Insight

From product to service

Volkswagen, one of the top-three automakers in the world, knew it could do more with its customer-data, but wasn't sure how to take advantage of the treasure trove of information generated from its cars. Partnering with the IBM Garage, VW focused its efforts on We Experience to provide in-vehicle services that enhance a customer’s ride and grow revenue through partnerships.


Working side-by-side with IBM Garage experts has allowed VW leaders to brainstorm new ideas, build MVPs and test prototypes quickly with minimal institutional friction.

Idea

Using data to turn drivers into customers

IBM Design Thinking and DevOps methodologies and the lean startup mentality fostered by the Garage enabled VW business, development and design leaders to view the data they were collecting from their cars in a new way — as the basis of new services.

First out of the gate is the We Experience app, bringing together location and other data to anticipate driver and passenger needs, suggest services near parking locations, and deliver targeted offers from partners, including coupons from retailers.

Impact

Transforming an automaker into mobility services company

Along with every other major industry, car manufacturing is facing disruption brought about by new, data-driven services and rapidly shifting customer needs. The IBM Garage has helped one of the world's leading automakers anticipate and adapt to the future in order to remain as strong in its future as it has been in its past. Leveraging the data it had already been collecting allows the company to offer services as well as products, positioning it well for the ongoing data-driven transformation of the global economy.

The benefits

  • New mobility services through a new data-driven platform positions the company to take advantage of new and evolving revenue streams, including from the estimated 58% of offline purchases involving cars.
  • Colocation of IBM experts and VW leaders near VW headquarters in Germany allows the automaker to continue rapid prototyping of new ideas.
  • Cross-company colocation brings the best internal talents, including in the areas of digital strategy, IT development, business leadership and more to bear on business challenges more quickly than ever.
Hood of a car

Our customers will become part of an ecosystem that we have named We. This system complements the Volkswagen experience and enables the customer to take their world into our vehicles.

—Jürgen Stackmann, Member of the Board for Sales, Volkswagen

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Sysco

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