The Future On Four Wheels – Change in the automotive business

The Future On Four Wheels – Change in the automotive business


[Music] there’s an exciting time right now I think most organizations are today challenged because the rate of internal change that they are being able to drive is much lower than the rate of external change and the good news or the reality is that the consumer is actually living in the external world and that is true for the automotive sector as well I think what companies have to drive in including leaders like Hyrum Waddell cop have to drive is an acceleration of internal change to be able to meet that new customer who has new expectations of experience of cost of service of delivery etcetera etcetera one big thing that is happening is I think there is like never before in the history of any industry and certainly automotive there is a convergence I mean look at look at it I mean cars originally were about assembling you know the engine the the drivetrain and the wheels and everything you’ve got a car together then came air conditioning and then came infotainment and then came some acoustics and then came some basic connectivity and some basic telematics and today you’re talking about technology you’re talking about entertainment you talk about all of this converging in the new automobile product and solutions and customer is actually not focused on product he or she is focused on solutions when this convergence takes place I think what it throws up is a fantastic opportunity because you can redefine the game and redefine the experience but at the same time what it exa matically means is that no one company no matter how great it is no matter how big it is can’t do it all by themselves because there is domain expertise and innovation and research required of multiple areas which has to come and work together therefore I think what it throws up is an opportunity in fact I think it must do which is a new level of collaboration so there is change and therefore there has to be convergence through collaboration that collaboration would then between the tech company in the automotive country and maybe a couple of other industries is actually then going to drive what would be the new experience for the consumer because at the end of the day all of this has to lead to innovation which is going to fundamentally deliver better value to the consumer it’s not good if it does you know nicely to us in the boardroom four of the factories eventually all of this innovation and experimentation and collaboration and convergence has to deliver in my view the pay office better value to the consumer in doing so if we can collaborate better we should be able to do it at a better cost and that is a win-win and that’s what the customer is seeking today you look at the retail stores a lot of the retail stores are beginning to have what I would say it’s like a web on the wall so there is tracking there is bacon there is Auto prompt they know what you’re doing they know the aisle you are looking at so the retail stores are getting more like the web world and the web world is actually trying to make sure that we are and they are and artificial intelligence and virtual reality they are being able to give you a 3d experience by looking at the web so I think this whole thing it calls for a very integrated only channel experience for the consumer he or she is not visiting stores for example in automobiles consumers are visiting less stores in the search phase now than ever before most consumers are actually visiting somewhere between one and two instead of two and three visits to a store which means there’s a lot of discovery search evaluation predisposition that is getting developed in the online medium and therefore I think if it works all as an integrated omni-channel experience which is again about convergence then I think there is immense value the last thing I’d like to say is that all of this means there has to be speed there has to be experimentation and I think failure would happen as a natural outcome in many of the experiments but the companies that are going to learn fast so I think it calls for a learning organization and an angel organization which is what we have focused at Hero MotoCorp developing new skills becoming more agile making our processes more sort of digitally enabled and fundamentally sort of evolving the mindset in culture where we can reduce cost and deliver better value because you won’t be working on things like crowdsourcing we’ve digitized a lot of our service interfaces with the consumer and I think there’s a lot more to do so experiment innovate along with collaboration and do it for the consumer at a lower cost and if you’re failing fail fast fail cheap fail forward and I think that’s the story right that’s a good recipe for success fantastic time [Music]


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