Automotive & Transportation Industry Trends: Product Development and Launch Cycles
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AUTOMOTIVE INDUSTRY TRENDS: A PARADIGM SHIFT Today’s Automove OEMs face the challenge of adapng their business models, product development frameworks and supply chains to leverage the potenal value of a connected world. How is the automove industry managing these dynamic mes? Here is what our survey of 200+ automove professionals reveal: PRODUCT DEVELOPMENT AND LAUNCH CYCLES ARE CHANGING 68% HAVE A GO-TO-MARKET TIMELINE UNDER TWO YEARS… TOP 3 CHALLENGES BY COMPANY TYPE SAY THE INDUSTRY HAS SEEN TIME-TO-MARKET TIMELINES SHORTEN IN THE LAST FIVE YEARS TIME-TO-MARKET EXPECTATIONS AREN’T SLOWING DOWN IN THE NEXT FIVE YEARS, EITHER. 66% expect product development and launch cycles to be shortened even further. SHORTENED GO-TO-MARKET TIMELINES WILL BE DRIVEN BY: ENTER: NEW INDUSTRY PLAYERS 76% have shortened go-to-market because of new industry players. INNOVATION IN THE AUTOMOTIVE INDUSTRY BETTER CONNECTIVITY IS THE PRIMARY INNOVATION DRIVER · Beer connecvity · Fuel efficiency · Increased safety needs THE CONVERGENCE OF CONSUMER ELECTRONICS AND AUTOMOTIVE 99% ARE INVESTING IN CONSUMER ELECTRONICS EXPERTISE WITH VARYING STRATEGIES: Training exisng staff for necessary skills SURVEY DEMOGRAPHICS 70% of respondents were at the execuve level. COMPANY SIZE TYPE OF COMPANY 0-12 months 12-18 months 18-24 months 36-48 months 24-36 months 48+ months 16% 31% 21% 14% 6% 12% WHAT HAS BEEN HOLDING THEM BACK FROM SHORTER PRODUCT DEVELOPMENT AND LAUNCH CYCLES? 35% 34% 7% 16% 22% 26% 26% 29% 29% 29% Supply Chain Increased manufacturing complexity Research and development costs Current me-to-market capabilies Innovaon outpacing regulaons and liability Scaling for mass market Company innovaon capabilies Dramacally different compeve landscape Lack of experse with new technology Nothing is slowing our me-to-market OEMs Tier 1 Suppliers WHO WILL DRIVE TRANSFORMATIONAL TECHNOLOGY INNOVATION IN THE AUTOMOTIVE INDUSTRY? New automove and transportaon OEMs and start-ups 15% Automove and transportaon suppliers 50% Tradional automove and transportaon OEMs 25% Technology vendors 10% Working with consumer electronics partners or suppliers Working with automove and transportaon partners and suppliers Hiring staff with exisng experse JOB FUNCTIONS Operaons Producon & Manufacturing Development & Engineering Markeng & Strategy Procurement Product or Brand Management 36% 23% 17% 8% 8% 7% ©Jabil, Inc. 2018. All Rights Reserved. SOURCE www.jabil.com/blog More than 5,000 employees 1,000 to 5,000 employees Less than 1,000 employees 24% 43% 33% Tier 1 Supplier OEM 43% 57% Current me-to-market capabilies Supply chain Research and development cost Scaling for mass market Increased manufacturing complexity Innovaon outpacing regulaons and liability 53% - Advances in technology 41% - More efficient supply chain 36% - Partnerships with expert suppliers/partners 35% - Convergence of automove and consumer electronics 29%
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Transcript of Automotive & Transportation Industry Trends: Product Development and Launch Cycles
AUTOMOTIVEINDUSTRYTRENDS:A PARADIGM SHIFTToday’s Automotive OEMs face the challenge of adapting their business models,product development frameworks and supply chains to leverage the potential valueof a connected world. How is the automotive industry managing these dynamictimes? Here is what our survey of 200+ automotive professionals reveal:
PRODUCT DEVELOPMENT ANDLAUNCH CYCLES ARE CHANGING68% HAVE A GO-TO-MARKET TIMELINEUNDER TWO YEARS…
TOP 3 CHALLENGES BY COMPANY TYPE
SAY THE INDUSTRY HAS SEEN TIME-TO-MARKETTIMELINES SHORTEN IN THE LAST FIVE YEARS
TIME-TO-MARKET EXPECTATIONSAREN’T SLOWING DOWN INTHE NEXT FIVE YEARS, EITHER.
66% expect product development andlaunch cycles to be shortened even further.
SHORTENED GO-TO-MARKETTIMELINES WILL BE DRIVEN BY:
ENTER: NEW INDUSTRY PLAYERS
76% have shortened go-to-market becauseof new industry players.
INNOVATION IN THEAUTOMOTIVE INDUSTRYBETTER CONNECTIVITY IS THE PRIMARYINNOVATION DRIVER
· Better connectivity
· Fuel efficiency
· Increased safety needs
THE CONVERGENCE OFCONSUMER ELECTRONICSAND AUTOMOTIVE99% ARE INVESTING IN CONSUMER ELECTRONICSEXPERTISE WITH VARYING STRATEGIES:
Training existingstaff for
necessary skills
SURVEY DEMOGRAPHICS70% of respondents were at the executive level.
COMPANY SIZE
TYPE OF COMPANY
0-12months
12-18months
18-24months
36-48months
24-36months
48+months
16% 31%
21% 14%
6%
12%
WHAT HAS BEEN HOLDING THEM BACK FROMSHORTER PRODUCT DEVELOPMENT ANDLAUNCH CYCLES?
35%
34%
7%
16%
22%
26%
26%
29%
29%
29%
Supply Chain
Increasedmanufacturing
complexity
Research anddevelopment costs
Currenttime-to-market
capabilities
Innovationoutpacing regulations
and liability
Scaling formass market
Companyinnovationcapabilities
Dramaticallydifferent competitive
landscape
Lack of expertisewith new technology
Nothing is slowingour time-to-market
OEMs Tier 1 Suppliers
WHO WILL DRIVE TRANSFORMATIONALTECHNOLOGY INNOVATION IN THEAUTOMOTIVE INDUSTRY?
New automotive andtransportation OEMs
and start-ups15%
Automotive andtransportation suppliers 50%
Traditional automotive andtransportation OEMs 25%
Technology vendors 10%
Working withconsumer electronicspartners or suppliers
Working withautomotive and
transportation partnersand suppliers
Hiring staff withexisting expertise
JOBFUNCTIONS
Operations
Production &Manufacturing
Development &Engineering
Marketing &Strategy
Procurement
Product orBrand
Management
36%
23%
17%
8%
8%
7%
©Jabil, Inc. 2018. All Rights Reserved.
SOURCE www.jabil.com/blog
More than5,000 employees
1,000 to 5,000employees
Less than1,000 employees
24% 43% 33%
Tier 1 Supplier OEM
43%57%
Current time-to-marketcapabilities
Supply chain
Research anddevelopment cost
Scaling formass market
Increased manufacturingcomplexity
Innovation outpacingregulations and liability
53% - Advances in technology
41% - More efficient supply chain
36% - Partnerships with expert suppliers/partners
35% - Convergence of automotive andconsumer electronics
29%
