The 2nd WiGeoH Evening at the Königlicher Pferdestall on 8 June 2023 was a great success. At the invitation of the Alumni Association of Economic Geography (WiGeoH), many economic geographers, but also interested parties from outside the field, met in the well-attended horse stable, not only to network over snacks and drinks, but also to follow the exciting lecture by Dr. Michael Nolting (VW Nutzfahrzeuge). It is an important topic for Hanover and Lower Saxony whether artificial intelligence is a beacon of hope or the gravedigger of the German automotive industry.
The core message was: artificial intelligence (AI) will "turn the automotive industry upside down" in the long term. In order to master this disruption, car manufacturers must draw the full potential from their data and be able to push out new services to their customers on a daily basis, according to Nolting. Only by using AI can they transform themselves from "sheet metal benders" to "tech giants". Michael Nolting outlined images of the future automotive world:
- It is not about optimising the core business and the previous processes, but about radically reinventing it. The actual goal of the digital transformation is to make the organisation flatter, more agile, more responsive, more customer-centric, more capable of cooperation and more capable of delivery.
- Digital services that are built into a car are becoming more and more important than the engine. The vehicle of the future is networked and thus provides a multitude of data on the condition of the car as well as on the habits of its owner. This flood of data would provide relevant insights for the customer experience.
- For decades, the focus of the automotive industry was exclusively on the vehicle range. In the meantime, it has been recognised that the shift from product to customer centricity is essential. The car is increasingly becoming a "white label product". With the manufacturer's modular model, companies from outside the industry could become car salesmen. A few brand-specific extras and sales could begin. Some Chinese smartphone manufacturers have already announced e-cars that focus on internet use, for example, gamer cars or influencer cars are now being offered.
- Rigid planning rounds for transformation. Organisations are usually designed to drive their core business and like to plan this 10 years in advance. The automotive industry is certainly a master at this. It is necessary to dissolve rigid hierarchies and long decision-making processes and to give more responsibility to the team. This increases the speed of adaptation. Tesla can basically configure each vehicle individually. Every week, 60 innovations could be added to a vehicle. In the German car industry, models are kept almost constant over 7 years.
- Buying a VW will be done online in the future. Overall, the boundaries between customer, dealer and manufacturer would disappear more and more: Consumers configure their dream car on their own. Dealers support this process with qualified online advice and virtual showrooms. Manufacturers are agilely aligning their production lines with customer needs.
A great lecture - thanks also at this point to Dr. Michael Nolting.
