Is your business model and your stream of revenue under pressure? Is your rental fleet over aged and/or overvalued? Is utilization dropping? Are leased units coming back; getting stuck in your yard, not supporting your conversion ratios? Will your business meet the absorption rate targets for the next strategic period? Are your technicians idling or just doing warranty work? Are there new ways to drive utilization and efficiency? Can the conversions be improved by new customer interfaces?

All of the above are relevant challenges, worries and questions for players in the automotive industry, heavy truck or machinery business. The questions tend to become more complex and harder to answer. Multi brand 3rd party providers are entering the market merely by providing digital platforms for independent local players. And as a result giving them access to a much larger market. What does this mean and how should one meet this new competition?

Digital transformation

More and more cost benefit analyses show that you have to change your way of finding, maintaining current and winning new customers. How do you act on buzz words such as Omni channel, IOT, Disruptive innovation, Transportation IT solutions, B2A or Automotive IT solution? “Is the paradigm in your industry shifting”? Stores, Showrooms and big facilities are becoming less and less important. The trend has changed to such an extent that even high value items with long life cycles are procured online. There are examples of number of store visits going from 6 to 0.8 per buying decision for premium cars in just 5 years. This is why digital user experience in the automotive industry is vital for keeping existing and converting potential customers.

Opportunities and challenges

Who is tracking the developments and who is creating new methods, new offers and new platforms/interfaces for the customer experience? Well… should know! Many medium sized companies are still struggling with the IT related opportunities in terms of Transportation IT solutions, Automotive IT solution, etc. and how to truly create value by implementing change. I see two main reasons why this is a struggle.

The first and most challenging is the change of mindset. To realize that business is digital and that IT is business. All business models today rely on digital platforms to perform tasks, track the market and develop the offer. Even in the automotive industry, C level management must be aware, willing and capable of realizing this major shift towards Auto IT solutions.

The second hurdle is how to implement true change based on this insight. How can management teams find ways to incorporate the D (digital) at C (chief) level is the key? AC/DC (All Chiefs/Digital Chiefs) in the Management Teams are crucial for progress. Digitalization is becoming way too important to leave it to the CIO, right?

Implementing change successfully

In a progressive enterprise, business is always conducted between current and wanted position (in a lesser successful scenario it is between current and not wanted). Starting and implementing change in many cases is a difficult task, especially in a busy SME environment. To be successful one must find the right strategic partner to manage implementations and at the same time secure the future of the business through future proof Auto IT solutions. Legacy systems, customer base, value definition and creation must always be at the forefront. When driving change with minimized risk, a fail early approach is important to avoid disturbance in the current business process.

Register for the event Digital Outlook 2016

Our cooperation with Gateway Group (Gateway TechnoLabs) also allows us to provide adapted modularized bespoke auto IT management solutions for dealerships, workshops, parts distribution, OBD and Digital marketing.

If you find this relevant and want to know more, contact us on +46 721 686 867 / live:jonas.thoursie2

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You can also click here to register for the the event ”Digital Outlook” by Systemstrategerna and Gateway TechnoLabs, taking place on Oct 12 2016 in Gothenburg, in connection to Stora Leverantörsdagen 2016.