Automotive Sector Must Stop Living in the Past
According to BearPoint, research reveals that although automotive companies expect short-term gains from partner ecosystems, many want to go it alone.
This default mindset is hampering co-innovation and new digital business opportunities, says the consultancy.
90 executives from enterprise automotive companies across Europe, Asia and the USA were surveyed alongside 435 from telecoms, automotive, transport, banking and insurance for the report entitled: Partnership Ecosystems: the driving force behind mobility innovation?
More than half of automotive companies believe they can win the battle for the dashboard against the tech giants by going it alone. 46% still expect a 16%+ boost in revenues in the next two years from adding partner ecosystems. In this way, they can quickly generate new revenues plus launch more compelling products and customer experiences before being beaten to it by start-ups and tech giants.
Global Leader Production Industries at BearPoint, Matthias Loebich stated that while automakers understand the impact emerging technology trends will have on their business, a slim majority are living in the past:
“Many also understand the need for partners who can marshal investment, IP assets and provide complementary digital skills. But 52% are clinging to a world in which a ‘walled garden’ protected innovation from competitors. Shedding this mindset is their number one challenge now.”
Another key problem is having the right technology in place to manage monetisation across the partner ecosystem. Current IT landscapes are built on traditional linear value chains rather than multi-sided business models but the real problem is the mindset:
“….of legacy inertia that seemingly infects half the automotive sector.” concludes Loebich. And for those with more contemporary attitudes to partnership and innovation: “…the spoils are significant if they move quickly.”