Between homes and offices most of us spend large amounts of time commuting but a growing awareness of transportation’s ecological impact has triggered a shift towards public and shared transport. Automobiles continue to play a significant role in society, but one that is changing. The entire automotive industry is witnessing massive disruption throughout the value chain. Digital technology in particular is proving the lever that is shifting the gears of transformation and driving ever more innovative customer experiences. In this session we will understand the major trends driving the automotive industry and how creating and being a part of a pivotal ecosystem experience, is critical for shared success.

1. What’s Next:
The Next Frontier in
the Automotive
Industry
Powered by

2. Welcome
Dayoán Daumont
Consulting Partner
Ogilvy Consulting
Suresh Chivukula
Partner, Ogilvy Consulting Asia

3. Tell us
where you
are dialling
in from!
What’s the weather
like in your city?

4. Do you want
this deck?
It will be available for download
shortly after the webinar on:
slideshare.net/socialogilvy
And the recording up on
facebook.com/OgilvyConsulting

5. THE NEXT FRONTIER IN
THE AUTOMOTIVE
INDUSTRY:
CREATING
ECOSYSTEM-DRIVEN
CUSTOMER
EXPERIENCES
5

6. AN INDUSTRY
REVOLUTION
IS IN THE MAKING
We see key challenges emerging
• Consumers are shifting from car ownership towards shared
mobility models
• Urban infrastructure in emerging economies and increased
adoption of eco-friendly practices
• Emerging digital technologies and business models disrupting
the industry, driven by incumbents, start-ups and technology
players
Ride-sharing alone is projected to be a $ 53.8 Billion market
by 2023 in Asia-Pacific.
Research & Markets – Asia-Pacific Ride Hailing Market, 2017-2023
6

7. MODE
SHARE
ACROSS
10 CITIES
Share of major transportation modes across 10 major APAC cities
(Source: Centre for LiveableCities, Singapore, in collaboration with the Urban Land Institute, Asia Pacific)
7

8. NEXT WAVE OF INNOVATION
The transformation based on digital technologies, triggered by the auto industry will go beyond
the automobile and embed itself in the larger day-to-day experiences that an individual engages
in, with frictionless movement from one aspect of the individual’s daily routine to another.
It necessitates the need to have open communications with partners, competitors and customers
alike, and look at new venues of collaboration in a structured manner.
In this paper we have set out a framework to partner, collaborate and innovate to effectively drive
transformative experiences for your customers.
8

9. WHAT
CONSTITUTES
AN ECOSYSTEM?
• An environment where customers can move from one service or
product to another seamlessly
• Driven by a network effect, where more customers
lead to more providers and vice-versa, creating a virtuous cycle
• Characterized either by formal and contractual partnerships
between participants or informally througha platform play where
all participants are equally present
• Customer sees value greater thanthe sum of the parts
9

10. 10

11. A FRAMEWORK
TO DEFINE YOUR
ECOSYSTEM The first step in building an ecosystem is to identify the
over- arching Experience(s) that your target customers
seek, which your brand can fulfil through complementary
partners
Our framework to envision an ecosystem involves
• identifying partners for strategic differentiation,
market outreach, foundational needs
• a platform to bring them together, with your brand
playing a central, curative role
11

12. 12

13. Forms the core
of your ecosystem
Resonates with the theme
that your customers are
aligned to.
STRATEGIC
DIFFERENTIATION
13

14. C A S E S T U D Y:
“She’s Mercedes is a platform
dedicated to inspiring,
connecting and empowering
women to unleash their best.
She’s Mercedes consists
of networking events, a print
magazine and this digital hub,
the primary aim being to
create a dialogue”
STRATEGIC
DIFFERENTIATION
14

15. C A S E S T U D Y :
Unlocked, only
when car
ownership is
confirmed,
Rolls Royce’s new
app Whispers is
tailored to the
individual’s lifestyle
appeal with a
private travel
concierge service
that over indexes in
customization,
privacy and
exclusivity.
STRATEGIC
DIFFERENTIATION
15

16. STRATEGIC
DIFFERENTIATION
MARKET
OUTREACH
FOUNDATIONAL
NEEDS
Brand owners need to
create and leverage the
power of an ecosystem to
find new ways to market.
Online channels, both
mobile and web have
played a role in the digital
outreach of your brand to
your customers.
16

17. Maserati, onTaobao, created
a gaming experience
that drives customers into their
loyalty program, encouraging
them to visit their dealerships in
Shanghai and Beijing.
Avatars powered by AI and
facial recognition are used at
the receptionist kiosk to deliver
a personalised greeting.
The sales team are
simultaneously given a
detailed profile of the
potential buyer.
C A S E S T U D Y :
17

18. STRATEGIC
DIFFERENTIATION
MARKET
OUTREACH
FOUNDATIONAL
NEEDS
The minimum viable car
your customers expect
has changed.
Working with alike brands
helps build a stronger
proposition
18

19. STRATEGIC
DIFFERENTIATION
FOUNDATIONAL
NEEDS
“This brings the best of two
fantastic companies. We have
listened to our customers and
their insights are clear, they want to
carry those ecosystems into
their vehicles”, Santiago
Chamorro, GM’s vice president of
Global Connected Services
Users can take Amazon’s
Echo Auto functionalities on the
road, providing location-based
features and connecting with
compatible Echo devices at home.
C A S E S T U D Y:
19

20. C A S E S T U D Y :
GM partnered with Google to
install Google Assistant and
other apps, including Google
Maps
STRATEGIC
DIFFERENTIATION
FOUNDATIONAL
NEEDS
20

21. ECOSYSTEM
MACROTRENDS
IN THE
INDUSTRY
If you can’t beat
them, acquire them
Leverage sensors and
IoT to create new
experiences
The experience journey
goes beyond the drive –
think end-to-end
Alliances will set the
pace for technical
protocols and data
exchange
01 02
03 04 05
Data monetization will
be the next driver of
revenue
21

22. IF YOU CAN’T
BEAT THEM,
ACQUIRE THEM
OEMs need start-ups to innovate and build on their ongoing
experience transformation engagements.
Start-ups need access to capital and large marketing budgets,
and access to your customer base, through you
Customers benefit the most through this experience-driven
ecosystem.
The last few years have seen automotive OEMs and suppliers
proactively engage with start-ups through multiple models, including
hackathons, incubators and collaboration zones, leading up to
acquisitions and exclusive partnerships
01
22

23. ASK YOURSELF:
Are there Themes that specific segments of your customers seek?
Today, do you fulfill them all?
Brand
Acquisition / Investment /
Incubation for Leverage
Mobility Area Partners Year
Toyota MONET Technologies Autonomous vehicles
Investments from Isuzu, Suzuki, Subaru,
Daihatsu, Mazda, Honda
2019
Hyundai Car Next Door Ride-sharing Steve Baxter (Shark Tank) and Caltex 2019
Hyundai Ola Electric Mobility
Electric vehicles and
charging infrastructure
Kia Motors 2019
Daimler Flinc Ride-sharing 2017
Toyota
EV Common Architecture Spirit
Co.
Electric Vehicles Mazda 2017
BMW Group, Daimler AG, Ford
Motor Company, and Volkswagen
Group with Audi and Porsche
Ionity
E-mobility for long distance
travel
Joint Venture 2017
Daimler Hailo Ride-sharing
Merged with myTaxi (now called
FreeNow)
2016
BMW iVentures Zendrive
Road safety with data and
analytics, Insuretech
ACME Capital, BMW iVentures, NYCA,
SignalFire
2014
?
23

24. LEVERAGE
SENSORS AND
IOT TO CREATE
NEW EXPERIENCES
Sensors are being increasingly infused into the car, by both
OEMs and suppliers
In 2016, Jaguar Land Rover (JLR) partnered with
CARFIT that combines automotive sciences, NVH and machine
learning. They developed puck-shaped devices that attach to the
steering wheel, brakes and wheels, analysing NVH and sending
diagnosis to an app.
Suppliers should identify the role data originating from their
components, can play in the end-to-end customer experience.
02
24

25. ASK YOURSELF:
Can you find ways of collaboration with your customers, internal design teams, and those of your
suppliers, for the in-car experience building??
MONITOR AND
PREDICT
MAINTENANCE
LIKE NEVER
BEFORE
carfit.com
25

26. THE EXPERIENCE
JOURNEY GOES
BEYOND THE DRIVE
– THINK
END-TO-END
Affectiva, a pioneer in Emotional AI, collaborated with Porsche
for its Magic Moments demo.
In-car cameras detect a driver’s positive emotional state and snap
a photo. The user relives it through an app and can share it across
social media.
Your brand holds the customer permission today, and the pivotal
part of the experience journey.
03
26

27. ASK YOURSELF:
What is the end-to-end customer journey that you want to build for
your customers? Do you know the moments of truth that matter??
27

28. Industry playesr have to cooperate with those they compete with, to
create technical standards and protocols. This will make it easier to
drive new experiences based on data, that other services can tap
into, to further fuel innovation.
BMW, Daimler and Audi are majority owners in HERE Open
Location Platform (OLP) used for maps and location data. Its used
in turn by Garmin and Facebook to provide consumer services.
Suppliers like Bosch and Pioneer are also invested in HERE.
04
ALLIANCES WILL
SET THE PACE
FOR TECHNICAL
PROTOCOLS AND
DATA EXCHANGE
28

29. ASK YOURSELF:
Are your experiences and ecosystems, Designed by
Data?
? 29

30. DATA
MONETIZATION
WILL BE THE
NEXT DRIVER
OF REVENUE
Cars will become a point of consumption of niche, personalized
services, on-demand. The partnerships between suppliers and
OEMs are moving to one of equals, driven partially by the
democratization of data.
Honda Dream Drive is a driver and passenger infotainment
system. A passenger app provides mixed reality games and movies
and a driver app provides the a device-less experience for restaurant
reservations, movies, fuel and parking payments from the car's
system.
Honda enabled this with Visa and Connected Travel along with
others like Atom Tickets, Chevron, Phillips 66, GrubHub.
05
30

31. ASK YOURSELF:
What is the shared economic value that you are
creating through the ecosystem play?
?
https://venturebeat.com/2019/02/10/honda-dream-drive-hands-on-with-a-prototype-for-car-infotainment/
31

32. ASK YOURSELF:
• What is your strategy to cope with and thrive from a never-ending cycle of change?
• Do you have a talent map of your existing landscape and a roadmap of where you want to get to?
• Are you well placed to attract new talent, upskill current talent, and retain critical skills and staff?
?
DON’T
FORGET
YOUR
EMPLOYEES
32

33. A CALL
TO ACTION
33

34. According to an EcosystemSurvey, conducted by MIT CISR, Ecosystem players show a marked
difference in Revenue Growth. There are seven key design dimensions of ecosystems. Four of these
play a significant role in the revenue growth of their respective companies.
MIT-CISR Ecosystem Survey, n=158, 15%-85% of response scale shown
34

35. • Start small with exclusive partnerships or
commercial shared value exchanges with partners
• Think of a long-term play with scalability and flexibility
as supporting pillars.
• Explore smaller players and start-ups
01
KNOW AND
ENHANCE YOUR
CUSTOMERS
JOURNEY
35

36. Technological advances are transforming the industry which
means leadership teams must focus on building a strong culture
of innovation across all areas of operation.
This in turn raises the issue of how best to manage existing
company culture to avoid friction in what has become an ever-
evolving transition
02
ESTABLISH AND
NURTURE A
CULTURE THAT
EMBRACES
CHANGE
36

37. A McKinsey study estimates that driven by shared mobility,
connectivity services, and feature upgrades, new business
models could expand automotive revenue pools by about 30
percent, adding up to $1.5 trillion by 2030.
In our view, the ecosystem-driven experiences contribute to all
3 drivers of the estimated addition to the automotive market.
03
MEASURE
SHARED VALUE
AND ATTRIBUTE
IT RIGHT
McKinsey - Automotive revolution – perspective towards 2030
37

38. CREATE AN
API EXPERIENCE
LAYER
Creating such a layer makes it easier for developers to build
new circuits within the customer journey with relative ease,
exponentially increasing the number of experiences from the
ecosystem.
04
https://www.huawei.com/minisite/iot/en/vehicle-networking.html
38

39. A WORD OF
CAUTION
• Data enables experiences in the automobile and its extensions.
Data privacy has to be respected and consent be gained as a
part of the experience
• Find the payment and commerce experience that best
resonates with your target customers
• Innovation comes with its share of risk. The true value of
innovative ideas is when they move from the design room to the
road and into the hands of your customer in rapid iterations
39

40. TAKE THE FIRST STEP
AND BRACE UP TO REINVENT
THE METAPHORICAL WHEEL
AS OFTEN AS REQUIRED
40

41. SURESH CHIVUKULA
Partner, Ogilvy
Consulting
suresh.chivukula.ogilvy.com
+65 8690 0543
GET IN TOUCH
41

42. THANK YOU
42

43. Questions?

44. Thank you.