the power of data in the automotive industry (cdk user event)

Business IntelligenceThe Power of Data in the Automotive Industry

Eslam Hussein

“Data is Becoming The New Raw Material of Business.”

Craig Mundie, Head of Research & Strategy, Microsoft.

What’s New about Data

Today ?

CDK Global - Customer Event - Business Intelligence

As of 2012, about 2.5 Exabyte's of data are created each day, that number is doubling every 40 month.

Volume of Data

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20200

10

20

30

40

50

60 Data in Zettabytes (ZB)

Data in Zettabytes (ZB)

Source “ATKearney”


Velocity• Speed of data creation• Real-time or nearly Real-

time

Variety • Messages, updates, and

images to social media• Reading from sensors• GPS signals from cell

phones

Velocity and Variety of Data


The Future of The Auto IndustryAccording to a Study done by McKinsey & Company the future road map of the auto industry:

• The China Factor

• Regulation from ‘Well to Wheels’

• Digital disruption (Connected Car)

• Rethinking Ownership

• Autonomous Vehicles and the soul of the car


Consumer are willing to share personal data with some Applications

“Are you aware that certain data is openly accessible to applications and share with third parties ?”

“Do you consciously decide to grant certain applications access to your personal data, even if you may have generally disabled this access for other applications?”

Yes88%

No12%

Yes77%

No23%

Source “McKinsey & Company”


Games

Media streaming

E-mail, other work-related applications

Fitness and health

Social media

Messenger services

Navigation and mobility

38

46

49

50

58

62

82

Consumers are most willing to grant access to Application that are directly related to driving

If you were to receive an application for free instead of paying for it, would you agree that the application could use your personal data in return? If so, which application would you grant access ?



24% 21% 55%

No Yes/but Yes

Customer’s willing to allow their Vehicles to send data to their Manufacturer under conditions

“Would you allow your car to track your location and report it anonymously (e.g., to enable your carmaker to improve the next generation of your car)?”


How Data-Driven Companies Preform ?Business cases of Data being Used


“6% more profitable and 5% more productive” “MIT Center for Digital

Business”

Prof i t Product iv i ty

6% increase

5% increase

Data Driven Comp VS Competitor’s

Non- Data drivenData Driven

Data-Driven Companies Vs Competitors

Automotive Examples on

the use of Data


Leveraging Analytics to Maximize Customer Retention

• Retaining an existing customer is less cheaper than acquiring a new one

• Customer’s can leak at any time on the customer journey

• Identifying possible causes of leakage and design strategic customer retention approach


SALES CYCLE

Presentation & close

PURCHASE

Financing Trade-inPresentation & close Vehicle selection

Enquiry ManagementDemand generation

AFTERSALES CYCLE

AWARENESS

Enquiry ManagementDemand generation

Service, Maintenance & Repair Check-in Preparation

OWNERSHIP EXPERIENCE

GROUP-WIDE FINANCE SYSTEM

IT INFR

AS

TRU

CTU

RE

DEALERBRIDGE INTEGRATED DATABASE

RE

PO

RTI

NG

& B

US

INE

SS

INTE

LLIG

EN

CE


Analysis Insight

Not Aware • Aware About Services/ Products

Not Engaged

• Engaged with Service Products

Not Satisfied

• Satisfied With Service products

Not Retained

• Retained Vehicles Servicing

Not Retained

• Retained (Vehicle Repurchase)

Not Retained

• Retained (Trade-In)

Customer Information Management

Value Chain Engagement

Customer Satisfaction

Retention Situation & Probability

Vehicle Purchase Customer

Identify Current Situation of overall customer Leakage Identify Specific Area of Leakage

Identify Actionable

Insights

Direction Setting

Analytics

Strategy Planning Analytics

AFT

ERSA

LES

CYC

LE

AWA

RE

NE

SS

Enq

uiry

Man

agem

ent

Dem

and

gene

ratio

n

Ser

vice

, Mai

nten

ance

& R

epai

rC

heck

-inP

repa

ratio

n

OW

NE

RS

HIP

EX

PE

RIE

NC

E

Source “Deloitte”


Information into Insight

Direction Setting

Analytics

Leakage

CausationPredictive

Strategy Planning Analytics

Price Elasticity

Geo Simulation

Source “Deloitte”

Getting Started with Data

Discuss

• Findings• Challenges

Design & Implement

• Experiment• Measure• Share

Metrics & Measures

• Data• Consistent

Challenge & Identify

• Key function• Opportunities

Business area Management focus Data Available

“Data’s Power does not Erase the need for Vision or Human Insight.”

Andrew MacAfee, Big Data the Management Revolution, Harvard Business Review.

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the power of data in the automotive industry (cdk user event)

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