Bosch: Joining the digital revolution of automotive aftermarket in China

• Main Authors: SPECULAND, Robin, CHEN, Liang, BHATTACHARYA, Lipika, YU, Liang
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2024
• Subjects: Digital transformation; Organisational transformation; Experimentation; Competitive strategy; Service management; Asian Studies; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/cases_coll_all/511; https://cmp-shop.smu.edu.sg/products/bosch-joining-the-digital-revolution-of-automotive-aftermarket-in-china
• Institution: Singapore Management University

In 2024, Wang Songtao, then-Regional President of Bosch Mobility Aftermarket (Bosch MA) for Asia Pacific, led a critical digital transformation. Bosch, a global leader in automotive parts, faced fierce competition in its aftermarket division in China due to e-commerce disruptors and connected electric vehicles. To stay competitive, Songtao’s team launched a digital-first strategy in China in 2020, leveraging emerging technologies to enhance offerings and processes. The transformation centered around the “Three Layers, One Ordinate” digital ecosystem, integrating connected products, operations, and ecosystems. This enabled services like predictive maintenance and improved customer experiences, driving significant revenue growth. Songtao also worked to shift Bosch’s traditional culture towards innovation, implementing training programs and restructuring to attract digital talent and build a data-driven culture. Key initiatives included AI-driven predictive maintenance and infrastructure upgrades to boost supply chain efficiency. Bosch also launched the Bosch Connected Parts platform and an Online-to-Offline model to improve customer service. By 2023, Songtao aimed to extend these successes to other APAC markets. Could Bosch replicate the success in China across the region, and how would local market dynamics shape the strategy? This case allows students to explore how a traditional organisation can successfully undergo a digital transformation, especially under the pressure of competition from digital-native firms. It highlights how businesses can leverage data and ecosystems to enhance customer value, respond to competitive threats, and navigate the complexities of digital transformation. The case also underscores the crucial role of strong leadership in guiding this process. Students will gain insights into (1) Digital transformation in traditional organisations, (2) A three-year road map for digital transformation, (3) Implementation of digital initiatives, (4) Cultural and organisational changes, (5) Impact on business performance, (6) Leadership in digital transformation (7) ecosystem strategy in the digital economy (8) Mobility aftermarket sector.