How Digitization Affects Mobility and the Business Models of Automotive OEMs

Chapter

Abstract

Digitization has affected almost every industry during the past decade. The unprecedented pace at which digital technologies spread and penetrate society, individual life, and businesses specifically puts mature companies at risk. Within the automotive industry, digitization brings new players to the table, shifts the technological focus from physical to IT, enables customers to bring in their changing understanding of mobility, and makes them an ever more valuable source of information. Moreover, digitization affects the value creation process and emphasizes the importance of multilateral cross-company cooperations. This is also highlighted by the fact that most automotive companies currently lack the necessary competences to succeed in an increasingly software- and IT-dominated environment. The companies BMW, Porsche, and Tesla serve as examples for how car manufacturers deal with the digitization challenge and how they adapt their technological and service portfolio accordingly. We seek to enrich the understanding of how the rise of digital and networked technologies affects the business and business models of car manufacturers and provide suggestions on how they should react to turn these disruptive forces into business advantage. In this context we take a look at how automotive OEMs can integrate themselves into digital business models and mobility concepts of the future.

Keywords

Automotive Mobility Digitization Business model 

References

  1. Berghaus, S., & Back, A. (2015). Requirements elicitation and utilization scenarios for in-car use of wearable devices. Proceedings of the Hawaii International Conference on System Sciences, 48, 1028–1037.Google Scholar
  2. Berman, S., Marshall, A., & Leonelli, N. (2013). Digital reinvention: Preparing for a very different tomorrow. Available from http://public.dhe.ibm.com/common/ssi/ecm/gb/en/gbe03583usen/GBE03583USEN.PDF (accessed April 18, 2016).
  3. Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. (2013). Digital business strategy: Toward a next generation of insights. MIS Quarterly, 37(2), 471–482.Google Scholar
  4. BMW. (2015b). BMW e-drive. Available from http://www.bmw.com/com/en/insights/technology/efficientdynamics/2015/bmw_edrive.html (accessed April 18, 2016).
  5. BMW. (2015c). Stress-free parking. Available from http://www.bmw.com/com/en/insights/technology/connecteddrive/2013/driver_assistance/intelligent_parking.html (accessed April 18, 2016).
  6. BMW. (2015d). Sustainable value report 2014. München: BMW Group.Google Scholar
  7. Botsman, R. (2015). The power of sharing: How collaborative business models are shaping a new economy. Digital Transformation Review, 7, 28–34.Google Scholar
  8. Brauchle, A., Kostron, A., & Schlesner, W. (2015). Digitization strategy for automotive suppliers—How to systematically utilize chances and avoid risks. Available from https://www.horvath-partners.com/fileadmin/horvath-partners.com/assets/05_Publikationen/PDFs/englisch/Digitization_Automotive_web_g_EN.pdf (accessed April 18, 2016).
  9. Brennen, S., & Kreiss, D. (2014). Digitalization and digitization. Available from http://culturedigitally.org/2014/09/digitalization-and-digitization (accessed April 18, 2016).
  10. Byron, D. L. (2015). BMW’s electric i3 may be the perfect cyclist’s car. Available from http://www.wired.com/2015/02/bmws-electric-i3-may-perfect-cyclists-car/ (accessed April 18, 2016).
  11. Chakravarti, S. (2013). Digitization—The way forward for automotive companies. Available from http://www.tcs.com/SiteCollectionDocuments/White%20Papers/Digitization-Way-Forward-For-Auto-Companies-0913-1.pdf (accessed April 18, 2016).
  12. Crothers, B. (2015). Porsche is charging ahead with mission E. Available from http://www.forbes.com/sites/brookecrothers/2015/12/04/porsche-is-going-ahead-with-mission-e-electric-tesla-killer/ (accessed April 18, 2016).
  13. Dadich, S. (2015). Buckle up: The car as you know it will soon go extinct. Available from http://www.wired.com/2016/01/editors-letter-february-2016/ (accessed April 18, 2016).
  14. Davies, A. (2015). Porsche takes aim at Tesla with a stunning electric concept. Available from http://www.wired.com/2015/09/porsche-takes-aim-tesla-stunning-electric-concept/ (accessed April 18, 2016).
  15. Fitzgerald, M., Kruschwitz, N., Bonnet, D., & Welch, M. (2013). Embracing digital technology: A new strategic imperative. Available from http://www.capgemini.com/resource-file-access/re-source/pdf/embracing_digital_technology_a_new_strategic_imperative.pdf (accessed April 18, 2016).
  16. Gao, P., Hensley, R., & Zielke, A. (2014). A road map to the future for the auto industry. Available from http://www.mckinsey.com/insights/manufacturing/a_road_map_to_the_future_for_the_auto_industry (accessed April 18, 2016).
  17. Gimpel, H., & Röglinger, M. (2015). Digital transformation: Changes and chances—insights based on an empirical study. Augsburg and Bayreuth: Project Group Business and Information Systems Engineering (BISE) of the Fraunhofer Institute for Applied Information Technology FIT.Google Scholar
  18. Hanelt, A., Piccinini, E., Gregory, R. W., Hildebrandt, B., & Kolbe, L. M. (2015). Digital transformation of primarily physical industries—Exploring the impact of digital trends on business models of automobile manufacturers. Proceedings of the International Conference on Wirtschaftsinformatik, 12, 1313–1327.Google Scholar
  19. Hirt, M., & Willmot, P. (2014). Strategic principles for competing in the digital age. Available from http://www.mckinsey.com/insights/strategy/strategic_principles_for_competing_in_the_digital_age (accessed April 18, 2016).
  20. Kane, G. C., Palmer, D., Phillips, A. N., Kiron, D., & Buckley, N. (2015). Strategy, not technology, drives digital transformation. MIT Sloan Management Review and Deloitte University Press.Google Scholar
  21. Kessler, T., & Brendel, J. (2016). Planned obsolescence and product-service systems: Linking two contradictory business models. Journal of Competence-Based Strategic Management, 8, 29–53.Google Scholar
  22. Kessler, T., & Stephan, M. (2013). Service transition in the automotive industry. International Journal of Automotive Technology and Management, 13(3), 237–256.CrossRefGoogle Scholar
  23. Koushik, S., & Mehl, R. (2015). The automotive industry as a digital business. Munich: Management Summary NTT Group.Google Scholar
  24. Krings, J., Neely, J., & Acker, O. (2016). Will you be mine in the digital world? Available from http://www.strategy-business.com/article/Will-You-Be-Mine?gko=f6de3 (accessed April 18, 2016).
  25. Matus, J., & Heck, S. (2015). Understanding the future of mobility. Available from http://techcrunch.com (accessed April 18, 2016).
  26. McHugh, M. (2015). Tesla’s cars now drive themselves, Kinda. Available from http://www.wired.com/2015/10/tesla-self-driving-over-air-update-live/ (accessed April 18, 2016).
  27. McKinsey & Company. (2015a). Connected car, automotive value chain unbound. https://www.mckinsey.de/files/mck_connected_car_report.pdf (accessed August 17, 2016).
  28. McKinsey & Company. (2015b). Competing for the connected customer—Perspectives on the opportunities creates by car connectivity and automation. https://www.mckinsey.de/files/competing_for_the_connected_customer.pdf (accessed August 17, 2016).
  29. Mikusz, M., Jud, C., & Schäfer, T. (2015). Business model patterns for the connected car and the example of data orchestrator. Proceedings of the 6th International Conference on Software Business, Springer LNBIP, 210, 167–173.Google Scholar
  30. Musk, E. (2013). Tesla Motors, Inc.—Second quarter 2013 shareholder letter. Available from http://www.sec.gov/Archives/edgar/data/1318605/000119312513324129/d578387dex991.htm (accessed April 18, 2016).
  31. Pagani, M. (2013). Digital business strategy and value creation: Framing the dynamic cycle of control points. MIS Quarterly, 37(2), 617–632.Google Scholar
  32. Porsche. (2015b). Porsche car connect. Available from http://www.porsche.com/international/carconnect/ (accessed April 18, 2016).
  33. Proff, H., Fojcik, T. M., & Kilian, D. (2015). Value added and competences in the transition to electric mobility—An analysis of the European automotive industry. International Journal of Automotive Technology and Management, 15(1), 20–42.CrossRefGoogle Scholar
  34. Rese, A., Sänn, A., & Homfeldt, F. (2015). Customer integration and voice-of-customer methods in the German automotive industry. International Journal of Automotive Technology and Management, 15(1), 1–19.CrossRefGoogle Scholar
  35. Siemssen, S., & Hahn, A. (2015). Implementing big data is the hardest part. In O. Wyman (Ed.), Automotive manager report 2015 (pp. 15–17). Available from http://www.oliverwyman.de/content/dam/oliver-wyman/global/en/2015/jul/Oliver-Wyman-Automotive-Manager-2015-final.pdf (accessed April 18, 2016).
  36. Sixt. (2014). DriveNow launches in Vienna, Austria with discount. Available from http://www.sixtblog.co.uk/sixt-news/drivenow-launches-vienna-austria-discount/ (accessed April 18, 2016).
  37. Teece, D. J. (2010). Business models, business strategy and innovation. Long Range Planning, 43(2/3), 172–194.CrossRefGoogle Scholar
  38. Tesla Motors. (2015). Tesla annual report 2014. Available from http://files.shareholder.com/downloads/ABEA-4CW8X0/0x0xS1564590-15-1031/1318605/filing.pdf (accessed April 18, 2016).
  39. Voelcker, J. (2015). Germans Vs Tesla In high-end electric cars: Will fast charging follow in time? Available from http://www.greencarreports.com/news/1100086_germans-vs-tesla-in-high-end-electric-cars-will-fast-charging-follow-in-time (accessed April 18, 2016).
  40. Wedeniwski, S. (2015). How does the mobility revolution impact automotive business models? Available from http://www.ibmbigdatahub.com/blog/how-does-mobility-revolution-impact-automotive-business-models (accessed April 18, 2016).

Copyright information

© Springer International Publishing Switzerland 2017

Authors and Affiliations

  1. 1.University of BayreuthBayreuthGermany

Personalised recommendations