Volkswagen’s struggles with its in-house software development and tech innovation efforts following the diesel emissions scandal that cost the company $35 billion. In 2020, VW launched CARIAD, a division aimed at creating a unified software architecture for all its brands, including Porsche and Audi, with the goal of increasing production efficiencies and generating new revenue streams from tech licensing fees and subscriptions.
However, poor execution and mismanagement plagued CARIAD, resulting in significant product delays and stalled initiatives in electric vehicles and autonomous driving. As a result, established and upstart competitors raced ahead with well-funded innovation, modernized plants, scaled automation, and strong tech-sector partnerships. The three major unforced digital strategy errors that hurt VW are not unique to the company or the automotive industry:
Due diligence does not end with investment – effective boards and c-suites need to apply the same level of scrutiny to post-investment due diligence as business case screening often receives.
Call the consultants” is not the strategy audit approach companies need – Only adaptive organizations welcome insiders to question, critique and challenge strategic purpose and progress
In conclusion, as technology continues to transform industries, businesses must be careful with complex tech decisions, conduct thorough post-investment assessments, and welcome critical perspectives to avoid costly mistakes and maintain a strategic edge. Access the full article by Forbes below.
