What You Should Know About Digital Transformation of Automotive Industry
The digital transformation of automobile industry has helped automobile brands to build a strong and profitable business model.
In today’s competitive business era, almost every business sector and enterprise across the globe has benefited after the advent of digital technologies and innovative software solutions. Thanks to the presence of technologies almost everywhere, businesses have got a great opportunity to boost their revenue with improving the efficiency and quality of their final product or services at the same time.
Automobile Industry – Integrating technology for excellence
The automotive industry is also not very behind to leverage the presence of digital technologies across the sphere. The continuous evolution of innovative automobile is undoubtedly one of the most important developments in the tech industry today. The integration of digital technologies with the automobile industry has completely revamped the way automobile companies use to work.
Today, these three capabilities – cars as a service, electrification and autonomy are believed to be the key trends driving the automobile sector. However, it isn’t as easy to conquer the market as it looks. It isn’t that simple. However, the tech-driven automobile sector is working on a very fast pace to revamp the trends.
There are many major names in the automobile industry who have already invested millions of dollars in their dream projects, which revolve around technical innovations. Tesla – for example have been working quite hard on driverless cars, and the successful results are in front of us. Other automobile brands like Chevrolet and Nissan are also busy their best electric car for the market. This won’t have been possible without digitalization.
Digital Transformation of Automotive Industry
The digital transformation of automobile industry has helped automobile brands to build a strong and profitable business model. Starting from car designing, production, transportation, marketing strategies to the final delivery process, the modern technologies have a vast presence and crucial responsibility everywhere.
The rapid pace of digitalization has completely transformed the component hardware-driven automotive sector to a software solution focused industry. Starting from shortening the production cycle, to marketing, delivery and customer relationship management strategy – digitalization has transformed each and every process with bringing complete transparency and enhancing the efficiency.
Not only this, but new technologies have become a soul of the business processes today. They have been connecting the sales, marketing, customer service, HR, production, logistics and other departments with completely revamping how companies work and people interact. Data analytics, cloud computing, augmented reality, artificial intelligence and other innovative technologies have paved a smooth way for new business capabilities. It is all about combining new technologies and tools with business insights to envisage new business opportunities in the automobile industry.
Analysis Reports
A recent analysis from the World Economic Forum has estimated that the approximately $670 billion of the industry value, $3 trillion of societal value is at stake by 2015. The same analysis also reports that around 1 million of lives would be saved due to the digital transformation and wide adoption of technology.
According to Sriram Venkatraman, Senior Consultant for Frost & Sullivan Mobility, “Digital transformation will affect the entire automotive value chain, including design, production, distribution and retail, reshaping the traditional automotive business model. New models will consider data, connectivity and cyber security. As a result, the drivers of digital initiatives will change from CEOs, CIOs and the IT departments; by 2020, Chief Digital Officers will steer the strategic and digital initiatives across luxury and economy brands.”
Major automobile brands like Toyota, Volkswagen, Tesla, Ford and GM have collaborated with small startups to work together on different technologies like cyber security, cloud computing, connectivity, telematics and 3D printing solutions. This would empower automobile brands to build supercars in the future. All of this have been possible only because of the advent of technical innovations and digital transformation of the automobile industry.
