Disruptive technologies – a challenge in the automotive industry
Due to the MADE trends (new mobility, autonomous driving, digitalization and electromobility), the automotive industry is in the biggest transformation phase in its history. ORBIS has identified for you the most important challenges that companies in the automotive industry must now overcome.
An overview of the latest developments, innovations, trends and technologies and their impact on the automotive industry
New requirements due to mobility services
Cloud-based mobility services, such as car sharing or ride hailing, as well as autonomous driving, should soon help to sustainably solve our traffic problems. These new services go hand-in-hand with specific requirements for the networked infrastructure, maintenance or insurance. Established business models will either change because of these technologies or disappear in the future.
Autonomous driving
Disruptive technologies such as artificial intelligence (AI) or machine learning are developing rapidly. The first autonomous vehicles will be available soon. The business of car manufacturers will shift more towards B2B as a result of these vehicles, as they will sell more cars to fleet operators and less to private customers in the future. The technology for a new form of mobility entails changes not only in the sales processes of manufacturers, but also in the service business.
Cross-departmental IT expertise due to digitalization
The classic separation between IT and specialist departments must be questioned. Digitalization, along with state-of-the-art cloud systems, is increasing the need for employees with sound IT skills. IT skills are needed in all divisions and departments and thus require a much higher level of engagement with IT issues throughout the company. We therefore recommend that companies in the automotive sector also adapt their in-house training practices to the requirements of the future.
Electrification: less hardware, more software
As the complexity of hardware decreases in electromobility and, in contrast, the software portion becomes more and more important, the topic of software is becoming the predominant factor in the industry for product development. Digital services, assistance systems, communication with control units as well as monitoring and diagnostics play a central role here. For automotive suppliers who do not want to become pure hardware providers, the development of IT expertise is a vital part of this change. Companies should also consider how high the demand for qualified personnel is throughout the industry.
Automation in production, assembly and logistics
Increasing global competition is forcing the automotive industry to push ahead with automation in production, manufacturing and logistics. Machines and industrial robots are more and more replacing humans, resulting in an enormous reduction of jobs. We recommend that our customers qualify their employees for new areas of responsibility in good time and make them fit for new technologies and the digital future.
Changing customer relationships
OEMs have used digital sales channels to reach customers directly for a long time now. Services such as Connected Car also enable manufacturers to communicate with customers throughout the entire vehicle period of use. This increases the number of direct sales and weakens dealers’ positions. Retailers should therefore adapt business models to customer needs in a timely manner.
Digital aftermarket
Another development is the digitalization of the aftermarket. The future significance of workshops and dealers in the automotive industry will change fundamentally as a result of the new trends. Reduced hardware complexity, remote diagnostics and innovations such as over-the-air updates are making traditional mechanics less important and causing demand for software specialists. Additionally, this development is exacerbated by e-mobility. The battle for customers is increasingly being decided at the point of sale. Therefore, it is extremely important that all information is available in time for all sales channels. By using ORBIS’ proprietary solution AutomotiveONE, you can reach customers and prospects through every sales channel and thus strengthen your position in the aftermarket.
Data-driven decision-making processes
Business intelligence, machine learning and big data are increasingly replacing manual activities in IT systems. For OEMs and their suppliers, this means rethinking the entire corporate organization and structure. With an appropriate software solution, you can use your company data to make better decisions faster. In this way, you not only increase sales and quality, but also achieve cost savings, recognize trends, and reduce entrepreneurial risk.
High pressure on suppliers from OEMs
For manufacturers, in addition to changes to the product range and increasing efficiency, the reduction of material costs always plays a central role. The pressure on manufacturers is passed on to suppliers. But how can suppliers safeguard their own profitability in this situation? By digitalizing business processes and using digital platforms such as AutomotiveONE. This solution links the CRM system with the ERP system and enables seamless collaboration between all departments. All relevant information is always at hand and time-consuming manual work is replaced by automated processes.
Sustainability: from a status symbol to a commodity
The car has lost much of its appeal as a status symbol, especially among young people. New applications for driver’s licenses are continuously declining. In addition, brand loyalty and design relevance are decreasing. The automotive industry is increasingly aligning its products and services with sustainability principles to counter this trend. To remain fit for the future, both the image of the vehicles and the entire product range must meet the new consumer interests.
New OEMs – what do newcomers mean for the supply industry?
In addition to IT companies like Google or Apple, new OEMs such as Tesla, Rivian, Nio, Lucid Motors or Polestar are increasingly entering the market.
The new entrants in vehicle manufacturing are creating more intense competition, as they have a development edge over established suppliers, such as the German automotive industry, in the areas of mobility-as-a-service, autonomous driving, digitalization and electromobility. What does that mean for suppliers? First and foremost, it means getting in touch with the new manufacturers quickly and building up a corresponding network. Solutions from the IT sector, such as AutomotiveONE from ORBIS, help here with efficient research and market observation.
Guidance for the digital revolution: ORBIS helps with strategy formation in the midmarket and enterprise sector
The new automotive trends and developments are challenging suppliers in the automotive industry worldwide. With our trendsetting concepts, both medium-sized suppliers and corporations take the next step towards digital transformation: Our expertise from more than 200 automotive projects as well as our extensive network in the industry make us your strong IT partner!
The opportunity to gain a significant competitive advantage through intelligent IT solutions has never been greater!
In our professional initial consultations, our automotive experts explain how you can digitally overcome the challenges of the future with the help of an industry-specific software solution.
