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    Technology Is Helping Transform BMW's Business Model

     The German car giant BMW can trace its roots all the way lower back to 1916. a lot has changed inside the enterprise considering the fact that then, of course, however the importance of innovation has remained a regular.




    while technological advances along with self sufficient driving may be changing BMW cars, the corporation's commercial enterprise model is likewise being reshaped.

    "inside the past we had pretty a vertical integration," Jens Monsees, BMW organization's vice chairman of approach digitalization. This revolved across the consumer, the supplier, then a manufacturer like BMW and tier one suppliers who supplied components. This cost chain, Monsees said, became now becoming a extra horizontal community with different partners involved.

    As virtual generation becomes more and more superior and ubiquitous, and gadgets turn out to be extra included and interdependent, collaboration is turning into greater vital.

    Monsees cited the example of BMW, Daimler and Audi obtaining digital mapping and region offerings enterprise right here. That deal was announced in 2015; on the time, BMW defined here as a "leading provider of era" for the digitized international of mobility.

    right here presented services that the enterprise wished for both independent riding and location-based services, Monsees said. information, together with in which precisely windscreen wipers are being used, is entered into the device and shared. "Why not (proportion with)… Audi or Daimler this statistics, due to the fact we do not want automobile injuries, regardless of the opposition," he stated.

    Monsees sought to emphasise the larger picture in relation to sharing data, citing examples from the U.S.

    "we can research from... (Silicon) Valley that… Google and Apple and maybe Amazon, they may be competing on one hand… On the opposite side, they're helping and assisting each different in a larger experience." This, Monsees stated, became a "frienemy" concept, wherein an Apple phone may want to have Google Maps and vice versa.

    generation changed into also transforming BMW's production approaches, he said. "We use, increasingly more, technology and robots to support our human beings and personnel inside the factories to do heavy lifting, to sort out matters, to transport matters."
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