To strengthen their position, and improve profitability by 4 to 5 percentage points, Tier 1 automotive suppliers (Tier 1s) now need to acquire digital mastery.
The traditional strategic planning process for Tier1s was linked to OEMs’ programs, which typically consist of two years’ engineering and design of a vehicle followed by seven years’ production. Acquiring digital mastery means overhauling the way Tier1s create and manage digital strategy.
Automotive suppliers now need to systematically evaluate the innovative digital opportunities available and prioritize them to maximize the bottom-line benefits. We outline a three-step process for doing this, working closely with both technology suppliers and future users.