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New Digital Innovation Hub: MSX International drives digitization of business processes for automotive industry

New Digital Innovation Hub:
MSX International drives digitization
of business processes for automotive industry

November 7th, 2019

The new MSX Digital Innovation Hub in Berlin specializes in deploying artificial intelligence, machine learning and cognitive analytics technology

First series of products up and running: AI-based warranty management solution M:WISE with validated potential to reduce the warranty bills by up to 15%

Newly built tech capabilities will strengthen the company’s position as the industry leader in the automotive business process outsourcing

The digital hub comes after a strategic digital initiative which has been executed in a partnership with the Boston Consulting Group Digital Ventures (BCGDV)

November 7th, 2019, Berlin – The majority of successful players in the automotive industry have transformed their business models over the past few years in response to the challenges of digitization. But while many are getting on track to digitize their core product offerings, the underlying business processes still show a high rate of manual work. Warranty handling is a prime example. Automotive manufacturers spend an estimated $50 billion on managing warranty claims each year *.

In response to this and to accelerate digital transformation within key business processes of automotive manufacturers, MSX International (MSX) has joined forces with Boston Consulting Group Digital Ventures (BCGDV). MSX is a leading, global, technology-enabled business process outsourcing company supporting vehicle manufactures around the world. BCGDV is an innovation, incubation, and investment firm that builds new businesses in collaboration with corporates. Both companies are combining their expertise in the automotive and digital sectors, founding the first digital innovation hub for business processes in the automotive industry, located in Berlin. The research and development facility unites experts in automotive, business, engineering and data science to improve existing and design new transformative business process services with the help of artificial intelligence (AI), cognitive computing and machine learning technology.

The first series of products developed under the roof of the newly established innovation hub is M:WISE (Warranty Intelligent Suite Enterprise), an AI-based warranty management solution that aims to transform the warranty business and enable car manufacturers to increase performance and policing while streamlining key warranty process steps. During the three-month pilot phase, accuracy has been lifted to more than 96 percent, decisions on warranty claims have been made smarter, faster and more efficient, and claim assessors have more time to focus on the most complex cases.

“AI is transforming the business world. And as a global company that serves world-class automotive manufacturers, MSX must take the lead in delivering AI-based innovation. The goal of the MSX Digital Innovation Hub in Berlin is to ensure the company masters the emerging technologies that will lead our automotive clients through rapidly accelerating digital transformation. Today, with the support of BCG Digital Ventures and powered by leading technologies, MSX has reinvented warranty management,” said Patrick Katenkamp, Chief Executive Officer, MSX International.

“The journey to supporting MSX in harnessing the power of emerging technologies, expanding its digital capabilities and transforming its warranty businesses has not only been exciting but also shows the potential digital solutions still hold for very traditional industries. Raising the business potential through digital solutions is a decisive driver for sustainable success to stay ahead in a competitive market. Together we were able to successfully leverage our digital expertise with MSX’s unrivalled automotive knowledge across the whole transformation process,” said Urs Rahne, Managing Director and Partner, BCG Digital Ventures.

About MSX International

Headquartered in Detroit, MSX International (MSX) is a leading provider of technology-enabled business process outsourcing (BPO) services to OEMs in more than 80 countries. MSX’s deep automotive industry expertise combined with advanced data analytics and custom software solutions improve the performance of automotive dealership networks by increasing revenue, reducing cost and enhancing customer satisfaction. The company’s broad BPO services suite supports OEMs across Warranty and Technical, Parts and Service, Channel Management, Customer Engagement, and Fleet and Mobility. MSX employs more than 5,000 team members worldwide.

About BCG Digital Ventures

BCG Digital Ventures is a corporate innovation, incubation, and investment firm. They invent, launch, scale, and invest in industry-changing new businesses with the world’s most influential companies. Their diverse, multidisciplinary team of entrepreneurs, operators, and investors work cross-functionally, rapidly moving from paper to product to business in less than 12 months. Founded in 2014 as a subsidiary of Boston Consulting Group, they have Innovation Centers and satellite locations on four continents and continue to expand their footprint across the globe.

*According to recent research conducted by MSX International: [MSX benchmark data, Warranty week, LMC automotive]

Press contact

MSX International: Ioanna Dimopoulou

+49 162 1041928

BCG Digital Ventures: Kristin Dolgner

+49 151 74477854



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