Changing market dynamics are forcing major automotive sector players to adapt. This means the adoption of new technologies and advanced software features in order to not just weather difficult waves of worldwide demand-supply fluctuations – but also survive and thrive in this “new normal” – and the coming “next-normal.”
Both unsold inventory and a shortage of suppliers providing essential auto components are leading to a transformed business model for OEMs and automotive dealers to cope up with volatile market situation.
While changing customer demands in the form of heightened personalization, preferences for Shared Mobility/Mobility-as-a-service (MaaS), the “Uberization” of services, and the advent of autonomous, self-driving/connected cars are all radically impacting how automotive companies are interacting with consumers. Additionally, increasing demand for ecofriendly electric vehicles and adapting to increasingly stringent regulations present new challenges, but also new opportunities for IT and ICT drivers to help automotive players align faster with business changes and stay ahead of competition.
Softwarization in automotive: The soft answer to a (potentially) hard future
To address these challenges and deliver on changing customer demands, automotive leaders are turning to IT to gain multiple benefits in the form of enhanced operational efficiency, reduced costs, improved predictive maintenance, round-the-clock customer connections, and improved connected diagnostics that are enabled through software-over-the-air (SOTA) technology.
The focus here is on expanding core capabilities from traditional IT to emerging technologies. For example, Cloud, 5G and IoT can help in transforming current operational processes. While enabling remote maintenance/repair, personalized value-added services, and leveraging digital channels can promote online and contactless sales. These growing trends have unlocked huge potential for software-based revenue to the tune of hundreds of billions in the automotive sector. Capgemini’s ADMnext can help you unlock value through these technologies. For example, you can learn more about how we helped deliver sustained, predictable quality with a host of proof of concepts and AI-based quality engineering for one global auto manufacturer here.
To learn more about ADMnext and what we can do for your business, drop me a line here.
This blog is authored by Biplab Biswas, Vice President and Business Insightful Services Lead at Capgemini