Digital Transformation in Digital Transformation in Automotive June 2015 Digital Transformation Key

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  • Digital Transformation in Automotive

    Wilfried Reimann Head of IT Enterprise Architecture & Innovation Wilfried.Reimann@Daimler.com

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Daimler Divisions

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Key mega trends are influencing the life and interaction of

    people around the globe and across all industries

    Force

    Shifting Workforce Demographics

    Changes in the composition of the workforce (gender,

    ethnicity, generational) will require employers to learn

    managing diverse workforce

    Rising Knowledge Economy Cost cutting leads to outsourcing of transactional jobs.

    This will require more knowledge workers with broader

    skill sets

    Globalization Corporations will rely on the global marketplace to fuel

    growth. Top global companies will be based in emerging

    economy countries

    Hyper connectivity In the increasingly connected world the lines between work and free time are blurring

    Expand Corporate Social Responsibility

    In today‘s market, companies are including leadership

    development activities that incorporate a CSR opportunity

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Automotive disruptions concluding from global mega trends will

    be substantially changing the entire industry over the long term

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    The Automotive Industry is in the middle of a Digital Revolution,

    that will change the way how OEMs and customer interact

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    Customer Experience Future Mobility Connected Cars

    The usage of the internet, social

    media and mobile technologies

    dramatically change the way how

    consumers interact with

    automotive companies

    Digital technologies enable the

    current and future mobility of

    people, on that new metropolitan

    designs will rely on

    Connected cars connect the

    vehicle, the driver and the

    environment and create new

    opportunities for all market

    players

    � Online sales channel

    � Digital showroom

    � Ownership platforms

    � Mobile apps

    � From Product to Service

    � New mobility solutions

    � New infrastructure

    � E-mobility

    � Connected car features

    � New business models

    � Customer insights

    � New players & partners

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digital Business Transformation is the driving factor for many industries – what is it ?

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    Source: IMD

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    SMAC’s, the newest digital technologies are having a profound

    effect on how organizations and industries are transforming

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    Successful digital

    business

    transformation

    requires:

    • Deep understanding of

    the newest digital

    technologies

    • How to use these at scale, smarter

    and faster than

    the competitors

    Social Network • Social media platforms enable two-way flow of infor-mation and communication between an organization and its key

    internal and external stakeholders

    • Also a learning tool to monitor industry trends, customer

    sentiment, and competitor moves, among other applicat.

    Mobile • Mobile devices overtaking fixed devices • Mobile-first strategies gaining prominence From “dumb”

    phones to smart phones/ smart devices

    Analytics • Tools to extract value from data, such as IBM’s Watson computer, Hadoop clusters, Mongo, Radian6, Cloudera, etc.

    • Ability to meet the challenges of Big Data, i.e. 3Vs: data

    volume, variety and velocity

    Cloud • Proprietary and non-proprietary systems that facilitate the sharing of data, applications, and insights among different

    parts within an organization or between organizations

    • Cloud based solutions

    • Emergence of ecosystems of partners

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    The way businesses use Digital Technology to Transform

    will be crucial for better market performance and success!

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    * Digital intensity is investment in technology-enabled initiatives to change how the company operates – its customer engagements, internal operations, and even business models

    ** Transformation management intensity consists of the vision to shape a new future, governance and engagement to steer the course, and IT/ business relationships to

    implement technology-based change

    Source: “The digital advantage: how digital leaders outperform their peers in every industry” report by MIT Sloan Center for Digital Business (CDB) and Capgemini Consulting

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Primary IT Trends enable Digital Transformation

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    Internet of Things Naturalisation of User

    Experience

    Information-centric

    Thinking

    Smart Machines Digital Economy Cyber Physical Twins

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digital Transformation – Non Automotive Starbucks use case

    Digital Business NomadeClassical Coffee Digital Payment

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digital Transformation – Non Automotive Nike use case

    Getting more active

    with Nike+ Fuelband Nike+ your personal

    trainer

    Nike+ running:

    bringing gaming in

    the run experience

    Nike Fuel Lab

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digital Transformation – Non Automotive John Deer use case

    Software Network

    connectivity Sensors

    My John Deer

    Platform

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digitalization affects all areas of the company

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digital transformation has already started at Daimler Transformation to a Mobility Service Provider

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Digital Business Transformation @ Daimler Technology push and upcoming sharing concepts

    • In 2013 Web is accessed more often by

    smartphone/tablets than by PC

    • Increased use of social networks

    • Prestige and status rises through connectivity

    • Internet and smartphones enable individualised

    mobility concepts*

    Technology and connectivity

    push

    • Traditional sharing, lending & renting redefined

    through technology and peer communities

    • A third of the German city population are

    prospective users of car sharing regardless of

    current low usage rates*

    Successful sharing concepts

    increase

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Design for experience: Mobile Moments

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    A Mobile Moment is

    a point in time and space

    when someone pulls out

    a mobile device

    to get something they

    want in their

    immediate context.

  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Mobile Devices enable new Business

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    New mobile Moments through autonomous Driving

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    Uber matches two mobile moments: Passengers’ and Drivers’

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    moovel 2015/plus: integrating mobility services to a

    mobility ecosystem

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    „Mercedes me“ – Connecting all services around the car

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  • Digital Transformation in Automotive June 2015

    Digital Transformation

    "Digitalization of the economy" and "Industry 4.0" ...

    Industry 4.0: Intelligent IT

    solution in the varied

    production at Daimler

    Effective and efficient management of product variance and complexity is a key competency in premium as well as in commercial automotive business. Industry 4.0 will help us to manage individualized customer orders throughout the entire production process efficiently.

    The leap forward in I4.0 development

    is triggered by the interaction of

    many individual innovative

    technologi