Digital Manager Toolbox 2 : Blockchain and Smart Contracts

Blockchain Video credit to Centre for International Governance Innovation; Smart Contracts video credit to Smartbridge. ———————————————————————————————————————– Why Auto-OEM’s sudden interest in Blockchain? In 2017 Daimler AG reported their first use of blockchain technology to execute a financial transaction. Daimler and Landesbank Baden-Württemberg (LBBW) successfully launched a €100 million 1 year corporate loan placed privately. The entire transaction — from the origination, distribution, allocation and execution of the loan agreement to the confirmation of repayment and interest payments — was carried out digitally via blockchain technology in cooperation with the IT subsidiaries TSS (Daimler) and Targens (LBBW). The following year, in 2018, Daimler set up the Daimler Mobility Blockchain Factory. In 2019 Daimler announced a pilot to use the Daimler Truck Wallet to make payments with e-euros from Commerzbank through Commerzbank’s ‘Corda’ blockchain. Once the e-euros are used for payments, the recipient can request Commerzbank to convert the digital cash back to its bank account. Daimler believes it could end fuel-card scams forever. In 2018 BMW, Ford, Renault and GM became founder members of MOBI – the ‘Mobility Open Blockchain Initiative’ –  a consortium of carmakers, mobility, energy and infrastructure providers exploring uses of blockchain. BMW see the use of blockchain concepts such as ‘VerifyCar’ as a cure for vehicle history and mileage fraud. They also see it as a way of elbowing digital giants aside from total control of big data. But, attempts by individual car-makers to carve out a protected niche for themselves misses the impact of blockchain technology. Blockchain makes the existing business and financial system redundant. It has the potential to make existing methods of designing, building, buying and selling everything redundant. Not just financial instruments, shares and bonds but, when integrated with Expert Systems, it has the potential to be the secure repository of all forms […]

Read more

Digital Manager Toolbox 1: Artificial Intelligence and Machine Learning – AI and ML

Videos credits to Dr. Raj Ramesh, Top Sigma. —————————————————————————————————————————————————— Imagine, your having a conversation. You’re asked, “What’s your career plan?” Given all that we know about how jobs are changed by technology, that could be a tough question to answer. New inventions have displaced jobs since work began. In the 20th century tractors replaced horses. Not much new there. One job, walking behind horses, was replaced by another job, driving a tractor around a field. There was still plenty of work to be done. It just had to be completed in a different way. But today’s digital revolution may change jobs much more compared to the earlier disruptions driven by steam and oil. It’s not just that the pace is faster and the scope is wider. It’s that the new technology may eliminate much work altogether. It doesn’t matter whether you’re a senior manager or a sales consultant, a finance expert or a diagnostic technician: digital automation will likely affect your job. One obstacle to predicting how digital tools will effect individuals and their jobs is that they  develop so fast. A second is their unfamiliar technology: AI, Machine Learning, Blockchain, Edge Computing and so on. A third is that digital tools created for one industry are transplanted into another in ways that are difficult to foresee. By their nature, digital tools disrupt rather than develop. They facilitate fundamental change, not evolution.  

Read more

Will your franchise win in the NEV wars? Part 9: Toyota

This entry is part 9 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 8: PSA

This entry is part 8 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 7: General Motors

This entry is part 7 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 6: Ford

This entry is part 6 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 5: Volkswagen Group

This entry is part 5 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 4: BMW

This entry is part 4 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 2: Seven global carmakers compared – Results.

This entry is part 2 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you;d like to know which OEMs are at the most risk and where their pressure points are.

Read more

Will your franchise win in the NEV wars? Part 3: Daimler

This entry is part 3 of 9 in the series New Energy Vehicles

Whatever your business in the automotive supply chain – whether you’re a supplier, OEM or distributor – all motor industry businesses face some momentous business decisions linked to the transition to new energy vehicles (NEV’s). While manufacturers consider the existential threats arising from transition timing, investment, regulatory and technology issues, dealers too have threats to consider. NEV’s generate a much reduced after-market value chain, for example which will lower earnings for everyone. Both OEMs and dealers face the question of how NEV’s will be distributed – direct or via a dealer network. Tesla are pioneering direct distribution and, it would be surprising if every vehicle maker wasn’t assessing the same option. The twin threats of direct distribution and ever-reducing after market earnings are stark for dealers around the globe. This series of posts looks at the profitability of seven global car makers under three scenarios: slow, moderate and fast transition to EV’s. In each scenario five changes are made to forecast the impact on OEM volumes and profitability over the next thirty years. Read on through this series of posts if you’d like to know which OEMs are at the most risk and where their pressure points are.

Read more