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%