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The Impact of Digital Transformation on the Automotive Industry

Written by Jamie Hinton
Published on
The trends in digital transformation we are seeing are set to not only change the way the automotive industry operates but also how we use vehicles in the future. Personalising a customer's experience and understanding their needs as well as cutting costs by digitising the supply chain are just some of the ways digital transformation is driving the evolution of the automotive industry

From the growth of electric vehicles to self-driving cars and shared-mobility business models, the growth of digital transformation in the automotive industry is apparent.

The process of digital transformation and technological advancements have put the industry in a state of disruptive transition, with today’s consumer wanting full connectivity. Their ever-evolving needs and expectations present a significant challenge for manufacturers as there is a constant demand for a more digitised experience, effectively forcing the industry to innovate.

Seamless connectivity and the most convenient driving experience is what the customer wants, which is why IoT, AI and ML make an impact on the industry, shifting the focus to connected vehicles. Car manufacturing today has moved beyond automation and significantly impacted the way in which the industry operates.

While digital transformation trends are being used to personalise a customers experience and understand needs, it’s digitising the supply chain that drives costs down and collects user data in order to engage customers more effectively. This also allows for greater transparency in the supply chain accelerating the processes of manufacturing, design and delivery.

Endless possibilities

The endless possibilities of communication and connectivity that digital transformation brings, allows instant feedback to a smart factory that can use advanced algorithms, AI and ML to perform tasks and manage workflows. With Cobots working alongside humans on assembly lines, transformative technologies are increasing productivity at an alarming rate.

Predictive maintenance is also based on the use of digital transformation tools that collect data on performance and aid in the evaluation of any risks of potential malfunctions, whether that’s to a vehicle’s hardware or software. This could eventually lead to fewer emergency stops for car maintenance as today’s vehicles let us know in advance if needing maintenance or replacement - the idea here is that you’ll know if there’s a problem before it even occurs.

What this has also given rise to is remote servicing. Imagine going to the Apple store every time you needed to update your iPhone. Frustrating, right? That’s what it’s now like with your car, where remote over the wire upgrades occur whenever, and wherever is convenient for you.

‘Smart’ vehicles however now are continuously collecting data about drivers, destinations, routes, traffic patterns etc. The manufacturing companies are working closely with technology firms to continuously develop innovative ways of establishing customer loyalty, ensuring that users are at the centre of every strategy.

While there are still digital transformation challenges ahead for manufacturers, the trends we are seeing are set to not only change the way the industry operates but also how we use vehicles in the future.

For more information on how we can help you, contact us directly. While you’re here, you may also want to take a look at our whitepaper entitled What every CEO needs to know about digital transformation. It explores digital transformation and its benefits in more depth. Download the whitepaper now, or contact us to find out more.