Digitalisation in the Volvo car value chain KlaS Bendrik Vice President and Group CIO 1
Volvo Car Group Vision: the world s most progressive and desired premium car brand V40 CROSS COUNTRY V40 THE ALL NEW S80 S60 XC90 XC60 V60 V70 XC70
IT - an integrated part of the launch of the All New XC90 Volvocars.com Over the Air upgrades Online sales Launch event IT Core Volvo Vechile Cloud CAR Apps & Security Dealer & Retail Solutions Engineering Solutions Manufacturing Solutions 3
Mobility for the People a challenge for Automotive! 4
Key Automotive Drivers during 100 years Customer value* Autonomous drive & Connectivity Environmental Safety & Security Transportation Design & Performance Time * Incl (level of impact on the industry) 5
IT @ Volvo Cars: Complexity from landscape evolution 3,2 BSEK IT Spend 2,4% IT Spend/Revenue 550 IT employees - 24% female 30% are older than 50 years 30% >20 years @ Volvo cars > 350 IT consultants > 200 Vendors > 65% external spend > 28 000 clients > 1 000 Applications > 16 000 Integrations ~ 100 Business Projects in 2014 ~750 MSEK Business Project volume 140 000 service desk Calls/year 1 500 physical Servers 55 000 Network connections 6
Vision Statement for IT@Volvo Car Group: IT a competitive Advantage for Volvo Car Group Increase consumer loyalty Strengthen dealers Improve operational efficiency Improve time to market 7
Volvo Cars are continuously increasing the competitive advantage out of IT IT - a competitive advantage for Volvo Car Group Improved Big Data capabilities Active participant & Driver into Services and Digitalization Recognized leadership capabilities within Group IT and outside IT to drive change Global IT Strategies, incl. prioritization of business & IT projects Stabilized IT Operations, based on transparent risk levels 4-8 % operational efficiencies achieved annually 2009 2010 2011 2012 2013 2014 2015 8
Digitalisation is fundamentally changing how the customer interacts with the Volvo car corporation... Product Creation Marketing and sales to order Order to delivery Delivery to re-purchase Support processes
Digitalisation is fundamentally changing how the customer interacts with the Volvo car corporation... Product Creation New Car configurator Marketing and sales to order Digital Showrooms VoloCars.com Used car locator ebusiness Delivery tracking Order to delivery Car handover Connected Service booking VolVO On Call Delivery to re-purchase Sensus Connect Social Media MyVolvo Support processes
...as well as how the the Volvo car corporation sell, service, develop and produce cars Over the air updates Connected Cars Dealer Management System Digital supply-chain Remote Diagnostics Marketing and Product Creation Order to delivery Delivery to re-purchase sales to order Product-as-a-service IBeacons Plant Management Warranty Management Infotainment Social Media Collaboration Digital Workplace Support processes Analytics MyBenefits
There is more to come with Additional Benefits Drive Making Time the most of my journey Add convenience to my life Maximize connected society 12
new challenges requires us to continue our journey IT - a competitive advantage for Volvo Cars Improved Big Data capabilities Active participant & Driver into Services and Digitalization IT becoming a fully integral part of Volvo Car Management Teams and Governance 4-8 % operational efficiencies achieved annually Recognized leadership capabilities within Group IT and outside IT to drive change Global IT Strategies, incl. prioritization of business & IT projects Stabilized IT Operations, based on transparent risk levels 2009 2010 2011 2012 2013 2014 2015 IT a part of future product and service innovation IT providing insight and analytics that drives business decision making - 2017 13
We are not on the verge of Digitalisation, it is happening all around us...and shown in MEDIA Interest for IT@Volvo Cars!
The Volvo Car Vehicle Cloud Is AN Ecosystem which will continue to develop into the future Fleet company $ Other 3 rd parties Dealers Media agencies Network Operator Utilities companies Repair shop Support Center 15
Does Information technology MATTER for volvo cars? Vision Statement for IT@Volvo Car Group: IT a competitive Advantage for Volvo Car Group Increase consumer loyalty Improve operational efficiency Strengthen dealers Improve time to market For Volvo Cars Information Technology matters more today than ever before and it will only become more important! 16
Q&A 17