with more than 60 projects over two decades I can promise you - IT IS NOT! There is a huge gap between "we know we should do" and an "strategic-driven hands-on" -Approach.

Step 1: Get Transparency about your capabilities

• Your Capabilities - Expertise, Techstack, Talent, Unfair Advantage, USP, ...
• Your Financials: - Money-Earning/-Burning, KPIs especially for your future-oriented steps, ...
• Your Market: Sales, customer potential, market understanding, ...

#3: How to setup a company to manage the unexpected

The currently running VUCA World will continue - and players need to accept that and prepare to operate in insecure environment.

Step 2: Apply proven parameters to shape a winning company

• Manage networks with Specialists & Partners - adapt Operating Model
• Use of digital tooling and AI - where it makes sense

• Innovation-centered organisational Approach - enable Teams to think out of the box
• Talent-oriented Leadership and Operating Model - Get talend and make the most out of it
• Permanent Monitoring of Change and responsive Risk Management
• Efficient Processes - but keep flexibility for "creative" solutions

• "System integration"-Thinking to shape smooth holistic systems (Tech, UX, ...)

#4: Define YOUR new Business Area

Where do you want to play in the new Automotive Arena? There are many new opportunities - some promising ideas:

Step 3: Decide on your individual Opportunities by managing Chance/Risk-ratio

• Enter "Robotaxi-Business" with multiple opportunities across the value chain (last Newsletter)
• Software Stack - User Interface, Updateability, In-Car Services and beyond
• Infrastructure - Charging, Servicing Cars,
• Operaters - Services supporting R&D, Production, Service
• Recycling - Old Batteries from BEV/PHEVs

Conclusion

The Time is now to rethink your Footprint in the Automotive Business - there are much more chances as many of us see and take into account.