Digital Transformation Enhances the Customer Experience at BMW Group

The second annual ARC Industrial Digital Transformation Top 25 report continues to highlight companies that are succeeding at integrating digital technology into all areas of business, fundamentally changing the way they operate and deliver value to customers. This year’s Top 25 companies include many who made the list last year, together with some new companies. Positions were reshuffled due to the changing business dynamics and weighting components of the analysis: financial indicators, transformation indicators, and collective community intelligence. Digital transformation enhances the customer experience at BMW Group and is ranked #5 in this year’s report.

The last few years have been particularly challenging ones for industrial growth. We’ve been cornered from all sides: pandemics, political unrest, climate change, and macroeconomic uncertainty. The world as we knew it a few years ago has capsized and the boundaries of the new normal are constantly shifting and realigning. Digital transformation is now an imperative and digital transformation leaders can be found across many different industries, sharing common traits and visions, helping organizations overcome complex challenges to innovate and stay agile. Several key trends were identified in this report: importance of sustainability, actively seeking to scale solutions in multiple dimensions, benefits of focus and prioritization, empowering the operational front line, recognition that culture change is required, and active outreach to others.

ARC Advisory Group defines digital transformation as: “The integration of digital technology into all areas of business, fundamentally changing the way companies operate and deliver value to customers. The organization is typically charged to innovate and improve across multiple dimensions such as: digital/disruptive technologies, culture and leadership, operational agility, workforce engagement, customer experience, environmental, social and governance, and competitive performance.”

This is the fifth in a series of blogs in the digital transformation space.

BMW Group

The BMW Group is a leading manufacturer of luxury automobiles and motorcycles. The company has embraced digital transformation as a way to enhance the customer experience, improve efficiency and productivity, and develop new products and services. To this end, BMW has implemented various digital initiatives, such as the use of data analytics and AI to optimize its manufacturing processes and supply chain, as well as the development of connected and electric vehicles. BMW has implemented digital technologies to improve communication and collaboration within the organization, including the use of cloud-based collaboration tools and virtual reality training simulations. Additionally, BMW has been taking the next step in the systematic integration of additive manufacturing by scaling up to industrial levels for vehicle development and production. By additively manufacturing metal and polymer parts at various points in the process chain and different sites across the global network, the company has transformed its production process. Looking toward the future, BMW is investing millions of dollars over the next five years as it looks to create a seamless digital experience for customers, increase efficiency, and drive innovation. 

Road Ahead

Digital transformation is a continuous journey and ARC will continue its research in all areas related to digital transformation. We want to learn more about what is working – and what isn’t – as companies pursue their unique digital transformation activities. A lot is happening both on the supplier and user sides, and we would like to know about the pitfalls and success stories. The  ARC Industrial Digital Transformation Top 25 report will be published on an annual basis. With this being our second year, your feedback is very important to us as we will continue to investigate new approaches and measures to adjust our methodology, identify successful digital transformation initiatives, and help the industry as a whole digitally transform. We are on this journey together!