You know best, that the current way of making M&A decisions cannot hold up with the complexity of today's business world.
Decision optimization helps executives and M&A leaders like you turn information into better business outcomes by augmenting decisions with AI giving you the ultimate competitive advantage in an uncertain world.
In this webinar, you’ll learn how you can use this technology to:
Be the person for solving the future of decision optimization
Guide your company to outperforming a decision making process
Deep dive on what the new category can do for your company
Learn from the founder of the first decision optimization software and with 10 years experience in the field
Learn from the founder of the first decision optimization software and with 10 years experience in the field
Unleash the power of collaborative decision-making within your team. Get everyone on board and sensitize your team for the huge potential decision optimization bring to your company
Understand what Hybrid Intelligence is and how it combines human expertise with AI capabilities to make informed decisions.
Explore the current state of AI and its relevance in the business world, with real-world examples of successful AI implementations.
Gain insights into different decision optimization frameworks and methodologies that can be applied in various business scenarios.
Analyze case studies showcasing how AI-driven decision optimization has contributed to significant revenue growth and cost savings in different industries.
Learn practical steps and strategies for effectively implementing AI-based decision optimization within your organization
Engage with Dr. Dellermann in a live Q&A session, where you can ask questions and seek clarification on specific topics
Be the person for solving the future of decision optimization
Guide your company to outperforming a decision making process
Deep dive on what the new category can do for your company
Learn from the founder of the first decision optimization software and with 10 years experience in the field
Learn from the founder of the first decision optimization software and with 10 years experience in the field
The European automotive industry, once a pillar of the continent's economy, is facing unprecedented challenges. Emerging technologies, such as Electric Vehicles (EVs) and Advanced Driver Assistance Systems (ADAS), are reshaping the landscape. Non-European players, especially in the EV market, have surged ahead, while traditional European giants are losing ground. The main challenges faced:
1. Competing with Profitable Supply Chains: European OEMs struggle with operational inefficiencies, resulting in lower margins and longer cycles. Newer competitors excel with efficient production and supply chains.
2. Mastering Technology Commercialization: New tech companies efficiently monetize R&D investments, highlighting the importance of translating innovation into revenue.
3. Achieving Capital Efficiency: Emerging players grow with less capital expenditure, leveraging advanced technologies and partnerships for financial stability.
4. Chasing Faster Growth: New suppliers show significantly higher growth rates than established players, signaling changing market dynamics.
5. Access to Capital: New players have larger market capitalization, granting them more access to capital for further growth and innovation.
This cycle of growth reinforces itself, creating an imbalance that threatens the competitiveness of European OEMs. To respond, European companies must adapt swiftly, embrace innovation, and explore collaborations.
European Automobile Manufacturers' Association (ACEA) just released their latest The Automobile Industry Pocket Guide emphasizing the automotive industry's vital role in Europe's economy. It invests €59.1 billion, comprising 31% of the EU's R&D spending, driving technological progress that surpasses pharmaceutical and biotech sectors combined, making it a pioneer in technological advancements within Europe. Employing 2.4 million employees directly and a total of 12.9 million, it represents 7% of EU jobs, contributing to economic stability. This makes the automotive industry a cornerstone of Europe's wealth.
Nonetheless, this wealth is currently facing significant risks. Emerging technologies such as Electric Vehicles (EVs) and Advanced Driver Assistance Systems (ADAS) have become increasingly crucial. These advancements demand different components, technologies, and capabilities, giving rise to new industry players.
For instance, in the EV market, non-European Original Equipment Manufacturers (OEMs) have taken the lead, particularly in the United States with companies like Tesla, Rivian, or Lucid Motors, as well as in China with BYD, XPENG, Great Wall Motor Co., Ltd., and NIO. Meanwhile, the prominence of European giants such as Volkswagen Group, AUDI AG, Mercedes-Benz AG, and BMW Group is steadily diminishing. This shifting landscape underscores the growing competition that European automakers face from their international counterparts.
The pattern of non-traditional and non-European players gaining ground extends beyond the automotive manufacturers themselves. In the Tier 1 supplier market for EVs, we observe a similar trend, with companies like Contemporary Amperex Technology Co., Limited, Mobileye, and NVIDIA playing increasingly important roles. Furthermore, the involvement of major tech giants like Waymo from Alphabet Inc. and Apple (Car OS) is yet to fully materialize, suggesting that even more disruptive changes may be on the horizon.
The challenges faced by European firms in gaining relevance in emerging technologies are multifaceted and significant. Let's explore the major problems faced.
The traditional players among European OEMs face a notable challenge when it comes to their operational efficiency. These companies often contend with significantly lower gross margins and extended operating cycles compared to their newer, more agile competitors. One of the key reasons behind this disparity lies in the more efficient and profitable production and supply chains that the emerging competition has embraced.
In today's tech arena, success isn't just about inventing cutting-edge technology; it's about turning innovation into revenue. New tech competitors have mastered this art, as measured by their impressive Research and Development (R&D) turnover. This metric reflects their ability to generate substantial income for every dollar invested in R&D.
Unlike their predecessors, these agile suppliers are achieving substantial growth with less capital expenditures (CapEx). They rely on advanced technologies, strategic partnerships, and outsourcing to maximize their asset utilization. This approach not only enhances financial stability but also enables quick adaptation to market changes and technological advancements.
The normalized year-over-year (YoY) growth rates (EMA) seen among emerging tier 1 suppliers, often exceeding those of established players, reflect the shifting dynamics of the global market. In contrast, traditional tier 1 suppliers are grappling with stagnation, with revenue growth rates hovering between three to ten times lower than those of their newer counterparts.
In the quest for a fairer comparison between established players and newcomers in the automotive industry, it's imperative to consider a metric that balances growth and profitability. Enter the "Rule of 40," a metric originally popularized in the Software-as-a-Service (SaaS) realm. The Rule of 40 offers a holistic view of a company's financial health, encapsulating its EBIT (Earnings Before Interest and Taxes) margin alongside its revenue growth rate.
The significant market capitalization enjoyed by these new players, often ranging from tenfold to several hundred times higher than that of traditional counterparts, equips them with substantial access to capital. This access, in turn, provides them with a unique opportunity to fuel further growth through strategic initiatives like mergers and acquisitions (M&A) and additional investments in research and development (R&D).
This cycle of growth, where increased market capitalization facilitates more significant investments in expansion and innovation, creates a reinforcing loop. In contrast, European OEMs find themselves caught in a downward spiral of diminishing market capitalization and limited access to resources. As a result, this imbalance can lead to an exponential decline in their competitiveness and relevance in the rapidly evolving automotive landscape.
In this environment, every day becomes crucial for European OEMs, highlighting the urgency for them to swiftly adapt, embrace innovation, and explore collaborative strategies to regain their foothold in an industry where disruption is the new norm.
Under those circumstances, executives are navigating uncertainty, complexity, and rapid changes of an unprecedented scale. These challenges surpass any that managers have faced in the past. In these times, a company's and Europe's economic success hinges on just two critical factors: luck and the quality of decisions made by its leaders.
That's precisely why we've developed DeOS - the Decision Optimization System, a cutting-edge solution designed to transform information into tangible, superior business outcomes. DeOS leverages the power of artificial intelligence to augment managers in critical use cases, including but not limited to Research and Development (R&D) investments, portfolio management, new product development, market entry strategies, digital transformation initiatives, and Mergers and Acquisitions (M&A).
Unleash the power of collaborative decision-making within your team. Get everyone on board and sensitize your team for the huge potential decision optimization bring to your company
Be the person for solving the future of decision optimization
Guide your company to outperforming a decision making process
Deep dive on what the new category can do for your company
Learn from the founder of the first decision optimization software and with 10 years experience in the field
Learn from the founder of the first decision optimization software and with 10 years experience in the field
Dr. Dominik Dellermann is an accomplished professional with a remarkable background. Holding a Ph.D. on Decision Augmentation with Hybrid Intelligences®, his expertise spans across decision optimization and its applications in various industries. With years of experience and a passion for driving impactful decisions, Dr. Dellermann has emerged as a leading authority in the field. His extensive knowledge and innovative approaches have made him a sought-after advisor, empowering organizations to unlock the true potential of decision-making and achieve remarkable business success.
Decision optimization is a new category of technology to empower business users making better, faster, more efficient, and continuously improving decisions. The system recommends a decision, or multiple alternatives, to business experts combining the synergies between humans and technology. Powered by human intuition, augmented by AI (Hybrid Intelligence®).
Decision-making is hard. It varies from company to company, and decision to decision. But one thing that all decisions, from choosing how you like your coffee to multi-million dollar investments, have in common is the decision-making process. That's why decision optimization designs a standardized decision-making process that fits every use case. Whatever your next decision is.
Still have question? Our team is there to help
Contact supportWe’ll help you to discover the most critical decisions for optimization to define the scope of your journey to outperforming decision-making.
Our decision specialists help you optimize your decision-making process, define the required insights, data, AI services and tasks, and create a custom decision template dedicated to your needs.
We deliver your fully customised dedicated instance of DeOS, onboard your team and data and guide your team to let you experience the full power of decision optimisation in action and create your success story.
Decision optimization is a rapidly growing category that has gained significant momentum in recent years. Organizations across industries are realizing the immense value that can be unlocked by leveraging data-driven decision-making. As a Decision Expert, you will play a crucial role in bridging the gap between AI technologies and the realization of business value.
Decision optimization is the key to unlocking the full potential of AI in driving business success. By leveraging advanced algorithms and computational power, organizations can make smarter, data-driven decisions that maximize outcomes and minimize risks. It is the bridge that connects the power of AI with the real-world complexities of decision-making. Embracing decision optimization empowers businesses to navigate through uncertainty, uncover hidden opportunities, and gain a competitive edge in today's rapidly evolving landscape.
DeOS decision templates standardize everything from data to actions with best-practice business knowledge built in, so you can get started with a single click.
Book a callDeOS decision templates empower business users to apply AI-powered insights to how they make all kind of high-stakes decisions — without having to switch between tools.
Explore solutionsManual work, siloed data, and biased decisions cost your business millions of dollars - every single year.
DeOS connects decisions on a single platform, automates data analysis with best-in-class AI engines, and augments everyone with intelligence to outperform in M&A.
DeOS out-of-the-box solutions empower you to get started right away and deliver value from day one.
Power next generation decisions by combining human intuition and AI