Success In The Industry Is Like Building The Perfect Golf Club
Jan. 1, 2020
BEST PRACTICESSuccess In The Industry Is Like Building The Perfect Golf Club CHICAGO, IL (March 15, 2006) - Successful companies in the automotive industry don't rest on their laurels. Growth in sales and profits requires a discerning eye for emerging trends, investment in innovation, and timing. It's one thing to invest in Research & Development, but is that investment in the right areas? As important, is the timing to market right - for if not, one could miss the market opportunity in part, or altogether. Consider making the perfect golf driver. It isn't enough to see the need and be able to develop driving technology to improve functionality, such as improved distance, control or accuracy. One also has to know where in the golf club to apply the innovative technology. Being just a little bit off in placement of innovation can lessen the benefit to consumers and provide an opportunity for competitors to wedge into that niche. Being a little bit off in timing to market can give a competitor the edge to reach your targeted customers altogether. It's just that simple; it's just that hard. As in golf, getting it right in the auto industry - finding the sweet spots - is a watershed that determines success or struggle for automakers, suppliers, or for that matter, service professionals. By way of example, let's consider the success of Robert Bosch GmbH, a supplier whose products have been in vehicles in service bays for years. Despite another year in 2005 of a positive 2.5 percent average growth globally, the Bosch Group's Automotive Technology division was able to increase its sales by a good 4 percent - 60 percent above the global average. Moreover, with 63 percent of the total Bosch sales coming from within this division, the company's ongoing growth is critical to fueling ongoing success. Why then is there such a disparity between firms like Bosch and others that struggle in the marketplace?
Video Sensors: Lane Recognition
and Night View Assist.
(Photos: Robert Bosch)Bosch believes that targeted innovation is the key to its continued growth and success going forwards. To that end, the company invested approximately 9 percent of its automotive technology sales in research and development - well above the industry average - in growing trends. "Bosch is set for growth. This year, we expect stronger growth than in 2005," said Dr. Bernd Bohr, member of the board of management of the Bosch Group and chairman of its Automotive Group. Bosch was in Geneva to introduce new products and technologies that displayed the focal points where innovation converged with growing trends. Bohr discussed several examples.Doubling by 2015 Bohr said, "We anticipate significant growth in driver assistance systems. In these new systems in particular, sales will grow annually at impressive double-digit rates over the period up to 2015." He cited two examples of innovation within this trend that toward the "sensitive car" and accident-free driving. Night View, Bosch's night vision technology, had its debut in the Mercedes S class in September 2005. This year, the Audi Q7 will showcase more of the company's new technology.
Basic functions of the Electronic
Stability Program (ESP).
(Photos: Robert Bosch)Featuring ACC Plus adaptive cruise control, the Q7 automatically maintains a safe distance to the vehicle in front, even in bumper-to-bumper traffic. "ACC Plus is the basis for the second generation of our predictive safety systems," Bohr explained. "On the basis of independent accident studies, our experts were able to show that only one percent of drivers made optimum use of their brakes in serious accidents, 54 percent failed to apply the brakes at all, and 45 percent failed to press the brake pedal hard enough." Bohr added that if the driver fails to react properly when there is a threat of a rear-end collision, the safety system warns the driver by jerking briefly on the brakes, and prepares the system for full braking. This allows the driver to take early preventive action. An electronic guardian angel Improving road safety continues to be a driving trend. Bohr noted that the European Commission's Cars 21 group has now recommended that the company's Electronic Stability Program (ESP) be made standard equipment in cars. While nations vary, Bohr said that the percentage of small cars equipped with this technology in Europe is only 9 percent. He added that this was "not enough if we remind ourselves that such cars are mainly driven by inexperienced young drivers." Seeing a trend and building products isn't enough. Helping those who touch the lives of consumers is a strategy that to a large degree, sorts the wheat from the chaff. Bosch understands that beyond providing the product, it is vital to train proactivelyand to increase awareness at the consumer level. As a result, the company provides its "ESPerience" training program to more than 25,000 car salespersons to show them how the system works. Solving the diesel-gasoline-hybrid maze Every second new car in Europe is now a diesel. Bohr said that in 2006, Bosch expects to see diesel overtaking gasoline for the first time. The company sees positive growth for its clean and economical injection systems and is targeting 2006 sales to surpass those of 2005, in which 8.3 million high-pressure diesel injection systems were sold.
(Photos: Robert Bosch)Featuring ACC Plus adaptive cruise control, the Q7 automatically maintains a safe distance to the vehicle in front, even in bumper-to-bumper traffic. "ACC Plus is the basis for the second generation of our predictive safety systems," Bohr explained. "On the basis of independent accident studies, our experts were able to show that only one percent of drivers made optimum use of their brakes in serious accidents, 54 percent failed to apply the brakes at all, and 45 percent failed to press the brake pedal hard enough." Bohr added that if the driver fails to react properly when there is a threat of a rear-end collision, the safety system warns the driver by jerking briefly on the brakes, and prepares the system for full braking. This allows the driver to take early preventive action. An electronic guardian angel Improving road safety continues to be a driving trend. Bohr noted that the European Commission's Cars 21 group has now recommended that the company's Electronic Stability Program (ESP) be made standard equipment in cars. While nations vary, Bohr said that the percentage of small cars equipped with this technology in Europe is only 9 percent. He added that this was "not enough if we remind ourselves that such cars are mainly driven by inexperienced young drivers." Seeing a trend and building products isn't enough. Helping those who touch the lives of consumers is a strategy that to a large degree, sorts the wheat from the chaff. Bosch understands that beyond providing the product, it is vital to train proactivelyand to increase awareness at the consumer level. As a result, the company provides its "ESPerience" training program to more than 25,000 car salespersons to show them how the system works. Solving the diesel-gasoline-hybrid maze Every second new car in Europe is now a diesel. Bohr said that in 2006, Bosch expects to see diesel overtaking gasoline for the first time. The company sees positive growth for its clean and economical injection systems and is targeting 2006 sales to surpass those of 2005, in which 8.3 million high-pressure diesel injection systems were sold.
In Bosch's Adaptive Cruise Control
(ACC), the radar sensor and the electronic control form a compact unit.
The Long Range Radar Sensor has a range of up to 200 meters. Four
overlapping radar beams probe the space in front of the vehicle. This
allows the system to detect several vehicles at once within the entire
radar compass.
(Photos: Robert Bosch) The opportunity isn't limited to just Europe. Bosch says the U.S. market is ripe for potential inroads. Cleaner diesel, improved technology and regulatory changes have created a window of opportunity for sales growth in not only trucks but also in cars. Rising fuel prices, consumer acceptance of diesel as an economical choice and other factors are influencing some automakers, such as Mercedes-Benz. Gasoline won't go away. Reacting to the rise in diesel, the trend to leaner and more efficient gasoline engines will continue. Bohr cited the introduction of Bosch's second generation of gasoline direct injection systems, along with the debut of piezo injection valves as effective technologies to keep gasoline engines competitive. He also envisions Bosch's sales of gasoline direct injection technology to quadruple between now and 2010. Bohr also touched briefly on the company's progress in hybrid technology. He noted that automakers have already installed Bosch hybrid systems. He added that the company also developed diesel hybrids, such as the Iveco minibuses used at the 2006 Winter Olympics, which are powered by Bosch's diesel hybrid system. Positioning for opportunities in both markets is clearly on their radar screen. The right place, at the right time For some automakers and suppliers, R&D can be a black hole - swallowing investments without anything emerging that can fuel growth and profits. Successful companies provide a proven exception and model for others, by demonstrating the braiding of investing in innovation, aligning with emerging trends, and timing. Service professionals may be thankful that product innovation isn't something that has to be done at the shop level. Nonetheless, keeping a watchful eye on the process can spell the difference between future success or the lack of a future. Seeing what's coming down the pipe and making the decisions in preparing to adapt servicing in time is just as critical. Growth is something everyone has a measure of control and choice over. It's about being positioned to surf more profitable emerging waves, rather than continuing to ride out profit-eroding older ones. It's also about recognizing successful practices from the entire industry, as well as from local competitors. For some, the coming of diesel or hybrid may be pertinent. For others, developing better staff-customer service skills might be a better fit. In any event, the choices made ultimately determine the company's future. If a firm like Bosch can apply innovation to servicing other companies' sales forces to reach and positively impact consumers to gain market share, could shops apply or adapt similar innovations within their environment? Bosch has learned that customer service is relevant and applies it to growing trends to capture market share from competitors. How it is executed establishes a relationship edge that makes those gains "sticky" and difficult to duplicate. Like growth, gaining profitable business is a matter of planning. Perhaps there is a shop nearby that chooses innovation over hibernation; leaders in the service and repair industry exist and their best practices can be shared to benefit the whole industry. (Source: Robert Bosch)
(Photos: Robert Bosch) The opportunity isn't limited to just Europe. Bosch says the U.S. market is ripe for potential inroads. Cleaner diesel, improved technology and regulatory changes have created a window of opportunity for sales growth in not only trucks but also in cars. Rising fuel prices, consumer acceptance of diesel as an economical choice and other factors are influencing some automakers, such as Mercedes-Benz. Gasoline won't go away. Reacting to the rise in diesel, the trend to leaner and more efficient gasoline engines will continue. Bohr cited the introduction of Bosch's second generation of gasoline direct injection systems, along with the debut of piezo injection valves as effective technologies to keep gasoline engines competitive. He also envisions Bosch's sales of gasoline direct injection technology to quadruple between now and 2010. Bohr also touched briefly on the company's progress in hybrid technology. He noted that automakers have already installed Bosch hybrid systems. He added that the company also developed diesel hybrids, such as the Iveco minibuses used at the 2006 Winter Olympics, which are powered by Bosch's diesel hybrid system. Positioning for opportunities in both markets is clearly on their radar screen. The right place, at the right time For some automakers and suppliers, R&D can be a black hole - swallowing investments without anything emerging that can fuel growth and profits. Successful companies provide a proven exception and model for others, by demonstrating the braiding of investing in innovation, aligning with emerging trends, and timing. Service professionals may be thankful that product innovation isn't something that has to be done at the shop level. Nonetheless, keeping a watchful eye on the process can spell the difference between future success or the lack of a future. Seeing what's coming down the pipe and making the decisions in preparing to adapt servicing in time is just as critical. Growth is something everyone has a measure of control and choice over. It's about being positioned to surf more profitable emerging waves, rather than continuing to ride out profit-eroding older ones. It's also about recognizing successful practices from the entire industry, as well as from local competitors. For some, the coming of diesel or hybrid may be pertinent. For others, developing better staff-customer service skills might be a better fit. In any event, the choices made ultimately determine the company's future. If a firm like Bosch can apply innovation to servicing other companies' sales forces to reach and positively impact consumers to gain market share, could shops apply or adapt similar innovations within their environment? Bosch has learned that customer service is relevant and applies it to growing trends to capture market share from competitors. How it is executed establishes a relationship edge that makes those gains "sticky" and difficult to duplicate. Like growth, gaining profitable business is a matter of planning. Perhaps there is a shop nearby that chooses innovation over hibernation; leaders in the service and repair industry exist and their best practices can be shared to benefit the whole industry. (Source: Robert Bosch)
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