H&Z Management Consulting - Consulting with head, heart and hand

Automotive Innovations for the Mobility of Tomorrow

Innovate and excel in the ever-changing automotive landscape by embracing sustainability and cutting-edge technology. We work with you to craft strategies that not only keep your business competitive but also future-ready. By seamlessly integrating these strategies into your operations, we enhance efficiency, drive innovation, and ensure your success in every dimension of the industry.

Detail of a modern electric car

Driving Innovation and Resilience in the Automotive Industry

The automotive industry has entered a decade of unprecedented innovation, driven by technological disruption, the push for sustainable solutions and – especially in Europe – the inherent need to drive circularity.

 

At the same time, geopolitical uncertainty tests global supply chains for resilience and the long-established balance of power reshuffles as incumbent OEMs in Europe and the United States of America are challenged by both new and established Asian players, especially from China. Today, software defines vehicles and smartphone manufacturers become OEMs. This is automotive transformation in a nutshell.

 

Our automotive industry experts at H&Z Management Consulting support our clients to navigate uncertainty towards the mobility of tomorrow. Together, we transform. We develop and implement cutting-edge strategies and envision innovative products, services, and business models that add the competitive edge needed to win.

What we do

Modern building of a vehicle manufacturer

Stabilising your business and closing the competitive gap to new market entrants

To reduce product costs and achieve operational excellence, it's crucial to streamline expenses and enhance value. By implementing strategies like cost value engineering, modularisation, and standardisation, companies can improve R&D efficiency, accelerate time to market, and create a reliable product cost baseline, which is vital for long-term stability and resilience in a fast-evolving industry.

Driving Cost Competitiveness: Reducing Expenses Across the Board

 

In the automotive sector, achieving cost competitiveness requires a dual focus on reducing product costs and operational excellence. By utilising cost value engineering, modularisation, and standardisation strategies, companies can boost R&D efficiency, decrease time to market, and establish a dependable product cost baseline—ensuring resilience and stability in a rapidly changing landscape. This method not only cuts expenses but also enhances value where it counts.

 

Future-Ready Product Development: Lowering Costs, Boosting Efficiency

 

To drive future product development, it's essential to minimise costs related to hardware, software, and processes, including critical aspects like battery right-sizing for electric vehicles. Adopting a platform strategy that prioritises modularisation and standardisation naturally enhances R&D efficiency, speeds up time to market, and establishes a solid product cost baseline. Aligning these efforts with industry needs ensures both cost efficiency and innovation.

 

Operational Excellence and Supply Chain Resilience: Ensuring Long-Term Stability

 

Achieving operational excellence and optimising end-to-end processes are vital for maintaining a stable and resilient operation. By enhancing supply chain resilience through strategic purchasing strategies, businesses can stay agile and responsive to market changes, especially in light of global geopolitical uncertainties. Our focus on reducing product costs and implementing cost value engineering helps streamline expenses and improve overall value.

Electric vehicle on the road

Rebalancing your strategy for battery electric mobility and improving future readiness

Maintaining market relevance requires balancing internal combustion engines (ICE) with electrification through strategic investments. Scaling up and vertically integrating battery supply chains will help secure a competitive advantage in the changing automotive landscape.

Strategic Alignment: Balancing ICE and Electrification for Future Success

 

Successfully aligning the end-game strategy for ICE with electrification involves making strategic investments in strong future scenarios. By extending the product lifecycle of internal combustion engines and effectively addressing local market needs, companies can ensure they remain relevant during this transition, aligning their efforts with industry trends. Leveraging expertise in strategic alignment allows businesses to optimise their investments, creating a smooth integration between ICE and electrification strategies that cater to both local and global market demands.

 

Investment and Advisory Excellence: Navigating Complex Supply Chains and Technologies

 

Navigating the intricate landscape of battery gigafactories and the global supply chains for battery cells and raw materials, which are largely dominated by China, requires advanced strategies. Key components include:

  • Implementing technology evaluation roadmaps 
  • Developing modularity strategies for essential systems such as:
    • Electrified powertrain
    • Power electronics
    • Software
    • Advanced driver assistance systems (ADAS)

 

 

These measures are crucial for maintaining technological leadership in a competitive environment.

 

Transformational Strategies: Scaling Up and Vertical Integration for Competitive Edge

 

Strategic vertical integration and scaling up battery supply chains, including the establishment of gigafactories, are vital for a successful transformation strategy. These methods enable businesses to support future portfolios and gain a competitive edge as the automotive industry evolves. With our assistance in developing and executing transformational strategies, you can achieve the necessary scale and integration, positioning yourself as a leader in the next phase of automotive evolution.

 

Modern Interior of a Software Defined Vehicle

Software defined vehicles - delivering superior customer value for the digital age

Tailor vehicles to align with global customer preferences by refining their positioning and ensuring they resonate with brand identity and target segments. Innovate on interior designs and create cost-effective systems architecture to build appealing, software-defined vehicles that thrive in various markets.

Global Market Differentiation: Tailoring Vehicles to Customer Preferences

 

To address the varied demands of the market, it is essential to differentiate global customer preferences and refine vehicle positioning in line with brand identity and target customer segments. By defining market-driven requirements and developing a strategic portfolio, while ensuring vehicle attributes, features, and functions are harmonised, products can effectively resonate with consumers and fulfill market needs. Gaining strategic insights into market differentiation allows for the effective customisation of vehicles for specific customer segments, ensuring alignment with both brand identity and regional preferences.

 

Interior Innovation: Transforming the In-Car Experience with Cutting-Edge Technology

 

Revamping the interiors of future vehicles, including reimagining customer use cases and ensuring seamless app integration, is vital for crafting a unique and engaging user experience. As original equipment manufacturers (OEMs) vie with tech giants like Apple and Google for control over dashboard functionalities, adopting a forward-thinking approach to design and technology integration becomes crucial to surpassing customer expectations and securing a strong position in the market..

 

Cost-Effective Systems Architecture: Building the Future of Software-Defined Vehicles

 

Creating cost-effective electronic and electrical (E/E) architecture and software frameworks is key to developing software-defined vehicles that satisfy customer expectations while meeting budgetary goals. By integrating advanced driver assistance systems (ADAS) and employing cost value engineering, we can ensure that vehicles are both innovative and financially feasible. Our emphasis on cost-effective systems architecture enables companies to lay the groundwork for software-defined vehicles that achieve a balance between innovation and cost efficiency, paving the way for long-term success.

 

Sand runs down an hourglass

Gaining a competitive edge through time to market reduction

By effectively merging software and hardware development with strategic supplier collaborations, companies can enhance their R&D efficiency, reduce time to market, and streamline product development cycles. Agile innovation processes further improve team collaboration, allowing for quicker and more effective responses to market needs.

R&D Efficiency Transformation: Integrating Software and Hardware for Speed

 

Transforming R&D efficiency requires a smooth integration of software-defined vehicle development with conventional hardware processes. Implementing new governance models and clarifying the division of responsibilities among teams boosts collaboration, leading to faster and more impactful innovation cycles that align with market demands. Utilising strategic guidance and expertise ensures that software and hardware developments are synchronised for maximum speed and efficiency.

 

Supplier Strategy Optimisation: Enhancing Product Development through Strategic Partnerships

 

Optimising the product development process hinges on strategic supplier integration and a well-thought-out make-or-buy strategy. By adopting consumer-focused KPI systems and shifting to 24-month product development cycles, companies can significantly shorten their time to market and maintain a competitive edge in a fast-changing industry. Expert-driven strategies for optimising supplier relationships and forming strategic partnerships improve product development results, ensuring timely and competitive market entry.

 

Agile Innovation Processes: Uniting Teams to Deliver Faster and Better

 

Incorporating agile principles into development processes guarantees that products reach the market more quickly while also meeting the highest standards of innovation. This agile methodology cultivates a collaborative atmosphere where software and hardware teams work together seamlessly, speeding up progress and producing high-quality results that surpass market expectations. With our expertise in agile transformation, companies can effectively unite their teams, enabling them to thrive.

 

Modern electric bike

Business model innovation for the sustainable age

Integrate vehicles into the energy ecosystem with sustainable business models and innovative charging solutions for long-term success. Leverage V2G systems and energy storage to create value, and lead in the circular economy through advanced recycling and end-of-life strategies.

Sustainable Business Models: Integrating Vehicles into the Energy Ecosystem

 

Innovative business models focused on sustainability and circularity are increasingly essential, particularly when integrating vehicles into the broader energy supply chain. Establishing a position as a charge point operator and effectively addressing inner-city charging challenges are critical to ensuring long-term success and sustainability in this evolving landscape. Informed strategic insights are key to navigating these challenges, ensuring that sustainable business models are both forward-thinking and practical.

 

V2G and ESS Integration: Creating Value through Vehicle and Energy Convergence

 

Exploring opportunities such as vehicle-to-grid (V2G) systems - where stationary vehicles contribute to the energy supply - alongside battery ownership models and customer incentives, creates significant value in the converging worlds of transportation and energy. The development of energy storage systems (ESS) further enhances this integration, establishing new revenue streams and offering innovative solutions to meet future energy demands. Strategic planning and expert support are vital to effectively capitalising on these opportunities, driving the successful convergence of vehicle and energy systems.

 

Circular Economy Leadership: Advancing Recycling and End-of-Life Management

 

Adopting digital product passports and crafting thorough recycling and end-of-life management strategies are crucial for excelling in the circular economy. These efforts not only minimise environmental impact but also showcase leadership in sustainability, positioning companies as innovative and responsible players in the industry. With our support on circular economy initiatives, businesses can thrive in this new landscape.

 

Mobility as a Service Evolution: Redefining Customer Interaction and Revenue Models

 

The evolution of mobility as a service is crucial for redefining how businesses interact with customers and develop new revenue models. This includes creating downstream value-added services and enhancing the digital customer journey beyond just vehicle sales. Embracing this change is vital for maintaining long-term customer engagement and discovering new growth opportunities, helping companies remain competitive in a fast-evolving market. Our expertise in transforming service models empowers businesses to innovate and adapt, reshaping customer relationships and paving the way for future success.

Our Experts for the Automotive Industry

Dr. Albert Neumann

Dr. Albert Neumann is a Partner at H&Z and an expert in the automotive industry, focusing on corporate strategy, R&D, and integrating sustainability through digitalisation and circular economy approaches​.

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Albert Neumann

Christian Koehler

Christian Köhler, Partner at H&Z, has over 30 years of senior management experience in the automotive and B2B sectors, including a decade in Asia. He specialises in growth strategies and organisational transformation.

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Christian Koehler