In today's rapidly evolving automotive industry, digital transformation is no longer a choice but a necessity. Dr. Andreas Sicheneder, CEO of Audi Business Innovation (ABI), recently spoke at the Learning Curves event, shedding light on how small, agile digital units like ABI can drive significant changes in traditional car manufacturers such as Audi and the broader Volkswagen Group. His presentation, "How Corporate Owned Digital Units Boost Car Manufacturers to Go Beyond Engineering and Sales," provided valuable insights into the strategies and innovations that are pushing the boundaries of the automotive industry.
Dr. Sicheneder began by introducing ABI, a digital subsidiary of Audi located in Munich. ABI's primary mission is to implement digital transformation within the Volkswagen Group. Despite its relatively small size, ABI plays a crucial role in driving digitalization efforts, helping to bridge the gap between traditional automotive engineering and modern digital solutions.
The automotive industry is experiencing a fundamental shift, moving from a focus on engineering excellence to providing holistic user experiences. With the rise of electric and autonomous vehicles, customer expectations have dramatically changed. Today's consumers seek seamless integration of their vehicles into their daily lives, looking for experiences that extend beyond driving. This paradigm shift necessitates a new approach to vehicle design and functionality, where the car is seen not just as a mode of transport but as a multifunctional device integrated into the user's life.
One of the key challenges in this transformation is managing the complexity of modern vehicles. Traditional combustion engines, with their intricate assemblies of thousands of components, are being replaced by simpler electric drivetrains. However, this mechanical simplicity brings about a new set of complexities in software and digital integration. Dr. Sicheneder emphasized the importance of controlling the software stack and leveraging data to create new value propositions and business models.
The digital transformation is also reshaping the business landscape for car manufacturers. ABI is exploring new business models that extend beyond the traditional vehicle sale. This includes direct-to-consumer sales, subscription models, and various digital services that enhance the customer experience. Dr. Sicheneder highlighted the need for a protected, innovative environment where digital units like ABI can thrive, free from the bureaucratic constraints of larger corporate structures.
Innovation in the digital age requires interdisciplinary collaboration. ABI brings together teams with diverse skill sets, including designers, researchers, software engineers, and data scientists, to work on integrated solutions. These teams focus on customer-centric development, ensuring that every product and service meets real user needs and offers tangible value. Prototyping and co-creation with customers are integral parts of this process, enabling ABI to rapidly iterate and refine their offerings.
Looking ahead, ABI is focusing on several key areas to drive future growth and innovation:
Dr. Sicheneder's presentation at the Learning Curves event highlighted the transformative potential of corporate-owned digital units in the automotive industry. By fostering innovation, embracing new business models, and focusing on holistic user experiences, ABI and similar units are helping car manufacturers like Audi move beyond traditional engineering and sales. This shift is not only reshaping the industry but also setting new standards for how we interact with and think about our vehicles in the digital age.
The Software Excellence Network
The Software Excellence Network (SEN) is a European initiative that brings together industry leaders, innovators, and experts to foster collaboration and drive the advancement of high-quality software development practices. By sharing insights, tools, and strategies, the network aims to elevate software engineering standards across industries, enabling organizations to create more efficient, scalable, and sustainable software solutions. Through events, workshops, and peer-to-peer learning, SEN provides a platform for members to stay ahead of emerging trends, tackle complex challenges, and shape the future of software development.
