How is Big Data Transforming Operations Models in the Automotive Industry: A Preliminary Investigation

Over the years, traditional car makers have evolved into efficient systems integrators dominating the industry through their size and power. However, with the rise of big data technology the operational landscape is rapidly changing with the emergence of the “connected” car. The automotive incumbents will have to harness the opportunities of big data, if they are to remain competitive and deal with the threats posed by the rise of new connected entrants (i.e. Tesla). These new entrants unlike the incumbents have configured their operational capabilities to fully exploit big data and service delivery rather than production efficiency. They are creating experience, infotainment and customized dimensions of strategic advantage. Therefore the purpose of this paper is to explore how “Big Data” will inform the shape and configuration of future operations models and connected car services in the automotive sector. It uses a secondary case study research design. The cases are used to explore the characteristics of the resources and processes used in three big data operations models based on a connected car framework.