Identifying the Automotive Industry's Differentiating Business Processes

Having explored the value chain and identified the key stakeholders in the automotive ecosystem, it's time to focus on the specific business processes in the automotive industry.

One unique process in the automotive industry is the customer journey.

1. Today, most car sales start online. Often, these online interactions are due to targeted marketing campaigns. These interactions help car brands understand the needs and preferences of potential customers.
2. Typically, a customer shows interest in specific vehicles and visits the car brand's Web site to configure a vehicle with preferred colors and options.
3. At this point, a user profile is created, combining vehicle data with consumer data to get a 720-degree view of the opportunity.
4. Traditionally, car sales happen at dealerships, but the trend in the automotive industry is shifting to direct-to-consumer sales. By using the 720-degree view and creating targeted content, dealers can reach out to consumers directly to engage with them personally throughout the entire sales cycle.
5. In this new model, the customer journey is fully digital or occurs through brand-owned experience centers, which is different from traditional methods.
6. Once the customer has purchased the vehicle, they can use a mobile app to trade in their previous vehicle, further enhancing the overall experience.
7. Customers are provided real-time order updates and self-service options for insurance, enabling them to stay informed and manage their purchase conveniently.
8. The personalized order and delivery process now require a highly customized experience. Traditionally, the customer journey ended here, with companies waiting for consumers to be ready to buy or lease a new car. However, this is changing because of new industry trends and business models, such as vehicle subscriptions, feature-based subscriptions within the vehicle, and pay-per-use services, which are all significant revenue sources for automakers.
9. Finally, customers receive postsales support, including Over-the-Air (OTA) upgrades, predictive maintenance, remote diagnosis, mobile service, and more, ensuring a comprehensive and integrated customer experience even after the initial purchase.

In postsales, service appointments can be scheduled through various methods like Web sites, apps, or by contacting the dealership directly. Once at the service center, a work order is created, which may include checking for recalls or updates and addressing any customer complaints, which could be covered under warranty. For electric vehicle owners, maintenance is simpler and often allows for mobile or field service where technicians go to a customer’s house or place of business to do general maintenance, software updates, repairs, or even warranty claims.

Regardless of the vehicle type, customers expect a personalized and seamless experience with consistent updates to maintain long-term satisfaction.

The manufacturing of vehicles and the supply of components in the automotive industry is a specialized process.

• Vehicle manufacturers create production schedules based on demand and communicate this to suppliers through electronic data interchange (EDI).
• Critical components like seats and door panels are managed using just-in-time (JIT) delivery schedules, ensuring they arrive exactly when needed. Suppliers use this information to forecast, plan, and ship components accordingly.
• An Advanced Shipping Notification (ASN) is sent to keep the manufacturing line running smoothly.
• Components are shipped in returnable, purpose-built containers, and upon arrival, they are routed to the correct production area using a warehouse management system and a route train, maintaining just-in-time supply to production.

• Digital Customer Journey: The automotive industry is shifting towards a digital customer journey, with sales starting online and dealers engaging directly with consumers throughout the sales cycle.
• Extended Customer Experience: The journey continues postpurchase with real-time updates, self-service options, and support like OTA upgrades, ensuring long-term satisfaction.
• New Revenue Streams: Emerging trends like vehicle subscriptions and pay-per-use services are creating new revenue sources for automakers.
• Efficient Manufacturing: Automotive manufacturing uses precise demand-based scheduling and just-in-time delivery, with suppliers using EDI and ASN for smooth production.