Study: Automotive Suppliers 2017 - Page 3

3 Our approach: Suppliers should turn challenges into future opportunities AUTOMOTIVE CHALLENGES IMPLICATIONS FOR SUPPLIERS STRATEGIC IMPERATIVES GLOBALLY, GOVERNMENTS INTRODUCE A STRICTER LAWS TO REDUCE CO 2 EMISSIONS To meet targets, heavy investments in electrification and use of lightweight construction are required. B C DIGITALIZATION IS AN IMPORTANT DRIVER OF CHANGING CUSTOMER REQUIREMENTS By 2030, today’s trends towards car connectivity, mobility solutions, and autonomous driving will become standard. Buyers will demand varying models and a high level of customization. OEMs SHIFT FOCUS AND FURTHER REDUCE THEIR SHARE OF THE VALUE CHAIN Customer experience replaces traditional performance parameters. Relevance of value-adding services increases. FIRST SIGNS OF ROUGHER TONE BETWEEN AUTOMOTIVE SUPPLIERS AND OEMS goetzpartners’ 2016 GEAR study revealed that suppliers’ satisfaction with OEM cooperation has deteriorated significantly. Innovation, project work and communication are key to improving cooperation and satisfaction. Source: goetzpartners analysis 1 2 3 NEW TECHNOLOGIES AND SOFTWARE SOLUTIONS DRAMATICALLY CHANGE THE CAR AS WE KNOW IT Electrified powertrains and multi-material use will substantially change the development process for cars. Software becomes a key component for OEMs and their suppliers. INCREASING COMPLEXITY CONTINUOUSLY CHALLENGES AUTOMOTIVE SUPPLIERS Integration of hardware components and software requires new expertise. Agile R&D and production processes are key to reducing time-to-market and handling greater model variety. COMPETITIVE LANDSCAPE OF THE AUTOMOTIVE INDUSTRY FACES DISRUPTION Digitalization attracts new players with (non-) automotive backgrounds. Suppliers can benefit from new opportunities, but need to free up cash for necessary investments. DEVELOP FUTURE VALUE PROPOSITION Analyze product portfolio, capture gaps in the value chain via organic and inorganic growth, and carve out future non-core business. Shape your business model to address new opportunities. OPTIMIZE COST EFFICIENCY Enhance process efficiency to counter increasing cost pressure to stay ahead of competition. Consistently combine site consolidations/shifts and operative excellence initiatives. BUILD AN AGILE ORGANIZATION Assess your company’s degree of agility and benchmark against the automotive industry. Set targets and develop your customized “fitness” program to benefit from new opportunities such as increasing software relevance and new collaboration models. AUTHORS: Dr. Philipp Kinzler, Partner Stephan Rohrmoser, Consultant Alexander Zauter, Consultant Remigius Erhardt, Associate Consultant Alexander Geisinger, Associate Consultant