The shift from engineering to purpose orientation in automotive

Why is the transformation to mobility services in value-added markets for a car manufacturer so a big challenge?

Some automotive OEMs already started the transformation a couple of years ago, some started this year and some still don’t see the value in the transformation to a broader mobility industry.

The automotive industry has a long history where Research & Development (R&D) was always a core part of the value chain. It is wrong to claim that a mobility industry will not need R&D. But let’s summarize two different perspectives:

  1. Nowadays, the automobile industry is strongly influenced by the way that engineers think: Products are only deemed to be complete when no other functions can be added to them.
  2. Conversely, the mobility industry is strongly influenced by the way that consumers think: One could say that a product is only complete when no functions can be taken away without losing the ability to fulfill the original object of the product.

Think: What is the original object of the vehicle? In summary, it brings together a broad spectrum of possibilities in order to make spatial mobility meet individual requirements. A mobility industry will need a personally extendable “travel capsule” which might not be the vehicle such as R&D is thinking today.

Coming back to R&D competencies in the automotive industry today. There are many competencies related to product design, mechanical development, electr(on)ical development, packaging, testing, validation, product data management, etc. where especially the micro-segmentation has created a complexity which can only be a dead end. Moving IT competencies “car IT” into R&D can only be a temporary solution because the complexity is further growing. On the other side, building mobility services competencies inside Financial Services organizations can also be only a temporary solution. Financial services have a strong customer relation competence (by contract) but are also too strictly regulated to provide more freedom to develop mobility services.

There are many pros and cons how to plan, develop, build and deploy a united product and service solution for mobility demands in a current automotive industry ecosystem. Soon we will concentrate much deeper on the crucial business competencies with their changing characteristics.

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