The recession and automotive industry instability have created new challenges in the aftermarket and they must be addressed with new strategies, says John Waraniak, vice president of vehicle technology with the Specialty Equipment Market Association (SEMA). In his presentation, “Don’t Waste This Crisis,” Waraniak suggests going against instinct. “The instinct now is to wait out the uncertainty. That strategy is wrong. You have to think of new ways to compete,” he says. Although leading through tough economic times is difficult, there are strategies and practices aftermarket companies can apply to maintain their success and continue on in the future. And 4.5 million people employed in the industry might agree. What gives people a leading edge on success is situational awareness and the resources to address their observations, Waraniak says. Company leaders need to “manage the present, refuel for the future and selectively forget the past. When the rules change, you have to change your formula for success.” Much of this relies on a balance between “book smarts” and “street smarts,” and engaging this knowledge in scenario planning, he says. “Scenario planning is an adaptive set of actions. It helps you plan ahead when you can’t see what’s ahead. It is a business planning tool that monitors what happens today while also being a compass on the long-term horizon,” Waraniak says. “It can’t help you create the future, but it can help you shape it.” A focus and understanding of the importance of technology is also vital to stability. Four main areas of focus are active-passive safety, mobile electronics integration, connected vehicle technologies and alternative powertrain advancements. “Basically we are seeing four mega trends: driving green, driving connected, driving safe and driving cool,” he says. But before technology changes the industry, there must be a new way of thinking, because it is not about who develops technology first, but who implements it successfully and efficiently. “You have to know how to apply the technology to ensure profitability,” Waraniak says. One new frontier anticipated ahead is the integration of navigation systems with social networks. The aftermarket will benefit from these technologies not so much through deployment, but through integration later once the product has proven successful. New technology advancements are helping to highlight the consumers’ continuing desire for vehicle customization, which offers a great opportunity for the aftermarket. “The future of customization is the future of the aftermarket,” Waraniak says. OEs are being forced to push out more vehicles with fewer platforms, opening the door for aftermarket companies to focus on customization after purchase. And new focuses on social networks can help companies gain more consumer exposure. Many customization companies have followings on social networks sites, and by teaming with bigger aftermarket companies, both can gain enhanced exposure, and therefore, stability, he says. But no matter what changes are expected, adapting is not required, only suggested. “The choice is yours. No one is going to make you do this stuff. You have to want to do it,” Waraniak says. But the most dangerous thing to do is not evolve.” Waraniak also offered 10 suggested actions to help stay afloat: 1. Protect core competencies: Differentiate in a world of sameness 2. Develop scenario plans: Improve situational awareness 3. Align resources: Capitalize on the four vehicle technology mega trends 4. Design purpose-built portfolios: Base them on durability and damage tolerance 5. Develop lean practices: Commonization drives customization 6. Build collaborative relationships: Open innovation and speed rule 7. Improve brand valuation: Products and services expand choice 8. Rethink business models: Create, capture and deliver value 9. Leverage market position: Disrupt underserved markets 10. Find ways to make it happen: Engage connectors and outliers
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