Developing New Go-to-Market Strategies

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This is about creating a new customer relationships based on "service experience" as opposed to the underlying product. This approach may disintermediate channel partners or distributors in the short term, but absolutely require them for the longer-term value proposition based on a shared revenue model. Currently, there is a distinction between how this is impacting B2C versus B2B oriented companies (with the B2C industries such as retail and banking having to move a lot faster), but increasingly the line between these segments will be blurred because there is always a big C (for consumer) at the end of those value chains. For B2B companies that have historically focused on the product (and much less on the consumer), the opportunity is there to have a connection with the consumer that historically was not possible (think BMW and its "Connected Drive" offering which bypasses dealers to engage directly with drivers).

The New GTM Strategy for the Connected Car Enabled by Digital Transformation Rich Universe of ServicesFlexible Consumption Models“Unlimited” Growth Back OfficeDealer NetworkSome Services OEM Back OfficeDealer NetworkSome Services OEM Personal 3rdParties
Source: IDC Manufacturing Insights, 2015

Digital Best Practices

Feedback From a Global Automotive (Trucking) Manufacturer

In this case, it is about its trucking business where it offers fleet management services to its business customers. It is looking to add new services to a variety of partners and customers (around predictive maintenance, for example).

  • Digital Best Practice 1

    Ensure that partners are incentivized to play a part in the new business model based on referral fees linked to the number of new customers that are signed up or retained as a result of their direct or indirect activities.

  • Digital Best Practice 2

    Although some partners are willing to disrupt their business models to align with your digital transformation strategy, some might not be. Hence, new partner recruitment might be required.

  • Digital Best Practice 3

    A clear strategy on whether the customer will be billed by the partners or not is critical to get right at the outset of rolling out a new go-to-market strategy linked to digital transformation.