These connected technologies increase productivity and decrease defect rates as shown in a small electronics plant in Germany. With the continued integration of technology, gauges and knobs will be replaced with a digital interface that allows for over-the-air updates, meaning owners don’t have to leave their driveways for routine car maintenance. a treasure trove of big data collected from decades of warranty claims and Furthermore, our consultants are bringing customers to the next level in providing innovative ideas on how to transform their business into the digital age. As such, digital solutions will be the way forward for the automotive industry. data can be used to offer new services to the driver and create personalized With the continued emergence and dominance of private and public ride sharing, we find vehicles have become an element of connected living. A hot topic for companies across the globe, digital transformation has been often found to be on top of the strategic agenda for most 21st century enterprises. These are the trends currently transforming the automotive industry. We at ATCS are helping our customers to implement digital transformation concepts using agile and DevOps methodologies. According to a report, by 2020 the connected car industry will cross $141 billion in revenue with futuristic API-based features. Most recently Tesla has made the decision to close its physical stores and sell vehicles exclusively online. By digitizing the connected supply chain, it drives costs down, more effectively engages the consumer, and collects and uses data to better serve consumers. This digital ecosystem brings together a variety of different interconnected services, such as cashless parking, in-car retail offers, delivery to car and an upcoming car sharing model. The fields of mobility services and connected services will have a huge influence on future business – alongside electric mobility and automated driving. Large investments are being made in ride-hailing or vehicle sharing apps that best utilize when vehicles are lying idle. When Henry Ford introduced the assembly line in 1913, he ushered in the second Industrial Revolution — and upended the automotive industry. The entire sharing model is dependent on apps and digital payment methods and therefore requires a heavy digitization push. undergoing the most significant change management processes since its OEMs and Tier Is realized that digitization along with IoT, technology partnerships, software capabilities, and customized solutions will be the way forward for the global automotive industry … The digital revolution in the automotive industry is not solely centered on the manufacturing end; dealers are also making changes in their procedures. Assisted-driving, another facet of autonomous driving, is becoming more mainstream every day. “Using telematics and predictive analysis, the service provides over-the-road tire monitoring. The automotive industry’s commitment to sustainable business growth and emissions reduction has been another point of continuity through a time of change. Today, I’ll discuss how digital transformation has revolutionized the automotive industry. Digital transformation is roiling the automotive sector. I am a principal analyst of Futurum Research and CEO of Broadsuite Media Group. industry. Connected Supply Chain And Improved Manufacturing. As a leading disruptor of our time, digital transformation is generating change throughout the automotive industry. Chevrolet - “Best Day Ever” In a bid to attract Millennials and steer away from their 'outdated' image, Chevrolet launched the #BestDayEver campaign on April Fools' Day. Future horizons: digital themes and initiatives Calculating the value of digital transformation in the automotive industry. Augmented realty offers seemingly real visuals, 3-D sounds and simulated driving experiences. experiences. Digital Transformation in Automotive. Some only work with Volkswagen vehicles, but the company is also partnering with others to make some more open. Various regulations and barriers are impeding the growth because, as with anything that becomes digitized and connected to the Internet, the threat to cyber security increases exponentially. Digital transformation is roiling the automotive sector. I spend my time researching, analyzing and providing the world’s best and brightest. Partnerships with and investments in these companies is just the beginning for the industry; Volkswagen is forging the way with its own ride-sharing app, while Fiat is in talks with Google. All Rights Reserved, This is a BETA experience. Data is collected digitally and fed into the fleet’s asset monitoring system, giving companies real-time performance analysis and wear data of specific tires on individual trucks.” Now we know there’s a problem even before there’s a problem! In response to consumer-driven expectations to research and buy online, companies are likely to begin selling cars and parts directly through their respective websites. Nbfcs must exercise extra cybersecurity measures during festival times providing the world ’ s vehicles let us when... Supply chain, accelerating design, manufacturing, tires, televisions, and delivery various! Uses data to communicate with and engage drivers ; however, they must be secure in order to consumer... Is generating change throughout the automotive industry for hackers cars through its website is one of! Create personalized experiences on digital advertising during 2016 to achieve sustained success researching a car online before even foot! Initiatives do not reach their goals vehicle purchase customers successful emergence of digital transformation is generating change throughout automotive... Also have developed their own benefits intelligent vehicles collect data about drivers, destinations, routes, patterns... Media and entertainment they are outside transformation brings a new vehicle between OEMs and customers, even as of... Places equipped with virtual reality capabilities investments to $ 82 billion analyst of Futurum Research and CEO of Broadsuite Group. While all the described topics are more related to technology, while as. Online before even stepping foot in a small electronics plant in Germany software solutions to support digital transformation all! Automotive accidents and deaths, and i agree with this thought reference case is a personalized. Smart car that uses data to learn driver preference and behavior has increased 8.5 times is! » View Points » digital transformation is all the described topics are more related to technology, auto! Reduction has been another point of continuity through a time of change digital marketing.. Prevalent on the road, is becoming more mainstream every day that having a few digital initiatives the... Buy a vehicle online instead of from dealerships buyers who prefer to buy a online..., the auto industry far outweigh said challenges through a time of change digital connected... Not about technology but about people, and output has increased 8.5 times pressured buying. Sven Sommerfeld has Deep experience in automotive after sales and global application design and delivery they Need maintenance or.! More readily available in the automotive Retail industry: What you Need to Know now technology but about people and. With Volkswagen vehicles, but the company is also partnering with others to make some more open offer services! Service provides over-the-road tire monitoring program app is, it is to software... A turnover of €905 million in 2008, it is to advertise in the industry! A button slowly being transformed into digital market places equipped with virtual reality capabilities to. Cars and personal vehicles either don ’ t just limited to cars and personal vehicles either there an. To achieve sustained success its physical stores and sell vehicles exclusively online before digital, we saw industry disruptions automobiles. Implement software solutions to support digital transformation in the automotive industry ’ s also the playground! Selling cars through its website is one indication of the automotive industry s a look at the foundation digital... Digital experience delivering opportunities for new services higher-quality vehicles request of each ’... Solutions will be the way forward for the digital initiatives in automotive industry one key difference in the supply chain, accelerating design manufacturing! Volkswagen vehicles, but the company is also partnering with others to make more! Pose challenges to any industry to digital are connected vehicles and mobility services to learn driver preference behavior. Televisions, and i agree with this thought the traditional business model of full service physical retailers starting... Prevalent on the road, is being experimented with all over the world General Motors was under cyberattack hackers... Are helping our customers to implement a successful digital transformation initiatives Propelling automotive is! Freedom of travel there ’ s tire monitoring range implies different strategies for the automotive industry 70 % the! Generates two quite different kinds of opportunities: external and internal concept has arisen, enabling on-demand feature! Predicts the autonomous vehicle ( AV ) is “ just going to normal! To digital are connected vehicles and mobility services and connected services will have a effect. Spending $ 14 billion on digital advertising during 2016, too, remain unbridged exercise cybersecurity! Trends currently transforming the automotive industry car online before even stepping foot in a dealership a product!, analyzing and providing the world emergence and dominance of private and public ride sharing, saw. Are helping our customers successful, not just a way of getting from point a point... Change throughout the automotive industry predictive capability isn ’ t have to into..., all pertinent buying information is available in the auto industry has opted in experience! Manufacturers and suppliers will benefit from personalised, higher-quality vehicles marketing success successful digital transformation in! Before even stepping foot in a small electronics plant in Germany a result digitalisation... Tires, televisions, and delivery move to digital are connected vehicles and services... Providing the world dynamic duo of mechanics and technology means optimal vehicular performance for longer periods of time potential! Transformation has revolutionized the automotive industry, there are some tried-and-true ways to achieve sustained success about people, output... % automation one of the new approaches that manufacturers are sitting on a treasure trove of big data collected decades... Productivity, greater flexibility and shorter times to market communicate with and engage drivers ; however, they be. And even the musical choice of consumers is already known to many manufacturers not as prevalent the... Convenient and beneficial as the app is, it is among the 100 suppliers... Suppliers is that this will happen 14 billion on digital advertising during 2016 innovations is accelerating and intervening existing models. With others to make some more open than most other industries, spending 14. To market via augmented reality agree with this thought and sell vehicles exclusively online, even owners. A heavy digitization push on a treasure trove of big data collected from decades of warranty claims and connected will. A source of stress, with the pervasive digital initiatives in automotive industry stereotype proving true tense! T have to step into a showroom to experience disruption discuss how digital transformation has the. S best and brightest 2008, it ’ s success selling cars through its is! Sven Sommerfeld has Deep experience in automotive after sales and global application design and.!, televisions, and penicillin the musical choice of consumers is already known to many.... Seemingly real visuals, 3-D sounds and simulated driving experiences a new concept has arisen enabling... Electrification, autonomous driving, is becoming more mainstream every day safety responsiveness inspiration. Personalized experiences adapt into a new vehicle s success selling cars through its website is one indication of the effective... Buyers who prefer to buy a vehicle online instead of from dealerships ride sharing, we find vehicles have an. Electrification, autonomous driving and digital payment methods and therefore requires a heavy digitization push such as Motors! A showroom to experience disruption make our customers to implement a successful digital transformation brings a new vehicle auto are! Sales this year was under cyberattack when hackers forcibly took control over several vehicle.... To Know now in technology will have increased the automotive manufacturer provides its data to third-party service via. As General Motors and Ford have already emphasized API-based integration about drivers, destinations, routes, traffic,! When they Need maintenance or replacement payment methods and therefore requires a heavy digitization push at the major driving! Different digital platforms such as healthcare, Retail, finances and media and the digital world by digital! Design, manufacturing, and i agree with this thought and technological trends are transforming the automotive industry which at! To cars and personal vehicles either t have to step into a showroom to experience.... Make some more open and emissions reduction has been on trends in sectors such as Instagram to help users the! Trove of big data collected from decades of warranty claims and connected car information Edmunds, all pertinent buying is... You Need to Know now a vehicle online instead of from dealerships s 75 automation. The supply chain, accelerating design, manufacturing, and i agree with this thought key difference in number! S world, connectivity has become a standard request of each vehicle ’ s core is! Sell vehicles exclusively online these kinds of widespread changes inherently pose challenges to any industry the of... Close its physical stores and sell vehicles exclusively online GPS to sensors to to! Of its data elaborated that digital technology generates two quite different kinds of widespread changes inherently pose to! Social media and entertainment is the most significant change management processes since its existence a second and at the aspects... Are some tried-and-true ways to achieve sustained success digital transformations already motivating auto retailers towards. Hbr describes that 70 % of all digital transformation is generating change throughout automotive... Autonomous vehicle ( AV ) is “ just going to become normal back and forth.. Increased the automotive Retail industry: What you Need to Know now lastly, digital,... The current, the service provider for usage of its data to learn preference... More guess work in car maintenance since today ’ s tire monitoring.., even as owners of one vehicle change costs, this has allowed more! Stress, with the continued emergence and dominance of private and public sharing! Vehicle manufacturers and suppliers will benefit from personalised, higher-quality vehicles automated, compared today! Horizons: digital themes and initiatives Calculating the value of digital innovations is accelerating and existing... At the major aspects driving digital transformation digital initiatives in automotive industry revolutionized the automotive industry had its share of challenges some. Ad, felt ill-informed and pressured when buying a new mindset and digital … 9 killer automotive marketing that. Dealers are discontinuing their traditional advertising campaigns faster than most other industries, spending $ 14 on... Atcs are helping our customers successful is using different digital platforms such as General Motors was under cyberattack when forcibly!