The Future Of Cars With Game Changers, Presented By Sap

What’s that up in the sky? … The Buzz 1: “It’s only when you’re flying above it that you realise how incredible the Earth really is.” [Philippe Perrin, Astronaut, stellar-frontiers.com] The Buzz 2: Low Earth Orbit [LEO] satellite production is booming and innovation is accelerating, with billionaires Bezos, Musk, Branson and others investing in this global game-changing opportunity. A LEO is an orbit around Earth with a period of 128 minutes or less, with at least 11.25 orbits per day…Most artificial objects in outer space are in the LEO region, below an altitude of 1,200 miles. [en.wikipedia.org] The Buzz 3: The global LEO satellites market size was expected to grow to $4.13bn in 2022 at an 18.2% compound annual growth rate, and reach $9bn in 2026, due to increasing adoption of LEO satellites in various sectors; rising importance across communications and defense industries; integration of IoT; machine learning; advancements in aerospace; miniaturization of satellites. [globenewswire.com] The Buzz 4: Und

Many businesses are struggling to attract and retain skilled workers, with record numbers resigning or retiring. This is particularly true in the manufacturing sector. The Buzz 1: A Manufacturing Institute [MI] survey found that “The Great Resignation” is really more of a “Great Retirement.” 808,000 manufacturing job openings in February 2022 were down from January’s 859,000 [U.S. Census Bureau]…Manufacturing quits rose from 315,000 in January to 337,000 in February, a new record. [rimanufacturers.com/the-great-resignation-or-great-retirement] The Buzz 2: MI’s February survey of 3,000 Americans: 82% of respondents who left a manufacturing job in the past six months retired due to age or health-related reasons. The remaining 18% resigned or were laid off, but 73% of those are back to work in a different manufacturing job, 7% in a different industry and 20% are still looking. The Buzz 3: The manufacturing sector is increasingly viewed as crucial to economic and pandemic recovery, yet outdated public percep

The Buzz 1: A startup is a human institution designed to deliver a new product or service under conditions of extreme uncertainty. [Eric Ries, author of The Lean Startup] The Buzz 2: There was a study done in the early 20th century of all the entrepreneurs who entered the automobile industry around the same time as Henry Ford…500 automotive companies that got funded, had the internal combustion engine, had the technology, and had the vision. Sixty percent of them folded within a couple of years. [Eric Ries] The Buzz 3: “The quality is remembered long after the price is forgotten.” [Sir Henry Royce] The Buzz 4: “It doesn’t cost any more to make something pretty.” [Jaguar Cars founder Sir William Lyons] Hurray! We’re finally seeing the delivery of new vehicles. Now what? The past 5 years have seen explosive growth in new automotive and mobility startups. Each player has had to launch their company, carve their niche in the market, develop vehicles and get them into initial production – all while establishi

The Buzz 1: XaaS stands for Everything as a Service or Anything as a Service. It's an acronym for providing any products, tools and technologies that businesses may need as a service instead of on premise or with a physical product.” (givainc.com) The Buzz 2: “Whether you view XaaS (everything-as-a-service) as a dream or a nightmare, it’s here to stay.… XaaS is not a one-size-fits-all proposition. Nor must it be a revolutionary one – though it will challenge your business.” (manufacturing.net) The Buzz 3: “The concept of servitization is not new, but it is obtaining renewed interest … Rather than buying the piece of equipment, the customer contracts with the supplier for the result. So, instead of buying paving equipment, the customer might buy x miles of paved road for $x. The customer is assured of getting the final result. The supplier uses equipment sensors and internet of things (IoT) technology to track performance of the machinery on the job site.” (diginomica.com) What does the future hold for XaaS

The Buzz: *** “Many supply chains are perfectly suited to the needs that the business had 20 years ago.” [MIT Professor Jonathan Byrnes] *** “Looking at the world through a sustainability lens not only helps us 'future proof' our supply chain, it also fuels innovation and drives brand growth.” [Paul Polman, former CEO of Unilever] *** “Supply chains cannot tolerate even 24 hours of disruption. So if you lose your place in the supply chain because of wild behavior you could lose a lot. It would be like pouring cement down one of your oil wells.” [Thomas Friedman] In today’s world, manufacturing companies realize that to be successful they must consider both their profit and their impact on the planet. This means developing more sustainable products and running more sustainable processes – but at the same time, they need to cope with a constant stream of disruptions, such as natural disasters, geo-political events, and resource and talent shortages. How? Manufacturers need to collect and analyze the d

The Buzz 1: “The strength of the team is each individual member. The strength of each member is the team.” [Phil Jackson, former NBA professional basketball player and coach] The Buzz 2: “People achieve more as a result of working with others than against them.” [Dr. Allan Fromme, psychologist, teacher, author] The Buzz 3: “It takes both sides to build a bridge.” [Frederik Nael, Indonesian writer of science fiction and fantasy short stories] The Buzz 4: If designing a traditional business model is like planning and building a house, designing an ecosystem is more like developing a whole residential district: more complex, more players to coordinate, more layers of interaction and unintended emergent outcomes.…business ecosystems, similar to residential districts, cannot be entirely planned and designed—they also emerge. [www.bcg.com] Businesses frequently talk about collaboration with their partners as the path to business growth and ongoing success. But is it just talk? Their challenge has been how to s

The Buzz 1: An Accenture report found that 53 percent of car buyers would consider buying a car online. (www.rd.com) The Buzz 2: Nearly 30% of U.S. new car sales in 2020 were completed online, compared to 2% of vehicles pre-pandemic. Online car retailer Carvana sold 244,111 cars in 2020, a 37% jump from 2019. (www.abcnews.go.com) The traditional in-person automotive purchasing experience has always been alluring, offering shoppers the opportunity to inhale the new car scent, examine the shiny power under the hood, literally kick the tires, ask questions of a human salesperson, and feel the road in a test drive. Indeed, this type of car buying has “liquified” even the coolest showroom visitor! Even as online car sales slowly gained traction in recent years, most buyers still preferred to judge this relatively high-tag item on a seen-it, test-drove-it, loved-it-in-person basis. The pandemic accelerated this shift, replacing the traditional bricks-and-mortar business model with an online version – click i

The Buzz 1: “I’ve looked at clouds from both sides now, from up and down, and still somehow… it’s cloud illusions I recall… I really don’t know clouds at all.” (Both Sides, Now, 1966 song by Canadian singer-songwriter Joni Mitchell) The Buzz 2: “Manufacturing companies are often unfairly characterized as Luddites when it comes to the adoption of technolog.…Fast forward to 2021 and manufacturing is transformed.…The cloud computing model fits this dynamic environment better than giant, complex on-premise systems that cost a fortune, take years to implement and can’t adapt to market, organizational or process changes.” (www.forbes.com) Over the last few years, as they have faced continuous disruption and new competition, Industrial manufacturing companies have embraced cloud solutions – a significant turnaround for an industry that was slow to do so, especially on the factory floor. Now they look to industry cloud solutions to help them become more agile and respond faster to new challenges and opportunities

The Buzz 1: “Semiconductors are used in everything from iPhones to fighter jets…Every time you step into a car or send an email, you're using semiconductors… Some blame the global shortage of semiconductors on poor planning, supply-chain complexities, and a tradition of keeping chip inventories low in key industries due to expense…others argue the chip shortage is more a function of the world's growing demand due to 5G developments, the expansion of online gaming and video streaming , and the increasing complexity of modern automobiles.” (markets.businessinsider.com) The Buzz 2: “A survey of more than 150 firms found semiconductor supplies had fallen from an average of 40 days’ worth in 2019 to just five days in late 2021. Sales of devices soared during the pandemic, leaving semiconductor makers struggling to keep up with demand. The shortage has resulted in huge disruptions for major industries.” (bbc.com) The Buzz 3: “Even before the pandemic hit there was tightening…The chip companies actually have to ta

The Buzz 1: “Historically, the automotive industry has not focused on sustainable practices. Traditional assembly-line manufacturing uses huge amounts of energy, metals, plastics, toxins, and manpower, leaving behind a massive carbon footprint.… most vehicles require fossil fuels to operate, which release harmful emissions.… Attitudes toward sustainability are maturing…big and small players in the automotive industry are increasingly feeling the pressure to rethink the way they operate.” [www.forbes.com/sites/sap/2021/12/01/how-the-automotive-industry-is-driving-toward-a-sustainable-future/?sh=41c08b7f8f1b] The Buzz 2: A November 2021 greenpeace.org report estimated that the 86 million cars sold in just 2018 accounted for 9% of global greenhouse gas emissions. [www.greenpeace.org/static/planet4-eastasia-stateless/2021/11/47de8bb4-gpea_auto_environmental_guide_2021.pdf] Sustainability, and delivering on the potential of sustainable mobility, are quickly rising to the top of strategic priority lists across t

The Buzz 1: The United Nations website (sdgs.un.org) focuses on sustainable manufacturing as a form of manufacturing development that meets ‘the needs of the present without compromising the ability of future generations to meet their own needs.’ The U.S. Department of Commerce, on the other hand, defines sustainable manufacturing as ‘the creation of manufactured products that use processes that minimize negative environmental impacts, conserve energy and natural resources, are safe for employees, communities, and consumers and are economically sound.’ (marlinwire.com/blog/what-is-sustainable-manufacturing-2) The Buzz 2: Companies are realizing value from integrating sustainability into their operations and products. Between 2013 and 2020, companies with consistently high ratings for environmental, social and governance (ESG) performance have outperformed their peers, achieving operating margins 3.7x higher than lower ESG performers and generating 2.6x higher annual total returns to shareholders. (Accenture

The Buzz 1: Electric cars lost their image of being flimsy, slow and perhaps slightly embarrassing a long time ago.…Especially younger generations consider looking after the environment more important than roaring down the freeway, but newer electric cars have speed…Oil and gas companies look set to integrate electric charging points at fuel stations as standard. (roboticsandautomationnews.com) The Buzz 2: As of May 2019, approx. 2–3 million of the 1+ billion cars on the world’s roads are pure battery-electric and plug-in hybrid electric vehicles, says the International Energy Agency, which forecasts by 2040 there will be 300-400 million EVs out of ~2 billion vehicles on the road. [roboticsandautomationnews.com] The Buzz 3: EV Level 1 chargers use a regular 110-V outlet and can enable apartment building residents to drive 30–40 miles on an overnight charge. Level 2 chargers use a 240-V outlet, are in shopping malls and parking garages, can top-up an EV in ~5 hours. DC fast chargers [DCFC] use a 480-V outlet

The Buzz 1: “Prior generations took pride in owning products, but current and future generations are very different; they just want to use the product.” (Prof. Carlo Alberto Carnevale Maffe, Bocconi University School of Management) The Buzz 2: “Servitization remains something of an opaque concept for many manufacturers while for others, it is a journey they are already a long way down…the countdown to widespread adoption of some form of advanced services appears to draw nearer…but it can’t be achieved by simply improving or replacing separate legacy business systems and processes.” (fieldservicenews.com) As margins continue to shrink for traditional equipment sales, manufacturers must embrace new business models. One pathway for greater profitability is offering different types of services for assets. These could be a simple break fix, annual contracts, or providing services based on data collected from the assets such as performance benchmarking, predictive maintenance and even outcome or guaranteed perf

The Buzz: “A business network is a complex network of companies, working together to accomplish certain objectives…The collaborating companies in a business network are not bound by location, size, sector, or number. They are open to new partnerships that help them to stay competitive.” (en.wikipedia.org) As discrete manufacturing continues to become more complex and decentralized, your success increasingly depends on the strength of your network of suppliers, talent, and partners. From running your supply chain to managing supplier relationships and optimizing service delivery, you need to learn how business networks enable greater transparency and resilience. This will help ensure you achieve your sustainability objectives – which you can then show to customers and stakeholders. Business networks are also instrumental in enabling new business models while removing costs from your value chain. Discover how these capabilities and benefits will become even more important in our post-pandemic world. We’l

The Buzz 1: “Gigafactories” [battery factories for electric cars] could one day be churning out millions of electric vehicle batteries in the UK. The government has already committed the country to a ban on selling new petrol- and diesel-engined cars by 2030, so it seems that electric vehicles (or EVs) are likely to replace much of today’s fleet.” The Buzz 2: “Most EVs today use lithium ion batteries, but these have a number of limitations. Luckily, scientists and engineers are exploring a number of ways to overcome these challenges that could help give the drive to convert cars to electricity a boost.” (theconversation.com/electric-vehicle-batteries-what-will-they-look-like-in-the-future-164263) For electric vehicles to become truly mass-market, they will need highly energy-efficient and safe batteries. Good news: Several companies are designing and supplying electric vehicle OEMs and other manufacturers and industries with such power sources. With the limited availability of some raw materials slowin

The Buzz 1: “Supply chains are everywhere. From the biggest company in the world to running your household. We all have supply chain experience even if we don’t know it.” (Dave Waters, Senior European Supply Chain Manager, STERIS Corporation) The Buzz 2: “The importance of supply chain in the c-suite is immense. At one time supply chain was an after thought. Now with companies like Amazon, Apple and Walmart showing the importance of supply chain, no one can take the credibility away. Supply chain was discussed in the c-suite constantly in 2020 because of COVID-19.” (www.supplychaintoday.com/supply-chain-leadership-business-quotes/) This past 18 months, with the world disrupted by a global pandemic, have shown us the importance of supply chain management. The results are being felt today in many industries and the consumers who rely on them. To effectively cope with ongoing disruption, your company’s supply chains need to be transparent, connected and resilient. Lesson learned: Industrial manufacturers t

The Buzz: “Spare parts are the engine in the aftermarket. In the interest of your customers you want to make sure that it does not sputter.” (Oliver Bendig, German After Sales & Industrial Manufacturing Lead at Monitor Deloitte) Planning and ensuring that your supply chain has the right aftermarket part at the right time for the right customer is an incredibly challenging logistical challenge. This is especially true in the automotive business, when it involves your customers’ means of transport and the demand is uncertain. How can service parts manufacturers ensure they have the flexibility and visibility to be responsive to variable demand, collaborate with dealers and aftermarket providers, and help get customers back on the road quickly and safely? We’ll ask Ravi Patwardhan at Deloitte, Guada Joseph at SAP and Sundar Chandrasekaran at Deloitte for their expert insights on how to make planning and managing service parts a more reliable process on Automotive Service Parts Planning: Streamline Yo

The Buzz 1: Outcome selling is a framework that prioritizes a customer’s desired outcomes, rather than simply pushing the sale of your product. Outcomes are long-term gains that result from a product’s benefits. [blog.hubspot.com/sales/outcome-selling] The Buzz 2: “Suppose you owned an airline and ordered an engine from Rolls-Royce or GE. What are you really looking for? A piece of machinery to meet a product need? Or a powerful, safe, and reliable means to deliver air passengers to their destinations? This question has been top-of-mind among manufacturers aiming to drive profitable growth, triggering a fundamental shift to the way a business operates that increasingly focuses on outcomes. For example, when Rolls Royce or GE provide a “power by the hour” engine solution, they are delivering an outcome and potentially more value to the customer.” [hbr.org/2016/06/manufacturing-companies-need-to-sell-outcomes-not-products] As manufacturing companies shift from selling equipment to selling solutions and outcom

The buzz: “Despite the gloom, the auto industry is far from stagnant. The next decade will be one of its biggest yet. 2020 gave automakers the opportunity to reposition themselves as they emerge from the crisis on a new path towards electrification and connectivity.…2021 will see a continuation of trends that have been bubbling even before COVID.” (https://www.automotiveworld.com/articles/whats-next-for-the-automotive-industry-in-2021/ January 22, 2021) Automotive suppliers were severely tested in 2020 as they scrambled to pivot and stay agile in order to deal with the fallout of a global pandemic – including lockdowns, disrupted supply chains, and remote workers. Now in Spring 2021, there is good news. Suppliers can leverage this disruption to emerge stronger and better capable of tackling the accelerating trends of autonomous driving and electrification that confront mobility providers. How will supplier companies that survived perform in 2021? How can they operate profitably and drive new growth? W

The buzz: “If the events of the past few months have been any indication, manufacturers will need to get comfortable operating in an environment of constant uncertainty and change…to monitor these changes and determine the implications for their business strategy and their relationships with their suppliers and customers.” [www.bdo.com/insights/industries/manufacturing-distribution/what-the-post-covid-19-world-could-look-like-for-m] How can manufacturers manage this “new normal”? They need to ensure research and design efforts are customer-centric and can be brought to market quickly. Industrial equipment and products need to support new as-a-service business models that impact the design process and collaboration across the value chain. And they must continue to design and deliver custom-tailored products and solutions that customers want and need. Hint: Industry 4.0 capabilities can help with these challenges. We’ll ask Joe Bohman at Siemens, and Bernard Meyer and Richard Howells at SAP how the design