Digital transformation in automotive industry

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Digital transformation means going toward paperless and introducing software and technology basis mechanism which optimize the process, inautomotive industry the transformation is artificial intelligence which helps to identify recurring patterns in the production process, based on the data collected in real-time, to support continuous optimization, and to gain a clearer picture of the entire manufacturing process.In the automotive industry, the biggest change that has already occurred as a result of technology is that of independency in the system, process and operations. Manufacturers are in the process of developing self-driving cars on a larger scale. Companies in the automotive industry have been using robots on assembly lines to increase their productivity. Digital transformation is the integration of digital technology into all areas of a business, fundamentally changing how you operate and deliver value to customers. This is also a cultural change that requires organizations to continually challenge the status, experiment.
The great use of digital technology is to provide online customer support. For example, automobile dealerships that use online to offer their products directly to customers. Whether it’s automobiles, car components, or even accessories. Mechanics now use technology to implement an innovative diagnostics process that simplifies everything. There are now automotive diagnostics tools used to check the cause of any damage through a car’s master computer. This has done away with the need to open the hood of a vehicle to locate the source of a problem. OEMs and their suppliers can also use digital transformation to examine their processes and identify what changes they need to make in order to bring these new products to customers.Within couple of years, the automobile sector will see the creation of a separate digital, connected supply chain. It is essential for all stakeholders in the industry to digitally manage the business by creating an intelligent and digital supply chain.

Digital Transformation:
If we discuss only a digital transformation it means the upgradation of the existing processes or the introduction of new ways of carrying out business activities using digital technologies that enhance productivity rate and customer’s experience leads to higher conversion rates for the company, in simpler terms, digital transformation means redefining business processes in this new digital period. Now that we’re clear with what digital transformation entails, let’s learn what a digital transformation in the automotive industry and which areas is to be focused in transformation process, impact on customer services &challenges and problems faced in transformation revolution in automotive sector. The automotive sector has already embraced digital transformation in its design, manufacturing process, distribution, and finally retail, there are numerous excellent examples of digital transformation, ranging from product innovation, operational changes to customer-facing changes. Here we discuss the main areas of automotive sector which is basic need to digitalized and revalued organization.

Process Transformation:
As the name suggests, this approach hones in on how the business runs day by day the collaboration of your brand’s people, processes, and applications. In the digital transformation world, it refers to transforming the business processes, services, and models your company uses by introducing technology that can leverage the skills, successes, and opportunities of your team. Process transformation gives finite activities—such as data and analytics—new ways to retrieve and process information.
Business Model Transformation:
A business transformation should always be a step in the right direction for an organization. As such, this organizational change could be sought with the aim of capturing a new segment of the market, adding commercial value to the business, improving production efficiencies, or maximizing human capital, means incorporating technology because it will drive revenue and improve the customer experience, rather than just implementing technology for technology’s sake. Model transformation looks at the infinite possibilities of businesses. Think of how Netflix transformed from a mailbox DVD business to the streaming service it is today.

Organizational Transformation:
The formulation of an organizational transformation management strategy is a critical component of any modernization program and involves a systematic approach that supports both the organization and the individuals in it to plan for the change and then accept, implement, and benefit from the change.
Different people use different systems; getting everybody on the same page and willing to accept big changes can be challenging, but it will be worth it if your brand delivers an overall better outcome to your customers.
Domain Transformation:
Domain transformations occur when one business is able to slide into another area successfully. Amazon, for example, added its own streaming platform (Amazon Prime), as well as Amazon Web Services (AWS), which is now the largest cloud computing/infrastructure service. Both of these domains were formerly dominated by major players in their respective areas, but Amazon’s financial backing enabled it to make huge headway when entering these new-to-the-company markets.

Take away from this article:
An automobile is such an industry that is attracting and maintaining the focus of customers are one of the biggest challenges faced. Therefore, since it’s harder to maintain personal relationships with customers digitally, another problem arises.But you can overcome most of these challenges by adopting the right digital transformation tactics.The automotive industry is facing a paradigm shift with intelligent and data-driven operations across the business, including, production, supply chain, sales & marketing, and after-sales services. The industry needs to accelerate digital transformation with a clear focus on integrated systems solutions, data management, and analytics to create value from data. There are several technologies, such as automation, advanced robotics, machine vision, IoT, data management & analytics that will enhance operations across the value chain.

Exclusive written for Automark Magazine,
By Muhammad Rafique, Head of Production and Maintenance
Foton JW Auto Park (Pvt.) Limited

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