KPMG's joint research with Egon Zehnder, the executive research company, reveals that the automotive sector is in the classroom due to the cultural change needed for digitization.
KPMG, an international tax, audit and consulting firm, together with senior executive research company Egon Zehnder, showed that the world's leading automotive companies were not prepared for the digital transformation that destroyed their sectors.
527 automotive manager, one of the giant brands worldwide, participated in the research. The research reveals that there is an awareness of almost all of the industry against digitalization, yet there is no preparation at the strategic and cultural level.
KPMG Ölekl Hakan from Turkey, "Research clearly demonstrates that the automotive industry is still traditional 'production optimization' stuck in the mindset case. New players have the advantage of playing only with new cards. Classic sector players have to change tires while the vehicle is in motion. ” Ölekli emphasized that this should not be perceived as a disadvantage because it can be turned into an important advantage with the right steps.
Some highlights of the research are as follows:
- While 92 percent of respondents stated that they were convinced that a new and different cultural approach was necessary to keep pace with the digitalization that changed the sector, only percent 29 failed to recognize 'fail first, fail fast' as soon as possible. This guide provides guidance for this new approach.
57 percent of managers say process changes are a prerequisite for digitization. Cultural change and leadership awareness is at the bottom of the list.
Not a pioneer
- When asked about the use of artificial intelligence and other digitalization technologies, approximately 50 says that their strategy is to become an early follower of these technologies. However, only 40 percent say they want to be the first to take action in these areas.
Old and new together
- 66 percent of respondents think that traditional and new business models need to be carried out together, while 34 percent believes that a complete turnaround in products and business models.
Cooperation is a must
More than 60 percent of the surveyed executives agree that for a successful digitalization process, they should collaborate instead of competing with their competitors. This ratio is down to 80 percent in CEO and C-suite level managers, and down to 19 percent in departmental managers level.
80 percent of executives say their company has only one digitalization strategy. Only 12 percent say they have implemented different strategies in this area.