Overcoming the challenges
In Chapter 3, Accelerating Digital Transformation with Emerging Technologies, we discussed the rise of digital technologies and the digital platform. Along with the business model changes, we can lay the foundation for industrial digital transformation. Let's see how to overcome the challenges by putting together the digital technologies, cultural and organizational changes, business process changes, and business model transformations.
Business model change by Tesla
Customers are more inclined to buy products and services that generate value for them. The automobile industry has worked on very similar principles for about a century now. They create a replacement market by offering a newer model with a few additional features, every few years, for their loyal customer base. As a result, the value of a used car drops drastically within the first 3 years. Industry estimates suggest 42% depreciation after 3 years for an average car in the US. Using...
