LEADING THE TRANSFORMATION OF MOBILITY. Sergio Solero - CEO BMW Italia

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1 LEADING THE TRANSFORMATION OF MOBILITY Sergio Solero - CEO BMW Italia

2 Digitalization Environment Urbanization Behaviour Economy Politics Leading the Transformation of Mobility BMW Group München May 2018 Page 2

3 CHALLENGES FOR URBAN MOBILITY. Environment Urbanisation Politics and Regulations GLOBAL TRENDS Economics Culture/ Customer Behaviour Digitization Leading the Transformation of Mobility BMW Group München May 2018 Page 3

4 THE WORLD IS CHANGING. MICROSOFT HOLOLENS: GO BEYOND THE SCREEN. Leading the Transformation of Mobility BMW Group München May 2018 Page 4

5 THE WORLD IS CHANGING. BOSTON DYNAMICS: CHANGING YOUR IDEA OF WHAT ROBOTS CAN DO. Leading the Transformation of Mobility BMW Group München May 2018 Page 5

6 THE WORLD IS CHANGING. DOMINO'S WILL BEGIN USING ROBOTS TO DELIVER PIZZAS IN EUROPE. Leading the Transformation of Mobility BMW Group München May 2018 Page 6

7 DIGITAL READINESS. HOW DIGITAL ARE YOU? YOU ARE 1.0! Analog. YOU ARE 2.0! Digital. YOU ARE 3.0! Intermedial. YOU ARE 4.0! Smart Robotics. You are thinking only analog and feels digital is not key and relevant for you. You are familiar with Internet and Smartphone, but you are courious why mobile apps are replacing websites. You have understood that Digital Transformation is around the corner. Your smartphone is already your personal assistent. You are a data-driven human being. Terms like predictive purchase or Smart Business Eco-Systems are familiar. Source: Wolfgang Henseler, sensory minds Leading the Transformation of Mobility BMW Group München May 2018 Page 7

8 DIFFERENT INDUSTRIES. DIFFERENT DEGREES OF DISRUPTION. MEDIA TRAVEL ENTERTAINMENT BANKING AUTOMOTIVE HEALTHCARE Learnings: New Competitors Eco System Approach Customer Interface 3rd Party Network Leading the Transformation of Mobility BMW Group München May 2018 Page 8

9 OUTSIDE IN: RISE OF DIGITAL PLAYERS AND PLATFORM ECONOMY. EUROPE MUST CATCH UP. Pinterest (12) Netflix (83) Uber (48) P U N Snap S T (18) Twitter (18) Apple (868) Microsoft (660) Airbnb (31) USA Instacart (3) Facebook (513) S W A Salesforce (74) Share: 64 % WeWork (21) Houzz (4) Credit Karma (4) Social Finance (4) Alphabet (730) P P Amazon (564) Priceline (85) I S PayPal (88) D Dropbox (10) Square (13) Intuit (40) S Stripe (9) L Lyft (12) Spotify (16) Europa (11) Zalando Yandex (11) SAP (137) Delivery Hero (6) Afrika N Naspers (120) Auto1 Group (2.9) BGL Group (3) The Hut Group (3) Scout24 (4) China Internet Plus (30) JD.com (59) JD Asien Share: 3% Share: 31% Share: 2% Alibaba (442) Tencent (493) Alipay (75) Didi (58) D Samsung Baidu M Meituan (30) (367) C N Naver (27) W L Weibo (23) F L Lufax (19) Lu.com (19) T R Rakuten (13) Toutiao (11) O One97 (7) Flipkart (12) GrabTaxi (6) Ola (7) Ele.me (6) YY (7) Kuaishou (3) Coupang (5) Dlacaps (4) AP Market Cap in Billion US-Dollar/ 31th December 2017 Leading the Transformation of Mobility BMW Group München May 2018 Page 9

10 CHALLENGES OF THE FUTURE REFLECTED IN THE BMW GROUP STRATEGY. Autonomous Connected Electrified Shared Leading the Transformation of Mobility BMW Group München May 2018 Page 10

11 THE FUTURE MOBILITY MODEL. MOBILITY AS A SERVICE CAR AS A SERVICE CONNECTED LIFE OEM TRADITION SMART CAR & DIGITAL SERVICES Leading the Transformation of Mobility BMW Group München May 2018 Page 11

12 DIGITALIZATION IS AN OVERALL COMPANY APPROACH AT BMW GROUP. 8 CORE TOPICS HAVE BEEN IDENTIFIED Data Strategy IT Strategy Enabler Digital Transformation Customers Ecosystem Connected Vehicle Autonomous Driving Digitalization Core Processes (starting point sourcing and ItO) Industry 4.0 Customer Vehicle Business processes Enabler Leading the Transformation of Mobility BMW Group München May 2018 Page 12

13 THE NEW BMW 5 SERIES DRIVER ASSISTANCE PROVIDES COMFORT AND SAFETY AT THE HIGHEST LEVEL. Crossing traffic warning rear / front Top View Remote Night Vision Lane keeping assistant with active side collision protection Active cruise control with Stop&Go function Rear collision prevention Crossroad Assist Lateral parking aid Distance information Lane departure warning 3D View Top View Parking assistant Active Park Distance Control BMW Selective Beam Remote Control Parking Steering and lane control assistant Panorama View Speed Limit Device Speed limit and No Pass information Wrong Way Assist Lane change warning Speed Limit Assist Approach control warning with braking function Leading the Transformation of Mobility BMW Group München May 2018 Page 13

14 THE MOBILITY OF THE FUTURE IS AUTONOMOUS AND DATA-DRIVEN. Recognition of traffic light sequence Quantum- Landing on leap the moon No Assistance systems Assisted Partially automated Highly automated Fully automated Autonomous Fully Automated Driving Scene Recognition Sign Recognition Motion Profile Environment Profile Leading the Transformation of Mobility BMW Group München May 2018 Page 14

15 Leading the Transformation of Mobility BMW Group München May 2018 Page 15

16 CROSS-INDUSTRIAL PARTNERSHIPS NEEDED FOR A SUCCESSFUL DEVELOPMENT OF THE AUTONOMOUS DRIVING. COOPERATION. HD-MAP. INFRASTRUCTURE 5G. SENSOR STANDARD. SENSORS: CAMERA, RADAR, LIDAR. OBJECT FUSION. ROAD MODEL. CENTIMETER PRECISION. REAL-TIME CAPABLE. HIGHLY AVAILABLE AND RELIABLE. ULTRA LOW LATENCY. ULTRA HIGH RELIABILITY. ULTRA HIGH DATA RATES. SENSORS: CAMERA, RADAR, LIDAR. COMPLEXITY REDUCTION. FLEXIBILITY. DRIVING STRATEGY/PLANNING. FUTURE-PROOF INTERFACE. AUTONOMOUS DRIVING. OEM- COOPERATION. 5G AUTOMOTIVE ASSOCIATION. INTERNATIONAL BOARDS & ASSOCIATIONS. OEMs Leading the Transformation of Mobility BMW Group München May 2018 Page 16

17 ADDING NEW CUSTOMERS BY LAUNCHING NEW MOBILITY SERVICES. Traditional Vehicle Business Traditional Vehicle Business + Services + Vehicle Independent Services Additional Customers 100 Million 30 Million Customers worldwide Leading the Transformation of Mobility BMW Group München May 2018 Page 17

18 THE CONNECTED CAR AS PART OF THE INTERNET OF THINGS. THE ULTIMATE IoT DEVICE OR JUST ONE OF MANY? 50,000,000,000 Devices within the Internet-of-Things in 2020 (CISCO) 290,000,000 Connected Cars in 2020 (McKinsey) Leading the Transformation of Mobility BMW Group München May 2018 Page 18

19 BMW GROUP. ELECTRIFICATION SUCCESS STORY. BEV PHEV BMW i3 MINI BEV BMW X3 BEV BMW inext BMW i8 BMW 225xe iperformance BMW 330e iperformance BMW 530e iperformance BMW 740e/Le iperformance MINI Cooper S E Countryman ALL4 BMW X1 xdrive 25Le iperformance (China only) BMW X5 xdrive40e iperformance BMW i8 Roadster Leading the Transformation of Mobility BMW Group München May 2018 Page 19

20 BMW GROUP AND DAIMLER TO COOPERATE ON MOBILITY SERVICES Multimodal and on-demand mobility with moovel and ReachNow CarSharing with Car2Go and DriveNow Ride-Hailing with mytaxi, Chauffeur Privé, Clever Taxi, Beat Parking with ParkNow and Parkmobile Group/Parkmobile LLC Charging with ChargeNow and Digital Charging Solutions Leading the Transformation of Mobility BMW Group München May 2018 Page 20

21 SMART CITIES ARE CREATED WITH THE HELP OF CORPORATES, PUBLIC SECTOR AND START-UPS. TODAY TOMORROW Leading the Transformation of Mobility BMW Group München May 2018 Page 21

22 INTELLIGENT AND INNOVATIVE BUSINESS PROCESSES. DIGITALIZATION CREATES NEW OPPORTUNITIES. Data and Analytics Smart Logistics Innovative Automation Additive Manufacturing Internet-of-Things Architecture Autonomous Transport Systems Collaborative Robot Systems New Individualization Leading the Transformation of Mobility BMW Group München May 2018 Page 22

23 Leading the Transformation of Mobility BMW Group München May 2018 Page 23

24 IL MIGLIOR MODO DI PREDIRE IL FUTURO È CREARLO. THE BEST WAY TO PREDICT THE FUTURE IS TO CREATE IT.. Leading the Transformation of Mobility BMW Group München May 2018 Page 24

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