A comprehensive study on innovation in the automotive industry

This will be accompanied by structural changes in the auto industry’s R & D departments.
OEMs will only slightly increase their R & D spending. While Western car manufacturers
Will cap their R & D investments, OEMs from China, India and South Korea will boost their
Spending on innovation. Overall, the supplier sector and engineering service companies
Will be the winners of this development with additional R & D spending of EUR 20 billion
In 2015 (in 2005: EUR 46 billion). The concentration process in the supplier industry will
Improve innovative strength and networking opportunities with other partners – another
Way of cutting costs while increasing the quality of innovations.
Oliver Wyman has analyzed the innovation strategies of the industry’s most successful
Auto companies. The study “Car Innovation 2015” identifies the levers that car
Manufacturers and suppliers must pull to become state-of-the-art innovation leaders.
Depending on the business design of the supplier and OEM, four dimensions must be
Brought into alignment: innovation proposition, competence focus and collaboration,
Innovation business case, and innovation organization and structure. The leading
Suppliers in innovation management generate a 16 percent higher EBIT margin than
Their peers – all by employing a clear innovation strategy and balance along those
Four dimensions. The Oliver Wyman study “Car Innovation 2015” concludes with five
Recommendations for innovation management in the automotive industry:
Increase customer orientation and marketing focus on R & D
Generate a diverse innovation product & services portfolio
Improve R & D effectiveness and efficiency; reduce innovation risks
Enhance the innovation culture and organization
Align innovation strategy according to Oliver Wyman’s
“Innovation Strategy Framework”



A comprehensive study on innovation in the automotive industry