Rippling Changes in the Auto Industry

Dramatic change is underway in the auto industry in recent years. There have been significant changes to the auto industry in the last 7 years, ranging from environmental factors to innovative design and the introduction of 'over the air' software updates and online ordering for cars by Tesla. The demand for digitization fueled by changes in other areas of a consumer's day-to-day life, has now found its way to the car.

Japanese Earthquakes Affect Supply Chain

From April 14-16 of 2016, Japan was rocked by two massive earthquakes along the Kumamoto Prefecture on the island of Kyushu. This event not only ripped apart the island, destroying properties and causing utter devastation in its wake, but also ground automotive production in Japan to a startling halt. As a primary producer of complete vehicles and parts supplier for Toyota, Lexus, Prius, GM and many other automotive brands, Japan’s automotive industry drives the delivery and supply of cars all over the world. The immediate aftereffects included shutting down plants and suspending production, causing delays and shortages in the supply chain that rippled across the auto industry worldwide. Now a year later, manufacturers have united to form a strong, cohesive network to provide automotive parts in the likelihood of disasters or unexpected events. Several manufacturers have also considered moving plants or setting up alternate production plants in other countries or locations.

Autonomous Driving Software

Since Tesla’s launch of autonomous driving software, more and more tech companies are looking to collaborate with automakers to drive innovation and reinvent ground transportation for the digital age. Japanese automotive components company Denso has invested heavily to support early stage technologies to support autonomous driving and improve cybersecurity in cars. Since 2011, the number of tech startups in transportation has doubled.

While high tech has been in the auto industry primarily as a supplier for a long time, it's only now that these companies are entering the market as direct competitors, according to Egil Juliussen, director of research at IHS Automotive, who has been tracking the changes in the automotive industry worldwide and particularly in car technology. In fact, the number of cars with connectivity has jumped to 81 million since 2015 and is expected to grow as much as 345 million by the year 2022.

New Opportunities Available in Auto Tech World

Given this new market potential with huge players from both the automotive and technology industries, it is clear that exponential growth is inevitable as smart technology integrated into cars becomes standard.

Japan Provides Great Beta Test Environment

In Japan where technology already plays such a significant role in the lives of consumers on a daily basis, this next step is not only natural but will be faster than in other areas of the world. This offers an unprecedented opportunity for auto manufacturers, technology companies and most notably, individuals who recognize this and take action to provide solutions. The Japanese market also offers a viable and fast beta testing environment for constant improvement, iteration and delivery. 

Technology Driving Inventory Management

Additional areas of improvement in the automotive world where technology can provide better solutions include inventory management. For example, after the earthquake in Japan, Toyota and Nissan both developed supply chain databases to protect themselves against unexpected losses and to monitor usage and supply better.

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CGU Marine

Recent work from a site design project for CGU Marine, a new powerboat company from Naples, Florida! As the first boat is ready, the site will go live!

We've worked with CGU www.cgunlimited.com over the years. We're happy and grateful to continue our work together as they grow, continue to do great work and launch new products and services. Thank you!

Three Questions to Ask to Create a Business of Value

As we work with our clients on any endeavor, large or small, we always aim to help our clients grow. Growth goals vary by company.  For some, the goal is to grow their existing customer base and audience. For others, it is to hone in on the most effective part of their current offering and amplify it, while removing distractions and other aspects that are less useful or relevant.

Sometimes it also involves drilling down to remember why that company exists in the first place so that the people involved can do satisfying work that they excel at and to keep their companies growing for the future. This applies to everyone within the company and thus offers a better fit between employees and work; greater job and employee satisfaction; higher productivity; and higher returns. It also helps in removing unnecessary expenditures and identifying areas that are not the best utilization of resources, whether it is time, capital, human labor or a combination of all of the above.

This approach builds upon the clear strategy and advice offered by Jim Collins in the book, Good To Great. In this book, Jim lays out 3 essentials to help build a business of true value. These 3 essentials are:

- what you can do
- what you love to do
- what customers pay you well to do.

Building a business of value lies at the intersection of these three areas.  We've taken this further and adapted it for our clients. Learn more about Our Approach.

In addition to this, we also have three questions or organizing principles that we think can help in creating and updating a business.

1. Where do you think the world is moving?

2. What are problems that you can solve?

3. What are some ideas you have that can be designed for a better future?

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