Automotive 2025: Industry without borders

Engage with consumers, embrace mobility and exploit the ecosystem IBM Institute for Business Value
Executive Report
Automotive

How IBM can help

As a global manufacturer, IBM understands the issues

that automotive enterprises face. Our automotive
industry solution portfolio for product and complex
system development, advanced mobility, manufacturing
productivity and service excellence has been
developed and continuously refined through
implementations with clients around the world. It ranges
from secure chip assurance to top-level business
consulting. IBM has partnered with the automotive
industry for many years, helping transform its
organizations and create new business opportunities
while satisfying customer expectations.
1

Disappearing boundaries Executive summary

Our newest study shows that the dynamics of the For decades, the auto industry was a very structured and tight ecosystem with clearly defined
consumer-vehicle-enterprise relationship are starting to boundaries. The auto manufacturers ruled and few “outsiders” were allowed in — even
change drastically as traditional industry boundaries consumers didn’t have much of a voice. But all of that began to change with the growth of
disappear. Automotive (auto) enterprises must adapt to digital technologies.
how consumers can access vehicles in new ways and
Based on their digital experiences with other industries, today’s consumers now expect
use them in their digital lives — and how cars now fit into
seamless, omni-channel and customized auto-related experiences, and they are increasingly
an increasingly complex web of transportation options.
willing to contribute to product and services innovation. Consumers know how to get
Interconnectedness is the essence of the creative
information online and circumvent the standard processes that used to restrict their
disruption ahead: between consumers and
involvement with industry participants.
automakers; between consumers and vehicles; and
among traditional and non-traditional participants in the As personal mobility expectations grow, non-traditional enterprises are offering technologies
industry ecosystem. Looking toward 2025, the to help consumers with driving, including getting directions, dealing with traffic or parking,
enterprises that welcome openness are setting the and integrating with other forms of transportation. New business models such as car sharing
stage for success. even threaten the need to own a vehicle.

Industry ecosystems continue to intersect and overlap. In the future, this disruption will affect
major industry processes as traditional roles change and industry borders fade.

Six years ago, we published our last major auto industry perspective, “Automotive 2020:
Clarity beyond the chaos.”1 To update our understanding of the future landscape, we shifted
the lens out for this “Auto 2025” report. We asked 175 executives from 21 countries in a variety
of leadership roles how they expect the industry to change over the next decade and how
they plan to deal with those changes.
2 Automotive 2025: Industry without borders

73% of OEM executives rated As always, enterprises and industries alike must deal with certain unavoidable external forces. In
mobility services as a significant area for both “Auto 2020” and “Auto 2025,” executives ranked technology progress as the most important
co-creation with consumers
external force they face. Along with various external forces that affect many industries, our new
73% of all interviewed executives study also reveals three primary disruptors whose associated “disruption” sets the stage for
rated collaboration with other industries as innovation and new value rather than being a negative influence. These primary
the best opportunity for industry growth as
disruptors — consumers, mobility and the ecosystem — are causing traditional industry borders to
we progress toward 2025
be redrawn or even disappear (see Figure 1).
75% of all executives we spoke
with expect non-traditional industry Consumers are more engaged than ever — they not only want to use cars, they can be compelled
participants to have a key role in the to co-create them. Vehicles are increasingly intelligent, which is changing the concept of mobility
automotive ecosystem by 2025 including consumer-driven changes beyond the vehicle itself. This expanding ecosystem means
learning to thrive under disruption as auto industry lines blur, especially as those in other industries
join the mix, such as electronics and telecommunications enterprises.

Figure 1
Three primary disruptors – consumers, mobility and the ecosystem – are fueled by external forces, causing
industry boundaries to blur and even disappear
External forces

Primary disruptors

Consumers Mobility Ecosystem

Expect digital Can be Taps into Creates new Enables Creates new
engagement compelled intelligent offerings via new paths opportunities to
and to co-create vehicle consumer-driven to enterprise partner within and
experiences products capabilities requirements growth outside traditional
and strategy industry
boundaries
Source: IBM Institute for Business Value analysis.
 3

Dealing with external forces on the automotive

industry
Executives we interviewed said external forces that directly affect consumers will have
a greater impact on industry change than those that primarily affect the business. Technology
progress, changing consumer expectations and emerging personal mobility offerings are
increasingly important (see Figure 2). At the same time, they expect to be able to assimilate
new governmental regulations and requirements for globalization, economies/markets and
sustainability.

Figure 2
Current and expected impact of the four highest-rated external forces at four points in time, based on
interviews from “Auto 2020” (rankings for 2008 and 2020) and “Auto 2025” (rankings for 2014 and 2025)

What are the most important external forces that will impact the industry today and in the next
8-10 years?
66% 68%
61%
56% 55%
50%
46%
41%
34% 37%
33%
25% 26%
22%
11% 10%

2008 2014 2020 2025 2008 2014 2020 2025 2008 2014 2020 2025 2008 2014 2020 2025

Technology Consumer Government Personal

progress expectations regulations mobility

“Auto 2020” study

“Auto 2025” study

Source: IBM Institute for Business Value.

4 Automotive 2025: Industry without borders

Only 19 percent of interviewed auto Top external forces

executives describe their organizations as Technology progress. Rated the highest in both “Auto 2020” and “Auto 2025,” technology
related to digital, vehicle and the enterprise will remain a major industry influence.
prepared for challenges on the way to
2025; 71 percent as somewhat prepared; Consumer expectations. This was the most dramatic shift among external influencers
and the only one to change direction between the two studies. It now only ranks behind
and 10 percent as not prepared. technology. Digitally enabled consumers are expecting significant changes in products,
Exacerbating this limited readiness, just services and how enterprises engage with them.
33 percent said their organizations are Government regulations. A significant increase from “Auto 2020,” a combination of focus on
adaptable to face challenges, 59 percent safety (such as preventing digital distraction), autonomous driving, retail channel disruption

are somewhat adaptable and 8 percent and new mobility (for example, taxi services) is leading governments to develop positions that
affect industry participants.
are not adaptable.
Personal mobility. Mobility is increasing in importance for 2025 as urbanization, lifestyle
changes and cost-effective alternatives affect how people want to move from one place to
another.
 5

Primary disruptors: Consumers, mobility and the

ecosystem
Consumers are disrupting the relationship in two ways. First, they want auto organizations to
rapidly accommodate their expectations for digital engagement. Second, they can be
compelled both to co-create products and services, and to influence corporate strategy.

Mobility is disrupting industry products and services in two ways. First, self-enabling vehicles
will become increasingly sophisticated and able to far exceed their main function of
transporting people. Second, consumer-driven mobility — stemming from new innovators
and digital technologies — is making it possible to deliver personalized experiences beyond
the vehicle itself.

The ecosystem is disrupting individual enterprise growth and leading to industry expansion.
First, auto organizations are looking for new paths to growth, especially to take advantage of
new consumer expectations and available technologies. Second, they need to chart a course
through the evolving landscape of new participants and fluid industry boundaries.
6 Automotive 2025: Industry without borders

Consumers: Disrupting the customer relationship

Figure 3 Know what consumers want

The digital relationship consumers expect from auto enterprises
Consumer expectations of seamless, omni-channel and individualized experiences is
is being influenced by what they get from other industries:
how they buy, own and use vehicles is transforming transforming the relationship between consumers and enterprises. They want seamless
interactions across both channels (online and offline) and value chain participants such as
Consumer expectations of the digital experience during
the buying, owning and using lifecycle retailers, suppliers, communications providers, electronics manufacturers and others. They
also seek information and value that are personalized and relevant. Ideally, the consumer
BUYING experience is also intuitive, based on what the organization knows of the individual.
Consumers Enterprises

Digital relationship Digital technologies and lifestyle changes are creating new expectations in how auto
• Seamless consumers buy, own and use vehicles (see Figure 3). Fifty-four percent of “Auto 2025”
• Personalized
• Relevant executives expect people will buy cars directly through the Internet and 61 percent anticipate
• Intuitive
people will want different pricing models. Interestingly, only 45 percent of interviewed OEMs
USING OWNING
expect consumers to seek alternative ownership models versus 75 percent of other study
participants. To best differentiate in how vehicles are used, industry executives’ top answers
Source: IBM Institute for Business Value analysis.
were: comprehensive connected services (cited by 80 percent), physical and digital
personalization (59 percent), and data security and privacy (56 percent).

Want what consumers know

It won’t be enough to know what consumers want today; the forward-thinking industry
participants will need to solicit their views to plan for the future as well. Digital and social
technologies compel the collective set of consumers — we can refer to these informal,
sometimes ad hoc groupings as a crowd — to participate more directly in various aspects of
the enterprise’s business and offerings.

By 2025, those we spoke to expect more consumers to actively participate in the creation of
new products and services, especially mobility services (cited by 63 percent), product design
(59 percent) and marketing programs (54 percent). Sixty-six percent expect consumers even
 7

to influence business strategy.2 The “power of the crowd” can bring additional insights and
benefits, and extend beyond enterprise confines by taking advantage of consumers’ desire to
participate, exploiting the power of many and avoiding the constraints of corporate culture.

Multiple systems of engagement and business models will be developed to collaborate with
the right crowd in a given situation, and attain relevant insights and benefits (see Figure 4).
These systems of engagement could take the form of games, contests or other methods, and
must be easy, intuitive and provide a great consumer experience.

Figure 4
The OEMs see greater opportunity in key areas of co-creation with consumers; each needs a different system
to engage

How extensively will your enterprise use co-creation with consumers in the following areas by 2025?

OEMs 69% Marketing Mobility OEMs 73% Systems of engagement

Others 46% campaigns services Others 57% Different groups require
different systems of
engagement based on
their personal interests
and ways to engage
OEMs 54% Automotive Service/ OEMs 58%
Others 41% Sales enterprises aftersales Others 48%

OEMs 53%
Other Others 61%
Product
potential
development
areas

Source: IBM Institute for Business Value analysis.

8 Automotive 2025: Industry without borders

Recommendations: Engaging with consumers

Embrace the wisdom of the customer

• Learn from great consumer experiences in other industries. Examine similar processes
and technologies associated with consumers to incorporate and optimize for auto.
• Listen widely, analyze extensively and engage quickly with consumers when opportunities
arise. Target channels that are mobile and accessible anywhere, at any time. Learn from
interactions. Handle high volumes of information from various sources, including databases
and social networking platforms.
• Deliver intuitive, meaningful and consistent digital experiences across all consumer
channels. Work with retail partners to assure consistency across consumer touch points.

Deliver lifestyle choices

• Envision lifestyle choices and user experiences through journey maps. Use journey maps
to emulate and activate the sharing of consumer content to personalize the experience.
• Develop new ownership and usage models that meet consumer expectations and create
alternative revenue streams. Explore similar models in other industries. Use partnerships
and technologies to acquire enabling capabilities, as needed.
• Focus on in-vehicle capabilities that deliver the digital, automated and personalized
experience consumers expect. Make sure these capabilities are transferable.

Exploit your crowd

• Collaborate with crowds to uncover new ideas. Use technologies that are device- and
time-independent to allow the crowd to connect how they want.
• Implement effective “systems of engagement” for the best results. Learn about and use
engagement models that fit the preferences of each targeted crowd.
• Follow up on consumer input and recognize people for their contributions and ideas that
are used. People will lose interest without two-way engagement.
 9

Mobility: Disrupting products and services

Self-enabling vehicles “Vehicles will become an integrated

By 2025, the vehicle will be sophisticated enough to configure itself to a driver and other
occupants. It will be able to learn, heal, drive and socialize with other vehicles and its
part of a person’s life via smart phones
surrounding environment (see Figure 5). and connected car features providing
personalized mobility services.”
Figure 5
Intelligent, intuitive, self-enabling vehicles will provide extremely personalized experiences and capabilities
Vice President, Advanced Engineering, European supplier
that go well beyond their primary function of transporting people

Self-integrating Self-socializing
• Digital integration
p ants Wo • Social networks
• Seamless
c cu r k • Assisting others
• Secure • Using vehicles to
o

ing
ts

do other things
Takin are of i

w it
h ot h e r s

Self-configuring Self-driving
gc

• Digital personas • Automated

• Personalization • Autonomous
• Environmental

Tak lf
i ng care of itse
Self-learning Self-healing
• Occupants • Analytics
• Performance • Prognostics
• Behavior • Servicing
• Cognitive

Source: IBM Institute for Business Value analysis.

Self-integrating. Like other smart devices, the vehicle will be an integrated component in the
Internet of Things (IoT).3 It will collect and use information from others concerning traffic,
mobility, weather and other events associated with moving around: details about driving
conditions, as well as sensor-based and location-based information for ancillary industries,
such as insurance and retail.
10 Automotive 2025: Industry without borders

Self-configuring. Individual mobility personas will contain the necessary digital information
What is “self-driving?” about an individual to provide the desired vehicle experience: for example, personal preferences
Automated: Driver must be present on configuring controls and seats, multi-media preferences, financial information for making
• Partially – Driver monitors automatic functions, purchases from the vehicle or medical information about the driver or its usual occupants.
cannot perform non-driving tasks.
Seventy-seven percent of “Auto 2025” executives expect digital personas to exchange
• Highly – System recognizes its limitations and
information within a brand, while 62 percent see it happening across an automaker’s own
calls driver to take control, if needed. Driver can
brands. Just 26 percent expect this to be happening between automakers by 2025. Vehicles will
perform some non-driving tasks.
configure themselves using mobility personas. With permission, vehicles will access additional
• Fully – System handles all situations
personal information as required. For example, a driver with a heart condition could authorize
autonomously without monitoring by driver.
the monitoring of vital signs. If the vehicle senses a potential heart attack, the driver would be
Driver allowed to perform non-driving tasks.
alerted, the vehicle would automatically slow to park, and additional information about his or her
Autonomous: No driver required medical preferences could be released to appropriate health facilities.
• Limited – Designated areas where vehicles,
infrastructure and the environment are Self-learning. Seventy-four percent told us that vehicles will have cognitive capabilities to learn

controlled. the behaviors of the driver and occupants, the vehicle itself and the surrounding environment to

• Fully – Integrated with other vehicles in normal continually optimize and advise. As the vehicle learns more about the driver and occupants, it

driving conditions. will be able to expand its advice to other mobility services options.

Self-healing. Vehicles will be able to fix and optimize themselves based on certain events or
situations without human intervention. Analytics capabilities will help vehicles identify and locate
issues, schedule fixes and even help other vehicles with similar problems with minimal impact to
the driver.

Self-driving. Vehicles will become highly automated with some areas of limited autonomous
function in controlled environments (see sidebar, “What is ‘self-driving?’” and Figure 6).
Automated vehicle safety is another area that can differentiate a brand: 68 percent of
interviewed executives consider this a key consumer differentiator.
 11

Self-socializing. By 2025, 57 percent of interviewed executives say vehicles will connect with Figure 6
Vehicles will become highly automated, with some areas of
other vehicles and the infrastructure around them to share information and solutions, and 64
limited autonomous driving
percent of OEMs anticipate it. These vehicle social networks could extend beyond mobility as
How mainstream will the use of automated vehicles be
the vehicle connects into the greater IoT and socializes with devices from other industries by 2025?
(see sidebar on page 12, “How self-socializing vehicles can support public safety.”) Automated

Consumer-driven mobility Partially 84%

The vehicle is just one component of the new customized mobility options that are enabled by Highly 55%

technology and demanded by consumers. Mobility includes products and services that Fully 19%

enable different ways for consumers to move from one point to another according to each Autonomous

individual’s preferences and lifestyle (see Figure 7). Limited 38%

Fully 8%
Because consumer-driven mobility is not controlled by the auto industry, it offers tremendous
opportunities for new business models, providers, products and services that transcend the Source: IBM Institute for Business Value.

traditional vehicle-centric focus. Sixty-nine percent of the executives cited such new services
as a top way to grow. OEMs control vehicle-centric services that drivers use during vehicle
operation, but other mobility services — including driver convenience and occupant
experience — will see intense competition from non-traditional industry participants.

Some mobility services, such as car sharing, directly conflict with the traditional auto business
model of selling vehicles. But if auto enterprises develop transferable personas that allow
people to have a car feel like their own as they use the car-sharing model, then consumers will
begin to demand certain models based on this differentiator. Forty-three percent of “Auto
2025” executives agreed such innovation could extend the importance of auto enterprise’s
brand beyond car ownership.
12 Automotive 2025: Industry without borders

Figure 7
How self-socializing vehicles can support Consumer-driven mobility extends far beyond vehicle-centric services controlled by the auto industry and
offers opportunities for both traditional and non-traditional industry participants
public safety
Drivers could allow the cameras on their cars to Vehicle Multi-modal Ancillary
connect to a local department of public safety. • Electric vehicle services • Service scheduling
This could support search efforts for missing • Intelligent driving • Vehicle tracking
Vehicle- • Safety/security
children, escaping criminals or other search efforts centric • Vehicle diagnostics
• Vehicle performance
in the public interest.
• Parking • Automatic toll pay
• Real-time traffic • Pay-as-you-go
Driver • Smart navigation insurance and other
convenience • Weather services

• Car renting • Availability alerts • Entertainment

• Car sharing • Intermodal travel • Events
• Concierge solutions • Health monitoring
• Digital commerce • Learning services
Occupant • Digital personas • Lifestyle
experience • Location services • Office on wheels
• Information services • Public safety
• Ride sharing
• Taxi services

Auto industry-driven
Consumer-driven

Source: IBM Institute for Business Value analysis.

 13

Recommendations: Embracing mobility

Create an integrated, personalized in-vehicle experience

• Assure the vehicle is active in the IoT. Provide additional lifestyle services via connectivity.
• Leverage mobility personas and event-based personal data access and usage. Provide
new products or services based on data access and assure security to gain trust.
• Work with others to provide a consistent digital experience regardless of ownership or
usage model. Promote as a differentiator to consumers who are loyal to your brand.

Reap value from intelligent vehicles

• Use learning and automating capabilities to reduce complexity of use. Understand the
technology aptitude of the occupants to simplify where necessary.
• Analyze and use diverse forms of data. Treat data as the next natural resource and find
ways to exploit it regardless of data type or source.
• Identify new business model and revenue-generating opportunities intelligent vehicles can
enable, especially involving non-traditional industries.

Move from mobility concepts to generating revenue: Stake a claim

• Create a separate mobility entity within your enterprise with the required support and
investment to develop mobility strategies, products and services.
• Embrace personal mobility services and extend the brand beyond the vehicle. Develop
brand advocates based on their mobility experiences and not just the vehicle.
• Recognize non-traditional industry participants and the value they can bring to your
mobility solutions. Eliminate old biases and pursue new collaboration opportunities.
14 Automotive 2025: Industry without borders

The ecosystem: Disrupting industry boundaries

and participants
“There is a need for partnerships Seeking enterprise growth
In contrast to “Auto 2020” findings, we see that growth will come from delivering additional
between public and private sectors for value rather than just selling more vehicles. The top opportunities for growth are seen as:
personal mobility.” collaborating with other industries; creating new services-based offerings; and leveraging
disruptive technologies outside the vehicle (see Figure 8).
Group VP and General Manager, North American supplier
Interestingly, in the middle of the pack, 57 percent of the “Auto 2025” sample see new
business models as one of the best growth options. But on this question and many others,
the contrasting perspectives of suppliers and OEMs were apparent: 71 percent of suppliers
say they will invest in new business models to grow, compared to just 51 percent of OEMs.

Figure 8
The top growth strategies are highly focused on initiatives that require auto enterprises to extend well
beyond the traditional industry boundaries

Where do you see the best opportunities for industry growth Percentage change
looking toward the year 2025? from “Auto 2020”

Collaborating with other industries 73% 34%

Creating new services-based offerings 69% 13%

Leveraging disruptive technologies outside the vehicle 62% 20%

Creating new product categories 59% -12%

Investing in new business models 57% -6%

Entering new markets 54% -37%

Forming new joint ventures/alliances/partnerships 52% 7%

Targeting new customer segments 41% -13%

Source: IBM Institute for Business Value.

 15

Currently, suppliers are better able to expand beyond the traditional industry through mobility “Developing talent the right way is a
and working with new partners, while OEMs are more vested in maintaining the status quo.
very challenging activity. We need
However, today’s industry executives seem to be overlooking important chances to grow that
new HR policies and initiatives to
were recognized six years ago — especially “targeting new consumer segments.” Only 41
percent of executives named this an important path to growth. The value of making new bring in talent from outside the
digital experiences possible should not be overlooked — today, it seems many are limiting industry.”
their ideas here to just offering new product features.
Director of Mobility, Japanese OEM
In their quest for growth in a changing environment, industry executives must also address
persistent workforce challenges. Organizations must infuse talent from other industries into
their workforce as they engage more dynamically with consumers through digital and
connected technologies. Only 35 percent said their enterprise is effective at doing this.

Auto organizations also need to be effective at using talent across the enterprise, yet only 37
percent of executives report doing this well. They need a deep understanding of expertise
and know-how inside and outside the enterprise to quickly engage for specific issues and
opportunities. In addition, just 36 percent said they are doing well at developing skills rapidly
to meet ever-changing technology advancements, operational efficiencies and consumer
expectations.

Transforming the industry ecosystem

The biggest ecosystem disruption seen by auto executives is in retail channels, with 71
percent seeing significant change. In general, processes and participants closer to the
consumer will see more disruption than participants farther down the supply chain — and
OEM executives expressed this trend even more strongly than suppliers (see Figure 9).
16 Automotive 2025: Industry without borders

“Retail models will have to be more Figure 9

Disruption is expected in almost all functional areas of the business, although OEMs are not as convinced
flexible in order to leverage customers’ about the areas farther removed from the consumer

demands.” Where do you see the biggest disruption occurring in the

traditional industry value-net by 2025?
OEMs Suppliers
Executive board member, major European supplier
Retail channels 71% 73% 65%

Marketing & sales 60% 65% 55%

Product development 56% 44% 63%

Aftermarket 54% 61% 47%

Research 52% 40% 59%

Supply chain 48% 38% 60%

Manufacturing 33% 16% 44%

Source: IBM Institute for Business Value analysis.

The most-cited drivers of disruption to the work that is done were:

• Retail channels, and marketing and sales: Digital technologies, consumer expectations,
online intermediaries, dealer value, Internet buying and mobility services
• Product development and research: Digital technologies, co-creation with consumers,
non-traditional industry participants and collaboration with other industries
• Aftermarket: Digital technologies, mobility services, 3D printing and co-creation with
consumers
• Supply chain and manufacturing: Digital technologies, collaboration with other industries
and non-traditional industry participants.
 17

Recommendations: Exploiting the ecosystem

Partner to disrupt
• Break down traditional barriers, seeking non-traditional partners and disruptive business
models for untapped opportunities. Enable your organization to design, invest in and pilot
innovation, bypassing traditional organizational constraints.
• Leverage technologies outside the vehicle to create high-value product and services
offerings that enhance mobility and the rest of the consumer experience.
• Re-evaluate consumer segments in terms of mobility services versus product categories to
envision potential services offerings. Target passengers, not just drivers. Find ways to
increase wallet share of existing customers while pursuing new ones.

Address workforce challenges through new ways to collaborate

• Harness the collective intelligence of consumers, employees and partners through social
tools and techniques. Provide feedback and reward success.
• Make pervasive use of deep data analytics to empower the workforce.
• Strategically “re-skill” to meet ever-changing technology advancements, operational
efficiencies and consumer expectations. Consider placing employees in other industries
for short periods of time to learn and share.
Profit from ecosystem changes
• Take advantage of change to uncover new ways to transform processes and form new
relationships. Build consistent alliance management as an enterprise competency.
• Be accessible to non-traditional participants and quickly adapt to their culture, processes
and development cycles. Adopt different systems of engagements for different industries.
• Keep a consistent consumer relationship experience with participants in your value chain
— even while major disruption occurs in both the work that is done and who does it.
18 Automotive 2025: Industry without borders

Ready or not? Ask yourself these questions

Even if your organization is among the 19 percent that consider themselves prepared to
Study demographics
compete in the auto industry of 2025, it can be tough to articulate and prioritize the actions
Segment
New entrants
that may be necessary to get you there. Answering these questions should help you prepare
Distribution 8% to profit from the blurring industry borders.
8%
38% OEMs • How will your organization learn to interact in ways that consumers prefer?

Ancillary 21% • What is your plan to develop appropriate systems of engagement for specific crowds you
want to serve?
25%
• What can you do to support and take advantage of self-enabling vehicle capabilities?
Suppliers
• How will you take advantage of untapped opportunities in consumer-driven mobility and
generate new revenue streams?
Geography
China • In what ways can your enterprise plan for growth, given the greater opportunities that
9% North America partnering outside the organization makes possible? How can you prioritize actions to deal
Rest of world
13% 29%
with persistent workforce challenges facing the industry?

• How can you form relationships with newer, non-traditional industry participants to provide
Japan 22% the digital relationship and customer experience that today’s drivers and passengers
27% demand?
Europe
 19

About the authors For more information

Ben Stanley is the Global Automotive Leader for the IBM Institute for Business Value. To learn more about this IBM Institute for Business
He is responsible for the development of thought leadership content and strategic business Value study, please contact us at [email protected].
insights for the IBM automotive industry practice. Ben has over 37 years of experience Follow @IBMIBV on Twitter and for a full catalog of our
and has worked with major automotive clients around the world in the areas of business research or to subscribe to our monthly newsletter,
strategy and business model innovation. During the past five years, Ben lived in visit: ibm.com/iibv
Shanghai, China and led the IBM Automotive Center of Excellence. Ben can be reached
Access IBM Institute for Business Value executive
at [email protected].
reports on your tablet by downloading the free
Kal Gyimesi is the Automotive Marketing Leader in IBM Software Group. He leads the “IBM IBV” app for iPad or Android from your app store.
marketing strategy and deployment for big data and analytics solutions for global
The right partner for a changing world
automotive clients. Kal has over 25 years of experience in leading the implementation of
At IBM, we collaborate with our clients, bringing
complex business solutions and has worked with automotive OEMs and suppliers to
together business insight, advanced research and
innovate in their organizations. He previously led the IBM Institute for Business Value
technology to give them a distinct advantage in
Automotive team and has been the primary author on several thought leadership
today’s rapidly changing environment.
publications. Kal can be reached at [email protected].
IBM Institute for Business Value
Executive sponsor
The IBM Institute for Business Value, part of IBM Global
Dr. Alexander Scheidt, Global Automotive Industry Leader, IBM Global Business Services
Business Services, develops fact-based strategic
insights for senior business executives around critical
public and private sector issues.
20 Automotive 2025: Industry without borders

Contributors
Kristin Biron, Visual Designer, IBM Institute for Business Value, IBM Sales and Distribution
Paul Fielden, Global Automotive Center of Competency Leader, IBM Global Business Services
Syed R. Hussain, Strategy Consultant, IBM Interactive Experience, IBM Global Delivery
Joni McDonald, Writer and Content Strategist, IBM Institute for Business Value, IBM Sales
and Distribution
Tarun Mishra, Strategy Consultant, IBM Interactive Experience, IBM Global Delivery
Aneela Nasim, Global Automotive Business Advisor, IBM Global Business Services

Acknowledgments
We would like to thank the 175 industry executives who donated valuable time to share their
views on the future of the industry and appreciate their passion for this project. We also
thank our extended IBM Automotive team for their support in arranging and administering
the interviews, sharing their ideas and supporting us as we continue to think about 2025
and beyond.

Notes and sources

1 Rishi, Sanjay, Benjamin Stanley and Kalman Gyimesi. “Automotive 2020: Clarity beyond the
chaos.” IBM Institute for Business Value. August 2008. http://www-304.ibm.com/
easyaccess/fileserve?contentid=164523

2 IBM Institute for Business Value. “The Customer-activated Enterprise.” October 2013.
www.ibm.com/csuitestudy

3 Brody, Paul and Veena Pureswaran. “Device democracy: Saving the future of the Internet of
Things.” IBM Institute for Business Value. September 2014. http://www-935.ibm.com/
services/us/gbs/thoughtleadership/internetofthings/
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