SCRS developed The IDEAS Collide Showcase to create a venue for speakers willing to explore ideas worthy of consideration. They must be capable of conveying those ideas in a condensed timeframe of 10 minutes or less. In his presentation, Scott addresses strategic insights and implications to the collision repair industry. He ranges from the dynamic and rapid shift of materials type and content in North American automobiles.

You can watch the recording below to learn where the industry is today, its evolution, and what this means for business.

About SCRS: Through its direct members and 38 affiliate associations, SCRS is comprised of 6,000 collision repair businesses and 58,500 specialized professionals who work with consumers and insurance companies to repair collision-damaged vehicles. Additional information about SCRS including other news releases is available at the SCRS Web site: www.scrs.com.

Last week, I was honored to take the stage for a fireside chat with Shadi Mere, the CEO of Bedestrian. Bedestrian is a last-mile delivery company utilizing a driverless vehicle system. This consists of a pilot vehicle and a modular trailer for indoor and outdoor (urban) delivery. The chat centered on the “state of mobility—evolving value chain constructs.” Bedestrian’s value proposition is an excellent example of the type of new solution being commercialized and how traditional definitions within the automotive value chain are fading away.

Our conversation was part of the 11th Global Automotive & Mobility Innovation Challenge (GAMIC) in metro Detroit. GAMIC is an annual competition for early-stage automotive and mobility companies with new technologies. It aims to identify innovative companies from around the world, cultivate new technologies and solutions, and hasten their adoption into the automotive and mobility industries.

This year’s competition saw 22 semifinalists, hailing from 7 states and 5 countries. With a broad array of promising technologies to advance vehicles and transportation systems, they competed for more than US$ 300,000 in commercialization acceleration services and cash. They also facilitated introductions to the industry’s top decision makers and influencers. The top 12 teams advance to the GAMIC Finals at SAE International’s WCX World Congress Experience on April 9.

Discussion Overview

Shadi and I discussed topics such as monetization drivers, investor perspectives, and how the global auto space is on the cusp of significant change. Technology advancements are enabling new business models and offerings across many sectors. For example, vehicle electrification, advanced materials, manufacturing processes, sensors and actuators, infotainment, and cybersecurity. These were only some of the advanced technologies presented in GAMIC’s semifinals competition.

The world’s largest companies (based on market capitalization) include Apple, Google, Microsoft, and Amazon. Evidently, all of which have a “tech” focus and are increasingly entering the mobility value chain. Take Amazon’s recent announcement that it will partner with the all-electronic vehicle (EV) truck startup Rivian. “This is just the beginning of what is yet to come,” commented Shadi.

All industry stakeholders recognize these shifts and are doing more to launch solutions to connect more of the world and their solutions to the internet.

The traditional playing field for investments is also evolving. Numerous auto companies are differentiating and strengthening their value propositions through innovative solutions. This better positions them as we see “mobility as a service” models become increasingly attractive. For instance, we noted that more corporate strategy and merger & acquisition (M&A) decision makers are participating in these early-stage mobility competitions than ever vs. traditional “expansion stage” only–focused investor forums. Innovation continues to enable companies to differentiate themselves from the pack. We highlighted examples of companies that recently announced plans to take advantage of these new profit pools emerging. These include enhancing deep learning, adopting cybersecurity safeguards, integrating “smart” sensors, and adopting fast-charging battery solutions. Many of these innovations have yet to reach commercial scale, so we are starting to see more interest in corporate stakeholders investing in technologies as a well to fill their capability gaps before the technologies go mainstream.

Takeaways

What factors best characterize the ideal startup pitches? I provided a snapshot of the typical investor’s “sniff test,” highlighting that with all of the “noise” that exists, even great entrepreneurs with disruptive solutions can’t afford to miss the mark on delivering the right investor pitch.

Investors are taking note. In 2018, we saw healthy availability of funds and a growing appetite for investment. According to the MoneyTree Report, annual US funding of startups neared its highest levels since 2000. US startups raised US$ 99.5 billion over 5,536 deals. These investment activity statistics suggest high funding prospects. However, many startups point to the need for more capital flows at the seed and early-stage levels. According to the report, investors maintain a preference for “unicorns,” characterized in part as fewer, bigger deals. David Stout, GAMIC’s co-founder, thinks that the challenge can help. “GAMIC exists as a mobility-focused forum for stakeholders across the value chain to network with great minds and peek at innovations before they go mainstream. So, in a way, we are helping to fill that early-stage funding gap that exists,” he commented.

About DuckerFrontier

DuckerFrontier’s team has been on the front line of automotive industry shifts and value chain constructs for over two decades. Bringing the most value (actionable insights) and better visibility into market needs, technical challenges, and barriers to serving the market (auto, truck, truck-trailer, marine, etc.), competitive dynamics, and import/export shifts, we have delivered better outcomes for more than 400 companies across automotive technology, commercial transportation, aftermarket parts suppliers and service centers, and raw material providers. To connect with a DuckerFrontier team member, please fill out the contact form below.

Mr. Abraham will speak at Lightweight Asia on July 11, the first of the three-day event (July 11-13) in Shanghai. Lightweight Asia will focus on core development trends and top priorities for automobile manufacturers. These will include lightweight materials, parts, processing solutions and structure optimization. Buyers from the downstream logistics and urban public traffic system sectors will join the event to negotiate integrated lightweight solutions. The organizers will pair high-quality buyers that have defined purchasing requirements with exhibitors through a matchmaking service. The show will also serve as a high-end dialogue platform where foreign and domestic industry leaders can engage with automotive application experts to discuss the exciting business potential of lightweight development. The prospects of driving industrial transformation and upgrades to boost development will also be thoroughly explored.

To learn more about Lightweight Asia 2018, please visit:

http://www.lightweightasia.com/en/About-/About-the-show/

Meeting innovative manufacturers and service providers feeds DuckerFrontier’s core business – to seek out and provide the industry’s best insights to our clients. Based on our presence at the Bosch Connected World earlier this year, and at the VivaTech show that just occurred in Paris – and coupled with DuckerFrontier internal data and expertise in the automotive sector – below are some key thoughts related to the use of IoT in this sector.

As most devices today provide connectivity features, the anticipated next rung in this evolution – and a big step toward an expected fourth industry revolution – is Connected Experience and device-to-device communication. A good example of this is found in vehicle-to-vehicle technology.

Although a disrupting factor for established business models, it reveals immense productivity and cost-saving potential throughout a variety of industries, such as mobility, agriculture, healthcare and logistics. Numbers are impressive: one leading German logistics company was already able to achieve a 15 percent increase in productivity by using Augmented Reality in their warehousing, which transformed their delivery system.

How Can Your Company Benefit from IoT?

There’s a rising trend of new players – disruptors – entering established markets that are outside of their core areas. They gain a tremendous business advantage when they create new concepts and dominate market segments, and they’re seen by consumers as a refreshing change. However, the IoT offers great opportunities for established companies as well. Services and related functions are areas where we see many OEMs and suppliers transforming their businesses.

Led by vehicle manufacturers BMW and Daimler, supplier Robert Bosch is moving into the mobility area with the acquisition of SPLT (a carpooling-app provider), and creating partnerships – like the one with Daimler on automated valet-parking concepts.

How to Be Successful at Using the IoT as a Transportation Company

Seeing the ongoing transformation of the automotive sector, Robert Bosch unveiled their new Connected Mobility Solutions Division at the beginning of 2018. Focusing on vehicle markets, connectivity is a potential breakthrough technology for the electrified-vehicle industry. Mobility is evolving into various use-types, and user experience is a major differentiator as products and services are becoming commoditized. New electric vehicle providers aren’t bound by the same customer expectations that established players are facing. Therefore, they can often develop more efficient and simplified concepts, and bring them to market more economically. Two examples are Deutsche Post’s Streetscooter GmbH – just entering the market – and the RWTH e.Go EV, which has a low break-even. Several other non-automotive companies – such as Dyson – have announced they’re also entering the market, with plans for new vehicle concepts. Despite signs of disrupting factors, the market still offers opportunities for new, as well as established players. There’s growing potential in services and user experience, as well as in aftersales concepts, like predictive maintenance.