
A cost improvement of more than €500 million per year from 2020 through productivity and efficiency all along the value chain due to digital.
These new entrants have fast internal cycle times, and they use digital throughout all areas of their business. Cars are connected and increasingly feature autonomous-driving options; production plants have implemented Industry 4.0; and marketing and sales teams capitalize on digital channels and precise targeting to better engage with their customers.
To help Renault compete in this environment, BCG assembled a cross-functional team, including experts in the Center for Digital in Automotive, technology and digital, Platinion, and several other units of the firm.
The goal? To work with the company on a massive digital transformation that would deliver double-digit increase in earnings before interest and taxes (EBIT). Roughly half of the gain would come from additional revenues, by improving the customer journey; the other half, from leveraging technology to make internal processes more efficient.
The implementation consisted of three phases:
Phase 2 (end-to-end pilots) helped realize that several organizational roadblocks would prevent the company from capturing the full value of the digital transformation. Specifically, the company suffered from a lack of internal digital skills, inconsistent digital methodologies across the company, heavy governance and processes not adapted to the speed of digital, as well as rigid legacy IT systems.
To overcome these roadblocks, the BCG team helped set up a digital center for Renault through BCG’s Build-Operate-Transfer model. Initially, BCG helped design and build the center, which would operate as an internal service center, working with business units to steer and deliver digital initiatives. BCG then operated the center hand-in-hand with the company, contributing to key operational decisions like recruiting, staffing, and supporting the business to implement the right governance to maximize the value delivered. During the transfer phase, BCG turned over the operations of Renault Digital to the car company to fulfill its five main objectives sustainably and independently:
Renault’s midterm plan confirmed the group’s ambition for digital:
Renault can now develop, in mere months, digital initiatives that will create €600 million in increased value annually.
BCG offers a full range of support to help automotive companies experience, explore, build, and anchor their digital strategies and solutions.
Companies can’t create digital value in a vacuum. BCG helps companies own the digital future through the coordinated collaboration of agile, cross-functional teams.
Managing Director & Senior Partner
Paris
Managing Director & Senior Partner
Paris