PowerPoint Presentation
Lessons From AutomotiveWhat we can learn from the automotive
industry
3/7/17
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AgendaA little about usInnovation in automotiveLessons to
ponder
A little about us
We help brands keep pace with consumers
(and ahead of the competition)
Our ServicesExperience Design
Effective productsand experiences that putthe consumer at the
heart of the process
Strategy
Keep your brand relevant and marketing effective in an evolving
landscape.
Data Intelligence
Exploiting the power of data to deliver highly personalised and
relevant experiences
Culture
Frameworks and training to build your organisations competence
and confidenceTechnical Delivery
Enterprise technology and integration
Innovation
Helping develop new products and services inline with todays
consumersOptimisation& Support
Maximising the effectiveness of your digital investment
Automotive Experience
In a former life
Scene setting
Unstoppable force meets immoveable object
The innovation / disruption curve
199619982000200220042006200820102012201420162018202020222024199019921994User
AdoptionBroadbandSocial MediaMobileData / Machine LearningInternet
of ThingsCrowdfunding
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199619982000200220042006200820102012201420162018202020222024199019921994The
innovation / disruption curve
Automotive is lagging behind the innovation curveThe greater the
gap the more violent will be the correctionPressure comes from 2
areas - Changing behaviour traits from millennial audience - The
connected car and the ability to connect multiple datasets to
provide fantastic customer service
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millenials
The hierarchy of needs
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Symbiotic relationship or death embrace
Guys, did we just leave the door open with the engine
running?
2007: 20%2017: 35%2035: 50%13
Innovation examples
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New BMW 5 series offers a 3% increase in torsional
stiffnessAutomotive innovation in automotive
A clear precise brief: To create an even more sporty and dynamic
vehicle7mm increase in wheelbase500g decrease in boot weight15
Lessons from Automoive
Sacrifice the sacrosanct
9,000 stores$6bn revenues globally3/7/17
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9,000 stores$6bn revenues globally3/7/17
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Designed to compete like a startup company, Ford Smart Mobility
LLC will design and build mobility services on its own, and
collaborate with start-ups and tech companies.Ford Smart
Mobility
Chariot ride sharing SeptemberMotivate 7000 bikes Both san
franciscoDrop the making cars bit Ford are about democratising
transport24
Innovateor die
Innovateor die buy
The start-up challenge
An idea / consumer insightLow inertiaTechnical skills
(culture)Nothing to lose27
74bn in deals for the last 2 years compared with 17bn average
for the previous 10 years.
Source:
https://www.cbinsights.com/blog/auto-corporates-investment-ma-timeline/
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Stats Total value ofautomotive-supplier deals in 2015 and 2016
has been $74.4 billion, compared to the $17.7 billion annual
average in the previous 10 years. It is clear that something has
changedGeneral Motors bought 40 person self-driving tech vendor
Cruise Automation for $1 billion in 2016 (for comparison GMs entire
market value, with 250,000 employees, was only $7B less than 10
years ago)Continental AG paid $700m for Elektrobits automotive
software business unitToyota hired the full 16-person team from
Jaybridge Robotics, and plowed $1 billion into the Toyota Research
InstituteUber paid $680 million for Otto in the same year that the
startup was foundedDefence and fear is at the heart of most of
these acquisitions. Even though the incumbents are globally
established brands, they fear the loss of influence that might
unfold over the next decade.Software in cars now runs in 12-24
month cycles 90% of innovations and new features come in the form
of software and electronics10 years ago the cost of electronics and
software contributed to 20 percent of total costs of a car today
that has risen to 35 percent. By 2035 it is expected to hit 50% by
2030$1B will be invested in connected car technology companies in
the next 4 years
Sources:http://venturebeat.com/2016/10/09/auto-industry-heads-into-fierce-software-race/http://www.magisteradvisors.com/blog/the-connected-car-market-has-arrived
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Innovation for non-innovative audiences
5m people aged 70-80 who will likely be giving up driving in the
next 10 years31
UBER GAVE ME MY WHEELS BACK. JUNE, 86-YEAR-OLD GRANDMOTHER,
MIAMI RESIDENT, AND UBER RIDER
In summary
Forget the shinyForget the very reason you existForget the
threatForget millennials
"If GM had kept up with technology like the computer industry
has, we would all be driving $25.00 cars that got 1,000 miles to
the gallon.
If GM had developed technology like Microsoft, we would all be
driving cars with the following characteristics:For no reason
whatsoever, your car would crash twice a day.
7. The airbag system would ask "Are you sure?" before
deploying.
8. Occasionally, for no reason whatsoever, your car would lock
you out and refuse to let you in until you simultaneously lifted
the door handle, turned the key and grabbed hold of the radio
antenna.
10. You'd have to press the "Start" button to turn the engine
off."
Thank you
