Executive Summary
Currently in the automotive industry there is less significance placed on the role of IT in supporting business strategies, especially in comparison to industries like Financial Services or Healthcare payer industries. This is a large determinant of IT budget.
毕博全球汽车行业报告 及咨询市场展望
2020/9/14
Contents
1. Executive Summary 2. Automotive Industry Business Challenges
1. Global 2. Regional: US, Europe, Asia-Pacific, Rest of World 3. Automotive IT Spending Trends 1. Global & Regional IT Spend Forecasts 2. Automotive Industry IT Trends 4. Automotive IT Services Industry: Competitive Profiles 5. Automotive IT Services Market: BearingPoint Alliances 6. Sources and Contact
▪ China continues to make progress towards a market economy which has led to global businesses, like automotive companies, trying to ramp up in order to tap into the country's large marketplace of 1.3B consumers. A year after entry into the WTO, in 2003, China’s automotive industry produced 3.25M motor vehicle units (38% growth compared to the year before).
China presents the best opportunity for automakers due to increased government incentives and cooperation, cheaper labor, and proximity to a large population of potential consumers.
In order to understand their near-term sales volume, option mix and price sensitivity, automakers have to start understanding their customers better through the many signals they see from their consumers’ interactions. Much of this can be accomplished through CRM initiatives.
Executive Summary
Automakers are currently faced with slower sales, over capacity and declines in profitability. Big 3 are losing mmakers.
IT Issues: Industry in survival mode, pressuring spending; Opportunities for CRM
Most manufacturing verticals, including Automotive, have been operating in “survival mode”, spending very little on capital and operational expenses; IT spending has suffered as a result.The North American manufacturing market constitutes approximately 45% of the total world manufacturing IT spend.
▪ Toyota, Honda and Nissan increased their U.S. sales and market share in the first half of 2003, while the Big Three manufacturers (GM, Ford, DaimlerChrysler) saw their sales decline despite spending heavily on incentives.
▪ Currently the global automotive industry has too much capacity (roughly 30%) and as sales fall, the problem continues.
▪ Car prices have been falling making already thin margins even more pressured. The global automotive industry is faced with more competition, greater price transparency, rising customer expectations and quality improvements, making the pressure even greater on price and profitability.