Transform and Perform
How automotive suppliers can keep pace in times of disruption and stringent OEM requirements
Shorter planning cycles, global competition, stricter regulatory requirements: Transformation is moving further into the focus of strategists and decision-makers of key industries - the automotive supplier industry is particularly affected. Be it with regard to OEM requirements or their own product portfolio: Anticipating disruptive momentum and adapting your own business accordingly is the core of strategic maneuverability. Parallelism is crucial: transformation rarely succeeds without high operational efficiency. If transformation is the steering wheel for the future of a company, then operational efficiency is its engine. Efficiency is a condition for financing change and thus a prerequisite for transformation. This strategy paper describes the effects of current changes on the market environment of the supplier industry and provides recommendations on how suppliers can open up new horizons.
- Adaptability in terms of organizational development and strategy is key. The ability to adapt is an attribute companies need to acquire and cannot copy
- Strategic transformation requires ambidexterity to exploit established business models, products or services, and to explore ways towards new value creation
- Innovation must be considered a source of competitive advantage. Most successful businesses have an idea for the future that is different from the present
- Establishing a company with a clear focus on agility, waste-free efficiency, and customer centricity will improve margins
- Sustainability can significantly increase long-term business value by addressing all three of its dimensions (environmental, social and economic)