Beyond Digital by DMI #05: The Transformation of The Automotive Industry

In this episode, we’re joined by Mamatha Chamarthi is Head of Software Business and Product Management – Global, Americas and Asia, Stellantis. She has cross-functional program leadership responsibility for connectivity and infotainment.

In 2013, Mamatha became vice president and chief information officer for Consumers Energy/CMS Energy, where she developed and implemented digital transformation strategies. Afterward, she headed up digital for ZF Friedrichshafen AG. In 2019, she returned to FCA (formerly DaimlerChrysler) and was promoted to her current role with Stellantis earlier this year.

In 2020, Automotive News named her one of its 100 Leading Women in the North American Auto Industry and MichiganCIO named her CIO of the Year. She was also recently named one of the 100 most influential women in Michigan.

Jenny Heinze is the SVP & Global Head of Automotive | Software Mobility | Connected Ecosystem at DMI (Digital Management, LLC). Jenny is responsible for the automotive and transportation team at DMI, strategically supporting clients with their conversion to software mobility. Previously, she worked at Daimler Benz in Stuttgart, Germany and at Chrysler in Michigan, USA before she transitioned into consulting in various companies and executive capacities. She loves engaging with thought leaders and groups in the private and public sector who are participating in the software mobility transformation across industries and the connected ecosystem.

Mamatha and Jenny discuss the innovations and technologies that are disrupting the automotive industry, and they share their insights on how OEMs are adapting to meet the changing expectations of consumers.

The Convergence of Mechanical Engineering, IT and Business – 5:45

Mamatha and Jenny talk about how a focus on customer experience inside the car is placing software ahead of engineering. “What more intriguing place to be than in this space right now – to be part of that ecosystem that is connecting everything and to support that transformation,” says Jenny.

Top Consumer Trends in the Automotive Industry – 7:09

Mamatha shares about the shifts she sees in consumer expectations and behavior amid the disruption in the auto industry: from the expectation that a vehicle’s feature set will continue to improve over time to customers consenting to data collection in exchange for convenience. Mamatha and Jenny also discuss how some consumers are beginning to require different cars for different uses – a car for commuting, a truck or SUV for hauling and trekking, and a sports car for nights on the town.

Advancements at Stellantis Based on These Trends – 12:40

Mamatha discusses the company’s three AI driven platforms – STLA Brain, STLA SmartCockpit, and STLA Autodrive. STLA Brain connects the car to on-board micro-computers and to the cloud. STLA SmartCockpit leverages AI and cloud solutions to transform vehicles into personalized living spaces. STLA Autodrive was developed in partnership with BMW and offers autonomous driving capabilities continuously upgraded through OTA updates.

Mamatha also introduces “Know and Go” – the company’s augmented reality user manual: “This was the idea of two women employees. I’m especially proud to say two women employees,” says Mamatha. “They said, ‘How many of our customers really use all of the features in our cars?’ And they said, ‘If I can point my camera from my smartphone at a feature, it should be able to tell me what that feature is and how to use that feature’.”

Key Challenges Facing OEMs – 18:00

Mamatha and Jenny discuss the many challenges facing OEMs in this era of disruption: “We were so used to starting with the hardware architecture and then trying to fit the software into it,” says Mamatha. “Reversing it and thinking about the customer experience and the software first, and then … software changes almost every day, every week, every month. So those are the cycles that the auto industry is not used to.”

Other challenges discussed include leveraging data to improve customer experience and OEMs’ need to attract tech talent and – at the same time – retrain existing talent. “We have a responsibility to re-skill and re-train our existing engineering employees specifically,” says Mamatha. “We have 30,000 engineering engineers and even if a small percent of them are willing to re-skill themselves that will be amazing.”

Later in the conversation, Jenny lists QA testing, open-source questions, and the need to truly understand the consumer as additional challenges facing OEMs. “Understanding consumers’ demand for convenience within everything that’s going on in their life – cracking that code is going to be the Holy Grail of future success in the industry,” says Jenny.

Where’s the Industry Going? – 24:45

Mamatha and Jenny discuss what’s ahead for the automotive industry – how OEMs will be addressing consumers’ real-time needs as a companion, trail guide and avatar; and how – with women buying 62 percent of vehicles and influencing 85 percent of vehicle purchases – OEMs will be focusing on that critical demographic. “I think that’s going to be a differentiator and a competitive advantage for the auto companies that actually finally figure out how to focus on women as their buyers and on women as drivers,” says Jenny.

Book Ends: – 32:25

Mamatha highlights the book The Heart of Business: Leadership Principles for the Next Era of Capitalism by her mentor, Hubert Joly, and co-authored by Caroline Lambert. She cites Joly’s focus on empathy, saying, “Deep empathy for employees creates a deep empathy for customers. Human-to-human understanding will help you introduce the right solutions.”

Jenny echoes the importance of empathy and explains how it can inform communication, recommending reading on neurolinguistic programming. “I keep preaching that communication needs to be modified and adapted to the person that you’re communicating with or the team you are communicating with,” she says. “When you do this, you’re empathizing with the person you’re talking to, and you understand their position and you understand their needs and wants.”