We believe that digitalization is the center of gravity for strategic performance improvement. If done rigors and right, digitalization (synonymously “core redesign”) can generate double digit savings along the P&L – which can be utilized for future re-investments. The challenge is to evaluate and identify the right levers, and to implement those levers with speed and scale.
Until today Automotive OEMs/ Tier-1 supplier previously struggle with performance
- Traditional automotive OEMs/ Tier-1 players exhibit rather low profitability/ operating margin
- Convergence of industries (in e-Mobility, ADAS business etc.) create additional pressure on profitability, and bear risk of limited future ability to (re-)act (innovation/ cost leadership, resilience, independence etc.)
- Along R&D, COGS and SG&A, Digitalization is a prime lever to optimize profitability and increase operational excellence (overcoming organizational silos, creating end-to-end data transparency etc.)
When implemented effective & efficiently, individual savings from digitalization can amount to double digit savings (P&L expenditure)
- Shaping the P&L/ realizing benchmark potential primarily meaning footprint optimization (best-cost locations, lean processes, FTE/ overhead etc.), in line with suitable tech
- Automotive OEM/ Tier-1 players can expect highest savings from R&D and COGS (relative P&L gravity; given operations complexity)
- Digitalization around SG&A focuses on "low hanging fruits“ due to often already relatively mature/ standardized processes (accounting, IT etc.)
- Savings: Cost-out existing and/or avoid new total costs
Agile approach to P&L improvements
- We offer vast experience in designing P&L improvement measures and we will help you to think strategically about leveraging digitalization
- We will help you explore the business value and to identify the right scope for short-/mid-term P&L performance push
- We know what it takes to set up and operate an effective digitalization programs and will help you to design and build this in order for you to become faster, more agile and handle your data more efficiently
Speak to an expert
Working with the most qualified Tsetinis Consultants is key to your success.
Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.
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Dr. Gunther M. Wagner