SAP LEAP: Automotive White Paper

The motor car first appeared at the end of the 19th century and, though technologies have changed almost out of recognition, it is surprising to consider how little the concept of the car has altered in all that time. A metal box with 4 wheels, a drive train that is still largely built on 130 year old technology, and a business model based on selling to private owners, who maintain, insure, tax and learn to drive it for themselves.

The classic automotive business model is being transformed by trends that are overwhelming in their importance and cannot be resisted. It is possible to define these in a variety of ways, and no single analysis can be either complete or absolutely correct, so in this paper we will focus on the three areas that are of highest strategic importance: Environment; Data and Connectivity; Ownership. These are not only vital in themselves but are driving a range of subsidiary changes, all of which impact on the automotive business model in their own ways

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