|By PR Newswire||
|January 13, 2014 12:01 AM EST||
DETROIT, Jan. 13, 2014 /PRNewswire/ --The global automobile industry is entering a new golden era of innovation and advancement, and the ability to innovate in four key areas—power train, lightweight materials, connectivity, and active safety and assisted driving—will be a major factor in individual carmakers' success in the years ahead, according to new research by The Boston Consulting Group (BCG).
The research, released today during the press preview of the North American International Auto Show in Detroit, draws on several sources, including the results of a new U.S. consumer survey, an analysis of patent filings, BCG's annual study of the world's most innovative companies, and the firm's experience working with major automotive companies around the world. The findings will be published in a BCG report later this month. Here are a few highlights:
Innovation in the global automotive industry is intensifying.
- Fourteen automakers are among the top 50 most innovative companies in BCG's 2013 survey, compared with 10 carmakers in 2012 and only five in 2005. Three companies (Toyota, Ford, and BMW) rank in the top 10, and nine automakers are in the top 20. For the first time since BCG began conducting this survey nine years ago, there are more auto manufacturers than consumer companies in the top 50 and more carmakers than technology companies in the top 20.
- R&D spending at these 14 original equipment manufacturers (OEMs) increased at an annual rate of 8 percent since 2009, while spending at leading tier-one suppliers rose by 5 percent a year.1
- From 1995 through 2011, the number of patent applications filed by OEMs increased by only 3 percent annually, while the number of filings by tier-one suppliers rose 6 percent a year. A recovery from the 2008 crisis has resulted in the number of applications by tier-one suppliers leaping 37 percent, while the number by OEMs has jumped by 28 percent.
The focus on innovation has been in four areas: power train, lightweight materials, connectivity, and active safety and assisted driving.
- The four areas had patent application growth rates of 6 to 15 percent from 1995 through 2011, compared with an average growth rate for all patent filings by OEMs and tier-one suppliers of only 4 percent.
- Filings in all four areas showed only an 8 percent decline from 2008 through 2009, compared with an average drop in the number of applications of 25 percent.
- Filings increased 10 percent faster than the average growth rate in the bounce-back years from 2010 through 2011.
Consumers value the introduction of new technologies and features.
- New BCG research on U.S. consumers shows that most car buyers want to purchase a car from a company seen as innovative—almost 60 percent say this is a very or somewhat important consideration.
- A key characteristic of an innovative automaker, according to car buyers, is being the first to introduce new technologies.
- U.S. consumers see features related to connectivity, safety, and fuel economy as the most innovative in today's vehicles. Most U.S. consumers rank connectivity and safety features in the top 5 of some 20 new features in vehicles today (see exhibit).
"Innovation in the automotive industry is retaking center stage," said Xavier Mosquet, a BCG senior partner and coauthor of the study. "Consumers want to buy cars from companies that bring new technologies to market, and connectivity, safety, and fuel efficiency are three of their top priorities. The ability to innovate in these areas will be a major factor in individual automakers' success in the coming years."
Regulatory and marketplace demands with respect to fuel efficiency, connectivity, and safety, as well as technological advances that are making new features possible and reducing their cost, are driving the renewed focus on innovation.
Mosquet, who coleads BCG's global Automotive practice, and his coauthors say that OEMs and tier-one suppliers need to address three areas with a sense of urgency:
- The shift from mechanical to software-driven vehicles. Cars are no longer primarily mechanical devices. Rather, automobiles are increasingly becoming software driven (literally, as well as in other ways). Given the rise of electronics and the fact that software features reduce tooling cost, as well as allow for configuration later in the product development cycle, the shift to more software in cars will continue. This shift requires auto executives to think about product life cycles—and the involvement of their companies with them—in new terms.
- The quickening pace of product development. Consumer electronics and technology companies have taught consumers to expect a rapid pace of innovation. This expectation will make it more and more difficult for automakers and their suppliers to adhere to the current three- to five-year product design and development process. Car manufacturers will need to experiment with alternative design processes, new development models, and in the longer term, advanced manufacturing techniques. The ability to discern early what consumers see as the most valuable innovations will also create an advantage.
- The increasingly prominent role of tier-one suppliers in innovation and technological development. The importance of tier-one suppliers in innovation and product development will escalate. These companies are already playing a bigger role in innovation in the areas of power train, interior design, and chassis components—historically the R&D domains of carmakers. In addition, the determinants for differentiation are shifting toward connectivity and active-safety features, in which tier-one suppliers have substantial expertise. Those manufacturers that construct the most effective collaboration models, encouraging and rewarding supplier R&D investment, will build a long-term advantage.
"Other areas of innovation loom large as well, such as alternative fuels and assisted driving," said Massimo Russo, a BCG senior partner and coauthor of the study. "Those automakers that determine how to organize themselves to harness and direct fast-moving developments in power train, lightweight materials, and, most critically, software, electronic components, and connectivity will establish a decided advantage over competitors in the near and longer term."
A copy of the upcoming report, Accelerating Innovation: New Challenges for Automakers, will be available later this month at www.bcgperspectives.com.
For more information on the research or to arrange an interview with one of the authors, please contact Dave Fondiller at +1 212 446 3257 or [email protected].
About The Boston Consulting Group
The Boston Consulting Group (BCG) is a global management consulting firm and the world's leading advisor on business strategy. We partner with clients from the private, public, and not-for-profit sectors in all regions to identify their highest-value opportunities, address their most critical challenges, and transform their enterprises. Our customized approach combines deep insight into the dynamics of companies and markets with close collaboration at all levels of the client organization. This ensures that our clients achieve sustainable competitive advantage, build more capable organizations, and secure lasting results. Founded in 1963, BCG is a private company with 81 offices in 45 countries. For more information, please visit bcg.com.
Bcgperspectives.com features the latest thinking from BCG experts as well as from CEOs, academics, and other leaders. It covers issues at the top of senior management's agenda. It also provides unprecedented access to BCG's extensive archive of thought leadership stretching back 50 years to the days of Bruce Henderson, the firm's founder and one of the architects of modern management consulting. All of our content—including videos, podcasts, commentaries, and reports—can be accessed by PC, mobile, iPad, Facebook, Twitter and LinkedIn.
1 OEMs include Toyota, Ford, BMW, General Motors, Volkswagen, Hyundai, Honda, Audi, Daimler, Kia, Nissan, Tesla, Fiat, and Renault. Tier-one suppliers include Continental, Denso, Bosch, Panasonic, Valeo, TRW, and Hyundai Mobis.
SOURCE The Boston Consulting Group
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
May. 30, 2016 12:00 PM EDT Reads: 4,106
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
May. 30, 2016 12:00 PM EDT Reads: 788
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
May. 30, 2016 12:00 PM EDT Reads: 1,485
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
May. 30, 2016 11:30 AM EDT Reads: 721
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
May. 30, 2016 11:30 AM EDT Reads: 1,464
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
May. 30, 2016 11:15 AM EDT Reads: 1,335
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
May. 30, 2016 11:00 AM EDT Reads: 2,570
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
May. 30, 2016 10:45 AM EDT Reads: 2,056
The initial debate is over: Any enterprise with a serious commitment to IT is migrating to the cloud. But things are not so simple. There is a complex mix of on-premises, colocated, and public-cloud deployments. In this power panel at 18th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists will look at the present state of cloud from the C-level view, and how great companies and rock star executives can use cloud computing to meet their most ambitious and disruptive business ...
May. 30, 2016 10:00 AM EDT Reads: 2,287
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
May. 30, 2016 09:15 AM EDT Reads: 2,810
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
May. 30, 2016 09:15 AM EDT Reads: 2,368
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 30, 2016 09:00 AM EDT Reads: 1,429
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 30, 2016 08:00 AM EDT Reads: 2,388
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
May. 30, 2016 07:15 AM EDT Reads: 1,403
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
May. 30, 2016 07:00 AM EDT Reads: 2,252