Using interim manager expertise to successfully manage paradigm shifts
Situation
There is little doubt that electromobility will dominate traditional “fossil” drive concepts in the future and that the automotive industry will have to respond to the associated changes in the short term.
According to our AC Alpha Management experts, two basic trends have become established:
- In the future, purely electric drives will predominantly be used in second cars, as these are generally used for short journeys of less than 100 kilometers per day. Accordingly, there would be no de facto loss of comfort due to limited ranges. This certainly includes the majority of small cars, but also minivans and SUVs that are often kept as second cars.
- In the medium term, hybrid solutions will become the dominant drive systems for first cars, as they are not restricted by any range limits with correspondingly time-consuming refueling.
Our experts estimate that automotive OEMs will lose around 40% of the value added compared to the current “passenger car status quo”. This is because powerful electric drive units are very easy and inexpensive to assemble due to the fact that they only have around 65+-X parts, whereas corresponding mineral oil motors with 650+-X individual components are very complex to assemble and install. In addition, in the medium term, the electric motor will also be the primary power unit in hybrid drives, thus degrading the mineral oil engine to an auxiliary unit in the sense of a “commodity system”.
The challenge
To compensate for this, the automotive industry can only expand its range of attractive individual interior/exterior solutions, at least on the hardware side.
In order to remain competitive, our experts believe that two key challenges need to be met on the product side:
Firstly, vehicles to be produced with powerful electric drive systems must have the highest level of efficiency and not be hindered by suboptimal traditional procurement and production process systems.
Secondly, in order to be able to offer the widest possible range of product customization options as “factory fitted options” at attractive prices, automotive OEMs must network their procurement and manufacturing processes with suppliers at a near real-time level.
Action/Solution
The resulting demand for technical upgrades/conversions with adequate “machine-to-machine (M2M)” process applications from suppliers and customers will provide lasting positive impetus for plant and mechanical engineering. Companies that have in-depth expertise in dealing with complex control systems and extensive experience with system integration (HW/SW) within “M2M” networks will benefit in particular.
AC Alpha Management had already established an international “Digitalization” business practice in 2013. With their expertise, the managers involved support our customers in:
- Aligning your procurement and sales processes to new customer-specific requirements
- when upgrading your production and ERP systems to connect to external digital interfaces
- the development of your company-specific “digitization strategy”
As well as with - the further development of your product and service portfolios
- the development and implementation of optimal business development measures for your company
Result
As Germany’s oldest interim management provider, AC Alpha Management has decades of experience in finding the perfect temporary staff for you. In Germany alone, we have access to more than 2,000 managers with many years of specialist and management experience. With access to a global network of over 50,000 managers, we are also happy to find the perfect temporary experts for your foreign branches.
