- 88% do not have confidence to implement data and analytics initiatives
- 88% feel unprepared to attract and retain talent
- 80% feel unprepared to respond to volatility
Top automotive executives across the globe are facing significant business challenges as they look to achieve growth and competitive advantage for their companies. According to Changing lanes 2015-16: the automotive C-suite’s agenda, the third annual survey by EY’s Global Automotive and Transportation sector, executives are concerned about their ability to respond effectively to emerging market, Eurozone and political volatility, implement key operational initiatives, and attract and retain talent.
Based on a global survey of 125 respondents including C-suite automotive executives and senior EY partners, the report reveals the top five C-suite priorities for the next 18 months. These are:
1. Navigating volatility: Volatility is expected to continue, with emerging market demand and political instability topping the list of concerns. Sixty-three percent of respondents are facing problems due to demand slowdown in emerging markets and concerns about the Eurozone. Eighty percent feel their organizations are unprepared to respond to such situations effectively.
2. Enhancing value proposition: There is consensus (71% of respondents) on the value of advanced vehicle features and functionality (connectivity, driver assistance and powertrain) to help drive loyalty, with 39% feeling well-prepared to meet the needs of the customers. There also is a greater recognition of the critical role of delivering seamless digital/in-store experiences and leveraging online resources to influence choice, to be critical to win and retain customers. Seventy-one percent of the respondents expect demand for digital experience to support their value proposition. However, only 13% of respondents feel well -prepared to leverage digital to improve the customer experience.
3. Gaining competitive advantage: Market penetration and expansion, owning innovation and having an effective corporate strategy development process top the list of strategic initiatives for C-suites to drive competitive advantage. However, 73% feel their organizations are not sufficiently prepared to implement strategic initiatives to gain competitive advantage. The report adds that it is important for C-suite to bridge the gap by establishing a network of technology and business model partners within and outside the auto industry to improve agility of innovation processes, optimize digital strategies (customer analytics tools) and first movers will need to make the most of a shorter window to capitalize on differentiation, whether from market/segment expansion or innovative marketing strategies.
4. Improving operational efficiency: Eighty-four percent of respondents cite a strong focus on data management and analytics initiatives as critical to drive operational efficiency and thereby enhance financial performance. However, only 12% portrayed confidence in their organization’s ability to execute.
5. Securing access to resources: Sixty-three percent of respondents believe critical resources can offer a competitive advantage; they also see these as necessary for business continuity. Talent topped the list of critical resources, followed by capital/infrastructure and technology. However, securing these resources continues to be a challenge for most of the industry, with 83% still not well-prepared.
Elena Badea, Marketing Director, EY Romania states:
"Players in the automotive industry need to move faster to leverage the convergence of connectivity, mobility and IT security, and the adoption of analytics and data management tools to drive operational efficiency. Also, they have the challenge to generate the capacity to respond faster to the shifting relationship with customers through a refreshed dealer and sales experience will also be paramount to drive and keep brand loyalty. This was highlighted by our study on the experience of buying auto vehicles in Romania."
About EY Romania
EY is one of the world's leading professional services firms with approximately 190,000 employees in 700 offices across 150 countries, and revenues of approximately $27.4 billion in the fiscal year that ended on 30 June 2014. Our network is the most integrated at global level and its vast resources allow us to help our clients benefit from every opportunity. In Romania, EY has been a leader on the professional services market since its set up in 1992. Our over 500 employees in Romania and Moldova provide seamless assurance, tax, transactions, and advisory services to clients ranging from multinationals to local companies. Our offices are based in Bucharest, Cluj-Napoca, Timisoara, Iasi and Chisinau. In 2014, EY Romania has affiliated to the only global competition dedicated to entrepreneurship, EY Entrepreneur Of The Year. The winner of the local edition represents Romania in the international finale that takes place every year in June in Monte Carlo. The World Entrepreneur Of The Year title is awarded at the international finale. For more information, please visit www.ey.com.