in Automotive Wilfried Reimann Head of IT Enterprise Architecture & Innovation Wilfried.Reimann@Daimler.com
Daimler Divisions 2
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 3
Digital Transformation
Automotive disruptions concluding from global mega trends will be substantially changing the entire industry over the long term 5
The Automotive Industry is in the middle of a Digital Revolution, that will change the way how OEMs and customer interact 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 Online sales channel Digital showroom Ownership platforms Mobile apps Digital technologies enable the current and future mobility of people, on that new metropolitan designs will rely on From Product to Service New mobility solutions New infrastructure E-mobility Connected cars connect the vehicle, the driver and the environment and create new opportunities for all market players Connected car features New business models Customer insights New players & partners 6
Digital Business Transformation is the driving factor for many industries what is it? Source: IMD 7
SMAC s, the newest digital technologies are having a profound effect on how organizations and industries are transforming 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 Cloud 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 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 8
The way businesses use Digital Technology to Transform will be crucial for better market performance and success! * 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 9
Primary IT Trends enable Digital Transformation Internet of Things Naturalisation of User Experience Information-centric Thinking Smart Machines Digital Economy Cyber Physical Twins 10
Non Automotive Starbucks use case Digital Transformation Classical Coffee Digital Business Nomade Digital Payment 11
Non Automotive Nike use case Nike Fuel Lab Digital Transformation Getting more active with Nike+ Fuelband Nike+ your personal trainer Nike+ running: bringing gaming in the run experience 12
Non Automotive John Deer use case Digital Transformation Software Sensors Network connectivity My John Deer Platform 13
Digitalization affects all areas of the company 14
Digital transformation has already started at Daimler Transformation to a Mobility Service Provider 15
Digital Business Transformation @ Daimler Technology push and upcoming sharing concepts Digital Transformation Technology and connectivity push Successful sharing concepts increase 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* 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* 16
Design for experience: Mobile Moments Digital Transformation 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. 17
Mobile Devices enable new Business Digital Transformation 18
New mobile Moments through autonomous Driving 19
Uber matches two mobile moments: Passengers and Drivers 20
moovel 2015/plus: integrating mobility services to a mobility ecosystem 21
Mercedes me Connecting all services around the car 22
"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 technologies 23
Digital Navigator Model to support Digital Transformation Workshop 24
Digital Transformation Workshop and Toolbox Innovation Labs dedicated to technological innovation demonstrated in live and concrete environment to help our Business Partner to drive innovation and build solutions for the future InnovationWerkstatt Sindelfingen MTC InnovationLab@Europe (TSS) InnovationLab@China Technology-Toolbox Analyst (Gartner, Future Institute) Technology-Network (IBM, MS, Google, Apple, CISCO) StartUps (R&D Sunnyvale) Innovation-Toolbox Innovation Primary Trends Knowledge on Innovation-Areas (e.g. Cognitive Computing) Innovation Best-Practice example Innovation-Portfolio supporting DBT Agile Toolbox Customer Journey Lab as a Service Provide User Experience Design Thinking Camp EA- Toolbox Domain-Model (for Digital Transformation) Digital Capability-Model Reference-Model for a Digital Company DBT Method-Toolbox Digital Navigator (SIL) Company-Example DBT Studies (e.g. MIT) Consulting Templates DT-Toolbox (e.g. CapGemini, Uni St.Gallen) Workshop-Toolbox (Business Consultant) Standardized Workshop Modules SWOT-Analysis 25
The appropriate organizational foundation needs to be in place to facilitate digital business transformation 26
Digital Transformation - Summary Digital Transformation will be an important topic for top level management for the upcoming years SMAC s, (Analytics-Mobile-Platforms and Social networks) have changed people behavior and how they are connected to each other A networked world The Internet of Things will make IT everywhere available New IT-Players (Apple, Google, Facebook, Amazon, Linkedin) are strong competitors for established IT- Providers (IBM, Microsoft) and will drive aggressively IT-Innovation IT-Innovation is the major driver to enable Digital Transformation 27
Thank You 28