2015 Automotive News World Congress
Karen Newman
@newmank99
America's Automotive Industry Leader
IBM Global Business Services
Automotive 2025: Industry without Borders
Engage with consumers, embrace mobility, exploit the ecosystem
© 2015 IBM Corporation
About the study
250+ hours of meaningful discussion about the future of the industry
By industry segment
Suppliers
Distribution
chain
New entrants
175 executives
Analysts
OEMs
By region
China
Rest of world
Japan
21 countries
North
America
Europe
© 2015 IBM Corporation
Industry without borders
Future requirements are shattering historically rigid boundaries
73%
of OEM executives rated mobility services as a significant area for
73%
of all executives rated collaboration with other industries as
the best opportunity for industry growth as we progress toward 2025
75%
of all executives rated expect non-traditional
co-
creation with consumers
industry
participants to have a key role in the automotive ecosystem by 2025
The enterprises that welcome this open and collaborative approach
to transforming the business will set the stage for success
© 2015 IBM Corporation
External influencers
Forces shaping the auto industry will radically shift by 2025
Auto 2020 Study: 2008 & 2020
Auto 2025 Study: 2014 & 2025
Green – increase
Blue – decrease
© 2015 IBM Corporation
Three primary disruptors are causing industry boundaries to blur and
even disappear
External Factors
Expect
digital
engagement
and
experiences
Can be
compelled
to co-create
products
and strategy
Taps into
intelligent
vehicle
capabilities
Creates new
offerings via
consumerdriven
requirements
Enables
new paths
to enterprise
growth
Creates new
opportunities to
collaborate
within and
outside
traditional
industry borders
© 2015 IBM Corporation
Consumers
Greater expectations of co-creation
Industry executives expect more collaboration with the consumer
To a large extent
Mobility Services
Product Design
Power of the crowd
• Desire of consumers to influence
Marketing Campaigns
Service/Aftersales
Sales programs
• The power of many
• Thinking out of the box
• Encourages innovation and new ideas
• Not constrained by corporate culture
Vehicle Assembly
© 2015 IBM Corporation
Consumers
There will be different crowds for different situations
Multiple systems of engagement will be required to support the different groups
Mobility
services
Marketing
campaigns
Sales/
Aftersales
Systems of engagement
must be easy, intuitive and
provide a great experience
to the consumer
Automotive
Enterprises
Product
Development
Sales
Other
areas
© 2015 IBM Corporation
Mobility
Self-enabling vehicles will provide a greater personalized experience
Intelligent and Intuitive enough to take care occupants and itself
Self-integrating
Seamless digital integration
Self-configuring
Personalization and
customization to environment
Self-learning
Cognitively adapting performance
to occupants and environment
8
Self-socializing
Vehicle social networks to assist others,
utilizing the vehicle for ancillary tasks
Self-driving
Automated and eventually
autonomous mobility
Self-healing
Analytics and prognostics for
service and maintenance
© 2015 IBM Corporation
Mobility
What vehicle innovations will become commonplace by 2025?
Vehicle digital persona interchange
Automated
Autonomous
Within a brand – 78%
Partially – 84%
Limited – 38%
Within an automaker – 62%
Highly – 55%
Fully – 8%
Between automakers – 26%
Fully – 19%
In-vehicle cognitive learning
74%
Social networks for vehicles
57%
© 2015 IBM Corporation
Eco-system
A significant shift in where industry growth will come from
Bringing more value by extending beyond traditional boundaries
Significant
Collaborating with
other industries
Creating new servicesbased offerings
Leveraging disruptive
technologies outside the vehicle
34%
13%
20%
Creating new product categories
-12%
Investing in new
business models
-6%
Entering new markets
-37%
Forming new
JV/alliances/partnerships
Targeting new
customer segments
Percentage change
from Auto 2020
7%
-13%
© 2015 IBM Corporation
Eco-system
Ecosystem disruption
OEMs and suppliers disagree on where the significant disruption will occur
OEMs
Suppliers
Retail channels
73%
65%
Marketing & sales
65%
55%
Product development
44%
63%
Aftermarket
61%
47%
Research
40%
59%
Supply chain
38%
60%
Manufacturing
16%
44%
Significant
© 2015 IBM Corporation
While one third of the companies overall feel they will adapt to the
challenges of 2025, only one in five feel they are prepared now
Companies who feel they are prepared for 2025
Prepared
OEMs (23%)
Suppliers (13%)
Companies who feel they will be able to adapt
Adaptable
OEMs (30%)
Suppliers (33%)
The pace of change is no longer controlled by this industry
© 2015 IBM Corporation
For more information about this study and
to get the full version of this report, see
ibm.biz/auto2025
Join the conversation
#Auto2025
© 2015 IBM Corporation