Digital Transformation in Automotive
Wilfried Reimann Head of IT Enterprise Architecture & [email protected]
Digital Transformation in Automotive June 2015
Digital Transformation
Daimler Divisions
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Digital Transformation in Automotive June 2015
Digital Transformation
Key mega trends are influencing the life and interaction of
people around the globe and across all industries
Force
Shifting Workforce Demographics
Changes in the composition of the workforce (gender,
ethnicity, generational) will require employers to learn
managing diverse workforce
Rising Knowledge EconomyCost cutting leads to outsourcing of transactional jobs.
This will require more knowledge workers with broader
skill sets
GlobalizationCorporations will rely on the global marketplace to fuel
growth. Top global companies will be based in emerging
economy countries
Hyper connectivity In the increasingly connected world the lines between
work and free time are blurring
Expand Corporate Social Responsibility
In today‘s market, companies are including leadership
development activities that incorporate a CSR opportunity
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital Transformation in Automotive June 2015
Digital Transformation
Automotive disruptions concluding from global mega trends will
be substantially changing the entire industry over the long term
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Digital Transformation in Automotive June 2015
Digital Transformation
The Automotive Industry is in the middle of a Digital Revolution,
that will change the way how OEMs and customer interact
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Customer Experience Future Mobility Connected Cars
The usage of the internet, social
media and mobile technologies
dramatically change the way how
consumers interact with
automotive companies
Digital technologies enable the
current and future mobility of
people, on that new metropolitan
designs will rely on
Connected cars connect the
vehicle, the driver and the
environment and create new
opportunities for all market
players
� Online sales channel
� Digital showroom
� Ownership platforms
� Mobile apps
� From Product to Service
� New mobility solutions
� New infrastructure
� E-mobility
� Connected car features
� New business models
� Customer insights
� New players & partners
Digital Transformation in Automotive June 2015
Digital Transformation
Digital Business Transformation is the driving factor for many industries – what is it ?
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Source: IMD
Digital Transformation in Automotive June 2015
Digital Transformation
SMAC’s, the newest digital technologies are having a profound
effect on how organizations and industries are transforming
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Successful digital
business
transformation
requires:
• Deep
understanding of
the newest digital
technologies
• How to use these
at scale, smarter
and faster than
the competitors
Social Network • Social media platforms enable two-way flow of infor-mation
and communication between an organization and its key
internal and external stakeholders
• Also a learning tool to monitor industry trends, customer
sentiment, and competitor moves, among other applicat.
Mobile • Mobile devices overtaking fixed devices
• Mobile-first strategies gaining prominence From “dumb”
phones to smart phones/ smart devices
Analytics • Tools to extract value from data, such as IBM’s Watson
computer, Hadoop clusters, Mongo, Radian6, Cloudera, etc.
• Ability to meet the challenges of Big Data, i.e. 3Vs: data
volume, variety and velocity
Cloud • Proprietary and non-proprietary systems that facilitate the
sharing of data, applications, and insights among different
parts within an organization or between organizations
• Cloud based solutions
• Emergence of ecosystems of partners
Digital Transformation in Automotive June 2015
Digital Transformation
The way businesses use Digital Technology to Transform
will be crucial for better market performance and success!
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* Digital intensity is investment in technology-enabled initiatives to change how the company operates – its customer engagements, internal operations, and even business models
** Transformation management intensity consists of the vision to shape a new future, governance and engagement to steer the course, and IT/ business relationships to
implement technology-based change
Source: “The digital advantage: how digital leaders outperform their peers in every industry” report by MIT Sloan Center for Digital Business (CDB) and Capgemini Consulting
Digital Transformation in Automotive June 2015
Digital Transformation
Primary IT Trends enable Digital Transformation
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Internet of Things Naturalisation of User
Experience
Information-centric
Thinking
Smart Machines Digital Economy Cyber Physical Twins
Digital Transformation in Automotive June 2015
Digital Transformation
Digital Transformation – Non AutomotiveStarbucks use case
Digital Business NomadeClassical Coffee Digital Payment
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital Transformation – Non AutomotiveNike use case
Getting more active
with Nike+ FuelbandNike+ your personal
trainer
Nike+ running:
bringing gaming in
the run experience
Nike Fuel Lab
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital Transformation – Non AutomotiveJohn Deer use case
SoftwareNetwork
connectivitySensors
My John Deer
Platform
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Digital Transformation in Automotive June 2015
Digital Transformation
Digitalization affects all areas of the company
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital transformation has already started at DaimlerTransformation to a Mobility Service Provider
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital Business Transformation @ DaimlerTechnology push and upcoming sharing concepts
• In 2013 Web is accessed more often by
smartphone/tablets than by PC
• Increased use of social networks
• Prestige and status rises through connectivity
• Internet and smartphones enable individualised
mobility concepts*
Technology and connectivity
push
• Traditional sharing, lending & renting redefined
through technology and peer communities
• A third of the German city population are
prospective users of car sharing regardless of
current low usage rates*
Successful sharing concepts
increase
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Digital Transformation in Automotive June 2015
Digital Transformation
Design for experience: Mobile Moments
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A Mobile Moment is
a point in time and space
when someone pulls out
a mobile device
to get something they
want in their
immediate context.
Digital Transformation in Automotive June 2015
Digital Transformation
Mobile Devices enable new Business
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Digital Transformation in Automotive June 2015
Digital Transformation
New mobile Moments through autonomous Driving
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Digital Transformation in Automotive June 2015
Digital Transformation
Uber matches two mobile moments: Passengers’ and Drivers’
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Digital Transformation in Automotive June 2015
Digital Transformation
moovel 2015/plus: integrating mobility services to a
mobility ecosystem
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Digital Transformation in Automotive June 2015
Digital Transformation
„Mercedes me“ – Connecting all services around the car
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Digital Transformation in Automotive June 2015
Digital Transformation
"Digitalization of the economy" and "Industry 4.0" ...
Industry 4.0: Intelligent IT
solution in the varied
production at Daimler
Effective and efficient management of product variance and complexity is a key competency in premium as well as in commercial automotive business. Industry 4.0 will help us to manage individualized customer orders throughout the entire production process efficiently.
The leap forward in I4.0 development
is triggered by the interaction of
many individual innovative
technologies
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital Navigator – Model to support Digital
Transformation Workshop
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Digital Transformation in Automotive June 2015
Digital Transformation
Digital Transformation – Workshop and Toolbox
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“InnovationWerkstatt” Sindelfingen MTC InnovationLab@Europe (TSS) InnovationLab@China
Innovation Labs dedicated to technological innovation demonstrated in live and concrete environment
to help our Business Partner to drive innovation and build solutions for the future
Innovation Labs dedicated to technological innovation demonstrated in live and concrete environment
to help our Business Partner to drive innovation and build solutions for the future
Agile Toolbox• Customer Journey
• Lab as a Service
• Provide User Experience
• Design Thinking Camp
•
Technology-Toolbox• Analyst (Gartner, Future Institute)
• Technology-Network (IBM, MS,
Google, Apple, CISCO)
• StartUps (R&D Sunnyvale)
•
Innovation-Toolbox• Innovation Primary Trends
• Knowledge on Innovation-Areas
(e.g. Cognitive Computing)
• Innovation Best-Practice example
• Innovation-Portfolio supporting
DBT
DBT Method-Toolbox• Digital Navigator (SIL)
• Company-Example
• DBT Studies (e.g. MIT)
• Consulting Templates
• DT-Toolbox (e.g. CapGemini, Uni St.Gallen)
EA- Toolbox• Domain-Model (for Digital
Transformation)
• Digital Capability-Model
• Reference-Model for a
Digital Company
Workshop-Toolbox (Business
Consultant)• Standardized Workshop Modules
• SWOT-Analysis
Digital Transformation in Automotive June 2015
Digital Transformation
The appropriate organizational foundation needs to be in place to facilitate digital business transformation
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Digital Transformation in Automotive June 2015
Digital Transformation
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Digital Transformation - Summary
• Digital Transformation will be an important topic for
top level management for the upcoming years
• SMAC’s, (Analytics-Mobile-Platforms and Social
networks) have changed people behavior and how
they are connected to each other
• A networked world “The Internet of Things” will
make IT everywhere available
• New IT-Players (Apple, Google, Facebook, Amazon,
Linkedin) are strong competitors for established IT-
Providers (IBM, Microsoft) and will drive aggressively
IT-Innovation
• IT-Innovation is the major driver to enable Digital
Transformation
Digital Transformation in Automotive June 2015
Digital Transformation
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Thank You