Digital Transformation in automotive

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description

Jo Caudron's presentation about Digital Transformation in automotive for Autobuzz, at "Huis van de automobiel". It was about all the disruption that is happening around us, which affects every sector, including automotive, and how we can deal with it. Who will stand up against the digital excellence of Tesla?

Transcript of Digital Transformation in automotive

Page 1: Digital Transformation in automotive
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Digital transformation: !

the impact of digital disruption on your world

!!

AutoBuzz, September 2014

[email protected] / @jcaudron / +32 475 43 80 98

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Out Now!

• www.digitaltransformationbook.com

• English version available now

- Hardcover book

- eBook

• Dutch version coming early October

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Jo Caudron

Digital Consulting Firm

Social Media Campaigning Platform

Dado Van Peteghem

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@jcaudron

• a digital consulting company

• founded in 2009 by Jo Caudron, currently we are 6 consultants

• our mission is to help you find a new balance between the certainties of your traditional business and the opportunities of innovations in (digital) media

• our scope is everything in the digital space, with focus on social, mobile, tablets, location, connected TV, new radio, ...

• We work for large European clients

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@jcaudron

Our Field of Activities

!Digital Transformation Modeling:

Digital impact on traditional communication, media, business, ...

Online Social

Mobile & Tablets

Future Media & Marcomm

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@jcaudron

Smile, you’re in a crisis ;-)

The future is about permanently dealing with change and going in and out of moments of crisis. !Are you ready to deal with this in your business context?

Digital Transformation

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Digital Transformation is really happening

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@jcaudron@jcaudronDigital Transformation Modeling

From ... ... to

The Business

Digital (at the sideline)

Digital in the core

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@jcaudron@jcaudronDigital Transformation Modeling

From ... ... to

The BusinessDigital (at

the sideline)

From ...

The Business

Digital (at the sideline)

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@jcaudron@jcaudronDigital Transformation Modeling

From ... ... to

The BusinessDigital (at

the sideline)

Digital in the core

From ...

The Business

Digital (at the sideline)

Digital in the core

Digital in the core

Digital in the core

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@jcaudron@jcaudronDigital Transformation

TV

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DM

Dig

ital M

edia

From ... ... to

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Serv

ice

& S

uppo

rt

HR IT

PR &

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Digital Transformation

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@jcaudron@jcaudron

Do you accept...?How big should CHANGE be?

In order to change the world?

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Kodak Stock Evolution

1988 2000 2002 2004 2006 2008 2010 2012

Digital Photography

Iphone

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1.750

1.500

1.200

1.000

750

500

250

0

Jan 2007 Jan 2008 Jan 2009 Jan 2010

175

150

125

100

75

50

25

0

Blockbuster Netflix

Blockbuster Versus Netflix (source: CNBC)

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@jcaudron@jcaudron

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@jcaudron

Waves of Digital Transformation

1995+ !Music Photography Video Rental …

2010+ !Print Media TV Travel …

2015+ !Retail Healthcare Automotive Education …

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@jcaudron

The rollercoaster and the canary in the coalmine

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7 metaphors to understand

the impact of change

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The Glass House

The Package

The Frog

The GatekeeperThe Traveller

The Participant

The Cyborg

THE WHEEL OF CHANGE

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Transparency Closeness

Responsiveness Speed / Agility Authenticity

Accountability Bi-directional Humanization

The Glass House

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Transparency Closeness

Responsiveness Speed / Agility Authenticity

Accountability Bi-directional Humanization

The Glass House

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Transparency Closeness

Responsiveness Speed / Agility Authenticity

Accountability Bi-directional Humanization

The Glass House

148K

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Tesla shares its patents

Transparency Closeness

Responsiveness Speed / Agility Authenticity

Accountability Bi-directional Humanization

The Glass House

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Transparency Closeness

Responsiveness Speed / Agility Authenticity

Accountability Bi-directional Humanization

The Glass House

The relationship is changing

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

Angry BirdsTwitter,

Facebook

Newspaper Website

CNN online / app

Blogs

Vertical sites and specialties portals

Yelo App Boxee

Spotify + Metafy

Sporza.be

LinkedIn, Monster, ...

eBay

Pinterest, blogs

Weather Pro (iPhone)

Traffic: Inrix + iCoyote (iPhone)

Digg.be

Twitter, Facebook

RSS

Breaking news

In-depth analysis

Services

Weather

Classifieds

Jobs

Sports

TVFun

Specials

Discovery

culture

Trends & Lifestyle

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

versus

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

https://cloudyourcar.com/

Car fleet management using the cloud

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

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From monolithic to atomic

Small & Simple APPification

Long Tail Personalized Real-Time

Utility / Usability Value for Money Agile/Cloud/SaaS

The Package

Product, services and packages are changing.

From bundling to unbundling to rebundling

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

http://www.macobserver.com/tmo/article/apple-lands-digital-wallet-deal-with-amex-visa-mastercard

Apple is bypassing the payment systems with its mobile wallet:

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

https://www.uber.com/

Uber: bypassing the taxi industry

And other startups are also gaining popularity

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

https://www.clickmechanic.com/

ClickMechanic: an online marketplace aiming to connect consumers with car mechanics (UK)

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

If you can sell expensive cars online, you can sell anything online.

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog “we will build this ourselves…”

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By-passing Virtualization

(services, products, support,

distribution, ...) Distortion of the

value chain

The Frog

The position in the value chain is challenged

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Gatekeeper meets the Second

Gatekeeper (the power of social

media) Fragmentation of (communication)

touchpoints Recommendations Ambassadorship

The Gatekeeper

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Gatekeeper meets the Second

Gatekeeper (the power of social

media) Fragmentation of (communication)

touchpoints Recommendations Ambassadorship

The GatekeeperCrowd-sourced opinions

Peers as news distributors

Automatic algorithms

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Gatekeeper meets the Second

Gatekeeper (the power of social

media) Fragmentation of (communication)

touchpoints Recommendations Ambassadorship

The GatekeeperNew “experts”

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Gatekeeper meets the Second

Gatekeeper (the power of social

media) Fragmentation of (communication)

touchpoints Recommendations Ambassadorship

The Gatekeeper

Brands by-passing the media to directly connect with the audience

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Gatekeeper meets the Second

Gatekeeper (the power of social

media) Fragmentation of (communication)

touchpoints Recommendations Ambassadorship

The Gatekeeper

Guess who will determine what happens IN your future cars…

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Gatekeeper meets the Second

Gatekeeper (the power of social

media) Fragmentation of (communication)

touchpoints Recommendations Ambassadorship

The Gatekeeper

Opinion making is challenged

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Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

The Traveller

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

Primary location and place of consumption change

The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

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The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

http://www.zipcar.com/

Car sharing initiatives

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

Peer-to-peer airport rentalsThe Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

Elon Musk acts upon the input he receives form the

community

The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Traveller

Mobile technology Location / Local

Always on / Instant gratification

Decreased mobility (for society)

De-centralized / NWOW

“Good is good enough” Small Data

Consumers are uniting and creating powerful communities

The Participant

Community Gamification Co-creation / Collaboration

The power of the crowd

Empowered Self (Self-)service

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

http://www.digitaltrends.com/mobile/mercedes-benzs-google-glass-app-feeds-directions-straight-to-your-eyeballs/

Mercedes’ Glass app pipes directions through Google Glass and directly to the wearer’s eyeballs

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

Contextual Awareness: technology knows everything

Location/time-aware Activity-

awareProduct-aware Intention-

aware

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

http://www.designboom.com/technology/audi-a3-car-manual-enhanced-by-augmented-reality-app/

Augmented reality

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

http://www.extremetech.com/extreme/183174-googles-new-self-driving-car-electric-no-steering-wheel-and-incredibly-cute

Robots are entering our daily lives

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

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The Cyborg

Quantified Self Wearable Computing

Internet of Things Big Data

Open Data Monitoring

Even Smaller Contextual Awareness

Technology keeps progressing

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Transparency Accountability

Proximity Responsiveness Bi-directional Humanization Authenticity

The Glass House

Relationship

Monolithic vs. atomic

APPification Long Tail

Personalized Experience

Speed Price

(Self-)service Scalability

The Package

Product, Service & Packaging

Bypassing Virtualization

Fragmentation of touchpoints

The Frog

Position in the value

chain

New gatekeepers Recommendations

"Good is good enough"

Ambassadorship

The Gatekeeper

Opinion making

The Traveller

Place Utility

Empowered self Delivery fulfillment

New way of working

Contextual awareness Real-time

Location & Place

The Participant

Community Gamification Collaboration

The power of the crowd

Community

The Cyborg

Internet of things Wearables

Quantified self Robotics

Data Monitoring

Progressive Technology

We have to prepare for a digital future, with new rules and new relationships

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Digital Transformation Modeling (DTM)

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@jcaudron

Disruption is real, deal with it!

Disruption

Modeling

Transformation

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@jcaudron

It’s no longer about digital, it’s about business

Corporate (comm) Strategy

Digital Strategy

Social Strategy

Company Strategy

Digital World

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@jcaudron

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8080

Impact

Insights

Scenarios

Business Cases

Trendwatching

DigitalTransformationModeling

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8080

Impact

Insights

Scenarios

Business Cases

Trendwatching

DigitalTransformationModeling

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8080

Impact

Insights

Scenarios

Business Cases

Trendwatching

DigitalTransformationModeling

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8080

Impact

Insights

Scenarios

Business Cases

Trendwatching

DigitalTransformationModeling

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8080

Impact

Insights

Scenarios

Business Cases

Trendwatching

DigitalTransformationModeling

Trendwatching !

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For most companies, this is still a mighty long

way to go…

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AllDigitalNow

8080

Trendwatching

Impact

Insights

Scenarios

Business Cases

Objective: Create a detailed view on how “digital” your entire organization actually is. Define recommendations to improve the Digital Culture on all levels. !Approach: • Assessment

• Digital Readiness In-Company Survey

• Senior Management Scan (incl. BoD)

• Division Scan • Digital Leadership Creation:

action plan and (individual) coaching to inject more digital DNA on all levels (custom)

Objective: Elaborate (each of the cases of) the short list of business cases that were defined in the general DTM approach. !Approach • detailed approach to develop

the business model for each idea, based on

• comparative research to validate ideas in a broader context

• the Business Model Generation methodology

Objective: Kick-start the Digital Agenda for the organization, based on all previous steps. The Digital Agenda is the strategic and tactical roadmap for digital transformation and serves as a evolutive roadmap. !This contains: • future vision of transformation • company LT and ST strategy • operational plan (business

cases) • actions for cultural change • digital status

Digital Leadership

Development

Business Case

Development

Digital Agenda

Development

3 Transformation

1

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2

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For most companies, this is still a mighty long

way to go…

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So, where are you? How digital is your

company? !

Digital Leadership Assessment

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“If you can't understand the new world of digital, fire yourself.

Build an executive team that is digital-first (when problems arise, the first solution is always digital). Make sure there is a techie on the

board of directors. If the board has a low digital IQ, the company

will have a low digital IQ”

George Colony CEO Forrester Research

So, where are you? How digital is your

company? !

Digital Leadership Assessment

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Your Market Your Company Your Leadership

Digital Leadership Assessment The Age Test

Is this you?

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Your Market

Your Company

Your Leadership

Digital Leadership Assessment The Age Test

Guess who’s this

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Digital Leadership Assessment The 7x7 Test

Who’s an (active) user?

CEO

Sales Mkt CIO COO HR CFO …

Facebook V X

Twitter X X

LinkedIn V V

Snapchat X X

Youtube V X

Smart-phone! V V

Tablet V X

Pick 7 (or more) relevant digital

activities

Score your leadership team on active usage/understanding

If a member doesn't score at least 4 out of 7, he’s out.

In Out

If the majority of leadership is out, the company is out

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Probably you just failed both tests …

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Build Your Digital Transformation Team

!It doesn’t have to be large and costly

!It needs to be strategically high-

priority

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@jcaudron

The Factory The Guesthouse The Garage

Incremental innovation • Development of ‘need to have’

digitals projects and technology

• Working on the existing foundation of the company

• Follows general procedures and regulations

• Slow

Change projects • Small and dedicated project-teams, focused

on in-house innovation

• Limited independency: they are an (internal) supplier of the factory

• Focus on strategically important new-style projects or add-ons that will be rolled-out within the existing company architecture

Breakthrough innovation • Small dedicated teams focused on innovation

• Autonomous operations and decisions

• Possibly separate entities

• Focused on agile and rapid development and roll-out of ideas in a stand-alone model

•These can be grass-root internal initiatives or acquisition of interesting targets

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@jcaudronDigital Transformation

From ... ... to

The BusinessDigital (at

the sideline)

Digital in the core

From ...

The Business

Digital (at the sideline)

Digital in the core

Digital in the core

Digital in the core

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@jcaudronDigital Transformation

From ... ... toFrom ...

Your captain

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@jcaudron

The Digital Commandments, your new mantra!

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@jcaudron

1. The customer always

decides

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@jcaudron

2. All things you do must start from a

superior experience

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@jcaudron

3. From now on, you are an agile and flexible company

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@jcaudron

4. You live in a world

of uncertainty

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@jcaudron

5. Always play on the offense instead of

the defense

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@jcaudron

6. Don’t be afraid to cannibalize

your own business

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@jcaudron

7. Never, ever, disrespect

new or small players

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Things to take away ...

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@jcaudron

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Digital transformation: !

the impact of digital disruption on your world

!!

AutoBuzz, September 2014

[email protected] / @jcaudron / +32 475 43 80 98