Using digital technology and analytics in marketing and sales is not just a competitive advantage; it benefits the entire industry
The benefits of the M&S technology transformation will have both macro and micro consequences.
On one hand, it will deliver value to the entire industry through optimized lead management, granular volume planning, micro-targeting and analytics-based decision making. For example, we estimate the automotive industrywide benefit of those effects will reach USD 31 billion by 2025, or up to 2 percent of the total operating margin.
On the other hand, applying digital tech and analytics to M&S is expected to become a differentiating factor among incumbents and between incumbents and new digital competitors.
Example: Automotive value chain
Value potential from bottom-line effects, USD billions (as share of costs in corresponding parts of the value chain)
Value potential from top-line effects, USD billions (as share of total revenue)
Research and development
Procurement
Supply chain management
Manufacturing
Marketing and sales
After sales and services
Support functions
Driver/vehicle features
8
51
22
61
22
9
8
5
17
12
$31bn
total in M&S