deloitte consulting case competition

D-MOTORSHaokun Chen · Vibhor Kedia · Kunaal Tambe · Nirvaan Sawhney

February 10, 2017

SOLUTIOND-Motor can increase revenue and market share by building connected ecosystem to enhance customer

experience Smarter Stronger Swifter

Connectivity FeaturesData integration platform Agile methodologyIncrease in Revenue 35% Market Share 0.6%

Reliable price-wise hardware provider

In 5 Years

Seamless engaging experience provider

CONNECTIVITY FEATURES

Smarter Stronger Swifter

SmarterStrongerSwifter



Implement a smart in-car communication and entertainment system with multiple functionalities

open source application interface CarBud Smart

diagnostic system

Driving assistance: distance control, gas usage estimation, lane

change assist

Connect vehicle to life: entertainment features, tickets/reservation, gas

price/news



Improve legacy features: - Intelligent customer support system with CarBud - Smart voice assistance - Parking distance control

Compete for car sharing market

Enhance driver and passenger

experience

Prepare data for autonomous car development

Prepare structure for connected ecosystem

Change in market share and revenue

2.28%

2.76%

Market Share



INTEGRATED CLOUD DATA PLATFORM



An integrated cloud data platform enables data sharing, integration and analysis cross departments

CRM

Sensors/devices

Sales DBOn Demand Self-service



Cross-department real-time data sharing

Collect new data from IoT, driving assistant

system, new marketing channels

$$$

Blend old types of data for better, deeper solid

analysis

Autonomous driving

Smart Home

30% increase in monetizing data

85% increase in driving insight

from data

Accurate multi-channel marketing

Customer retargeting

AGILE METHODOLOGY



AGILE METHODOLOGY


Deploy agile methodology to have constant and effective communication within teams, and faster iterations for products

Efficient product development cycles

Effective collaboration

AGILE METHODOLOGY


CEO

COO CFO CIO

R&D Increase R&D spending above industry standard

to 5% of revenue

Promote data-driven decision across executive

team

- Talented developer/data scientists - Seamless on-boarding - Employee self-improvement

CONNECTED ECOSYSTEM AND FUTURE


Connectivity FeaturesData integration platform Agile methodology

A ecosystem enhance connectivity and mobility

Better Experience Better Support Better communication

SOLUTIOND-Motor can increase revenue and market share by building connected ecosystem to enhance customer

experience Smarter Stronger Swifter

Connectivity FeaturesData integration platform Agile methodologyIncrease in Revenue 35% Market Share 0.6%

Reliable price-wise hardware provider

Seamless engaging experience provider

In 5 Years

Appendix- Connectivity Features Implementation Pro Forma- Market Demand- Sales Bundle Strategy

- Future Data Product Development- R&D Spending in Automotive Industry in 2015

- Connected Car System

- Agile Deployment- Challenge & Future

Connectivity Features Implementation Pro Forma

Calculation Reference: Deloitte Consulting, PwC Strategy

Market Demand

Source: PwC Strategy & analysis

Potential revenue for connected car has CAGR over 20%

Sales Bundle Strategy


Connected car package is easy to sell as add-on service package and yearly subscription

Connected Car System

Source: Ford, GE, Toyota, Hyundai

Connected in-car system is cost-efficient, medium mature and with great potential and low technical challenge to develop and add features

GE: OnStarFord: SYNCToyota EntuneHyundai’s Blue Link

Each System priced less than 1% of car price

Potential to develop features and ecosystem

$

Data Privacy Concern

Source: McKinsey&Company

Customers are not concerned about data privacy as thought before

Future Data Product Development


Customers are willing to pay for data-driven connected service

Future Data Product Development


Customers are willing to switch manufacture and pay subscription fee for connected service

R&D Spending in Automotive Industry in 2015

Source: PwC Strategy

R&D Spending keep stable and have minor increase to 5% of revenue

Agile Deployment

Source: Deloitte Consulting

Agile enables efficient iteration for add-on features

Agile Adoption


While agile is mostly used in software development, it can improve the efficiency in developing in-car connected system and integrated data platform

Challenge & Future


- M&A Due Diligence for CarBud - Connectivity Feature Examination with Three Vs Framework- Data Platform Tool Due-diligence - Go-to Market Strategy Comparison- Talent Acquisition

Acquisition of CarBud

Source: PwC Strategy, GE

Acquisition of CabBud enables future connected ecosystem and comprehensive monitor system

Eventually, OEMs and suppliers will need to develop gigabit data transfer networks that will support the ultrafast “systems on a chip” required to process the data needed for autonomous driving, especially the processing of camera, radar, and laser images. Although outsourcing some of the car’s computing needs to the cloud on the fly is possible, response must be instantaneous, 100 percent available, and easy to plug in, even when moving between cell nodes.

Instead of just sending an alert when a car’s collision sensor goes off, GM can track everything that happens from the moment the ignition is pressed to the moment it’s parked: Starts and stops, acceleration and braking, oil temperature, fuel levels and even the status of multiple different vehicle systems and parts

Three Vs Framework


Use Deloitte Framework to evaluate where to implement connectivity features

Data Integration Platform

Source: Ford, Oracle

The cost of Data integration Platform is depended on data volume and types of databases to collect data

Pentaho Platform: Used by CAT, all-in-one solution, from $50,000/year

WebFOCUS: Used by Ford, dealership management system

Enterprise data integration is the

future

Go-to-Market Strategy

Source: Bain&Company

The cost of Data integration Platform is depended on data volume and types of databases to collect data

Customer Segmentation

Multi-channel marketing: Digital

Marketing

Lead generation analytics

Talent Acquisition

Source: Bain&Company

The cost of Data integration Platform is depended on data volume and types of databases to collect data- GM cutting outsourcing and hiring around 8000 software developers while Bosch is hiring around 14000 software engineers to get more into the industry

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