The present-day hindrances & global uncertainties in terms of prices and the ongoing pandemic have brought in new operational & technological challenges. Along with these imposing challenges, there have been certain blooming opportunities for the automotive industry to prosper. Automotive industry players are now more rapidly adopting digital technologies in their key business process areas like product designing, production, sales & marketing. Leading automotive players have harnessed the digital capabilities via reorganization, creation of business units, and establishing task forces to have a sturdy business. Similar to other industries, the automotive industry is also working on parallel lines with a strong emphasis on digital & data-driven operations for successfully collaborating with suppliers and customers.

Key Growth Drivers for Digitalization

The following are some notable growth drivers for digitalizing the automotive industry-

  • Increased Pressure on Costs & Quality – The existing cost framework in the industry & supply chain have restricted possible cost-saving opportunities. Automotive manufacturers have now started opting for just-in-time (JIT) operations that contain costs and ultimately enhance operations related to supply chains. Digitalization of the supply chain will play a significant role in increasing transparency in operations and improving floor efficiency. Additionally, errors made in manual quality control & assurance besides the transfer of data to systems directly impact the quality of product & related costs. Digital solutions do reduce production downtimes & optimize floor operations.
  • Developing Products to Comply with Regulations – Manufacturers now need to create products that comply with environmental regulations in order to make commuting safe and sustainable. Such laws play a major role in combatting increasing pollution levels, passenger & pedestrian safety. Most of these challenges can be easily addressed by creating connected & smart solutions. Leading technology companies have undertaken programs & initiatives for developing smart cities & transportation systems through digitalized infrastructure.
  • Product Complexity & Changing Market Needs – Today, product cycles are getting shortened due to lower technology cycles & changing needs of customers. All of this demands real-time agility within the participants present in the value chain. Automotive features along with digital services in the automotive industry are becoming the key growth driver for this industry.

Digital Transformation & Impact on Customer Service

Some of the automobile purchases have their roots in the 20th century. For the sale of newer vehicles, eCommerce is increasingly growing for dealers and buyers, though buyers still prefer traditional shopping experiences. Incorporating digital & technology instruments has played a major role in enhancing customer service. Sellers of all forms, be it offline or B2B/B2C, have devised various techniques to improve their customer service and interactions on social media accounts or applications. With technology advancing so rapidly, it is no surprise that we will witness a digital & connected supply chain. It will become essentially important for manufacturing stakeholders to manage their businesses digitally through such advanced supply chains.

Wrap Up:

The automotive industry globally is witnessing a significant shift due to data-driven operations. The industry is riding on digital transformation with a vision to improve integrated systems, data management & analytics for creating value out of data. Technologies like automation, advanced robotics, IoT, Cloud, data analytics definitely can enhance business operations along the value chain.