Organizational Transformation in Response to Shifting Global Demands

Convergence is accelerating in the automotive industry and, combined with global market conditions, continues to exert extreme pressure. To respond to those pressures, organizations must move quickly to transform their operations, technologies and basic business models.

Automotive companies are affected by convergence from several perspectives, including the following: global synergies (with emergence of new markets requiring collaboration and unified product strategy); fusion of mechanics, electronics and communication (mechanical to electrical/ electronic to digital content); and cross-industry collaboration (consumer technologies integrated with sophisticated safety technologies from aerospace).

This paper discusses an organizational transformation approach that can help enterprises move into an agile model in order to exploit the synergies created by convergence. Automotive companies can reap considerable benefits by adopting a planned approach to this evolution.