KPMG and Egon Zehnder Find Automotive Industry Culture a Roadblock to Digital Transformation
A comprehensive study of the automotive industry has found that driving cultural change is one of the most significant barriers to digital transformation. Leaders recognize the unprecedented challenge now facing them, but have yet to establish the digital-ready culture needed to meet it.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190416005064/en/
The research, published jointly today by KPMG and Egon Zehnder, asked over 500 senior executives globally about the effects of Digital Gravity – the study’s term for the forces that compel companies to prepare for digital transformation.
Key findings from the study included:
- 92% of executives believe that their company culture must be redefined to face the challenge of digital transformation but over half (55%) have failed to do this. Even fewer are open to specific shifts towards a digital-ready culture such as creating a failure-tolerant environment (28%) and flattening hierarchies (34%).
- Executives are still thinking about digital transformation in terms of process change rather than a shift in mindset. 57% of interviewees cited process change as a prerequisite for digitalization, while cultural change and leadership awareness were cited least frequently (by 43% and 39% of executives).
- When asked about AI and other digitalization technologies, almost 50% reveal their company is an “early follower”, while only 40% aim to be first movers. Japanese executives show particular hesitancy to use these technologies, with 43% saying they are a “late follower” vs 10% globally.
- The most popular approach among automotive executives is to drive digitalization by cooperating with players from their own industry rather than with disruptive non-industry players or tech companies.
- 66% say that traditional and new business models need to run “side by side,” while only 34% are willing to risk lower returns in the short term by radically pivoting to a digital-ready business model.
Dieter Becker, Global and EMA Head Automotive Practice, KPMG International: “Our survey clearly shows that the industry is caught up in its traditional ‘product optimization’/tech mindset and ‘I can do it all myself’ approach. A clear and revolutionary vision is lacking. What’s needed to positively shift the automotive industry are bold, equitable partnerships with external and digital players. We are entering an era where cultural hires and Diverse Network Families (DNF) are a must for the industry moving forward.”
Christian Rosen, Global Head of the Automotive Practice of Egon Zehnder, calls for humble leadership which empowers a new culture that bridges the gap between traditional and digital expertise: “Digital Gravity is irresistible, but the industry can meet this challenge by adopting a more open, collaborative style of leadership and creating a culture of self-invention.”
Both authors praised the high degree of awareness documented throughout the survey. They also acknowledged that new players have the advantage of starting with a digital-first mindset rather than pivoting a well-established business. In the words of Dieter Becker of KPMG, having to shift business model is “not necessarily a disadvantage – it can be transformed into a winning hand.” “In the end,” adds Christian Rosen, “those players who can balance digital transformation and high-class production will emerge victorious in the mobility sector.”
For all of the study’s findings, please visit https://automotive-institute.kpmg.de/egonzehnder
Notes to editors
The findings of this study are divided into two categories:
- the current state of internal, external, and technological drivers;
- a roadmap for tackling Digital Gravity from within (organization, culture, leadership)
For this survey, we interviewed 527 high-level executives. This was evenly distributed (approx. 25% each) between CEOs/presidents/chairmen, C-level executives, heads of business unit/business division, and heads of department, providing us with insights into every executive level.
Executives were not given a definition of “digitalization” but rather asked about their own approach and understanding of the term.
More than one-third of the respondents are based in Europe, while 15% come from North America. 71 executives, or 13%, work in the Mature Asia region of Japan and South Korea. 7 to 10% each originate from China, India & ASEAN, South America, and Eastern Europe. The Rest of the World is represented by the remaining 3%.
27% of our respondents work at companies with revenues of between US$1 billion and US$10 billion, and 21% at companies with revenues higher than US$10 billion.
The survey was conducted mainly online and took place between December 2018 and January 2019. A further 30 experts were interviewed separately to provide additional individual input for our evaluation.
About Business Wire
(c) 2018 Business Wire, Inc., All rights reserved.
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Subscribe to releases from Business Wire
Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from Business Wire
Gilead Sciences to Release Second Quarter 2019 Financial Results on Tuesday, July 30, 201916.7.2019 20:05:00 CEST | Press release
Gilead Sciences, Inc. (Nasdaq: GILD) announced today that its second quarter 2019 financial results will be released on Tuesday, July 30, after the market closes. At 4:30 p.m. Eastern Time, Gilead’s management will host a conference call to discuss the company’s financial results for the second quarter 2019 and provide a business update. The live webcast of the call can be accessed at the company’s Investors page at http://investors.gilead.com/. Please connect to the company’s website at least 15 minutes prior to the start of the call to ensure adequate time for any software download that may be required to listen to the webcast. Alternatively, please call 877-359-9508 (U.S.) or 224-357-2393 (international) and dial the conference ID 8696029 to access the call. Telephone replay will be available approximately two hours after the call through 8:00 p.m. Eastern Time, August 1, 2019. To access the replay, please call 855-859-2056 (U.S.) or 404-537-3406 (international) and dial the confere
MSCI Schedules Investor Conference Call to Review Second Quarter 2019 Results16.7.2019 14:49:00 CEST | Press release
MSCI Inc. (NYSE: MSCI), a leading provider of critical decision support tools and services for the global investment community, announced today it will release its results for second quarter 2019 on Thursday, August 1, 2019. MSCI's senior management will review the second quarter 2019 results on Thursday, August 1, 2019 at 11:00 AM Eastern Time. To listen to the live event, visit the events and presentations section of MSCI's Investor Relations homepage, http://ir.msci.com/events.cfm, or dial 1-877-376-9931 conference ID: 7743929 within the United States. International callers dial 1-720-405-2251 conference ID: 7743929. The earnings release and related investor presentation used during the conference call will be made available on MSCI's Investor Relations homepage. An audio recording of the conference call will be available on our Investor Relations website, http://ir.msci.com/events.cfm, beginning approximately two hours after the conclusion of the live event. Through August 4, 2019,
Keio Plaza Hotel Tokyo Offers “Tea Ceremony Experience and Luxurious Accommodations for Families” Package16.7.2019 14:05:00 CEST | Press release
Keio Plaza Hotel Tokyo (KPH), one of Japan’s most prestigious international hotels located in Shinjuku, Tokyo, will begin offering a special summer accommodation package entitled “Tea Ceremony Experience and Luxurious Accommodations for Families” from July 20 to September 1, 2019. This accommodation package has been specially designed to keep families with children entertained by providing the unique cultural experience of a Japanese tea ceremony as fond memories of their summer vacation at our Hotel. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190716005325/en/ With the accommodation package, guests with children could experience unique cultural Japanese tea ceremony to learn how to make a green tea and its history. (Photo: Business Wire) The rooms offered in this accommodation package are the very popular “Two Queen Beds Rooms” located on the “Premier Grand” club floors with use of the Club Lounge included. The rooms are
Andersen Global Enters Senegal, Expands Presence in Africa16.7.2019 13:30:00 CEST | Press release
Andersen Global is proud to announce a collaboration agreement with Cabex, one of the oldest legal and tax consulting firms in Senegal. Senegal thus becomes the thirteenth African country where Andersen Global has a member or collaborating firm offering legal services. Located in Dakar, Cabex has been offering services to local and foreign clients from the public and para-public sectors on matters relating to national and international issues for nearly thirty years. “Collaborating with Andersen Global shall expand our international scope and our transborder capabilities while giving us additional opportunities to expand into new markets,” Papa Alassane Ndir, Partner & General Manager at Cabex, said. “Henceforth, we are going to collaborate with many colleagues and experts from around the world and will be in a position to provide our clients more in-depth expertise.” Cherif Diaite, Partner & Technical Manager at Cabex, indicated that, “Owing to the challenge at an international level,
Mercatus Opens UK Office; Hires Chris Webb to Lead European Operations16.7.2019 13:00:00 CEST | Press release
Mercatus, a leading asset and investment management platform for alternative investors and asset managers, today announced the opening of its European Headquarters in London, UK and the addition of Chris Webb as Senior Director leading the office in London. Chris was formerly a Global Director of Strategic Business Growth at FIS, with a deep focus on, and expertise in, alternative investments. “As Alternative fund managers and investors across Europe continue to embrace technology – and data – as a competitive weapon to drive future accelerated growth, we’re putting our resources in some of the largest markets. Our London office will be a critical hub for our workings in the UK, expanding upon our other offices in Silicon Valley, New York, Austin, Rome and Pune, India,” said Haresh Patel CEO of Mercatus. “We will continue to expand our local presence across Europe and Asia as our customers have deal and asset management teams in 118 countries with $540B AUM operating within the Mercatu
LivaNova Combats Leg Ischemia with Breakthrough Bidirectional Cannula16.7.2019 13:00:00 CEST | Press release
LivaNova PLC (NASDAQ:LIVN), a market-leading medical technology company, today launched its innovative arterial femoral cannula, Bi-Flow, designed to prevent limb ischemia during cardiac surgery. LivaNova Bi-Flow received CE Mark earlier this year and is the only bidirectional arterial cannula designed to prevent leg ischemia during cardiac surgery procedures requiring femoral artery cannulation. In a clinical study, Bi-Flow was easily inserted and removed without complications and was proven to provide simultaneous systemic and distal perfusion of the limb in a safe and reproducible way.1 Leg ischemia is caused by compromised blood flow to a lower limb and can affect up to 11% of patients undergoing complex cardiac surgery procedures.2 Consequences can include higher mortality, higher morbidity and longer hospital stays.3 The first procedure in Europe using a Bi-Flow cannula was performed by Patrick Perier M.D., FACS, at the Cardiovascular Center of Bad Neustadt, Germany. “I truly bel