Automotive

In brief

Project example

Strategy formulation for electrical component makers

Rapid growth in computerized control has increased electrical components’ share of the automotive parts market. In fact, it is estimated that 90% of future automobile-related technical innovations will be electronics based. There is no doubt of the growing importance of electronics. However, while sustained market growth is guaranteed and electrical component makers have a chance to grow their sales, many issues are also arising. The increase in ECU bundling exponentially multiplies the car's complexity as an electronic system and is causing mounting development delays, recalls, development staff shortages and other problems. It is becoming difficult to manage the software development process and software quality appropriately.
Given this, electronics component Company A determined that it would be difficult to secure future growth based on strengthened software quality and process management alone and thus began reviewing its corporate strategy. At A’s request, Roland Berger identified current issues related to in-vehicle software, analyzed future trends and created a scenario. We began by clarifying current issues, discovering that most issues arose from car makers’ fragile system architecture. In unraveling the history of in-vehicle software, we discovered that the weak system architecture stemmed from networks aimed at decreasing wire harness weight, established without a perspective of the car as a system. We then examined future trends in system architecture, identifying standardization as a major point, and created three scenarios based on AUTOSAR, JASPER and other trends, and competitors’ perspectives and approaches. We then created a basic parts manufacturer strategy for each scenario. In contemplating the strategies, we leveraged the results of Roland Berger’s global study “The Future of Parts Manufacturers” and applied the three positions recommended for a parts manufacturer (system integrator, technology satellite and process satellite) to in-vehicle software.
Based on the main strategy, we redefined system areas, evaluating each in terms of growth potential, innovativeness, competitive capability and standardization progression scenarios. We then inserted these new definitions into each system area’s strategy. In doing so, we clarified the differences between the original parts business and the software business, and the structure of the business model for yet undeveloped in-vehicle software.

Major projects

- Establishment of a development process for a Japanese car manufacturer
- Brand definition for a Japanese automobile manufacturer and the introduction of brand value into its entire business process
- Creation of a global strategy for the telematics division of a domestic automobile manufacturer
- Restructuring of a Japanese car manufacturer's channel strategy, including channel elimination and consolidation
- Development of an after-sales and financing strategy in China for a Japanese car manufacturer
- Development of customer, product, and alliance and acquisition strategies for a European parts manufacturer planning to enter the Japanese market
- Creation of an Eastern Europe entry strategy for a Japanese parts manufacturer
- Helped a client implement the standardization of parts used within the corporate group