Redesigning Volkswagen’s Future… 2025 KUBS Challenge Concludes Successfully
Redesigning Volkswagen’s Future… 2025 KUBS Challenge Concludes Successfully
The 2025 KUBS Challenge Business Case Competition, organized by the International Affairs Team of Korea University Business School, was held on Friday, November 7. This year’s case, “Volkswagen: Adapting in the Age of AI,” challenged teams to complete their analysis within just 24 hours, with the entire competition conducted in English. A total of 21 teams participated, 19 of which submitted final reports. After an intense preliminary round, four teams advanced to the final stage, where they delivered presentations and engaged in a Q&A session. Each team proposed strategies for how the Volkswagen Group could realize its post-Dieselgate “Together Strategy 2025,” and further, how the company could transition from a traditional automobile manufacturer into an AI-driven, sustainable mobility enterprise. The final round was judged by Professors Tony C. Garrett, Baek Jung Kim, and Kyuhan Lee, who posed incisive questions and offered constructive feedback on the students’ analyses and strategic recommendations.
Team Barys: Restoring Trust Through AI Predictive Maintenance
The first team to present, Barys, defined Volkswagen’s strategic challenges as “transitioning from a manufacturer to a sustainable mobility provider,” “restoring trust after Dieselgate,” “the full-scale adoption of AI,” and “securing profitability and sustainability.” As a solution, the team proposed an AI-powered Predictive Maintenance System. They suggested collecting vehicle sensor and camera data in the cloud, training models using AWS SageMaker, and creating a system that predicts potential failures before they occur and provides advance alerts to drivers and service centers.
One judge asked, “If vehicle lifespan increases, won’t that eventually reduce sales by lengthening replacement cycles?” The team responded, “Currently, customers visit service centers only after problems have become serious, which leads Volkswagen to bear significant warranty costs,” adding, “Predictive maintenance prevents major failures early, reduces the financial burden, and ultimately, restoring brand trust will drive future purchases.”
Team Crimson Edge: From Manufacturer to Mobility Ecosystem Platform
Crimson Edge argued that Volkswagen must evolve from a “vehicle sales company” into a “mobility ecosystem operator.” Their core strategy included: (1) restructuring ride-sharing, car-sharing, and Truck-as-a-Service; (2) building an AI-based Mobility-as-a-Service (MaaS) system incorporating demand forecasting, route optimization, and fleet optimization; and (3) integrating all services into a central AI hub to enable data-driven decision-making. The team identified Volkswagen’s competitive advantages in its diverse vehicle lineup, the extensive vehicle data accumulated as a manufacturer, and its combined Edge AI–Cloud AI architecture.
When a judge asked, “After Dieselgate, would customers really want to be locked into a brand-specific subscription model?” the team responded, “Advanced driver assistance and autonomous driving features inherently incur additional costs, and including them entirely in the upfront vehicle price increases the burden on consumers. A subscription model actually expands consumer choice.”
Team Visionary: V1 — Volkswagen’s Unified AI Brain
Team Visionary defined the core of Volkswagen’s future competitiveness as “integrating fragmented data across brands, regions, and segments into a single intelligent AI system,” and presented the V1 Unified AI Ecosystem as their central strategy. They proposed four key initiatives.
First, a smart circular manufacturing system. By applying AI and blockchain across the entire supply chain and assigning a “digital material passport” to every component, the team aims for 25% material reuse and 30% waste reduction by 2026.
Second, the evolution of Moia into an AI-based smart mobility ecosystem, introducing AI-driven demand and traffic forecasting, along with an “Eco Miles” reward system for eco-friendly choices, to lay the foundation for Volkswagen’s transition from manufacturer to MaaS provider.
Third, establishing the VI Platform, which integrates all R&D, production, energy, and financial data across the Volkswagen Group, with targets of reducing development time by 30%, R&D costs by 15%, and energy costs by 20%.
Fourth, building a Financial Intelligence Hub to enhance financial forecasting accuracy by 40% and reduce capital costs by 10% through AI-based liquidity forecasting, investment scenario analysis, and linking ESG KPIs to investment outcomes.
During the Q&A, one judge asked, “You’ve assessed external risks thoroughly, but what internal risks might arise when pursuing such a major transformation?” The team identified risks such as △ security issues associated with large-scale data integration △ organizational resistance to unifying multiple brands and departments simultaneously △ a potential decline in group value if the project fails, and acknowledged the need for pilot operations and a robust data governance framework.
Team K-Strategist: ROOM & Blue Cloud — Transforming Inside and Out
K-Strategist proposed a two-track strategy aimed at simultaneously improving external customer experiences (B2C) and internal operational efficiency (B2B). For the external track, they suggested developing a mobility app called “ROOM,” a platform integrating autonomous ride-sharing and rental services for e-bikes, e-scooters, and e-cars based on Volkswagen’s EV and battery technologies. With AI-powered personalized recommendations, 24/7 customer support, real-time pricing, and predictive maintenance capabilities, the platform would offer new experiences to existing customers while providing potential customers with an accessible entry point to the brand.
For the internal track, the team introduced the “VW Blue Cloud,” a platform in which AI analyzes each subsidiary’s performance, issues, and risks, as well as suppliers’ delivery reliability, quality, and innovation capabilities, and then matches them to recommend which suppliers best fit which subsidiaries. The team argued that this would shorten supplier search times, reduce redundant R&D and administrative costs, strengthen cross-subsidiary collaboration, and support strategic decision-making for executives.
Overall Evaluation: Great Ideas, but What Comes Next Is Precision
The judges’ questions centered primarily on four areas: △ financial feasibility △ customer perspective △ strategic consistency △ and risk awareness. In particular, with respect to financial projections, the judges repeatedly pressed for more concrete and empirical evidence, asking questions such as, “You say downtime will decrease by 30%, but what is the current level?” and “What supports your estimates for cost savings and initial investment?” One judge emphasized, “The technology and narrative are excellent, but in a case competition, what ultimately persuades are the numbers.”
This year’s 2025 KUBS Challenge required participants to address AI, mobility, ESG, and financial strategy simultaneously within a single case. They had to design an enterprise-wide strategy for a global manufacturing corporation and complete all analysis, strategy development, and presentations in English within 24 hours—an exceptionally demanding task. The presentations naturally incorporated cutting-edge industry themes such as predictive maintenance, federated learning, AI-based financial simulation, and subscription-based software models. The competition featured internationally diverse teams, and the entire judging, Q&A, and feedback process was conducted in English, effectively demonstrating the global environment KUBS strives to foster.
After the presentations, the judging panel remarked, “It was extremely difficult to select the top four teams out of the 19 solutions because the overall quality was so high,” commending the participants’ capabilities. They added, “Your ideas and strategic directions are outstanding, but what you now need is greater numerical precision, deeper risk definition, and a more explicit rationale for why this strategy is needed now.” Another judge commented, “Your strategies are strong enough to be presented in Volkswagen’s boardroom,” but added, “Yet at that table, final decisions are ultimately driven by data and numbers.”
The final results awarded first place to Visionary, second place to K-Strategist, and third place to Barys. The winning teams will represent Korea University at next year’s Marshall International Case Competition at the University of Southern California. They will receive a range of support, including a pre-networking day, airfare and accommodation coverage, and intensive training with faculty advisors.
A participating student shared, “It was my first competition, so even setting the direction was challenging. It was physically demanding to stay up all night with my teammates, but the process of defining the problem ourselves and deriving solutions was a truly valuable experience.” The student added, “Reaching the finals alone was meaningful, but I want to prepare better and try again.”
The 2025 KUBS Challenge served as a practical learning platform that encouraged participants to explore integrated strategies in AI, mobility, sustainability, and finance, all based on the real-world company Volkswagen. Although each team approached the case differently, their conclusions converged on a single message: “Volkswagen’s future competitiveness no longer depends solely on how well it manufactures cars. It hinges on how intelligently it can connect data and technology to create new value and new customer relationships.” A challenge that began on a small stage is now expected to lead to new opportunities for growth on the global stage.
2025.12.03
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