Situation: Spanning over a century, the automobile industry has been emblematic of steady growth, prosperity, epitomizing the desire for individual mobility, the rise of the middle class and the economic development of nations. Its journey from the shift to mass production, through the integration of electronics, to the current electrification and digitalization age, and the rise of mobility-as-a-service, has witnessed phases of stability, evolution, and revolution. 

Complication: Traditionally rooted in the luxury segment, Daimler and its passenger car division Mercedes-Benz recognized that to stay relevant and ahead, it needed to not only adapt to the present but also anticipate the future. This demanded insights into changing business environments, consumer behaviour and needs and a comprehensive understanding of the evolving ecosystem in which it operates. 

Solution: 

1. Foresight through research: Daimler, keeping the future in focus, established the Society and Technology Research Group (STRG) in 1979. Located in Berlin and later bolstered by branches in Palo Alto, Kyoto, and Beijing, this team comprised, on average, 30 scientists from diverse disciplines such as transportation engineering, sociology, psychology, social science, and various advanced technology domains.
2. Anticipating the future: With intensifying competition, Mercedes transitioned from simply meeting current demands to discerning and influencing market shifts, strategizing for the next 5, 10, and 20 years
3. Portfolio evolution: STRG’s insights facilitated Mercedes in extending and fine-tuning its product lineup. The rising urbanization trend and anticipated changes in mobility patterns led to their partnership with Swatch for the Smart Car in 1994, to early research on mobility services, global issues like climate change, changing customer needs and integrative context scenarios for future mobility. For the truck and van divisions of Daimler STRG created scenarios on future logistics and transportation helping to fine-tune the product portfolio, regional strategies and related services. In 2014, STRG was integrated into the Mercedes Technology Center in Böblingen/Sindelfingen (near Stuttgart) reinventing itself as ‘‘PIONEERING NeXt’’ by integrating the Startup Autobahn platform of Daimler, Advanced Technology Monitoring, the Innovation Lab (Innovationswerkstatt) and Customer Insights on innovations in an early stage. Thus, foresight on societal trends was tightly connected with advanced technological developments, long-term oriented research grounded with dedicated in-house innovation projects (creating minimal viable products) and extended collaboration with international startup companies, combining idea generation in the innovation lab (Innovationswerkstatt) with customer research and insights (e.g. by implementing the Design Thinking method).

Impact/Outcome:

1. Financial Growth: The company achieved substantial financial growth, moving from revenues of approximately 46 billion (when including Chrysler, which was subsequently divested in 2007) in 1999 to 172.7 billion by 2019. This financial evolution highlights the significance of the company’s strategic choices, including exploring emerging market opportunities while consolidating current market positions. 
2. Product and Service Expansion: Foresight facilitated the expansion of the brand and product portfolio. STRG’s analysis of mobility patterns led to the original partnership with Swatch for the Smart Car in 1994, and later contributed to strategic decisions regarding mobility services, climate change, and integrated contexts. 
3. Car2go Development: STRG’s project exploring new mobility services identified the inconvenience of station-based car sharing as a limitation. Based on this, STRG initiated a small pilot project in Berlin to test a flexible car-sharing concept with open drives and one-way trips. This concept, which increased attractiveness to customers, was later scaled up by a newly formed business innovation unit into the globally known "car2go" service. 
4. Truck Driver-Oriented Innovations: Through "early detection," STRG addressed the non-obvious issue of the lack of qualified truck drivers in transport markets. This led to the creation of an innovation team focused on the driver cabin (the working, living, and sleeping environment) to gain a competitive edge. Four features, including a massage seat, better insulation, and a larger flexible bed, were subsequently launched in the market. 
5. New Health Innovation Package: STRG’s trend analysis on "New Health," which emphasized a holistic understanding of wellbeing, led to the definition of a new innovation search field. This resulted in the integration of health-related innovations, such as a massage seat using the "hot stone principle," into vehicle concepts. 
6. Automotive Room Scent Development: Analyzing the "experience society" trend, STRG identified smell as a neglected sensory dimension in the car interior. The foresight team developed the concept of a luxury "automotive room scent" with individual choices. This innovation, along with the "New Health" concepts, resulted in the launch of an innovation package (including air-balance and seating-comfort packages) in the 2013 S-Class. 
7. Outside-In Perspective: The intervention successfully established an "outside-in" perspective within the company, learning about complex and dynamic environments by focusing on long-term developments in the business environment, society, and markets. 
8. Global Intelligence: The establishment and maintenance of the Society and Technology Research Group (STRG), located in Germany, with international branches in Palo Alto, Kyoto, and Beijing, ensured a comprehensive global outlook on future trends and mobility challenges.