what's happening in the automotive industry?

The automotive industry is constantly evolving and is now facing more disruptions than ever before. Automotive companies need to keep pace with technology and be proactive in order to stay afloat in a highly competitive market.

Now, it’s more important than ever to have a flexible, automated, and integrated, yet highly personalized mobility service offering. The next generational shift will be focused on creating a memorable experience for the customer, founded on data-enabled services.

the intelligent enterprise for the automotive industry

The best automotive companies have been thoroughly analyzed and it’s evident that the following core competencies are attributed to their success: customer centricity, connected cars with superior services, smart manufacturing, digitalized supply chain, and workforce engagement.

SAP offers the Intelligent Enterprise for the Automotive Industry which uses AI and machine learning coupled with IoT and Industry 4.0 to allow for accurate forecasts and predictions, efficient utilization of time and resources, and seamless decision making and implementation.


Optimize what they already do by implementing a stable and scalable digital core to make processes more transparent and integrated


Extend their current processes by connecting them to the real world using IoT technologies


Transform their business using a constant stream of data, enabling new service-driven business models

5 keys to success

be consumer centric
deliver mobility services
design connected cars
implement the digital supply chain and smart manufacturing
engage with a changing workforce

be consumer centric

customer centricity for a seamless customer interaction along the value chain

By 2021, 60% of tier 1 suppliers will leverage real-time data across the value chain and will have increased their focus on new product collaboration with OEMs to reduce time to market by 35%

A customer centric enterprise allows for seamless customer interaction along the entire value chain. With S/4HANA, get a real-time, 360-degree insight into customers and vehicles, giving you the ability to adapt the multichannel system.

deliver mobility services

establishing mobility services for new revenue streams

Because of increases in driver assistant and workload data sharing through cloud platforms, 20% of EMs implementing data management and monetization strategies will increase their market share by 2023.

A connected vehicle allows established companies to keep ahead of competitors by deploying new business models with the help of SAP S/4HANA.

Enabled by SAP’s scalable and flexible platform, automotive companies can introduce profitable on-demand and usage-based products and gain efficiencies across the entire value chain, thereby providing the end user a near-seamless, high-quality experience.

design connected cars

connectivity of each vehicle for instant insights and decision making

Reduction in asset service and maintenance cost

Reduction in asset master-data creation and maintenance effort

Smart, connected components in the mobility ecosystem allow companies to differentiate themselves in a crowded market. Enabled by SAP HANA® Enterprise Cloud, companies can detect and resolve issues for delivered products, with alerts that pinpoint faults. As a result, consumers now have more reliable products.

This reliability earns customer loyalty and drives future usage-based development and profits.

implement the digital supply chain and smart manufacturing

connectivity of each vehicle for instant insights and decision making

Five Levels of Connectedness for the Automotive Digital Supple Chain and Smart Factories

  • 1. Shop floor to top floor
  • 2. Machine to machine
  • 3. E-commerce integration
  • 4. Manufacturing and after-service collaboration.
  • 5. Vehicle network

60% of manufacturers will have empowered shop-floor workers with augmented reality and virtual reality, intelligent apples, and cobots by 2021, thus achieving productivity gains of up to 7% and more-attractive work environments

Recognizing the potential of IoT technologies to revolutionize the automotive industry, auto parts manufacturers turned plants into smart factories.

These can multiply efficiencies and cost savings by integrating shop-floor production processes from end to end with materials management and quality management processes.

engage with a changing workforce

engagement of a changing workforce from engineering to software driven skillsets

According to recent BCG research, the biggest perceived technology challenge is not data security or the need to invest, but a lack of qualified employees.

Companies improve both customer experience and employee satisfaction at hundreds of dealerships across the country by implementing Experience Management solutions from SAP.

The ability to integrate customer experience data with employee satisfaction data created a unified strategy to deliver two wins with one platform. With the new release of FIORI 3, S/4HANA, companies can better manage their workforce, increase productivity, flexibility, and adaptability all while simplifying the process and increasing the morale of the workforce.

quantified benefits of the intelligent enterprise for the automotive industry


Of new enterprise apps will embed artificial intelligence by 2025


Digital apps and services will be developed and deployed using cloud-native approaches by 2023.


of user interface interactions will use AI-enabled computer vision, speech, natural-language processing (NLP), and augmented or virtual reality by 2024


of automotive OEMs will integrate technologies such as AI and the IoT in new vehicle models by 2022 to more seamlessly integrate automation systems and in-vehicle infotainment


of automotive OEMs will design using real-time data by 2023 due to the need to personalized and enhance customer experience. This will increase revenue by 40% and reduce recalls by 25%


of discrete manufacturers consider Industry 4.0 as top priority

strategies to balance disruption & continuity in automotive

In the experience economy. Intelligent Automotive companies are challenged between


Running a profitable and traditional automotive business


While at the same time Disrupting the industry into a new agile mobility world







digital supply chain
and smart factory


engaging the
changing workforce


what can cognitus do for you?

At Cognitus, we take care and precision in understanding your company’s specific abilities and goals to bridge the gap between your goals and what SAP S/4HANA’s Intelligent Enterprise for the Automotive Industry owners. Cognitus has a long and colorful history with companies in the automotive industry. We have provided expert consults, tailored implementations, and thorough training for many prestigious automotive companies such as Bridgestone Firestone, Delphi, Isuzu, Tenneco, and AGC, among others. Partnering with us will guarantee your future success by allowing you to reap all benefits of SAP S/4HANA, while scaling your business and remaining an industry leader.