“The auto industry will change more in the next five to 10 years than it has in the last 50,” General Motors CEO Mary Barra notably mentioned at the World Economic Forum two years ago.
The speed of change can certainly be seen with leaders like Tesla beginning to charge for their connected cars premium internet and therefore establishing a revenue stream. As well as outsiders like Waymo (Google’s autonomous car development company) making huge strides in producing reliable and safe driverless cars.
The steady success of established brands is threatened by disruptive technology. Automakers within the OEM space and tier 1 and 2 suppliers are trying to keep up in a world where driverless, connected cars and transportation as a service is becoming more real. The need to become agile, attract innovative talent and set the foundation for growth is more important than ever as the industry continues to be redefined. Don’t get left behind.
After extensive research, intricate vetting and the help of an expert panel, the Best Practices for Automotive team uncovered leading success stories and insights which proves the industry is reclaiming innovation. Here’s a look at the innovation occurring within automotive from the perspective of the practitioners who live and breathe the business on a day to day basis.
BMW’s Journey to an Integrated Standardized Invoicing & Inventory Management System
BMW is one of a select few organizations in the industry who has adopted SAP S/4HANA. The first go-live was on May 1 which set their strategy in motion to move all SAP systems to HANA. The project steers the worldwide inventory management of vehicles as well as the worldwide vehicle and motorcycle invoicing including distribution channels like direct sales, sales to dealers, importers and special customers. The system holds information on each vehicle–pricing, where it’s shipping from, the retail cost, etc.–generating an expected 400,000 vehicle updates per day and all fully automated. This project will allow BMW to easily view and track data for more informed decisions and to ultimately drive growth.
Gestamp’s Smart Shop Floor Connecting Employees, Departments & Data
An international group dedicated to the design, development and manufacture of metal automotive components, Gestamp is embarking on a smart shop floor project to connect their manufacturing operation. The objectives and scope of this project can be structured on three blocks: machine sensitization (IoT), mobility and integrating data, and lastly to evaluate SAP SCP/Leonardo capacities as an IoT solution that could match Gestamp’s requirements. The project foresees benefits like increased profitability and Overall Equipment Effectiveness (OEE), decreased data entry errors plus connecting employees, departments and information with mobile devices. A smart shop floor sets the foundation for a digital-driven business model and creates agility to innovate.
According to the Zebra 2017 Manufacturing Vision Study, connected smart factories are expected to double by the year 2022 providing an expected 88% increase in revenue growth by 5% increments year over year. View the full infographic here.
General Motors on Connectivity, Autonomous, Sharing Economy & Electrification
Technology is driving tremendous advancements in everything from safety and vehicle connectivity, to fuel efficiency and electrification. And societal trends like urbanization and sustainability are changing the way customers interact with automobiles. General Motors see this as an opportunity to create cleaner, safer, smarter and more efficient vehicles than ever before. Their business process transformation is powered by SAP technology and addresses end-to-end processes such as Request To Pay (RTP), Record To Report (RTR), Order To Cash (OTC), Hire To Exit (HTE), Invest To Divest (ITD), etc.
How BOSCH Migrated Data from Multiple Vertical Systems into One
Multinational provider of technology and services for the automotive industry BOSCH is leveraging innovative SNP technology– that automates and standardizes SAP transformation projects– to migrate data from all vertical systems into one. Through this project, BOSCH is reducing the complexity of its SAP automotive system landscape and achieving optimized process harmonization, saving on IT costs and speeding up business processes. SNP automated transformation software scans and visualizes the current systems to identify opportunities for process harmonization. Those are then built into the consolidation strategy, driving overall organizational process improvement. BOSCH’s complete system harmonization and consolidation are laying a foundation for continued growth by creating the framework to streamline future migrations for its remaining ERP systems and for further process harmonization.
Goodyear’s S/4HANA (Central Finance) Journey Towards One Version of the Truth
Like other large global automotive organizations with a rich and long SAP heritage, Goodyear entered the S/4 drive by visioning a new end state where regionally deployed finance processes became standardized and migrated to an S/4 Central Finance solution. Their journey began in 2016 with two projects, MDG-Finance and Central Finance on S/4. Today they have globalized and governed financial company codes, cost centers and general ledger accounts serving the global finance functions and processes. In addition, they are creating real-time, high-quality data that will allow more timely business information, one source for global financial transactions and savings through harmonized processes.
These success stories were presented at the 2018 Best Practices for Automotive Conference. The fourth annual event bought together some of the biggest players in the industry to learn how to conquer digital disruption and thrive in today’s complex business environment. Join our mailing list to receive the most up-to-date info on conferences content and updates.