Joshua Hinkel’s Post

The #automotive supplier industry has maintained profitability for 20 years, but remains vulnerable to volume fluctuations. As demand in mature markets levels off, established suppliers will face mounting pressure. The companies that thrive will uncover new growth opportunities, streamline complexity, and uphold operational excellence. https://bit.ly/3BITvgM

Twenty years of data shows that automotive suppliers can boost profitability by focusing and scaling within innovation-driven segments. As the industry transitions from hardware to software and from combustion engines to electric powertrains, companies must adapt. Those that prioritize focus and scale over diversification will be best positioned to capture a larger share of the industry's profit pool. https://bit.ly/4dGoqHC

As EV profitability continues to lag behind traditional internal combustion engine vehicles, automakers face tough decisions on where to invest. The winners will be those that maintain a flexible portfolio strategy, designing scalable, technology-enabled products across ICE, BEV, plug-in hybrid electric, and hybrid vehicles, while optimizing costs. Strategic partnerships will also be key to expanding platform scale and staying competitive. Explore our full insights here. https://bit.ly/4eD7ZgC

I am pleased to share our chapter on Circularity from the latest edition of “The Visionary CEO’s Guide to Sustainability,” co-authored by my colleagues Josh Hinkel, Tessa Bysong, Xavier Houot, and Simone Doms at Bain & Company. As businesses face the pressing challenge of resource scarcity, circular business models offer a transformative path forward. These models not only enhance operational resilience but also open up new markets and create competitive advantages. But how do companies deliver on the promise of circularity? Partnerships are key. In a recent Bain survey, over 90% of companies with circular initiatives reported having at least one partnership in place. These alliances are essential for gaining access to circular feedstocks, sharing market knowledge, and developing the technologies needed to drive sustainable transformation. Take it a step further: AI is helping companies extend product lifecycles, from predictive maintenance to traceability, boosting customer confidence in refurbished goods. Whether it's rethinking product design, optimizing resource use, or transforming products into services, partnerships offer the most effective and cost-efficient way to accelerate the shift to circularity. ♻️ Explore how circular partnerships are shaping the future economy, and how your business can get involved. #CircularEconomy #Sustainability #Partnerships #CircularBusiness #SustainableBusiness https://bit.ly/4gNvwNm

After a period of strong investment, #software vendors can reset with a disciplined portfolio strategy. Our latest report explores how leading companies can better allocate resources in pursuit of an optimal mix, by following a disciplined product portfolio strategy. https://bit.ly/3N0R0Zh

With increasing regulatory challenges for scale acquisitions in the tech sector, companies have pivoted toward scope deals—transactions designed to secure new capabilities, products, or markets. The impact of this shift is clear: over the past six years, nearly 80% of tech M&A has been driven by scope deals. Discover more insights in our latest tech report. https://bit.ly/3zLbClj

It’s no secret that elevated interest rates and uncertainty about future growth continue to put a drag on private equity dealmaking in the #tech sector. Investors who navigate this downturn successfully will be those who excel at finding operational efficiencies that not only improve margins but also sustain long-term growth. https://bit.ly/3Bm9wsL

Engineering organizations using generative AI tools are seeing efficiency improvements of 10% to 15% on average. To capture the full potential, companies must repurpose saved time and resources into more productive use cases. Discover how a holistic approach can lead to efficiency gains of 30% or more. https://bit.ly/3ZA5ZkA

Generative AI is driving today’s wave of technological transformation, but post-globalization shifts and the demand for adaptable business processes add complexity. As competition intensifies, companies must quickly adapt to claim their share of the trillion-dollar market. https://bit.ly/3Bt8Lhm

Bain’s 2024 Technology Report takes a deep dive into the current state of the #tech sector. Covering everything from AI’s biggest wins in key functions to investor outlooks and strategies for weathering a slowing software cycle, this report equips leaders with the insights they need to stay competitive. As the AI era continues to evolve, explore the findings that could reshape your approach to tech. https://bit.ly/4eE2T3b