On-Demand Car Features (ODCF)

OEMs need to adapt a wide range of processes in order to successfully implement ODCF, while also considering the associated risks. But before they can even begin to orchestrate such a complex exercise, they need standardized, fully-featured hardware processes and a focus on software / service capabilities in order to fulfill on-demand car feature potential. It is vital to address hardware contingency issues in this context, for instance the trade-off between a higher price tag for fully featured hardware and cheaper operational costs due to reduced complexity in production.

One thing is certain, the days of carmakers as mere hardware manufacturers are numbered. In recent years OEMs have begun to offer more and more digital services. We presume this trend will continue as we expect new usage and payment models to hit the market. With on-demand features ranging from augmented reality head-up displays (AR-HUD) and intuitive safety features to infotainment services or advanced battery management solutions, the sky is virtually the limit.

If OEMs are clever about playing the digital card and developing compelling ODCF options, they will be able to capitalize on the very trends that are threatening their conventional business models. Shared mobility, for instance, stands to benefit considerably from ODCF; as customers move from ownership to sharing, they will appreciate having an individual profile that can be activated in each car they use in the sharing model. However, as the amount of vehicle data continues to increase, it is essential for carmakers to take a holistic approach to their technology architecture for the car as a platform (CaaP) to succeed. The challenges are far from trivial. Carmakers will need to be cautious when it comes to data security and compliance as well as deal with various implications along the value chain. The most critical success factors will be finding the right pricing strategy for these new business models to be sustainable and validating the same with real life customers.

Our Deloitte Approach

How does Deloitte support its clients along their end-to-end On-Demand feature journeys? We help you to assess your readiness for this new era of customer value creation with our unique Deloitte Operating Model & Readiness Gap Analysis. Both are based on four Dimensions which are critical for the success of this business model. Take a closer look at the four Dimensions below.

Try our Readiness Gap Analysis Teaser

In our Readiness Gap Analysis we analyze your current situation in the context of critical success factors derived from Deloitte experience and academic sources. We examine factors along each of the four dimensions (Business, Product, Operational & Data Analytics) to determine your readiness for the implementation of ODCF. Try our teaser below and make sure to contact us for the next steps.

Already know where you stand and where we as Deloitte can support you? We also offer the following services to help you achieve ODCF readiness beyond our Readiness Gap Analysis.