Innovation and Digital Transformation in the Automotive Industry

  • Elena CandeloEmail author
Part of the International Series in Advanced Management Studies book series (ISAMS)


On the eve of the 2020s, the concept of “digital transformation” is discussed increasingly frequently in the car industry. It has brought about a profound change in the competition in all sectors of the economy, so this chapter examine how significant its effects are in various sectors. Analyzing the current situation regarding specific trends in the automotive industry, the aim is to offer a prediction as to the evolution of marketing strategies as we move towards the 2030s. Three forces, acting together, created the new digital world. The first, in order of time, was the exponential growth and ever lower costs of computer power. The second force is the value of networks, which has grown as they have grown in size, and the third is that more data have been transmitted at an ever lower cost using cloud computing technology. In car industry political, environmental, social, and economic trends are changing the competition. Faced with technological change occurring at an exponential rate, companies are much slower. Filling or reducing the gap is the main challenge faced by management. Furthermore, in the automotive industry four innovative trends merit particular attention thanks to their likely rapid evolution over coming years and their impact on the entire industry: mobility services instead of vehicle ownership; increasing demand for connected services; autonomous driving; and electromobility (EV). The chapter tries to answer to the following question: Why, even though it is difficult to predict the consistency of EV and driverless cars demand, are almost all manufacturers investing significant amounts?


  1. Beeton D, Meyer G (eds) (2015) Electric vehicle business model. Global perspective. SpringerGoogle Scholar
  2. Coffman M, Bernstein P, Wee S (2017) Electric vehicles revisited: a review of factors that affect adoption. Transport Reviews 37 (1):79–93CrossRefGoogle Scholar
  3. Fialka J (2015) Car wars. The rise, the fall, and the resurgence of the electric car. Thomas Dunne Books, USGoogle Scholar
  4. Firnkorn J, Müller M (2012) Selling mobility instead of cars: new business strategies of automakers and the impact on private vehicle holding. Bus Strategy Environ 21(4):264–280CrossRefGoogle Scholar
  5. Foster R, Kaplan S (2011) Creative destruction. Crown BusinessGoogle Scholar
  6. Harrison G, Thiel C (2017) An exploratory policy analysis of electric vehicle sales competition and sensitivity to infrastructure in Europe. Technol Forecast Soc Chang 114:165–178CrossRefGoogle Scholar
  7. Jansson J, Andervin M (2018) Leading digital transformation. DigJourney PublishingGoogle Scholar
  8. Jullien B, Pardi T (2013) Structuring new automotive industries, restructuring old automotive industries and the new geopolitics of the global automotive sector. Int J Automot Technol Manage 13(2):96–113CrossRefGoogle Scholar
  9. Moore G (1965) Moore’s law. Electronics Magazine 38(8):114–117Google Scholar
  10. Oge M (2015) Driving the future. Combating climate change with cleaner, smarter cars. Arcade PublishingGoogle Scholar
  11. Pellicelli G (2014) Strategie d’impresa. Egea, MilanGoogle Scholar
  12. Ryan D (2015) Understanding digital marketing. Marketing strategies for engaging the digital generation. Kogan PageGoogle Scholar
  13. Simoudis E (2017) The big data opportunity in our driverless future. Corporate InnovatorsGoogle Scholar
  14. Sumantran W, Fine C, Gonsalvez D (2017) Faster, smarter, greener. The future of the car and urban mobility. The MIT PressGoogle Scholar
  15. Venkatraman V (2017) The digital matrix. New rules for business transformation through technology. LifeThree MediaGoogle Scholar
  16. Wadhwa V, Salkever A (2017) The driver in the driverless car. Berrett-Koehler PublisherGoogle Scholar
  17. Wells P, Nieuvenhuis P (2015) EV models in a wider context: balancing change and continuity in the automotive industry. In: Beeton D, Meyer G (eds) Electric vehicle business model. Global perspective. SpringerGoogle Scholar
  18. Winkelhake U (2017) The digital transformation of the automotive industry. SpringerGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Department of ManagementUniversity of TurinTurinItaly

Personalised recommendations