Digital Disruption Runs Deep Among Automotive Manufacturers

David Parrish

Part 2 of the “Intelligent ERP-Driven Industries” series

Walking through a dealer showroom floor, it only takes a minute to see the vast influence of digital technology. Vehicles now park themselves and cruise hands-free. They send out and receive signals to keep our roads congestion-free and safe. Collective connectivity serves up convenient services such as closing a garage door and finding on-route gas stations. And within the next 12 years, 15% of new cars will take over the wheel entirely with autonomous features, according to McKinsey & Company.

Technologies including mobile services, the Internet of Things, and wireless and Internet connectivity are breaking down the boundaries of what our vehicles can do. But for the industry itself, this digital wave is uprooting traditional business models and processes to create greater efficiencies, uncover new cost savings, and form consumer and dealer relationships that are nearly unbreakable.

Revving up the future with connected intelligence horsepower

Take Karma Automotive, for example. Although its launch of Karma Revero earned high marks as the 2018 Luxury Green Car of the Year, the company’s success is more than just a feat of physical design and mechanical engineering. Rather, it all started with a platform that supports the end-to-end operations and processes of a full-fledged OEM and automotive company.

For Karma, it was essential to have one integrated platform to deliver one version of the truth to make the best possible decisions and empower anyone in the organization to determine the best solution and take action immediately. The company faced this challenge head-on by adopting a next-generation ERP suite and leveraging the flexibility and scalability of the cloud to create a single source of business intelligence.

From HR and finance to design, manufacturing, and delivery, Karma is running as efficiently as its 2018 Revero. Access to accurate, real-time information anytime and anywhere allows employees – from the shop floor to the boardroom to the dealer network – to make significant decisions, ranging from supplier selection and plant expansion to presence in regional markets and sales planning.

The combination of flexible operations and increased visibility into customer interactions and vehicle performance allows the business to simplify customer and dealer engagement with streamlined transactions such as vehicle order and warranty claims. However, the real value of Karma’s digital transformation is found in its closeness with its existing and potential customers as well as its dealer network.

Heading down the road to industry revolution with speed, affordability, and scalability

Although some commentators argue the industry is declining, some companies, such as Karma Automotive, prove otherwise. If we look at the automotive marketplace through the lens of an evolution, the acceleration of growth emerges in the form of new revenue streams, financial visibility, and operational efficiency enabled by cloud-driven data connectivity pulled into an ERP-supported digital core of business intelligence.

Check out how automakers such as Karma Automotive are reshaping the future of the industry with digital technology. Access our library of keynote and session replays from the Intelligent ERP Industry Virtual Summit to hear from top customers and experts as they discuss how intelligent ERP, industry road maps, and implementation can guide your automotive business throughout its digital journey.


David Parrish

About David Parrish

David Parrish is the senior global director of Industrial Machinery & Components Solutions Marketing for SAP. Before joining SAP, he held various product and industry marketing positions with J.D. Edwards, PeopleSoft, and QAD going back to 1999.