Future-Proofing for Automotive Companies - How to navigate successfully in the dynamic world of mobility
Future-Proofing for Automotive Companies - How to navigate successfully in the dynamic world of mobility
Automotive | SAP
or Industry
Portfolio| Solution Name
Future-Proofing for
Automotive Companies
How to navigate successfully in the
dynamic world of mobility.
Table 4 Accelerating to a New World
of Mobility
8 Customer Experience
10 Software-Defined Vehicles
14 Servitization
16 Sustainability
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Future-Proofing for Automotive Companies
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Future-Proofing for Automotive Companies
The automotive industry is racing into a new world of mobility, while adhering to
the familiar business model of car design, manufacture, sales, servicing, and
finance. The shift to more sustainable energy and the drive for more livable cities
is increasing the need for convenient, fast, reliable, and cost-effective
transportation. Megatrends such as connectivity, autonomous driving, and
electrification, along with changing customer preferences, are shaping the
industry and the world of mobility in real time.
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Future-Proofing for Automotive Companies
Accelerating Tomorrow
Let’s explore what your
As an Official Team Partner, SAP is teaming strategy should look like
up with the Mercedes-AMG PETRONAS F1
Team to accelerate operational efficiency The new market drivers are having a
and unlock new data insights to deliver profound impact on the industry. But it’s
performance gains. SAP S/4HANA Cloud, important that organizations adopt a
private edition serves as the technology proactive stance – and get onto the front
foundation for the team, enabling them to foot – rather than having to react on the fly
explore how artificial intelligence (AI) and to fast-changing circumstances. In the next
cloud solutions from SAP can help inform section, let’s explore the advanced business
and predict decisions, optimize resources strategies that can help you to excel in the
and future-proof their IT infrastructure. new landscape.
Learn more
Read about the joint vision of SAP and the Mercedes-AMG PETRONAS Formula One team
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Future-Proofing for Automotive Companies
The new market drivers signal a need for change. Now, the pursuit of excellence
must go beyond creating vehicles; it extends into the realm of pioneering
advanced business strategies. Five strategic pillars collectively redefine the
automotive companies that are becoming advanced businesses, ready to adapt,
thrive, and lead in this dynamic industry landscape.
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Future-Proofing for Automotive Companies
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Future-Proofing for Automotive Companies
Customer Experience
Understanding the customer’s point of view will determine which products are
built, how customers are treated, and what services are offered. We’ll see a real-
time, 720° insight into customers, vehicles, and usage, bringing out the best
customer experience. Customer-facing processes will make the most of
digitization, automation, and AI – in a business network that extends across all
sales channels and layers.
Dealer Network
• Support for current and future business/retail models, technologies,
and requirements
• Maximized retailer performance – online and offline
• Scalability to handle complexity: multiple brands, business models,
countries, and legal entities
Dealer
network OEM Automotive OEMs
• Holistic 720 automotive profiler with customer and vehicle information
in a single repository
• Unified customer experience
• Automated and self-service customer journeys
• Solution, subscription, and service bundles
Sales
companies • Automated and self-determined monitoring
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Future-Proofing for Automotive Companies
“
Our solutions address the immediate and future
needs of automotive OEMs, sales companies, and
dealer networks. The new
Cloud ERP
• Transform to the cloud via RISE with SAP –
platform is much
ideal for OEMs and sales companies. more than a
Industry Cloud
• Achieve a vehicle-centric order fulfilment plat-
marketing and
form with SAP Vehicle Management System.
• Create a 360 profile of vehicle information with
sales tool, it is
SAP Digital Vehicle Hub. practically part
”
• Improve automotive dealer processes with
Proaxia VSS. of the product.
Customer Experience
• Bridge front-end and back-end customer Björn Schick, CXO and member of the
data for better insights with SAP Customer executive board of Smart Europe
Data Platform.
• Drive profitable outcomes by creating
connected and adaptive commerce
experiences with SAP Commerce Cloud.
Read more
• Empower Sales to engage better with
customers with SAP Sales Cloud.
Business AI
• Use customer data-driven insights to
systematically increase customer loyalty
by predicting churn rates and customer
lifetime value.
• Deploy AI-enabled search and recommenda-
tions for personalized shopping experiences
through our partner solution with Coveo.
Learn more Explore automative industry and customer experience stories View Flipbook!
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Future-Proofing for Automotive Companies
Software-Defined Vehicle
With SAP Digital Vehicle Hub, you can create a 360 profile of vehicle information, helping you to build a
solid data foundation for AI-driven analysis.
Digital service
provider After OEM
market
R&D
Services
Manufacturing
Finance
Procurement
Distribution
Dealer
After
market
User
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Future-Proofing for Automotive Companies
Competing as Ecosystems
• Transformation and innovation go beyond the
four walls of the enterprise. Ecosystems are
forged to enable the power of partners to
deliver even more business value to customers.
Rapidly implementing processes across
enterprises, with a clear focus on win-win
partnerships, creates competitive edge Faster time to market*
powered by efficient business networks.
*Source: SAP Performance Benchmarking
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Future-Proofing for Automotive Companies
We’ll see highly-responsive digital supply chains sharing actionable data at speed.
As the volume of information increases, AI-powered solutions will make sound
and decisive decisions to help companies grow beyond traditional processes and
support autonomous factories.
This will result in greater resilience, productivity, flexibility, and new dimensions of
customer service.
Future practices enabled by SAP solutions
Tier n supplier
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Future-Proofing for Automotive Companies
“
supply chain and smart manufacturing
Our solutions address the immediate and future
needs of automotive OEMs and suppliers. We’ve With SAP Returnable
got tools that will ease the pressures, sharpen Packaging Management,
agility, and drive efficiency.
we can react quickly to
Cloud ERP new trends, support an
• Transform to the cloud via RISE with SAP –
ideal for OEMs and automotive suppliers facing end-to-end collaborative
increased complexity. solution for suppliers and
• Seamlessly run end-to-end automotive
processes with low-to-mid complexity using customers, and save time
GROW with SAP. Ideal for battery, cell, and and costs through
body part manufacturers.
automation. Efficient
Industry Cloud container management
• Improve products and customer satisfaction
with SAP Quality Issue Resolution.
also helps us avoid
delivery failures due to
”
• Reduce costs and increase efficiency with SAP
Returnable Packaging Management.
• Manage self-billing documents efficiently with
shortages.
SAP Self-Billing-Cockpit.
Sven Proschek, Product Owner
Digital Supply Chain SAP S/4HANA Solutions,
Schaeffler Technologies AG & Co. KG
• Increase manufacturing agility with SAP Digital
Manufacturing.
• Elevate your aftermarket business with
Extended Service Parts Planning. Get the story
• Design and innovate faster with SAP Enterprise
Product Development.
Business AI
• Predict future consumption of reusable
containers and minimize unnecessary
shipments.
• Improve efficiency and overall quality manage-
ment with AI-supported visual inspections.
• Generate ideas for new products faster and
more easily with Generative-AI.
• Automatically confirm bookings into SAP Digital
Manufacturing based on location-based events
with a partner solution from KINEXON OS.
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Future-Proofing for Automotive Companies
Servitization
Sustainability
and reporting
Orders and
Cutomer subscription
care contracts
Digital business
network
Charge point
Vehicle usage
operations
collection
Ecosystem
In-car stakeholders
payments
Pricing and charging
for mobility and
service offerings
Consolidated billing
Fleet mangement and settlement
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Future-Proofing for Automotive Companies
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Future-Proofing for Automotive Companies
Sustainability
The automotive value chain will lead the way in decarbonization. Companies will
be building sustainable electric vehicle (EV) products and providing traceability
while remaining competitive and increasing profitability. New circular economy
strategies will begin to strengthen the resilience and sustainability of automotive
supply chains and reduce the need for primary resources.
Future practices enabled by SAP solutions
We’ve entered an era of deeper collaboration • Shared best practices for product quality
and data sharing. This will enable greater support and availability.
for automotive (reverse) logistics processes: from • Automated updates through open, integrated
remanufacturing, through to dismantling, and IT systems.
recycling. ‘Digital twin’ information of vehicle and • Full transparency and valuable environmental
high-value components will be at the heart of insights of upstream emissions across the
collaboration. We’ll also see the exchange of value chain.
carbon data information as supply chains meet
upcoming sustainability requirements. Closing the loop and achieving zero
emissions and waste
What the new era of simplified • It’s our vision is to close the material loop
collaboration looks like through collaboration across the entire lifecycle
• Simplified, standardized Product Carbon of a car. What happens at the end is key.
Footprint exchange. • At SAP, we are supporting the Catena-X initiative
• All product information in one place by working together with multiple parties, from
• Transparency on sustainably sourced and recyclers to OEMs. We’re providing data needed
produced materials. to make decisions on component reuse,
recycling, or recovery strategies.
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Future-Proofing for Automotive Companies
Industry Cloud
• Reduce costs and increase efficiency with
“
SAP Returnable Packaging Management.
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Future-Proofing for Automotive Companies
At SAP, we find smarter solutions for the automotive sector, enabling networks
that can provide the innovation, resiliency, and sustainability we all need. The
result? Companies can operate profitably, adapt continuously, and make a
difference. Put simply, you can bring out your best every day.
The journey starts with our business technology platform. This brings together application development
and automation, data , integration, and AI capabilities in one unified environment.
Our industry-leading solutions solve complex business problems and help companies to digitally
transform and enable them to optimize core business processes. With a robust ecosystem of solutions,
SAP provides each company with support for the end-to-end processes they need to run as an
intelligent, sustainable enterprise.
SAP Portfolio
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Future-Proofing for Automotive Companies
Business AI
SAP’s Business AI for Automotive uses
computational and generative AI technologies to
solve automotive-specific business problems,
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Future-Proofing for Automotive Companies
Now you can keep innovation moving, Here’s how you can transform and modernize
accelerate business growth, and run your your business in the automotive sector,
business on industry standard technology. running to your own standards and
keeping control.
GROW with SAP is powered by
SAP S/4Hana Cloud, public edition, a RISE with SAP provides you with
ready-to-run cloud ERP that delivers the SAP S/4Hana Cloud, private edition. This
latest automotive best practices and tailored-to-fit cloud ERP that adapts to your
continuous innovation. GROW with SAP is organization’s unique transformation. Is suited
suited for companies looking for a greenfield for companies that want to migrate to a
deployment or needing to consolidate “made-to-fit” cloud ERP that adapts to their
multiple legacy ERP systems. unique transformation.
”
architecture.
Benefits achieved:
manufacturing smarter. • 35% increase in developer efficiency
• 15% improved performance of high-compute
Hendrik Rothe Managing Director, transactions
Smart Press Shop GmbH & Co. KG
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Future-Proofing for Automotive Companies
New technologies require automotive suppliers to GROW with S/4HANA Cloud, Public Edition forms
stay ahead and meet the changing demands of the foundational Cloud ERP that is extended by
automakers. For running an efficient and effective end-to-end solution capabilities that offers best
business, these capabilities are key: of suite capabilities to auto suppliers, tire
• Repetitive manufacturing with batches, serial manufacturers, battery manufacturers – and
numbers, production planning and execution component manufacturers in general.
• Receiving customer call-offs, including just-in-
time (JIT) and just-in-sequence (JIS) capabilities
• Managing self-billing with Automatic Posting
(SBWAP) and Invoice Creation (SBINV) Explore our automotive
• Managing returnable accounts and returnable supplier customer stories
packaging
• Creating a customer-centric buying journey by
embracing digital automotive retail and sales
excellence business practices
• Achieving new business opportunities through
value enhancements in operations and
customer service
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Future-Proofing for Automotive Companies
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