deloitte consulting case competition
TRANSCRIPT
D-MOTORSHaokun Chen · Vibhor Kedia · Kunaal Tambe · Nirvaan Sawhney
February 10, 2017
SOLUTIOND-Motor can increase revenue and market share by building connected ecosystem to enhance customer
experience Smarter Stronger Swifter
Connectivity FeaturesData integration platform Agile methodologyIncrease in Revenue 35% Market Share 0.6%
Reliable price-wise hardware provider
In 5 Years
Seamless engaging experience provider
CONNECTIVITY FEATURES
Smarter Stronger Swifter
SmarterStrongerSwifter
CONNECTIVITY FEATURES
SmarterStrongerSwifter
Implement a smart in-car communication and entertainment system with multiple functionalities
open source application interface CarBud Smart
diagnostic system
Driving assistance: distance control, gas usage estimation, lane
change assist
Connect vehicle to life: entertainment features, tickets/reservation, gas
price/news
CONNECTIVITY FEATURES
SmarterStrongerSwifter
Improve legacy features: - Intelligent customer support system with CarBud - Smart voice assistance - Parking distance control
Compete for car sharing market
Enhance driver and passenger
experience
Prepare data for autonomous car development
Prepare structure for connected ecosystem
Change in market share and revenue
2.28%
2.76%
Market Share
Smarter Stronger Swifter
SmarterStrongerSwifter
INTEGRATED CLOUD DATA PLATFORM
INTEGRATED CLOUD DATA PLATFORM
SmarterStrongerSwifter
An integrated cloud data platform enables data sharing, integration and analysis cross departments
CRM
Sensors/devices
Sales DBOn Demand Self-service
INTEGRATED CLOUD DATA PLATFORM
SmarterStrongerSwifter
Cross-department real-time data sharing
Collect new data from IoT, driving assistant
system, new marketing channels
$$$
Blend old types of data for better, deeper solid
analysis
Autonomous driving
Smart Home
30% increase in monetizing data
85% increase in driving insight
from data
Accurate multi-channel marketing
Customer retargeting
AGILE METHODOLOGY
Smarter Stronger Swifter
SmarterStrongerSwifter
AGILE METHODOLOGY
SmarterStrongerSwifter
Deploy agile methodology to have constant and effective communication within teams, and faster iterations for products
Efficient product development cycles
Effective collaboration
AGILE METHODOLOGY
SmarterStrongerSwifter
CEO
COO CFO CIO
R&D Increase R&D spending above industry standard
to 5% of revenue
Promote data-driven decision across executive
team
- Talented developer/data scientists - Seamless on-boarding - Employee self-improvement
CONNECTED ECOSYSTEM AND FUTURE
Smarter Stronger Swifter
Connectivity FeaturesData integration platform Agile methodology
A ecosystem enhance connectivity and mobility
Better Experience Better Support Better communication
SOLUTIOND-Motor can increase revenue and market share by building connected ecosystem to enhance customer
experience Smarter Stronger Swifter
Connectivity FeaturesData integration platform Agile methodologyIncrease in Revenue 35% Market Share 0.6%
Reliable price-wise hardware provider
Seamless engaging experience provider
In 5 Years
Appendix- Connectivity Features Implementation Pro Forma- Market Demand- Sales Bundle Strategy
- Future Data Product Development- R&D Spending in Automotive Industry in 2015
- Connected Car System
- Agile Deployment- Challenge & Future
Connectivity Features Implementation Pro Forma
Calculation Reference: Deloitte Consulting, PwC Strategy
Market Demand
Source: PwC Strategy & analysis
Potential revenue for connected car has CAGR over 20%
Sales Bundle Strategy
Source: PwC Strategy & analysis
Connected car package is easy to sell as add-on service package and yearly subscription
Connected Car System
Source: Ford, GE, Toyota, Hyundai
Connected in-car system is cost-efficient, medium mature and with great potential and low technical challenge to develop and add features
GE: OnStarFord: SYNCToyota EntuneHyundai’s Blue Link
Each System priced less than 1% of car price
Potential to develop features and ecosystem
$
Data Privacy Concern
Source: McKinsey&Company
Customers are not concerned about data privacy as thought before
Future Data Product Development
Source: McKinsey&Company
Customers are willing to pay for data-driven connected service
Future Data Product Development
Source: McKinsey&Company
Customers are willing to switch manufacture and pay subscription fee for connected service
R&D Spending in Automotive Industry in 2015
Source: PwC Strategy
R&D Spending keep stable and have minor increase to 5% of revenue
Agile Deployment
Source: Deloitte Consulting
Agile enables efficient iteration for add-on features
Agile Adoption
Source: Deloitte Consulting
While agile is mostly used in software development, it can improve the efficiency in developing in-car connected system and integrated data platform
Challenge & Future
Source: PwC Strategy & analysis
- M&A Due Diligence for CarBud - Connectivity Feature Examination with Three Vs Framework- Data Platform Tool Due-diligence - Go-to Market Strategy Comparison- Talent Acquisition
Acquisition of CarBud
Source: PwC Strategy, GE
Acquisition of CabBud enables future connected ecosystem and comprehensive monitor system
Eventually, OEMs and suppliers will need to develop gigabit data transfer networks that will support the ultrafast “systems on a chip” required to process the data needed for autonomous driving, especially the processing of camera, radar, and laser images. Although outsourcing some of the car’s computing needs to the cloud on the fly is possible, response must be instantaneous, 100 percent available, and easy to plug in, even when moving between cell nodes.
Instead of just sending an alert when a car’s collision sensor goes off, GM can track everything that happens from the moment the ignition is pressed to the moment it’s parked: Starts and stops, acceleration and braking, oil temperature, fuel levels and even the status of multiple different vehicle systems and parts
Three Vs Framework
Source: Deloitte Consulting
Use Deloitte Framework to evaluate where to implement connectivity features
Data Integration Platform
Source: Ford, Oracle
The cost of Data integration Platform is depended on data volume and types of databases to collect data
Pentaho Platform: Used by CAT, all-in-one solution, from $50,000/year
WebFOCUS: Used by Ford, dealership management system
Enterprise data integration is the
future
Go-to-Market Strategy
Source: Bain&Company
The cost of Data integration Platform is depended on data volume and types of databases to collect data
Customer Segmentation
Multi-channel marketing: Digital
Marketing
Lead generation analytics
Talent Acquisition
Source: Bain&Company
The cost of Data integration Platform is depended on data volume and types of databases to collect data- GM cutting outsourcing and hiring around 8000 software developers while Bosch is hiring around 14000 software engineers to get more into the industry