The transformation that is bringing the necessary change or the needed transformation in the automotive market is known as a CASE (connectivity, autonomy, shared mobility, and electrification).
As per the Deloitte report, the evolution in the technology is going to sweep away some of the undercapitalized global OEMs or even the suppliers may just close the door to find it impossible to handle the tectonic impact on the global automotive value chain.
The ways the automotive companies are trying hard not to get wiped out from the market:-
- Strategic partnerships.
- Merging and acquisitions.
- Bridging the gaps in the technology domain with competitors.
- Global innovation hubs like Israel are being harvested as fertile landscapes.
- Identifying the startups for meaningful technology change.
- Heavy investment in technology solutions
- Digital transformation initiatives for the manufacturing process to drive efficiencies.
- Involvement in smart factory solutions.
- Cobots, digital supply networks, artificial intelligence, predictive maintenance, and even blockchain.
However, it is not a technological investment but digital twin and digital thread play equal importance in the industry 4.0 ecosystem. The industry 4.0 implementation in the automotive industry is also not a simple one-day solution.
It also deals with challenges in every stage, starting from the development to the end-stage as well as in the supply chain system. Well, think about an organization working on a pattern that needs to change overnight to match up with the development pace happening in the market.
There will be hundreds of issues and problems, that each organization group or team will find hard to tackle.
In Japan, lean management principles are popular in automotive companies. Nevertheless, the shortage of finding the right person to handle such technologies is huge. Even language is a major barrier in a lot of countries.
The key questions Deloitte addressed for the automotive companies are:-
- Which advanced innovations will impact the auto industry the most over the next decade?
- What will future customers demand?
- How should I fund the investments needed?
- Do I have the right talent to fulfill future expectations?
Well, yes the industries need to keep the questions in their plans before going for the next technologies. With electric vehicles and autonomous vehicles, you can provide the customer with trust and a good product. The customers are ready to invest in inexperience.
The automotive industry has become a lucrative as well as status quo. Customers are ready to spend money for the next comfort and are in synch with the latest technology.
Another important thing is with the funding, a transformation from the existence to the next leap of technology will embark you on a journey of fundamental monetary loss. Finding the customers for your old products is a challenge. The solution to reuse the old products and present them in a new style needs a good creative idea.
And last but not the least, can I leap into the new ecosystem with my current resources? Is it better to close the doors or maintain the old ways and hand it over to someone is a tough decision but sometimes needs to be done.
In India, many airlines started the cheap travel journey. Providing the king-like experience at a low cost. But failed miserably, even with the acquisition of another airline. Sometimes, much-needed patience is needed to grow the business but maybe time is not permissible.