TOP 5 IMPACTS OF DIGITAL TRANSFORMATION ON THE AUTO INDUSTRY

When we talk about digital transformation in the auto industry, what comes to mind? If you thought about dropping the volume of drivers and robots as drivers, you may have to wait a few more decades.

Much mystery still surrounds the technology, sometimes generating apprehension among consumers. The difficulty in perceiving innovations is often because we are inserted in the eye of the hurricane, directly dependent on digital transformations.

Sometimes, it is necessary to take a distance to understand the potential of new solutions.

Anyone who has seen the potential of digital transformation has realized that it can move in line with the automotive industry. Or, rather, for the mobility market, as Ford and Bosch have called it.

But what, in fact, changes with the application of technologies? We count on today's post.

5 impacts of digital transformation on the auto industry

Since the beginning of industrial production, especially with the Ford model of production, technology has always been an ally of the automotive department. However, now the contribution of digital solutions reaches another level.

The digital transformation can translate into a satisfying customer experience and significant changes in the production chain, if well applied. The manager needs to realize that the traditional product, that is, the car, now has another embedded value: the offer of cutting-edge technology.

1.   Connected supply chain

The operating margins are optimized when the manager adopts the technology in the communication and orchestration of the automobile industry with its partners and suppliers. When the supply chain is interconnected, the management of production lines is facilitated.

All of this depends on transparency and responsiveness on the part of employees and managers towards partners, but technology is a driver in this case.

Speed in communicating with suppliers is necessary. Can you imagine running out of an essential product for production?

With the use of an inventory management software, any item added or removed from the inventory will also be registered automatically, facilitating the management of purchases.

2. Industry 4.0

The machine learning is already a trend in modern enterprises. Machine learning now reaches its peak and transforms the auto industry. The internet of things (IoT) and data analysis promote the digitization and personalization of production that lead to Industry 4.0.

Cybersecurity, IoT and other resources are already applied in decision making and as allies in reducing costs.  This is where the journey towards the creation of autonomous cars begins, for example.

There is no need to stay out of the news: industries that change their patterns of the productive ecosystem can increase their sales by 6.5% by 2020; this is what an Accenture study indicates.

3. Self-driving cars and electric cars

We arrived at the so-called autonomous cars, a desire of many consumers with a keen eye on technology. These state-of-the-art vehicles process a large amount of data that helps to create a reliable user profile.

The car becomes a service centre and allows the sector to share the captured data, becoming an important source of revenue for the company.

Big data also has an important application in identifying vehicle problems, in remote diagnostics, service marking and monitoring the life of the car.

4. Mobility as a service

“Car as a service” is already a term adopted by the automobile industry. More and more, we can see this movement happening, which starts to be called “mobility as a service” (MaaS), especially with shared transport. This refers to apps like Uber, 99Pop, Cabify and other apps that have already become popular.

MaaS is an effect of digital transformation in the automotive industry that has a great impact for the general public and for manufacturers. Its scope is so great that it even changes the relationship of the industry with the market - which is proven in numbers: 11 of the 16 main markets in Europe already allocate half of their sales to MaaS.

If drivers working for applications have become the dealerships' main customers, the industry will be impacted by the need to readjust their production. Popular cars, with lower cost and cheaper maintenance, will gain even more strength in the market.

5. New retail

Vehicle retailing is now more about customer relationships. The value chain is structured around the need to maintain an effective and lasting relationship with the consumer.

Pop-up, flagship and concept stores are gaining popularity; virtual dealerships are also starting to emerge. Despite the trend, Frost & Sullivan believes that the purchase will still be defined by direct contact with the product.

The digital transformation in the auto industry brings significant changes that need to be thought out by managers. It is not worth staying out of the market news and allowing your business to become obsolete!