The rapid evolution of technology combined with the convergence of demographic, social, macroeconomic and technology trends is driving every industry to become a Digital Business. Even in traditionally high capital intensive industries such as the automotive industry, today’s leaders are being challenged by innovative, capital rich, and technology savvy competitors such as Tesla, Google and Apple. As a result, these companies are ushering in a new era of digital business to an industry that needs to rethink the customer experience and its operating model if it wants to remain relevant. Not surprisingly, this shift goes hand-in-hand with what today’s empowered and digital savvy consumers want – and that’s much more than just fuel economy.
Now and in the near future, cutting-edge leaders like Tesla, Google with its self-driving car, and the BMWi series and consumer mobility initiatives are changing how consumers think about transportation and mobility. These companies may become the new automotive leaders because they are relentlessly using innovative practices and technologies to deliver new forms of customer value and change the driving experience forever, while directly challenging the practices of the established auto industry.
In The Automotive Industry As A Digital Business, the most recent installment of our Digital Business Transformation series, we examine how the industry’s cutting-edge leaders are redefining the market dynamics as we also delve into what the automotive industry can learn from these disruptors.
Let’s first look at Tesla, now a globally recognized automotive company that made waves by simply delivering a great product – a sexy, high-performance electric car. Tesla led the shift from analog to digital when they developed and brought to market a software-defined car with an exceptional user-experience.
What can we learn from Tesla? Tesla teaches us that:
- There is power in niche vs. mass
- The connected car evolves to an “app on wheels”
- Customers should be part of movements, not transactions
- Bespoke products can be created by mass manufacturing
- Open IP platforms can stir innovation
- The network effect can meet commitment to social good
Next, let’s examine Google, one of the world’s biggest technology companies that has changed how we live and work.
For more information on how the automotive industry can re-engineer itself and what they can learn from today’s cutting-edge leaders, read our latest book The Automotive Industry as a Digital Business.