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Driving the future: Why other industries are steering automotive

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The three key digital themes driving change in value throughout the automotive industry are the connected traveler, autonomous vehicles and the enterprise/ecosystem. This report assesses their current state, explores the short-term and long-term impact that digitalization will have, and closes with recommendations for players in the automotive space.

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Driving the future: Why other industries are steering automotive

  1. 1. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Driving the future: Why other industries are steering automotive
  2. 2. In the automotive industry, innovation is shifting into high gear. And the stakes are huge — $670 billion of value and an astronomical $3.1 trillion worth of benefits to society by 2025. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  3. 3. The real innovation is happening from players outside the industry. A closer look, however, reveals an interesting dynamic: And it’s generating three major trends… Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  4. 4. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. THREE MAJOR TRENDS GENERATED FROM INNOVATION OUTSIDE THE INDUSTRY By 2020, more than 90% of cars sold will be connected. And the enabling technology behind it — wireless communication, data analytics, cloud computing — are already old hat for major tech companies. 1 The connected traveler
  5. 5. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. THREE MAJOR TRENDS GENERATED FROM INNOVATION OUTSIDE THE INDUSTRY The big story here is safety. 902,000 lives potentially saved over the next 10 years. $1 trillion saved in the same timeframe from reduced accidents and lower insurance premiums. Tech players are leading the pack here too, with one company’s autonomous vehicles already logging over 2 million miles of testing. 2 Autonomous driving
  6. 6. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. THREE MAJOR TRENDS GENERATED FROM INNOVATION OUTSIDE THE INDUSTRY An integrated infrastructure-based network would be a boon to infotainment functionality. And government agencies could use data to better mitigate traffic congestion and improve public safety. Again, non- automotive companies are ahead, with one wireless provider connecting more new vehicles than it sold new smartphones in the third quarter of 2014. 3 The enterprise / ecosystem
  7. 7. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. So how can automotive companies stay relevant drive value while other industries circle their domain ? A N D Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
  8. 8. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Learn from technology companies in adopting a data-driven culture. Instincts aren’t enough. In an increasingly digital world, agility and competitive advantage are built on data and analytics.
  9. 9. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Invest in improved capabilities to benefit digital products, production and sales. A robust data architecture can support the entire value chain and service/product life cycle to achieve desired business outcomes — outcomes that ultimately are all about remaining consumer-relevant and building loyalty.
  10. 10. Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Identify new partners outside the ecosystem to drive breakthrough innovation. Digital consumers simply expect the best experiences. New business models built on sharing data and insights can help create those experiences, driving service and product innovation in close collaboration with new and emerging partners from other industries.
  11. 11. LEARN MORE about how outside innovators are disrupting automotive with these full reports: Copyright © 2016 Accenture All rights reserved. Accenture, its logo, and High Performance Delivered are trademarks of Accenture. Driving the future: Why other industries are steering automotive Discover seven sources of value automakers can exploit

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