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Project Example

„Disrupt or be disrupted“

Assessing opportunities and risks in the context of the digitalization of an automotive supplier’s business model

Digitalization is contributing to an ever faster disruption in the automotive industry . . Hardware is increasingly being replaced by software and virtual approaches. Automotive suppliers that take advantage of the opportunities offered by digitalization can increase their competitiveness and tap into new business opportunities.

To this end, opportunities and risks of digitalization should be analysed in the context of the company’s own business model and evaluated. A strategy can be derived from this, to align ‘s own product portfolio accordingly.

BACKGROUND

There is a great deal of uncertainty about the impact of digitalization on the automotive industry in general and on the specific segment of our customer in particular. This was recognized and set the goal, in the fog of this disruption to see more clearly and to actively help lead the disruption.

The aim is to identify risks, but above all opportunities for ‘s own business model. This is happening against the backdrop of a smoldering shift from hardware as the cornerstone of the business model to ar software- and data-based value creation.

Specific Task

One goal of the project was to identify trends of digitalization in the automotive sector at an early stage. Evaluate the resulting opportunities and risks and analyze opportunities.

Subsequently, the possibilities, of the disruptive technology in question and on the basis of relevant market sizes. At the same time, theconcept of a data-based 3rd party business model should be analyzed, whichs based on, the data generated in the vehicle.

In order to examine the legitimacy of such a market entry, opportunities, risks and existing gaps must be identified and weaknesses determined.

Based on this, a market entrysplan is to be developed, which also includes the envisaged 3rd party business model.

KBC Solution Approach

For this very broad task, a megatrends analysis of the automotive industry was first carried out at. It serves to identify potential effects on the existing business model and growth opportunities.

Based on the findings of the market analysis, drew a clear picture for new, digital business models. A assessment of the opportunities and risks of the identified business models was then carried out.

In preparation for market entry, prepared a market development analysis for the area selected at and determined and forecast corresponding market sizes. Here, explicit hurdles and gaps for the customer’s entry were analyzed and possible solutions were shown using different scenarios. The time factor, and the choice of the right partners are crucial here .

Similarly, a concept for a 3rd party business model was developed, which is attractive for both OEMs and third parties. Following on from this, the derivation of concrete business cases for a market entry.

Achieved Effect

Through the previousn analyses and evaluations the relevant market sizen for possible new digital solutions could be determined. Specific opportunities and risks were developed and challenges for market entry and the economic potentialziale were calculated in conclusive business cases.

“Doing nothing” is not an option, you must initiate the disruption of your own business model in order to avoid being “disrupted” yourself. The path from hardware to to Software- and data-based value creation was expanded. By using and processing collected data, a 3rd party business modele generates additional, regular revenue streams after the actual sales transaction, analogous to standard subscription models.

Nadia Massari
Manager

The results were used to derive recommendations for the next steps, which serve as the basis for strategic management decisions.