Evolving IT Sourcing Strategies in the German Automotive Industry: A Blueprint for Managing Transition

Abstract

This thesis examines how and why the German automotive industry is changing IT sourcing strategies in response to the implications of digital transformation. Due to megatrends such as decarbonisation and digitalisation, the industry is undergoing its greatest transformation in its existence. The future success of the industry depends heavily on the level of digital innovation, for which IT sourcing is becoming a strategic function to provide critical capabilities and resources. The industry has made a strategic shift and recognised software as a key technology that will dictate long-term success in global markets. Transformation processes have begun to span the areas of digital processes and automation, connected cars, and mobility services to facilitate software-enabled automotive companies. This is leading to new IT sourcing models in a variety of configurations. This research is based on the constructivist perspective, with its associated interpretative research methodology. The thesis centres on a single-case study of the German automotive industry as a whole, where a change in the ratio between insourcing and outsourcing has a significant impact on in-house employment and third-party business operations. The approach is qualitative and started with an online survey for framing areas of discussion for the subsequent 19 semi-structured interviews with IT managers and sourcing experts. The analysis of the findings resulted in 15 emerging themes and the development of a blueprint for the transitioning of IT sourcing management, requiring a redistribution of IT responsibilities between Business and Corporate IT. The blueprint contributes to both theory and practice. The principles for a reallocation of IT sourcing responsibilities and the resultant organisational consequences are set out. The blueprint can be set alongside existing models of sourcing transition, and acts as a guide for practitioners in the automotive sector charged with overseeing change in sourcing management in the digital era.

Corporate Digital Responsibility and the Business Implications of Quantum Computing

“…However, there are already a number of developments that suggest this timeline may be shortened. For example, supply chain logistics and transportation can take advantage of improved route planning and traffic optimisation enabled by Quantum Computing processing power, which can more effectively process and manage the vast amounts of real-time data now available from increasingly sophisticated in-vehicle systems [39], traffic flow data and weather patterns. Quantum computers can make a major difference here in their capabilities to process such large amounts of data in real-time, allowing optimal and constantly updated route planning for fleets of vehicles, with consequent environmental and efficiency benefits.…”

Digitalisation and Change in the Management of IT

“…There are two distinct stud ies in this research (Figure 1), which are outlined below. Study 1 focused on the German automotive industry [28]. Expert interviews were th main applied methodology with the aim of acquiring a rich and deep understanding o Study 1 focused on the German automotive industry [28].…”

“…Study 1 focused on the German automotive industry [28]. Expert interviews were th main applied methodology with the aim of acquiring a rich and deep understanding o Study 1 focused on the German automotive industry [28]. Expert interviews were the main applied methodology with the aim of acquiring a rich and deep understanding of the impacts of digitalisation on the German automotive industry to provide answers to RQ1 and RQ2.…”

A New Model for IT Management in the Digital Era

“…The overall research approach is qualitative and inductive, largely based on questionnaire feedback and in-depth interviews with industry practitioners. Phase 1 of the study focused on the German automotive industry (Felser, 2022). Expert interviews were the main applied methodology with the aim of acquiring a rich and deep understanding of the impacts of digitalisation in the German automotive industry, to provide answers to RQ1 and RQ2.…”