How Digitalization is Changing the Car Industry
Introduction
The auto industry has changed drastically in the last decade due to the internet, social media, self-driving cars, and more. Car manufacturers have learned quickly that they must meet consumer demands for a digitally enhanced experience when researching, purchasing, and operating a car. Thus, they have been integrating digital automotive solutions into all aspects of their operations, from product design through procurement, production, and supply chain management, as well as sales and marketing.
If the needs and interests of each stakeholder, supplier, employee, producer, and customer are taken into account, the digitalization strategies listed below will result in a lasting advantage for the car industry –
Self-Driving Cars
Autonomous driving is expected to become a common reality soon. Decreasing automotive accidents and deaths will give the freedom of travel to those previously constrained. Self-driving cars are expected to handle all, from GPS and sensors to cameras and algorithms for connectivity.
Assisted driving is another feature nearing mainstream every day as it becomes readily available in less expensive models. In the next few years, assisted driving will save upwards of 1 trillion dollars and 9,00,000 lives. There are, however, certain regulations and barriers hindering the growth of autonomous driving. This is because, with digitalization, the chances of cyber security breaches rise exponentially, which calls for protection.
Hyper-Connected Supply Chains
Not so long back, car manufacturers moved away from national and regional production to adopt a decentralized approach to the supply chain. A digitalized supply chain lowers costs and allows more transparency, which speeds up design, manufacturing, and delivery.
With the advent of IoT, manufacturers can get instant feedback from a smart factory that deploys advanced algorithms and AI. Such technologies help create schedules and manage workflows, with robots and humans working together on assembly lines. It all ultimately led to decreased defect rates and increased productivity.
Predictive Maintenance via IoT Tools
Predictive maintenance is an advanced analytics-based technology that collects performance data and uploads it to the cloud. It evaluates the chances of malfunctioning and eliminates the need for devaluation. Advanced self-diagnostic systems enable drivers to get alerted before a problem arises, thereby supporting the proactive service of vehicles. This reduces overall mechanical downtime and recalls and improves the life durability of vehicles.
This predictive capability isn’t just limited to personal vehicles like cars. The trucking industry will see a similar movement powered by sensor technologies and the Internet of Things that allows companies to monitor data proactively to ensure truck safety, fuel optimization, and even monitoring of cargo.
Data Protection and Cyber Security
Automotive industry solutions are highly data-driven as car manufacturers increasingly collaborate with software development companies. Intelligent cars can now collect data about drivers, destinations, routes, traffic patterns, etc. Although this data is useful for engaging with drivers, connected automotive systems must be secured to ensure driver safety.
That’s why manufacturers are always looking for new and improved defense and safety developments, as they strive to establish and maintain levels of customer loyalty. The consumer benefits in that he can now take advantage of all these new and exciting efforts.
CX Personalization for Better Engagement and Loyalty
Over the last few years, the car industry has been going through a massive transformation. People used to buy cars by visiting a showroom and test driving a few models. Nowadays, the modern consumer researches everything about their car online. They check out the model’s price, safety, and how much it costs to maintain it. If a potential customer finds a car that doesn’t fit their expectations, they will likely move on to the next one. If a company wants to keep the customer, they need to find a way to make sure they are getting what they think they are getting. This means that companies in the car industry need to focus on the customer experience. This is known as CX personalization.
Ending Note
With the advent of digitalization, the car industry has seen a lot of changes and new inventions that have taken the industry a long way from where it was decades ago. Data-driven operations take over production, supply chain, sales and marketing, and after-sales services. Several technologies such as automotive IoT, advanced robotics, machine vision, and data analytics are being used to enhance operations across the value chain.