05.03.2025
How do Bavarian SMEs implement the strategic approach of "customer centricity"? In practical company portraits, we show how companies consistently place the customer at the center of their activities – including Elektrobit Automotive GmbH. This best practice shows how customer centricity contributes to entrepreneurial success.
Interview with Dr. Markus Glaab: Customer centricity at Elektrobit
Elektrobit is a global provider of embedded and connected software solutions in the automotive sector and has been offering innovative solutions for vehicle infrastructure, connectivity, safety, automated driving, and infotainment for over 35 years. Headquartered in Erlangen, Germany, the company has been a subsidiary of Continental since 2015. With the claim "Our software moves the world", Elektrobit has equipped more than five billion devices in over 600 million vehicles worldwide.
Dr. Markus Glaab, Head of Innovation at Elektrobit, told us in an interview how they live the focus on the customer.
"The truth is that innovations and start-ups typically fail to capture customer needs, desirability, and/or viability. It is very important to be aware of this. In the end, the customer and the market decide the success of the innovation."
Dr. Markus Glaab
Head of Innovation at Elektrobit Automotive GmbH
What strategic goals have you set at Elektrobit?
Markus Glaab: The transformation currently taking place in the automotive industry shows that one thing is certain: the proportion of software in vehicles continues to increase and is essential for future vehicles. We see ourselves as a thought leader in the field of software-defined vehicles (SDV). Our strategic direction is clear: we want to be the partner that enables vehicle manufacturers to make SDVs a reality. We guide our customers from cloud to cockpit, i.e., from virtual development in the cloud at the very beginning to the cockpit in the finished vehicle.
What does customer centricity mean at Elektrobit?
Markus Glaab: Perhaps a quick step back first. Why is customer centricity important?
Unfortunately, you can't simply identify successful innovations in advance "in the internal room". The statistics show the sad truth: the vast majority of all start-ups fail. The majority of all patents never make money. A considerable number of product innovations fail, even in established companies.
We engineers often think that the biggest challenge is technical feasibility - especially in Germany, we are driven by the novelty of the technology.
In reality, innovations and start-ups typically fail due to a lack of understanding of customer needs, desirability, and/or viability. It is very important to be aware of this. In the end, it is the customer and the market that determine the success of innovation. That is why customer centricity is essential if you want to achieve innovation success and thus also business success.
At Elektrobit, we understand customer centricity as follows. We analyze customer needs very intensively and ask ourselves: What are the gains and profits for our customers? What does the customer need or want to achieve? We continuously check whether our solutions are truly relevant and attractive from the customer's point of view.
Steve Jobs said: "You've got to start with the customer experience and work backwards for the technology." I am convinced that this is the right approach.
From the development of new products to service improvements: Where and how do you involve your customers here?
Markus Glaab: The customer is at the heart of everything we do when we develop new products. We involve them as early as possible - for example in the proof-of-concept phase. We think one step further. Because we are a B2B company, we need to understand what our customers want to achieve for their customers and what future vehicle users expect from their vehicle. From this, we derive what requirements manufacturers, suppliers and we as Elektrobit have.
A unique characteristic of Elektrobit is our strong focus on service. In addition to software products, we work closely with our customers on service projects and develop solutions that will find their way onto the roads in the coming years. This intensive cooperation provides in-depth insights into customer requirements and creates the basis for new product ideas. Thanks to long-term partnerships, we not only understand the technical requirements, but also the challenges of our customers. In this way, we ensure that our innovations are a perfect fit and offer added value.
Another building block for customer-centric innovation is our involvement in the relevant committees and associations in our industry: this allows us to remain closely connected with customers, manufacturers and competitors, recognize trends early on and develop suitable solutions for the market.
Our close cooperation with our customers can be seen, for example, in Sony Honda Mobility's new vehicle, the AFEELA. We were involved from the very beginning as a software partner on an equal footing - from the prototype to series production - and have jointly implemented innovations. The vehicle can already be pre-ordered in the USA, so it is no longer just a vision.
Cooperation at eye level is important for the automotive industry. The purely unidirectional approach - "I say what I need and the supplier delivers" - is hardly in keeping with the times today. This may be enough for tried-and-tested software components, but innovative solutions are complex and require close cooperation. Collaboration and customer focus are crucial, especially in the case of software-defined vehicles.
What role do existing customers and new customers play in your business?
Markus Glaab: Both are very important. On the one hand, we have been working with many customers for decades. We want to continue to do so in the future. And on the other hand, there are of course many new players in the automotive sector, especially in Asia and the USA. These are just as important for us. They come to us with different challenges and different issues. We can offer both of them attractive solutions.
What visions and plans do you have for the future of Elektrobit and how do you see your industry developing over the next five to ten years?
Markus Glaab: I am a very passionate automotive guy and computer scientist. For me, the automotive industry remains a highly interesting environment. Many different disciplines merge together in a unique way. If something goes wrong in the wrong part of the vehicle, people's lives are at risk. Electromobility, sustainable concepts, highly automated driving and modern infotainment will ensure that our industry remains a fascinating field of work for engineers in the coming years.
The future success of the automotive industry depends on highly innovative companies that use technical excellence to make the growing complexity of vehicles manageable. This means that the winners will be those who understand their customers best and at the same time have the technical skills to derive and develop the best solutions for them. At Elektrobit, we want to play an active role in shaping this future.
Interview for Bayern Innovativ, conducted by Dana Arzani,
founder and shareholder, THE SPARKLE ACADEMY GmbH, on 18.02.2025
Successful in the market through customer centricity
We are convinced that companies with a clear focus on the customer are more successful in creating the optimal solution for their
target group. In our opinion, customer centricity is more than just an optimized process - the ideal "customer journey". It is a
company-wide attitude - the customer-centric mindset: We want to maximize added value for our customers. We
focus on long-term customer relationships. We place the "voice of the customer" at the center of everything we do.
As Innovation Management (TIM) at Bayern Innovativ, we show you the path to customer-centric innovation - using selected
company examples. In short portraits of Bavarian SMEs, we shed light on how customer centricity works in practice: from understanding
and defining customer needs to designing products, testing and obtaining feedback.
CEO-Talk Mittelstand „Customer centricity & innovation"
May 15, 2025 | Nuremberg
Making future-proof decisions for your company:
Those who understand their customers can grow sustainably and drive innovation in a targeted manner.
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