International Motors' AI Strategy: A 200-Year-Old Company's Digital Renaissance

International Motors' AI Strategy: A 200-Year-Old Company's Digital Renaissance

International Motors, a legacy manufacturer founded nearly 200 years ago, is at the forefront of a digital transformation driven by artificial intelligence (AI). The company's comprehensive digital strategy, spearheaded by Chief Digital and Information Officer Robert Oh, is designed to modernize operations while maintaining the integrity of its long-standing traditions.

A Four-Pillar Digital Strategy

At the heart of International Motors' transformation is a four-pillar digital strategy. Each pillar is crucial for ensuring a holistic and sustainable digital transformation:

1. Next-Generation Cybersecurity: Ensuring robust security for IT, operational technology (OT), and connected products is a top priority. This foundational element is essential for building trust and enabling the adoption of advanced technologies.
2. Ways of Working: The company is adopting a two-speed operating model, balancing traditional IT delivery methods with agile and design thinking in digital product organizations. This approach allows for a balanced management of risk and innovation.
3. Integrated Digital Platforms: Connecting six core enterprise systems into a cohesive digital backbone is key to streamlining operations and enhancing data liquidity.
4. New and Emerging Technologies: Prioritizing AI and the development of software-defined vehicles is driving innovation and future-proofing the business.

Co-Innovation Labs: Fostering Cross-Functional Collaboration

Central to International Motors' AI strategy are the co-innovation labs. These labs bring together cross-domain, enterprise-wide teams to develop and refine AI use cases. Each lab is structured into pods, with each pod focusing on a specific business area. This collaborative approach ensures that AI initiatives are aligned with the company's strategic goals and business value.

Immediate Value Creation Opportunities

Robert Oh organized the AI initiative into multiple pillars: strategy and roadmap, portfolio management, talent development, and the AI technology stack. By using a Venn diagram approach, the company identified immediate value creation opportunities at the intersection of external perspectives, business process areas, and data liquidity. This method has led to the identification of over 50 cross-domain business ideas, with three beta use cases currently in development:

• Lead Management for Commercial Business**: Optimizing sales processes and customer engagement.
• Spend Analytics for Procurement**: Enhancing cost efficiency and supply chain management.
• Dealer-Network Customer Service**: Improving aftersales support and customer satisfaction.

Aligning Executive Leaders and Stakeholders

Engaging executive leaders and stakeholders is crucial for the success of any transformational initiative. Robert Oh employed a forward-thinking approach by asking leaders to envision what they want International Motors to be known for in 2030. This exercise resulted in a visionary two-page press release that outlines the company's aspirations, achievements, and strategic approaches.

The Five As of Transformational Leadership

Robert Oh's leadership principles, known as the Five As, guide the transformation efforts:

1. Aspirations: Maintaining big and bold aspirations for AI and digital initiatives.
2. Ambiguity: Embracing uncertainty as a natural part of breakthrough innovation.
3. Alliances: Building strategic partnerships internally and externally.
4. Agility: Operating in short experimental sprints to test concepts and gather insights.
5. Assessment: Continuously refining approaches to achieve optimal outcomes.

Architectural Changes for 2030

To support the 2030 vision, International Motors is making fundamental architectural changes:

• Modernizing the Integration Layer**: Shifting to an API reuse model to improve efficiency and reduce redundancy.
• Enhancing Data Liquidity**: Building gateways to connect and ensure the accuracy and cleanliness of data.
• Transitioning to a Multi-Cloud Environment**: Building capabilities to be more agile and avoid redundant functionalities across platforms.

The Bottom Line

International Motors' AI strategy is not just about technological advancements but also about cultural transformation. By integrating AI into its operations, the company is poised to lead in the digital age while maintaining its legacy of innovation and excellence.