Automotive

Industry
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Supporting autonomous driving and brand originality while being carbon neutral and safe with new mobility methods and ecosystems that create a mobility society

There are global movements for carbon neutrality, digital technology evolution, and urbanization. These trends have pushed a new social system that goes beyond industry borders, particularly in transportation systems and energy infrastructure. The Japanese automobile industry has been urged to go beyond its past role as “providing transportation products for people and things.” It has been called on to provide new value, such as creating energy ecosystems and traffic infrastructure that links local communities. The industry has begun using DX and resolving social issues through “the popularization of autonomous driving.”

ABeam Consulting supports “brand originality” in the automobile business. This is crucial in the industry that has expanded and become diversified through CASE (Connected, Autonomous, Shared & Services, Electrification).

Industry Agenda

Transforming automobile manufacturing supply chains and development process to create new value

The axes of automotive competition is changing due to the rise of electric automobiles and the evolution of digital technology. The advance of electrification technology has lowered the barriers to enter into the automobile industry, and the axes of competition have shifted from automobile performance to user experiences. Changes in processes from planning to development and manufacturing that fuse software and hardware will significantly impact the supply chain around MBSE (Mobile Base Systems Engineering).

Rising Chinese OEM and emerging manufacturers are also having an impact. Automobile manufacturers have found it more difficult to compete and secure profits in their core business of automobile manufacturing and sales. The shift to EVs has also changed required manufacturing technology and lowered the entry barriers. This is significantly changing manufacturing bases and demands for automobiles both in developed countries and the Global South and other emerging nations, forcing companies to alter regional strategies. The business speed of emerging nations has accelerated, and companies must transform their business processes and regional strategies quickly.

New business models that cross industries

Conventional business models centered on manufacturing and sales are approaching a turning point. The shift to battery-powered EVs has led to fewer components, increased system complexity, and greater reliance on software. This has transformed manufacturing, sales, and after-sales services, and it is becoming difficult for companies to maintain their business scale just through existing businesses. They must create new business models and develop new businesses.

However, it is extremely difficult to create new businesses and services that can meet the diversified needs of society using  in-house resources alone, such as company organizations, processes, and systems which were optimized based on past industry structures. It is essential to work with other industries to create new value. Together they can create new business models and improve efficiency by digitalizing existing businesses.

Cross-industry alliances and exit strategies for mobility services in society

Diversified mobility services improve convenience and resolve lifestyle and social issues. These services are currently undergoing testing and verification. But there are many cases in which progress ends at the testing phase. Companies must design mobility services for society based on local attributes from consumer perspectives, rather than technological perspectives, and implement a profitable business model.

Other players in different industries are working together, such as railroads, real estate, trading companies, finance, energy, tourism, IT/technology, and public organizations. High-level stakeholder management will be essential to coordinate among players that have different organizational cultures and interests. It is also important to encourage leadership from governments, agencies, and municipalities. Short-term profitability is unlikely, so it is important to clarify a medium-to-long-term exit strategy that includes participation purpose, gained assets, and regional expansion.

Automobiles shift from CASE to brand originality

The automobile industry must clarify brand originality to correspond to the expansion of the business scope through CASE. Balanced portfolios and business decisions are required to strengthen existing businesses and generate new businesses.

DX transformations, carbon neutrality, safe and convenient mobility, and next-generation automobile interfaces that utilize OS and AI will be important to business portfolio transformation. Recurring business will also be important, centered on new functions and services provided for smartphone users. Companies with diversified businesses must also deliberate matters without being restrained by the status quo. This includes considering M&A and company alliances to improve efficiency, streamline tasks, and merge identities.

Insights

MaaS (Mobility-as-a-Service): The Nature of MaaS

  • Automotive
  • Transportation/Logistics
  • New Business Development
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Where ABeam Stands Out

  • Solving automotive company issues with expert industry knowledge

    ABeam Consulting resolves company issues from a multi-directional perspective by combining expert knowledge on carbon neutrality and digital technology with knowledge of other industries.

  • User-originated co-creation approach

    ABeam Consulting builds a co-creation system with players across different industries and leverages knowledge and experience gained by designing services that solved user and regional problems. We generate new value with clients and diverse players and lead efforts from concept to business implementation.

Services Provided

ABeam Consulting aims to resolve critical issues from the perspective of stakeholders, management resources, and sustainability in response to environmental and social changes such as disasters, geopolitical risks, and labor shortages. We support company value improvements and social contributions through manufacturing DX and dynamic company transformations.

Maximize company value through data-driven ROIC management
CX design to maximize customer interaction
New industry development and regional vitalization activities to create the future
Leverage efficient management resources in overall production
Build a strong supply chain that can withstand destructive environmental changes
Leverage new technology businesses, such as generative AI, robotics, and metaverse
DX strategies that contribute to circular and sustainable economies
Human capital management to improve employee engagement
Improving corporate value from a non-financial perspective through ESG management

Contact

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