Automotive sector CEOs know that if they can’t meet their customers’ needs, the competition will. According to the findings of the KPMG Global CEO Outlook Survey, with 86 percent of automotive CEOs concerned about the loyalty of their customers, it appears getting it right isn’t an option, it’s an imperative.
This visual summary details the most critical challenges that auto CEOs expect to face over the next 3 years.
With the rise of connected vehicles (e.g. remote ignition, automatic brakes, smartphone connectivity), the automotive industry must face a challenge that has not been a challenge historically: hacking. The in-vehicle technologies meant to create a seamless user experience may themselves be used to compromise vehicle safety and handling. Auto companies face a steep learning curve associated with identifying and mitigating cyber-security risks – one they must steer if they are to provide the innovations their customers want while maintaining their brand integrity.
With 86 percent of auto CEOs concerned about the loyalty of their customers, it’s no wonder many are focusing their strategy on fostering innovations aimed directly at answering their customers’ demands.
Auto CEOs know that if they don’t provide what their customers want – their competition will. But understanding customers isn’t easy. 22 percent of CEOs in the automotive sector believe the biggest barrier to innovation is shifting customer dynamics – significantly higher than the 16 percent of CEOs globally who see it as a barrier.
The challenge is that customer evolution is not expected to slow anytime soon. Auto CEOs are coming to recognise this – along with the role emerging technologies can have in helping them shape, track and measure customer opinion. If auto CEOs can understand what customers are saying and can engage them in the right conversations, they can focus their corporate innovations and new technology investment where they will have the biggest impact.
This is where data and analytics (D&A) will be essential. Already, 32 percent of CEOs say their company is considered a leader in the use of data and analytics. But with 51 percent saying that they use D&A fairly effectively, there appears to be room for improvement.
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