The Automotive Industry in Transformation

For over 100 years, the car has become an integral part of our society. But the reality of mobility is changing – electric cars or autonomous driving are no longer dreams of the future. For the entire automotive industry, this means: moving with the times, reacting quickly to technological innovations and, at best, leading the way.

The way we travel has hardly changed since the invention of the car. By the end of the 19th century, the car had established itself as the choice for individual mobility, and now there are well over a billion motor vehicles around the world. While technological progress and digitization have transformed one industry after another in recent years, the core business of the automotive industry has remained untouched for a relatively long time. And today?

Meanwhile, change is clearly noticeable. Not only technical innovations such as electro mobility or autonomous driving have an influence on the whole industry, but also the changed attitude of people towards mobility in general. Owning a car is no longer an essential requirement for getting from A to B. The various car-sharing approaches have created solutions that are more attractive to younger generations than a vehicle of their own. Public transport companies have also discovered the sharing economy and offer seamless transitions from buses and trains to wheels or cars – all via one platform. These digital all-in-one solutions are attractive to consumers – and challenge car manufacturers to transform from producer to mobility services provider.

The change not only brings utterly new business models but also the need for the core business to think outside the box. After all, non-digital, technological progress also influences the automotive sector. Electro mobility requires appropriate electric engines and batteries, autonomous driving is based on the data analysis of information by sensor and camera systems. Building the necessary skills internally can be time-consuming.

Often there are already stakeholders in the ecosystem of a company with the appropriate skills. Especially in industries that rely on so many complex components, such as the automotive industry, suppliers play a crucial role in ensuring a smooth production process. But why should organizations involve their network of suppliers early in innovation processes and product development? Suppliers are much more likely to come into contact with technological innovations in their field. This knowledge can be used by car manufacturers for their product development – creating synergies, strengthening business relationships and integrating new technologies more quickly.

Tapping into new technologies is an important lever for the success of companies. But how can car companies manage to turn technological innovations into marketable products faster? The answer is: in close cooperation with the whole ecosystem! This includes your employees as well as the network of suppliers or stakeholders that were not previously part of the value-added chain of the automotive industry.

How innosabi customers are already embracing this automotive collaboration, and how Agile Innovation approaches can help them learn about Agile Innovation in the Automotive Industry.