The clockspeed dilemma | KPMG | CA

The Clockspeed Dilemma

The Clockspeed Dilemma

Clockspeed Dilemma examines how the automotive industry must innovate to respond to changes in consumer behavior and rapid technological innovation.


Partner, KPMG Corporate Finance Inc.

KPMG in Canada


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The clockspeed dilemma

Changes in consumer behavior are accelerating the pace of innovation in the auto industry. This report examines how the industry must transform and solve the “Clockspeed Dilemma” – the different pace that exists between the innovation and product development cycles.

An accelerated pace of innovation is occurring at different rates in the key areas of mobility-on-demand, autonomous, vehicles and connectivity. Consumers expect a safe and reliable car, with new expectations towards improvements after purchase, similar to their tablets or smartphones upgrading throughout the ownership cycle. There are different clockspeeds for those expectations and the auto industry must work within them all.

What are we seeing in the market?

Personal miles will soar. Our models project as much as an additional trillion miles or more by 2050

Tech giants & disruptive start-ups are here to stay and they are driving new technology into the market at a fast pace

Changing views toward premiums - what millennials or their children think of as premiums won’t be the same as baby boomers today

What could auto companies do to keep pace with technological innovation?

Create flexible vehicle architecture to interface with all the evolving technologies

Face the obstacles that inhibit innovation

Develop company-specific strategies to align the organization for fast-paced innovation

Customers demand mobile flexibility and connectivity in their car. To be successful, auto makers must now adapt to keep up with the rapidly evolving technology.

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