1、The end of the ivory towerHow automotive OEMs can shift gears to growth by taking a fresh look at their organizational structureFor years,automotive original equipment manufacturers(OEMs)have had great success with organizational models in which responsibility for sales and ownership of revenue gene

2、ration lay not at the center,but with local market entities on the outskirts of the enterprise.This local autonomy came at a cost,however.Many OEMs central organizations became“Ivory Towers,”lacking clear business ownership and performing often-redundant activities.When times were good,this ineffici

3、ency could be absorbed.But a combination of structural change across the automotive industry,rapidly changing customer expectations and an evolving regulatory environment is now putting OEMs under ever-greater financial pressure.They must urgently find ways to make their organizations more effective

4、 and efficient.The solution?By taking a fresh“clean slate”view of the business,OEMs can fundamentally rethink the way central organizations collaborate with local market entities.Reallocating ownership and roles between the twocomplemented with greater automation and the use of modern technologycan

5、deliver substantial efficiencies and savings.The size of the prize?A typical$100 billion OEM can potentially save between 15 percent and 25 percent in personnel costs alone in the areas of sales,aftersales,and marketing as well as support functions(G&A),not even including other functions such as RD

6、and manufacturing.Change on this scale is not easy,but the potential rewards are great.With a zero-based clean-slate exercise,OEMs can revitalize their organizations to better manage todays turbulence and set themselves up for future prosperity and growth.2The automotive industry is going through a