Modernizing the Automotive Industry

  • Modernizing the Automotive Industry

Traditional OEMs are utilising cutting-edge technology to stay up with business demands while balancing governance as digital modernization propels the development of increasingly intelligent cars.

The connected and autonomous cars that are altering transportation to offer a seamless and customised consumer experience are causing a fast change in the automotive sector. Vehicles are becoming more intelligent than ever thanks to system and software modernisation, which also enhances the driving experience and boosts operational effectiveness. Connected vehicles are the key to success in a market that is becoming more and more competitive, from simulation testing on the production floor to lifetime predictive maintenance.

Original equipment manufacturers (OEMs) have been forced by the new era of connection to reconsider how they create cars that may benefit from data, automation, and connectivity and satisfy consumer needs for more personalised and predictive goods. Therefore, a digital ecosystem with end-to-end connection of data, connectivity, and digital services will be the future of mobility.

A customer-centric approach to digital modernization

A customer-centric approach to digital modernization

The automobile sector has the chance to adapt to consumer requirements as they arise based on real-time acquired data and insights as digital technologies like AI grow more pervasive.

Sayer gives an illustration of how the dreaded service indicator light could appear. A consumer would typically notice the dashboard light and then contact a mechanic to obtain a diagnostic code to identify the problem. However, Sayer describes a connected car that uses information from a large network of linked devices to diagnose problems and notify customers by phone. Additionally, a connected car may use service records to advise and arrange an appointment for maintenance as well as identify the best navigation route, providing customers with even more convenience.

With the help of connected vehicles, OEMs can see in real time how consumers are driving and may react quickly to improve experiences and streamline production.

"We can utilise the same testing and feedback loop that the software industry has been utilising for years, which is develop further, optimise, and better. Now we can also utilise it with linked cars. And this enables us to, in fact, work backwards from the consumer in the automobile business, if that makes sense," says Uvarova.

OEMs must adopt a customer-centric strategy that approaches innovations by working backward from consumer demands in order to modernise their processes and stay up with the pace of the market. This approach aims to develop ideas and solutions that address certain problems found in customer data and research. Because manufacturers fail to consider how they will fit into their customers' lives and the existing technology they like, built-in automotive functions like music syncing frequently become outdated very soon.

The privacy and security consequences of having access to a 360-degree picture of a customer's driving behaviours, application usage, maintenance, and service history must also be taken into account when realising the full potential of digital technology. Implementing digital technology requires strong governance and supervision.

There will be data management consequences across the board that may not have been previously considered, but which will need to be handled moving ahead, according to Sayer, just as with any other data-driven, connected sort of device.

Reimagining approaches to innovation

Reimagining approaches to innovation

OEMs are being compelled to reevaluate how they do business across the board due to the changes brought about by digital technology. Many businesses are adopting a customer-first, data-driven attitude to combine cutting-edge technologies such as AI, machine learning, cloud and edge computing, and digital twins into both production and goods. This is done in order to reinvent research and development, supply chains, and manufacturing.

The automobile industry produces enormous volumes of data, and as connected and autonomous vehicles gather real-time information on consumer preferences and behaviours, this data will only continue to grow. Depending on a company's innovation strategy, this data can be transformed into pertinent insights.

A connected vehicle software error might result in serious safety repercussions while driving, unlike a phone application. Therefore, before they can be marketed, vehicle manufacturing and innovation cycles must become coupled and undergo several quality assurance checks. Automobile manufacturers and original equipment manufacturers (OEMs) must reduce these cycles without sacrificing safety and security as consumers become acclimated to swiftly emerging digital technology and the market continues to change.

One of the many cutting-edge technologies that can aid in bridging this gap, according to Uvarova, are digital twins, which are virtual analogues of a physical car's software, mechanical, and electrical components and can contain real-time inspection data, maintenance history, warranty data, and problems.

Working approaches must complement the technology being utilised to develop new, contemporary software-defined vehicles in order to drive continual improvement in goods and services. According to Uvarova, OEMs would benefit from the agile working style, which manages projects through iterative phases including cross-departmental collaboration and a continual improvement feedback loop.

Collaboration across departments is frequently lacking at conventional OEMs since many procedures continue to operate in silos and from the top-down.

Data silos, or isolated processes and data streams that are difficult to exchange across departments and operation phases, can result in inefficiencies and overlapped effort. Sayer claims that historically, several sectors, notably the car industry, have prospered by operating in these silos. However, operating with agility, developing connected goods, and maximising the data it generates necessitate cooperation and data exchange.

The future of the automotive industry

The future of the automotive industry

As connected and autonomous vehicles gain popularity, remote maintenance and analytics are made possible by AI and machine learning, and OEMs work with technology firms to develop new breakthroughs, it is evident that digital modernization will have a significant impact on the automobile sector. Companies will need to prioritise client requirements and strike a delicate balance between governance and modernization if they want to succeed in the mobile future.

Autonomous cars, connectivity, shared mobility, and sustainable solutions are the major developments Sayer and Uvarova predict will shape the automobile industry's future. Companies must balance regulation that safeguards customer safety and privacy with agile working practises that develop and iterate at the speed of business, all while the automobile sector is undergoing fast transformation.



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