The three key digital themes driving change in value throughout the automotive industry are the connected traveler, autonomous vehicles and the enterprise/ecosystem. This report assesses their current state, explores the short-term and long-term impact that digitalization will have, and closes with recommendations for players in the automotive space.

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Driving the future:
Why other industries are steering automotive

2. In the automotive industry, innovation is shifting into high gear.
And the stakes are huge —
$670 billion of value and an astronomical $3.1 trillion
worth of benefits to society by 2025.
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3. The real innovation is happening
from players outside the industry.
A closer look, however, reveals an interesting dynamic:
And it’s generating three major trends…
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THREE MAJOR TRENDS
GENERATED FROM INNOVATION
OUTSIDE THE INDUSTRY
By 2020, more than 90% of cars sold will be connected. And the enabling
technology behind it — wireless communication, data analytics, cloud
computing — are already old hat for major tech companies.
1
The connected
traveler

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THREE MAJOR TRENDS
GENERATED FROM INNOVATION
OUTSIDE THE INDUSTRY
The big story here is safety. 902,000 lives potentially saved over the next
10 years. $1 trillion saved in the same timeframe from reduced accidents
and lower insurance premiums. Tech players are leading the pack here
too, with one company’s autonomous vehicles already logging over 2
million miles of testing.
2
Autonomous
driving

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THREE MAJOR TRENDS
GENERATED FROM INNOVATION
OUTSIDE THE INDUSTRY
An integrated infrastructure-based network would be a boon to
infotainment functionality. And government agencies could use data to
better mitigate traffic congestion and improve public safety. Again, non-
automotive companies are ahead, with one wireless provider connecting
more new vehicles than it sold new smartphones in the third quarter of
2014.
3
The enterprise /
ecosystem

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So how can
automotive companies
stay relevant
drive value
while other industries circle their domain
?
A N D
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Learn from technology companies
in adopting a data-driven culture.
Instincts aren’t enough. In an increasingly digital world, agility
and competitive advantage are built on data and analytics.

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Invest in improved capabilities to benefit
digital products, production and sales.
A robust data architecture can support the entire value chain and
service/product life cycle to achieve desired business outcomes —
outcomes that ultimately are all about remaining consumer-relevant and
building loyalty.

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Identify new partners outside the ecosystem
to drive breakthrough innovation.
Digital consumers simply expect the best experiences. New business
models built on sharing data and insights can help create those
experiences, driving service and product innovation in close
collaboration with new and emerging partners from other industries.

11. LEARN MORE
about how outside innovators are disrupting automotive
with these full reports:
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Driving the future:
Why other industries are steering automotive
Discover seven sources of value
automakers can exploit