Digitalization in the auto industry and its impact on manufacturers and consumers.
Digitalization will profoundly change the meaning of "the car". The motorist of today, is not content to have a car transport him from point A to B, rather he is also seeking to use his travel time efficiently. People are now accustomed to being constantly connected to the Internet; so the car that offers connectivity in the most meaningful way could be the preferred choice for the consumer. As a result, the business model of the carmaker is changing dramatically.
One thing is certain: the car in interaction with the man and his environment is a gigantic data-generating machine. This data can be the fuel of future business models in the auto industry which offers great opportunities, but also the responsibility of data protection among other issues.
The confidence of the consumer in automotive companies and their strong brands could be a decisive competitive advantage over other players like Google, Apple and Amazon, who also recognize the potential of revenue streams from the connected vehicle. One critical factor for automotive manufacturers is, product development cycles will have to adapt to the fast pace of Internet technologies.
This report explores these issues and offers insights from global automotive professionals.