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Airplane Over Train (Natalia Goncharova, 1913)

The Automotive Industry: On the Road to Autonomy — Automotive Industry Snapshot and Predictions

By | Automotive, Autonomous Cars, Connected Cars, Electric Vehicles, Strategy, Uncategorized | No Comments

Value Chain Disintermediation: Electronics and Software are the New Automotive Supply Chain Kings

The auto industry’s century-old drive to gain efficiencies, accelerate production output, reduce waste and recoup working capital through lean techniques has also led to a strong cultural bias towards inside innovation and complex love-hate relationships with a network of select suppliers of mostly mechanical and electrical subsystems.

But today, electronics and software are the key to brand differentiation, customer affinity and market competitiveness. Electronics manufacturers are quickly becoming the new kings of the automotive value chain as the center of gravity is shifting from complex mechanical systems and passive safety features to sophisticated electronics and software. New entrants and outside innovators are redefining the traditional roles in a value chain structure that has changed very little in decades and are changing the familiar landscape.

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