INDUSTRY PROFILE: AUTOMOTIVE
Statista reported that 78.6 million vehicles were sold in 2017. Toyota, Volkswagen, and Daimler had the highest revenues of automakers in 2016. The supplier industry was led by Bosch, Continental, Denso and Magna. Dominating the tire market were Bridgestone, Michelin, Goodyear, and Continental. McKinsey identified key trends among auto parts suppliers. At the top of the list is the consolidation of distributors. Original equipment manufacturers (OEMs) have also expanded into aftermarkets. Interfaces and channels are increasingly being transformed through digitalization, which has resulted in greater pricing transparency and influence of intermediaries. Vehicle-generated data is also changing the game.
CUSTOMERS AND SEGMENTS
Anna represents the racing segment of the auto market. Autonews found that 30 percent of high performance buyers have household incomes in excess of $100,000. That compares to median car buyers, with $51,214 incomes. CJ Pony Parts found that 62 percent of new cars in the U.S. are purchased by women. Males pay less than females, with salespeople offering $200 higher list prices to females (on average). Beepi found that 61 percent of Americans feel they’re taken advantage of while there at dealerships, so many research online; 22% use a social media. J.D. Power also reported that 34 percent of new-vehicle buyers seeking auto information post a picture of their new vehicle on a social media site.
PROCESSES AND CUSTOMER EXPERIENCE
There are many instances when sellers’ systems can make mistakes in processing orders. In addition, buyers who order online or via phone may need extra help from sellers to assure that the order is correct. Complete business process workflows are essential for successful transactions. Not only do the SKUs of parts need to have consistency, but there need to be written confirmations by email or text to assure that the right size will be delivered. In some cases, it makes sense to have a consumer bring a car to a facility. Most consumers like to have choice, so they can be given the option to confirm the size and type of the part needed, for peace of mind. It is less expensive than shipping parts back.
Enterprise Value Integration (EVI) focuses on closing gaps between what Customers Experience and what they expect based on the brand promise. This often creates a significant amount of value for both customers and shareholders, because it improves loyalty and brand reputation. The failure to assure that Business Processes are designed to serve customers under different circumstances and conditions is actually the most common problem with enterprises. The way to address this in a comprehensive way involves three initiatives. The first is to collect and analyze unstructured customer feedback and go way beyond sentiment analysis. Identifying the root cause of a failure in the customer experience can often be traced back to a business process workflow that does not factor in all the needed alternatives. The second initiative is to take real-world data and build an inventory of all of the different scenarios faced by customers and correlate them to market segments. This allows for an accounting of the costs associated with these different needs and conditions. Finally, the third initiative is to put what you have learned into practice. All of these initiatives can be put into practice with an agile approach, with two-week sprints. LEARN MORE ABOUT ARCHITECTURE >
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INDUSTRY PROFILE: AUTOMOTIVE & MACHINES
Enterprise Value Integration (EVI) has extensive experience serving corporate clients in verticals such as manufacturing, utilities, transportation and consumer goods. This experience has taught our team that Brand Promises are only as good as the company’s ability to execute consistently. Customer Experience must align with the Promise. Both will align only if the Business Model and Business Processes support the Promise. Our approach is to scale integration with Cloud Computing, through redesigned Processes and Web Services. We have partnerships with leading Cloud vendors to accelerate this process.