Value-centric Transformation: Case Sharing on Top-level Design Consultation for Automaker Digitalization

The2023 Automotive Industry Digitalization Conference took place in Guangzhou onJuly 20. With the theme “Navigating Digitalization amid Corporate Challenges:New Scenarios for Digital Transformation”, the event brought together over ahundred CIOs and digital leaders from both car manufacturers andindustry-related companies. They explored emerging digital trends and innovativescenarios for digital transformation in the automotive industry, and collectivelydissected the pain points, dilemmas, and challenges pervading differentsegments of the industrial value chain. The objective was to unravel the pathtowards a comprehensive digital transformation and upgrade in the automotivesector.

LanyouTechnology’s senior director of Digitalization Consulting BU delivered apresentation titled “Case Sharing on Digital Transformation in AutomotiveEnterprises”, which highlighted Lanyou Technology’s experiences andexplorations in automotive digital transformation. After the speech, he joineda roundtable discussion with prominent industry figures, including the former deputydirector of the SAIC MOTOR AI Lab, IT director of Fuyao Glass, CIO of JUSDA,Foxconn, and CIO of Yadea. The conversation revolved around tackling the IT intricaciesunder corporate pressure. At the conference, Lanyou Technology was honored withthe “2023 National Automotive Industry Excellent Digitalization Case (andOutstanding Team) Award”.

Amidthe surge of digital and intelligent transformation trends, how should theautomotive industry respond?

Currently, China is at a critical juncture in thetransformation of the automotive industry. Intelligence, connectivity, and environmental friendliness have become keydevelopment directions in the digital transformation of the automotive sector.

Withthe gradual saturation of the automotive market and a reshuffling of marketplayers, user consumption habits have become more online-oriented, diversified,and real-time. The entire automotive value chain, spanning research anddevelopment, production, marketing, and more, is undergoing an unprecedentedreconstruction. In the face of a highly competitive market, automotivecompanies must adopt diversified strategies, enhance overall value chainefficiency, establish user-centric lifecycle operations, and create full-scenarioproduct and service matrices to drive transformative business innovation.

Whiledigital transformation reverberates across industries, what does it mean forthe automotive sector? Lanyou Technology believes that the digitaltransformation of automotive companies is, at its core, a strategic revolution.It entails integrating group and corporate strategies, guiding the executionand implementation of digital businesses, reshaping business processes throughdata assets, and ultimately empowering business models and operations.

DigitalTransformation Methodology Framework for Automotive Companies

Amidthe crescendo of digital transformation, Lanyou Technology stands poised with atop-level design approach, employing a methodology framework to orchestrateend-to-end processes. This aims to underpin automotive companies’ digitaltransformation, facilitating them to become more sustainable, digital, andintelligent.

“Digitaltransformation is a systematic project that requires profound changes forcompanies from thinking to action,” said the senior director of DigitalizationConsulting BU of Lanyou Technology. Helikens digital transformation to reaching new shores – the journey begins withunified thinking and leadership involvement. This is followed by definingtransformation goals and roadmaps, deploying transformation and governance plansbased on concrete business scenarios, and finally, ensuring continuous operation to consolidate results.

Leveraging 21 years of practical experience in theautomotive industry, Lanyou Technology steadfastly adheres to the principles ofpragmatic implementation and tangible results. By offering top-level designconsultation, business transformation planning, and integrated supportservices, it consistently empowers businesses in digital transformation acrossvarious scenarios. Throughout the years, the company has successfully providedIT and digital transformation planning services to conglomerates, commercialand passenger vehicle entities, NEV manufacturers, powertrain corporations,component suppliers, construction machinery firms, and dealer consortiums.

PracticalCase: Lanyou Technology Supported an Automotive Company in DigitalTransformation

Digitaltransformation in automotive enterprises should commence with corporatestrategies. It involves defining the business transformation model, quantifyingbusiness value objectives, charting a digital transformation roadmap, andconstructing a digital transformation value matrix. Everything revolves aroundcreating value through digitalization and ensuring its pragmaticimplementation.

Followingthe principles of achieving transformative business value, Lanyou Technologyplayed a pivotal role in aiding the automotive company’s digital transformationjourney, from constructing a digitized organizational structure to building holisticdigital capabilities. Starting from a specific business domain, LanyouTechnology helped the client extend the digital transformation to cover theentire business value chain. In support of the client’s digital transformationplanning in the marketing field, Lan-You Technology identified the maintransformation line, constructed three user-centric “quick-win” scenarios, andfacilitated direct user interaction. A new user operation model was established,enabling the shift from B2B2C to B2C, thereby crafting a novel marketingparadigm centered on direct customer engagement.

Value-centric Transformation

(1) Strategic Support and Model Transformation:Pioneering a top-level business model revolution, transitioning from atraditional production-driven distributor model to a user-centric,direct-to-consumer paradigm. The endgame is cultivating an in-house user poolfor comprehensive lifecycle user operations.

(2) Data Value: Upgradingthe overall data middle platform, enabling smooth data flow and governanceacross the entire business chain – from planning, research, and production tosupply, sales, service, and management. This entails a shift from the waterfallmodel to the agile model, fostering a sharper business focus.

(3) Business Operations Value:Encompassing diverse monetization scenarios, including post-sales operations,connected car services, and peripheral stores, thus creating a secondary growthcurve for business operations.

Digitaltransformation knows no bounds, yet its crux extends beyond mere digital facets. Equally vital are the tangible measures and outcomes of transformation. The core focus and subject of transformation are the businesses. Movingforward, Lanyou Technology will remain steadfast in propelling businessdigitalization, product digitalization, and new digital businesses. Thisendeavor aims to comprehensively promote the digital transformation andupgrading of automotive companies, helping them navigate the new wave ofindustrial revolution and achieve more remarkable and efficient strategicobjectives.