0ProductDevelopmentintheAutomotiveIndustry:StrategiestoCircumventtheComplexityChallengeProductDevelopmentintheAutomotiveIndustry:StrategiestoCircumventtheComplexityChallengeJanuary31,2002UlrichNäher,WolfgangNeubert,ArnoAntlitz14567891011125.07.510.012.515.0NumberofmodelsisincreasingandproductlifecyclesaredecreasingSource:PressclippingsModelsperbrandNumberProductlifecycleYears19872000-30%-30%+25%+25%2602460%Mondeo1993/2000Reductiondrivenbyimplemen-tationofsimulationtechnologiesTime-to-marketisreduceddramatically*StartofproductionSource:Automobileproduction,AN,MIDMONTHFROMDESIGNFREEZETOSOP*4029C-class1995/200028%3832GolfIII/IV1991/9616%Reductiondrivenbyimplementa-tionofstringentqualitygatesOUTSIDE-INANALYSIS3Inaddition,urgencytowardsinnovationdrivesvehiclecomplexitySource:AutomobilEntwicklung,surveyresults,McKinsey/ikaTypeofinnovationinelectronicsPercentRadicalinnovationRadicalinnovationIndividualinnovationIncrementalmodification100%Today2010503020273043•BMWZ22carries70majorinnovationsand61patents•Objectiveistoensurenewtechnologyconceptsfor2005andbeyond•Approx.70-80%ofinnovationsareinthefieldofelectronics:–X-by-wire–CarPC–Centermonitor–Fingerprintrecognition–Head-updisplayVehiclecomplexity–exampleBMWZ22–Integratedstarter/alternator–Curvelight–Speechcontrol–Camerasforrearview–TelematicsIntegrationchallenge4KeyleverstoaddresscomplexitychallengeClearandprecisecustomerknowledgeandorientation1Efficientproductarchitecture–fromidentitytosimilarity2Valuechainadaptationtowardscompetencebasedstructures3ImproveddevelopmentprocessesleveragingITopportunities4Stringentqualityprocessesalongentiredevelopmentprocess5Projectorganizationcombininghighfunctionalandintegrationcapabilities6Source:McKinsey527.214.610.2198019902000IncreaseinproductvarietyandmodelchangerateisdrivingpassengercarmarketfragmentationSource:Schwacke1998,MarketingSystems,EIU,Automobilrevue,pressclippings,McKinseySHAREOFTOP-10SELLINGMODELSWESTERNEUROPE,1980-2000Percentageoftotalsalesunits6Marketsiz...
