Driving profitability in automotive with big data

Advanced analytics, intuitive solutions, and expert support can jumpstart performance in the auto industry

  • Automotive

    Overtake your competitors with a value-based 
    and growth-oriented approach

Periscope reduces complexity and fuels profitability in automotive with advanced analytics, intuitive solutions, and dedicated capability building

 

Margins in the car industry have been eroding for more than a decade. It’s time to fight back. But profitable growth is harder to achieve than in most other industries, chiefly because of the complexity of the supply chain and the sales model. The situation is further aggravated by the need to define, price, and manage an almost infinite array of configurations, options, spare parts, and after-sales service offerings. Periscope’s solutions for the automotive industry enable suppliers, dealers, and original equipment manufacturers (OEMs) to identify opportunities for profit improvements and provides the tools to act on them. Our solutions support the integration of big data sets from heterogeneous sources, deliver insights on performance drivers, and help companies implement professional performance improvement programs.

Built on McKinsey’s best-in-class automotive expertise, Periscope supports business strategy definition, product management, marketing, sales, and operations. Our unique combination of high-impact software solutions and hands-on expert support enables automotive companies to transform the way they work with data and establish a mindset of value-driven decision making. As a one-stop performance partner, we help automotive players create a comprehensive action plan for capability building, performance tracking, and continuous improvement.

Periscope supports automotive players with a variety of solutions that are tailored to their position in the value chain and their respective needs. OEMs use our Insight Solutions to create transparency about opportunities across brands, models, countries, and sales channels. Periscope enables car makers to allocate marketing budgets and determine discounts based on facts rather than assumptions. For example, a major European OEM used Periscope Performance Vision to implement a common language for revenue and margin management. The company is already seeing the effects flow through to the bottom line, attributing a 2% increase in RoS to the actionable insights generated by the solution. One of the actions taken was to offer special discounts on highly popular options to drive sales.

Our Pricing Solutions help automotive companies set the right prices for spare parts, from small items, such as pumps and wipers, to complex components, such as transmissions and breaks. As online players are making a big push to sell selected spare parts directly to consumers, our experts work with suppliers to define the right pricing strategy, while our list pricing solutions let them set list prices at scale, taking into account value, costs, competitive intensity, and product architecture. For dealers, Periscope provides big data solutions to assess the residual value of car options, predict the market value of used cars, and optimize leasing contracts.

In addition, Periscope supports clients in the fields of automotive supply chain integration. Thanks to the supplier portal integration solutions, our clients benefit from improved compliance with process and quality standards defined by their customers or regulators. Our solutions enable suppliers to share crucial information with their customers through QDX documents (Quality Data eXchange) and handle 8D reports without the need to duplicate or re-enter data on supplier portals. The consolidation of data from multiple sources helps component manufacturers reduce risk, increase efficiency, and take swift action to address process, quality, or performance issues. Ultimately, Periscope empowers automotive companies to build better relations with their business partners.

Periscope solutions for price and margin optimization

  • Performance Vision

    Integrate and analyze internal and external data to generate insights for optimized pricing strategies.

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  • Deal Advisor

    Enable your sales teams to structure more profitable deals with hands-on contract and quote execution support.

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  • Price Advisor

    Optimize price setting across large assortments by simulating the impact of new prices with live data.

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  • Market Vision

    Assess your competitive positioning with real-time information on an unlimited number of products and price points.

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  • Sales Navigator

    Unlock sales productivity and optimize go-to-market organization.

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  • CCAT

    Build commercial capabilities to accelerate performance and growth.

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  • Sales DNA

    Improve the talent profile and effectiveness of the sales front line.

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How do you achieve transparency about value creation in a complex market? Learn how Periscope Performance Vision enabled a leading European car manufacturer to identify opportunities for hands-on margin improvement. The effort ultimately delivered a 2 percent increase in return on sales.


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Automaker sees 2% uplift in RoS with Periscope


Case Study (355kb)