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New Business Models for Automotive Aftersales

For an established OEM based in Europe, we derived and evaluated scenarios for our client's after market activities based on the identification of automotive-specific business models and service opportunities – from traditional car selling towards innovative solutions like "vehicle as a platform". We delivered proposals for concrete new business models like subscription based models, over the air updates or feature on demand, helping the client to tap into new revenue areas and tackle market challenges.

The after sales value chain of established OEMs, traditionally characterized by high margins, is undergoing wide spanning changes and puts current business models at stake due to new customer demands. Established business models develop from car selling torwards new approaches like "vehicles as a platform". At the same time, the after sales market evolves from being monetized by time and material towards supscription-based pricing models. 

Client Challenge

Applying our established methodology to accelerate corporate innovations and build viable businesses end-to-end, we derived scenarios for new after sales services and promising service bundles to address the changes due to evolution of the automotive business model and the changing customer demand in B2B and B2C towards usage based demand. To maximize success, we applied our learnings about success factors derived from experience within the Siemens ecosystem. In a second step the scenarios were evaluated and prioritized regarding customer attractiveness, billability, implementation effort and opportunity to scale.

Our Approach

Doing so, we achieved to create tangible impact for our automotive client by identifying new business models and service fields of after sales activities. In our approach, we emphasized the importance of a product lifecycle with various revenue and profit opportunities instead of sole car selling. We ensured all stakeholders including dealers and the sale side were taken into account and interfaces to partners were integrated. Therefore, our client could increase their service portfolio and tap into revenue areas. 

The Impact

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Michael Erz
Michael Erz
Global Head Automotive & New Mobility