KPMG'S PERSPECTIVE ON AUTOMATION: THE NEW BUSINESS IMPERATIVE LEARN MORE

The Clockspeed Dilemma

Smartphones and the apps that run on them are constantly updating and innovating, but in the car industry, innovation runs at a slower pace. How can your business work across platforms that operate at “app speed”?

Consumers are on-the-go more than ever, and living at app speed is the new norm

  1. Seniors are more mobile
    79% of people want mobility options for seniors
  2. Kids are more mobile
    82% of people asked in focus groups would want mobility options for kids
  3. Millennials were raised on mobility
    80% of use technology easily and trust it
70 %

Americans travel more

U.S personal miles traveled per capita

2014-2050, miles in thousands

2014
2050
0-15
16-24
25-34
35-44
45-54
55-64
65-74
75-84
85+

Note: (a) Dicounted 25% from U.S. BTS total VMT for 1995, 2001, 2009, 2014 (assumed to be commercial miles), (b) Multiplied by NHTS occupancy rates applied 2009 rate to 2014 numbers. Source: US BTS data, U.S. Census data, KPMG Analysis

These on-the-go consumers expect app-speed innovation—even in their cars—but legacy manufacturing wasn’t built for that pace

car
5-7 YEARS FROM DESIGN TO STREET
NEW CAR
phone
NEW PHONE MODELS EVERY YEAR
A PHONE
app
3 MONTHS
A NEW APP

The steps to address this “clockspeed dilemma” include

car
Bridge the gap between tech and consumer expectations
car
Secure new talent
car
Invest in risks
car
Partner with innovators
car
Think disruptively
car
Build global awareness of innovation
car
Work at app speed

Those who solve the clockspeed dilemma will change their marketplaces and connect with customers by delivering on expectations

stage 1 stage 2 stage 3 stage 4
STAGE 1

Integrate into your process

STAGE 2

Make production faster

STAGE 3

Satisfy your customers

STAGE 4

Change the marketplace