The Digital Automotive EconomyChange, Mobility, and What to Know NowWithin the next five years, the automotive industry will be dramatically different. Manufacturing will take a backseat to mobility services.

The future is in the customer experience – a virtually untapped market made possible by hyperconnectivity, the Internet of Things, and real-time insight.

The buyer is evolvingWith more people in cities, the convenience of car sharing is gaining momentum.1

Better business models are emergingThe move to bigger business models focuses on enabling transportation. With differentiation shifting to services offered, OEMs must partner with service providers.

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Data is the new kingTo stay competitive, automakers need to improve their designs and build in quality. Real-time geospecific offers can enhance the customer experience. Plus, increased safety is achievable through real-time analysis of safety codes and predictive maintenance.

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Whether you build, sell, operate, or service vehicles, the opportunities for tomorrow are great.

THE OPPORTUNITY

Competitive advantage through proactive service offerings and new mobility services packages

Improved quality of services and input for R&D

Higher customer loyalty and retention

SuppliersTHE CHANGESuppliers are connecting directly to end customersThis connection means real-time information that feeds back into continuous improve-ment cycles, and ongoing product and experience innovation. Examples include vehicle tracking, condition monitoring, and geofencing.

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Success requires new levels of collaborationSuppliers are part of larger value chains. To survive and thrive, suppliers should work in networks, connect with multiple supply chains, and collaborate with new partners.

2

Product development is now IT developmentTechnology needs to be embedded into parts and components. As suppliers work with partners to make this happen, both parties should overcome any implied intellectual property challenges. And, of course, IT security must be built in from the ground up.

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Loyalty is based on the shopping, buying, and ownership experienceIf retention marketing is your concern, remember that service value is now just as important as brand value. Customers are empowered, and they will seek out the best experience.

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Interoperability is the key to successTo deliver seamless experiences, organizations need to combine multiple sources of data. These could include:

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Growth depends on flexible collaborationCustomers in different markets want different things. To grow in new markets, organizations need to develop cross-industry collaboration capabilities that enable them to offer new digital services customers demand.

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Greater loyalty based on must-have service offerings

Increased revenues stemming from a better understanding of niche markets

Higher rates of customer satisfaction enabled by custom-tailored experiences

THE OPPORTUNITY

Get Where You Need to Go with SAP

THE OPPORTUNITY

Increase uptime through more-precise service levels

Provide faster, more relevant innovation based on a more accurate understanding of the end-customer’s needs

Optimize use and utilization with real-time information for better scheduling and planning

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Here’s your road map to the connected future of the automotive industry. Follow along to see how the digital economy is driving change and new opportunities for manufacturers, suppliers, and marketing, sales, and service companies or organizations.

THE CHANGE

Manufacturers

Marketing, Sales, and ServiceTHE CHANGE

Speed and mileage data from the vehicle

Vehicle operating data from on-board sensors

Business data from back-end systems

External data such as weather, traffic, and geolocation