Tsunami or Surfers Paradise? Threats and Opportunities in Automotive, Transportation and Mobility
The winds of change are transforming and disrupting the automotive industry. For some companies, the winds are producing life-threatening tsunami waves ready to sweep them straight out of relativity — but for companies offering intelligent services; these winds may be creating a surfer’s paradise. The tsunami warning is evident; Boston Consulting estimates that in as few as 15 years, 40% of automotive industry profits will be derived from mobility data enabled services. Get slotted and ride this into the future of mobility.
Let’s take a closer look at three dimensions of disruption: Customer Experience, E-Mobility, and Mobility Data Platforms and Networks
Customer Experience
Everything starts and ends with the customer. In today’s industry climate, consumers are well informed about their options and able to make smart personal buying decisions. They will pursue new and unfamiliar (yet innovative) technology only for two reasons: real, tangible value and the promise of data security and privacy. General Data Protection Regulation (GDPR) in the EU underscores how very sensitive consumers and businesses are when it comes to sharing data.
Aside from data privacy, consumer experience is also impacted by an evolving value chain in the automotive industry. In the traditional, linear value chain: after the sale of a vehicle most consumer and dealer communication is sporadic at best; especially after the warranty runs out. With the rise of new mobility business models and a more circular value chain, the consumer is constantly connected with various entities: the car manufacturers, dealers, fleet operators, and service providers from multiple industry (insurance, parking, fueling, charging, retail, food, and many more!).
E-Mobility
E-mobility, in my opinion, is one of the most complex mobility scenarios because it involves many players from multiple industries, complex infrastructures, and new technologies. With a growing number of electric vehicles, electric utility companies will play a crucial role in the future of sustainable mobility.
What happens when citizens and businesses not only consume but also produce energy? The become “Prosumers”! SAP enables a full circle supporting the entire Prosumer scenario including grid impact optimization. With innovative technology like IoT and blockchain we are able to help cities like Nanjing in China; Brisbane, Australia; and Bolzano, Italy to generate business value from big data to become smarter, more efficient, and more sustainable.
Mobility Data Platforms and Business Networks
In our new circular value chain; a wealth of data needs to be managed and business transactions enabled — safe and secure in the cloud. SAP Vehicles Network is an example for an open mobility services marketplace. It allows for integrated parking, fueling, food, navigation, and payment services tailored for business travelers and individual consumers. Network partners include Hertz, MasterCard, HERE, PACE, T-Mobile and many more; providing the foundation for expanding SAP’s Digital Mobility Suite.
SAP is working on expanding its Mobility Suite with the Digital Vehicle Hub. Based on our customer experience portfolio, this technology will enable additional mobility business models, like: subscription ownership, usage-based insurance, and a multitude of traffic safety and convenience services with personalization, applied intelligence, asset sharing, bundle pricing, and open API’s. The SAP Mobility Suite complements and boosts business network offerings like SAP Vehicles Network.
Let me conclude with a metaphor from my cycling hobby: a group of riders traveling together in the same direction benefit greatly from each other’s draft. They all gain speed, benefiting from each other. Just like in cycling, I believe in business ecosystems: in networks, in collaboration, in bringing smart people and innovative companies together. Everyone brings their special strengths, experiences, relevant skills and ideas; SAP provides the technology to realize smart mobility and transportation business models.
Do you feel the storm? Does it feel like triggering a threatening tsunami wave? Or are you ready to ride the wave?
If you’d like to learn more about how SAP and our broader ecosystem of partners can help you ride the wave, please connect with us and join one of our Smart Mobility Workshops.
