Digital transformation in the Automotive industry
The COVID-19 pandemic has triggered global uncertainties that are resulting in new operational and technological challenges as well as potential opportunities for all industries. Automotive is one of the industries undergoing a major transformation with relentless advances in digital technologies, evolving consumer needs, shifting marketing conditions, increased competition, and environmental regulations. The Automotive industry has long used technology to improve productivity, efficiency, and optimize supply chains. But in today’s digitally enabled world, consumer expectation is evolving along with technology, and embracing these technologies to rise to the occasion is the need of the hour for the automotive industry. Here is how digital transformation in the Automotive Industry is redefining the industry for good.
Internet of Things:
According to a report by Statista, the IoT investment in the automotive sector is expected to reach $740 billion by 2025. With the rise of the internet and advanced sensors, IoT has opened up new opportunities in the automotive industry with usage at both the industrial and commercial level. One of the key areas in which IoT is employed in the automotive sector is predictive maintenance for car repairs. With the help of smart IoT sensors embedded in different components of a car, it can collect data and process it to analyze the future outcomes of the component based on its performance. It then sends reports and alerts to the driver’s mobile. This enables the driver to take the necessary steps to prevent a sudden breakdown. IoT also plays a major role in enabling communication between vehicles- connected vehicles. This helps to prevent accidents and enables efficient transportation. Thus, from connected cars to predictive maintenance, IoT is making a huge impact on the global automotive market.
The automotive industry is at a phase now where the vehicle itself and the consumer’s experience are rapidly shifting from physical to digital. The automotive industry is the second-most data-driven industry in the world. Vehicles today collect data about drivers, destinations, routes, traffic patterns, etc. These data are collected to better serve the consumer and offer them a seamless experience. The software systems in these intelligent cars use these collected data to communicate and engage with drivers. However, these new requirements to incorporate information and interactivity brings up a question of data security and privacy. This is why today’s automotive industry is investing more in securing the consumer’s data. Automotive Cybersecurity practices specific to vehicle development and manufacturing can protect the vehicle’s electronic system, communication networks, software, users, and underlying data.
AI and data analytics are helping the automotive industry advance further in a number of ways in this digital world. AI not only helps the automotive industry in automotive manufacturing including design, supply chain, production, and post-production but is also being implemented in ‘driver assistance’ and ‘driver risk assessment’ systems. In fact, manufacturers today are working around the clock to develop AI-driven systems to enable completely autonomous self-driving cars and trucks. With the help of AI-enabled technologies such as deep learning neural networks, natural language processing, and gesture control features, automotive manufacturers can build a vehicle that can safely drive themselves, with or without a human driver.
The automotive industry has been one of the most aggressive industries in replacing manual labor with automation. New-generation robots that can do multiple tasks are now employed at the assembly line. Today’s automotive manufacturers invest heavily in automation for managing workflows, scheduling jobs, and much more tasks. Robotic Process Automation can be implemented on top of the current, underlying legacy systems in the automotive industry. to execute repetitive business processes and save time. In short, smart automotive factories enable digital manufacturing with the help of these connected and intelligent machines to accelerate operations, improve accuracy, flexibility, and performance by lowering the defect rates.
To provide services that exceed customer expectations and to transform the existing operation models, the automotive industry needs to embrace digital transformation and take advantage of the new opportunities that come with it. Thus, only those who adopt these technologies and implement new business models with the help of these technologies are likely to stay far ahead and succeed in this digital world. With more than 15 years of deep automotive industry expertise, we at Intone combine our consulting and technical knowledge with the latest industry trends to apply innovation, transformation, and digitization to enable superior growth, differentiation, adaptability, productivity, and unsurpassed operating performance in the Automotive industry.