BearingPoint Institute paper urges car manufacturers to rethink their ecosystems or risk being left behind
London, March 22, 2016 - Original Equipment Manufacturers (OEMs) need a new approach to software supplier relationships in their bid to remain relevant and gain market share in the era of the connected car. A new report from the BearingPoint Institute reveals a new landscape in which OEMs must adopt an agile business model to meet growing consumer demand for an always-on connected automotive ecosystem.
55% of OEMs are still in the initial stages of connected car development,1 and combined with the evolving, disruptive role of 3rd-party software suppliers, it is clear OEMs need to adapt and implement a multifaceted approach to change management. The BearingPoint Institute’s report details five recommendations, the implementation of which can enable OEMs to stay ahead in the connected car ecosystem:
It is clear that most OEMs are unprepared for a future where revenues from cars will be all about the surrounding services, and very little about what’s under the hood. If car manufacturers don’t get a move on, they will be replaced by tech companies that will be able to deliver what consumers are looking for.
Sarah-Jayne Williams, Partner at BearingPoint
OEM’s need to have a hard and candid look at how their products and services fit in a value chain that is growing fast in complexity and how their home-grown contribution differentiates the product in the eyes of the customers.
Mark Burnett, Senior Manager at BearingPoint and author of the paper
For more on the strategies OEMs can employ to manage their new landscape, read the paper on the BearingPoint Institute website: http://inst.be/008CCE
1 Connected car in Europe’, Pierre Audoin Consultants/Bearing Point, London, UK, PDF, 02/15 http://bit.ly/BPccinE
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