07 13.12.2022 Sales & Service Process Organization and Examples

Enterprise Architecture and IT in the Automotive Industry
Prof. Dr.-Ing. Dieter Schacher

Berlin, 13.12.2022

© GPE/Prof. Dr. Schacher - Forwarding requires the owner's permission. Page 1
Outline
u Sales & Service Process - Organization and Examples

u Key Lecture F. Hocke “IT Marketing & Sales”

Trends in Automotive Industry
Source: P.Nota, BMW, Automobilwoche Kongress Berlin, 7. November 2018

Core Business Processes with customer focus
Customer Lifetime
Services
Car Lifecycle
Services
Product Process
Customer Order Process
Customer Sales and Service Process
IT-Infrastructure
Source: Volkswagen 2002

Sales and Service Process
Customer Relationships along the Car Lifecycle & Customer Lifetime
§The sales and service process is one of the three core business processes which directly contributes to customer value creation.
§The customer relationship and service process comprise all customer-related activities from attracting potential customers to after sales services. Service
processes comprise product-centric services, such as spare parts, repairs and maintenance, and additional customer-centric services such as financing, leasing
or fleet management services.
Objective
Excellent
customer
Sales planning and capacity management retention
Marketing & Sales Sales

After
communi- organization & administra-
sales
cation development tion
Source: Legner, Ch., Dahlhoff, D. , Esch, F-R., Schacher, D., Georgi, Ch.:AIM Automotive Management Framework EBS Wiesbaden 2011 based on Schacher 2007, Schacher 2011

Sales & Service Process Levels 1, 2 and 3
Sales & Service Process Sales planning and capacity management
Marketing & Sales organization Sales

communication & administration After sales
development
Sales planning and capacity management

Warehouse Market-based Market/ Volume Volume Vehicle
control & locating volume and competition planning planning production
strategy sales management analysis for vehicles for properties program
Marketing & communication
Brand intelligence Definition of Product launch Agency deployment

CI & CD / verification
Sales organization & development / Sales administration

Dealers Fleet and Sales planning Operational pricing Administration,
development Regional managers target groups (short-long term) & promotions disposition
and distribution
After sales
Service technique Service Original Parts Accessories Homologation

organization regulation Training

Sales & Service Process Volkswagen (2004)
Mobility services
Buying the car Financial services
Financing the car
Fleet management Service Fleet management Event marketing

Car lifecycle services Customer lifetime service Source: Volkswagen AG, 2004

Customer Lifetime and Car Life Cycle Management
GW: Gebrauchtwagen, Used Car Source: Financial Services, 2012

Business Areas in Automotive Industry
Connected Mobility Solutions

Level 4 Mobility C2X / Web 3.0
Services Connectivity
Customer Customer retention

Level 3 Lifetime „from the cradle
Services to the grave“
Auto Mobility
Level 2 Car Lifecycle Assistance in event
Services of damage or loss
Genuine
Level 1 Automobile Developing, producing, selling of cars
Business
1960 2000 2020

Total cost for a car (in €), 2020, and share of expenses due to digitalization
(31.8%) (17.7%)
(72.4%)
(0%)
(avg 11% for digital)

(9.9%)
(33.4%)
(29.9%)
(9.9%)
(4.2%)
(4.2%)
(3.1%)
(4.2%)
(4.2%)
(8.7%)
16,261€ = 65% (avg 5% for digital) 2,897€ =12% (avg 23% for digital)
19,158€ = 77% (avg 8% for digital) 3,304€ = 13% (avg 32% for digital)
Source: based on E.Wimmer, automotiveIT Kongress, 26.10.2020
IT in the Car– New Business Fields
Volkswagen E3 end-to-end
Source: Probst (BMW) 2010, Volkswagen Automobilwoche Kongress 2017

Software-defined Vehicle: Transforming the development process
„hidden software“ „centralised software“

50-200 ECU 2-5 central computer
HW/SW package from supplier Inhouse-programming
lean reuse 1 Car.OS for ALL cars
Source: based on Ph.Wibbing, UNITY, based onvolkswagen-newsroom.com/en/press-releases/volkswagen-realigns-technical-development-shorter-product-cycles-and-faster-digital-offerings-7768

Value Creation Software-defined Vehicle
Source: Andrea Denger et al., AVL, Prostep Symposium 2022, based on Köhler (Strategy Engineers), 2021

Alternatives of Software Development for Software-defined Vehicles
Source: Hort, Chr. Tischler, J., T-Systems , AutomotiveIT Kongress 2022

Touchpoints in sales processes
Source: BMW 2022

Marketing & Sales Channels
Three physical Dealership Touch-Points are essential:
Test Drive, Car Delivery and Service
Source: Volkswagen 2020, Malte Krüger, mobile.international, Automobilwoche Kongress 2013, based on K&A BrandResearch 2012

Car Sales Process Past : avg. 4 visits to the dealership
Source: BMW, S. Wurst, Berlin Automobilwoche Kongress 14.11.2014

Car Sales Process Today: avg. 1.4 visits to the dealership
Source: BMW, S. Wurst, Berlin Automobilwoche Kongress 14.11.2014

Distribution channels of the Customer Lifetime Services
Source: volkswagenag.com/presence/investorrelation/publications/presentations/2019/09_september/2019-09-10_Volkswagen %20Debt%20Investor%20Day%20IAA.pdf

Sales & Service Process – Integrating Automotive and Financial Services
Source: www.volkswagenag.com/vwag/vwcorp/content/de/investor_relations/fixec_income/annual_report.html

Car Sales Process Today II
MSRP: manufacturer's suggested retail price Source: Malte Krüger, mobile.de, Automobilwoche Kongress 17.11.2016

Redefining User Experience
Source: Hui Zhang, Nio , Automobilwoche Kongress Berlin, 7. November 2018

Redefining User Experience Example Nio
Source: Hui Zhang, Nio , Automobilwoche Kongress Berlin, 7. November 2018

The automotive retail sector will look substantially different in the next 10 years
Source: PwC - The Future of Automotive Retail - 2018

Business Trends in Automotive Industry: The new value chain
2020 2030 2040 Source: Accenture Study on Mobility as a Service

Market potential of Connected Services 2025 – 2030 (in €)
Source: CAM, Connected Car Innovation Studie 2021

Collecting data, connecting, synthesizing and orchestration
Source: E.Overbeek, HERE Data, Automobilwoche Kongress 09.11.2017

Consumer confidence on data transfer to groups of players
Source: automotiveIT 01 2021, based on Deloitte

Seamless Connectivity - Example QOROS Cloud / Porsche Connect
Car
Care
Smart
City
Cloud
Enhanced
Navigation
Safety
Leisure
& Social
Source: QOROS 2015, Porsche 2021

Connected Car service : Payment out of the car (Project Mercedes + Visa)
Source: www.cio.de/a/der-mercedes-zahlt-fuers-tanken-oder parken,3671362?utm_source=CIO+News&utm_medium=email&utm_campaign=newsletter&tap=18976bdfb0e1ea36f2f805d6c02ea3e3, 09.11.2021

Automotive Industry CASE evolves: S for Shared becomes Smart (Mobility)
Connected Electric
Automated Smart Mobility
Source: PwC Strategy&, Digital Auto Report 2020

Mobility Concepts
CAR-SHARING RIDE-HAILING POOLING

SCOOTER-SHARING
BIKE-SHARING
Source: Moia 2017

New Mobility Investments
Source: Moia 2017

Mobility Concepts and Sharing Services Provider
Source: Mobility Services Report 2021, based on CAM

Uber`s Ride-Hailing Business
Quarterly gross bookings, net revenue and net profit/ loss since Q1 2017
Source: www.statista.com/chart/12059/uber-revenue-bookings-and-net-loss/

Mobility Service Quality by OEM, 2021
Source: Mobility Services Report 2021, based on CAM

The Mobility Management Framework
Source: Legner, Ch., Dahlhoff, D. , Esch, F-R., Schacher, D., Georgi, Ch.: AIM Automotive Management Framework, EBS Wiesbaden 2011

Outline
u Sales & Service Process - Organization and Examples

u Key Lecture F. Hocke “IT Marketing & Sales”

Key Lecture: IT Marketing & Sales, Frank Hocke
Senior Automotive and IT expert
Frank`s carrier path (elective):

Volkswagen AG, Manager
1980 – 1999
gedas North America, Vice President and CIO
1999 - 2004
FAW Volkswagen China, CIO and Head of Management Services
2004 – 2008
Volkswagen AG, Senior manager, Head of ITP-Vehicle Service
Aug. 2008 – Oct. 2010
Volkswagen AG, Head of IT Sales Division Germany
Oct. 2010 – Nov. 2017
Volkswagen Group Rus, Head of Processes and IT Russia
Oct. 2017- Jan. 2020
Volkswagen AG, Senior manager
2020 – Oct. 2021 (Retirement)
Source: based on Xing/linkedin.com/in/frankhocke

Questions

Happy Holidays
Enterprise Architecture and IT in the Automotive Industry 53


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Enterprise Architecture and IT in the Automotive Industry

Prof. Dr.-Ing. Dieter Schacher

Prof. Dr.-Ing. Dieter Schacher

u Sales & Service Process - Organization and Examples

Prof. Dr.-Ing. Dieter Schacher

Source: P.Nota, BMW, Automobilwoche Kongress Berlin, 7. November 2018

Prof. Dr.-Ing. Dieter Schacher

Prof. Dr.-Ing. Dieter Schacher

Marketing & Sales Sales

Prof. Dr.-Ing. Dieter Schacher

Marketing & Sales organization Sales

Sales planning and capacity management

Marketing & communication

Brand intelligence Definition of Product launch Agency deployment

Sales organization & development / Sales administration

Service technique Service Original Parts Accessories Homologation

Prof. Dr.-Ing. Dieter Schacher

Fleet management Service Fleet management Event marketing

Prof. Dr.-Ing. Dieter Schacher

GW: Gebrauchtwagen, Used Car Source: Financial Services, 2012

Prof. Dr.-Ing. Dieter Schacher

Connected Mobility Solutions

Customer Customer retention

1960 2000 2020

Prof. Dr.-Ing. Dieter Schacher

(avg 11% for digital)

Prof. Dr.-Ing. Dieter Schacher

„hidden software“ „centralised software“

Source: based on Ph.Wibbing, UNITY, based onvolkswagen-newsroom.com/en/press-releases/volkswagen-realigns-technical-development-shorter-product-cycles-and-faster-digital-offerings-7768

Prof. Dr.-Ing. Dieter Schacher

Prof. Dr.-Ing. Dieter Schacher

Source: Hort, Chr. Tischler, J., T-Systems , AutomotiveIT Kongress 2022

Prof. Dr.-Ing. Dieter Schacher

Source: BMW 2022

Prof. Dr.-Ing. Dieter Schacher

Prof. Dr.-Ing. Dieter Schacher

Source: BMW, S. Wurst, Berlin Automobilwoche Kongress 14.11.2014

Prof. Dr.-Ing. Dieter Schacher

Source: BMW, S. Wurst, Berlin Automobilwoche Kongress 14.11.2014

Prof. Dr.-Ing. Dieter Schacher

Source: volkswagenag.com/presence/investorrelation/publications/presentations/2019/09_september/2019-09-10_Volkswagen %20Debt%20Investor%20Day%20IAA.pdf

Prof. Dr.-Ing. Dieter Schacher

Prof. Dr.-Ing. Dieter Schacher

Prof. Dr.-Ing. Dieter Schacher

Source: Hui Zhang, Nio , Automobilwoche Kongress Berlin, 7. November 2018

Prof. Dr.-Ing. Dieter Schacher

Source: Hui Zhang, Nio , Automobilwoche Kongress Berlin, 7. November 2018

Prof. Dr.-Ing. Dieter Schacher

Source: PwC - The Future of Automotive Retail - 2018

Prof. Dr.-Ing. Dieter Schacher

2020 2030 2040 Source: Accenture Study on Mobility as a Service

Prof. Dr.-Ing. Dieter Schacher

Source: CAM, Connected Car Innovation Studie 2021

Prof. Dr.-Ing. Dieter Schacher

Source: E.Overbeek, HERE Data, Automobilwoche Kongress 09.11.2017

Prof. Dr.-Ing. Dieter Schacher

Source: automotiveIT 01 2021, based on Deloitte

Prof. Dr.-Ing. Dieter Schacher

Source: QOROS 2015, Porsche 2021

Prof. Dr.-Ing. Dieter Schacher

Source: www.cio.de/a/der-mercedes-zahlt-fuers-tanken-oder parken,3671362?utm_source=CIO+News&utm_medium=email&utm_campaign=newsletter&tap=18976bdfb0e1ea36f2f805d6c02ea3e3, 09.11.2021

Prof. Dr.-Ing. Dieter Schacher

Automated Smart Mobility

Source: PwC Strategy&, Digital Auto Report 2020

07 13.12.2022 Sales & Service Process Organization and Examples

07 13.12.2022 Sales & Service Process Organization and Examples