Digital Transformation of Business Models

Abstract

This dissertation examines the impact of digital transformation on the business models of the German automotive retail industry, with a particular focus on automotive retail sales strategies. Against the backdrop of changing consumer expectations and rapid technological advances, this work examines how digital tools and innovations are changing customer behaviour and decision-making processes in the automotive industry, and what the current business model in automotive retail sales looks like. The work concludes that many automotive retailers do not have a strategy for their digital transformation and need one. This dissertation takes a cross-methodological approach that combines two quantitative online surveys of (potential) German automotive customers with qualitative expert interviews from the industry. The surveys capture customers' expectations and attitudes towards digital innovations in automotive retail, while the expert interviews provide insights into the measures that automotive retailers have already implemented to adapt their sales strategies to the digital age. The results show that digital transformation is no longer a supplementary aspect of automotive retail, but a fundamental one. Customers increasingly prefer digital interactions, with a focus on virtual showrooms, connected car features, apps for vehicle configuration, and high price transparency, augmented reality for vehicle configuration, digital financing and signature offers, as well as personal recommendations from artificial intelligence, transparent customer ratings and intelligent chatbots. This dissertation ends with the development of the ACTF model (Adaptive Customer-Dealer Transformation Framework) to provide retailers with a data-based yet customisable action plan for the digital transformation of their business model, which is also the practical contribution of this dissertation. This dissertation makes a significant contribution to research by closing a gap in the literature on the intersection of digital transformation and automotive retail in Germany. The results underscore the importance of an omnichannel approach that integrates online and offline customer experiences, although the shift toward online opportunities will continue to grow.

This dissertation examines the impact of digital transformation on the business models of the German automotive retail industry, with a particular focus on automotive retail sales strategies. Against the backdrop of changing consumer expectations and rapid technological advances, this work examines how digital tools and innovations are changing customer behaviour and decision-making processes in the automotive industry, and what the current business model in automotive retail sales looks like. The work concludes that many automotive retailers do not have a strategy for their digital transformation and need one. This dissertation takes a cross-methodological approach that combines two quantitative online surveys of (potential) German automotive customers with qualitative expert interviews from the industry. The surveys capture customers' expectations and attitudes towards digital innovations in automotive retail, while the expert interviews provide insights into the measures that automotive retailers have already implemented to adapt their sales strategies to the digital age. The results show that digital transformation is no longer a supplementary aspect of automotive retail, but a fundamental one. Customers increasingly prefer digital interactions, with a focus on virtual showrooms, connected car features, apps for vehicle configuration, and high price transparency, augmented reality for vehicle configuration, digital financing and signature offers, as well as personal recommendations from artificial intelligence, transparent customer ratings and intelligent chatbots. This dissertation ends with the development of the ACTF model (Adaptive Customer-Dealer Transformation Framework) to provide retailers with a data-based yet customisable action plan for the digital transformation of their business model, which is also the practical contribution of this dissertation. This dissertation makes a significant contribution to research by closing a gap in the literature on the intersection of digital transformation and automotive retail in Germany. The results underscore the importance of an omnichannel approach that integrates online and offline customer experiences, although the shift toward online opportunities will continue to grow.