Data Is Key: AUDI 'S Journey to Data‐Driven Business Models

ABSTRACT Car manufacturers excel in leveraging new digital technologies through vehicle design but face challenges in using the data these technologies provide for innovation. In this practitioner paper, we analyse and report on the process AUDI, a German original equipment manufacturer (OEM) of premium automobiles, went through in developing and managing data‐driven business models. A detailed description of the three phases of the carmaker's journey from creating to scaling to capturing identifies the automotive industry's urgent need to standardise data, prioritise customer integration and overcome difficulties in determining the price of data. For other (European) car manufacturers developing and managing data‐driven business models, we also derive five lessons learned from our case regarding AUDI's efforts to address issues when leveraging car‐related data and present an industry outlook with remaining challenges.