Automotive Digital 4 : Smart Cities, AR, VR, Robotics and Additive Manufacturing

This entry is part 4 of 4 in the series Automotive Digital

Motor industry managers face a steep learning curve wherever they work in the automotive supply chain. Their industry faces a wide ranging knowledge and business process transformation at a swift pace so they all face two challenges. The first is to understand the capabilities of leading edge digital technologies; the second is to deploy them to create new, sustainable competitive advantages. The supply chain will change significantly and so will all of the traditional roles. Profits will leak from traditional activities to new ones. New partnerships will emerge and tomorrow’s business formats will be very different from today’s. This series of posts introduces the digital tools that everyone needs to comprehend if they are to build a sustainable new business model, wherever they are located in the automotive supply chain.

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Automotive Digital 3 : Big Data Analytics and Advanced Computing

This entry is part 3 of 4 in the series Automotive Digital

Motor industry managers face a steep learning curve wherever they work in the automotive supply chain. Their industry faces a wide ranging knowledge and business process transformation at a swift pace so they all face two challenges. The first is to understand the capabilities of leading edge digital technologies; the second is to deploy them to create new, sustainable competitive advantages. The supply chain will change significantly and so will all of the traditional roles. Profits will leak from traditional activities to new ones. New partnerships will emerge and tomorrow’s business formats will be very different from today’s. This series of posts introduces the digital tools that everyone needs to comprehend if they are to build a sustainable new business model, wherever they are located in the automotive supply chain.

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Automotive Digital 2 : Blockchain and Smart Contracts

This entry is part 2 of 4 in the series Automotive Digital

Motor industry managers face a steep learning curve wherever they work in the automotive supply chain. Their industry faces a wide ranging knowledge and business process transformation at a swift pace so they all face two challenges. The first is to understand the capabilities of leading edge digital technologies; the second is to deploy them to create new, sustainable competitive advantages. The supply chain will change significantly and so will all of the traditional roles. Profits will leak from traditional activities to new ones. New partnerships will emerge and tomorrow’s business formats will be very different from today’s. This series of posts introduces the digital tools that everyone needs to comprehend if they are to build a sustainable new business model, wherever they are located in the automotive supply chain.

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Automotive Digital 1: Artificial Intelligence and Machine Learning – AI and ML

This entry is part 1 of 4 in the series Automotive Digital

Motor industry managers face a steep learning curve wherever they work in the automotive supply chain. Their industry faces a wide ranging knowledge and business process transformation at a swift pace so they all face two challenges. The first is to understand the capabilities of leading edge digital technologies; the second is to deploy them to create new, sustainable competitive advantages. The supply chain will change significantly and so will all of the traditional roles. Profits will leak from traditional activities to new ones. New partnerships will emerge and tomorrow’s business formats will be very different from today’s. This series of posts introduces the digital tools that everyone needs to comprehend if they are to build a sustainable new business model, wherever they are located in the automotive supply chain.

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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.

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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.

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The Motor Industry: Prescient, Prudent or Profligate?

The motor industry business model is based on three core elements: centralised large-scale centralized manufacturing allows the potential for scale economy. To key ingredients are ever growing markets, through adding global distribution, and ever growing volumes, by giving more cars for less. For manufacturers and dealers alike, margins on vehicles have become paper thin. Both make their money from after sales and finance products, rather than vehicles. In 2020, after almost 75 years of global growth, the industry is facing fundamental change: vehicles must become zero- carbon, from production through to disposal. and the the depletion of natural resources must be significantly reduced, if not sopped altogether. For the industry, it requires an entirely new business model based on three concepts: living within strict resource use and emissions limits backed up by regulations and penalties; transition towards electric vehicles as swiftly as the technology will allow; and, finally, new Key Performance Indicators that measure the costs from ‘cradle to grave’ of the vehicle. Only manufacturers and dealers who can make the transition quickly will be survivors.

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