The automotive industry’s rapid and deep transformation is almost entirely based on shifting trends in consumer technology. In the 2017 edition of its extensive annual research, the Best Practices for Automotive conference identified the most pressing challenges automotive companies are facing today.
The following themes made the list of top concerns.
- Digital disruption: A car is no longer just a car. Digital disruption has caused a car to become an interconnected, highly intelligent, communicative instrument. And the future will allow even more collaboration between vehicles and everything traffic-related. As a result, this will reinvent traditional business models within the automotive industry and completely alter the existing ecosystems. Automotive organizations need to recognize this monumental disruption to stay afloat.
“In a world where the future is far from certain, automotive companies will need to develop new core capabilities to survive.”
Digital disruption and the future of the automotive industry, IBM
- Connected cars: This can rightfully be considered the epitome of the Internet of Things. The amount of data being consumed and transmitted from a connected car is truly staggering, enabling a depth of technology, such as language processing, cloud computing, and automotive sensors.
“The IoT-enabled ‘connected car’ turns the vehicle itself into a hub for an entire ecosystem of connected services that offer consumers a wealth of benefits including enhanced safety and security, a richer user experience, and a new suite of product offerings.”
How Connected Cars Have Established A New Ecosystem Powered By IoT, TechCrunch
- Transportation as a Service (TaaS): Transitioning from a mere form of transportation to an entire media-immersed experience, TaaS will take over the initial objectives of automotive transit. In addition, if this shift moves individual car ownership – where barely used cars take up enormous amounts of space – to service-based mobility solutions, cities will become inherently less crowded, more efficient, and more livable.
“The traditional business model of car sales will be complemented by a range of diverse, on-demand mobility solutions, especially in dense urban environments that proactively discourage private-car use.”
Disruptive Trends That Will Transform the Auto Industry, McKinsey
- The talent war: These once-unimaginable advances have catapulted the needed talent, experience, education, and management abilities into a whole new echelon. It is no longer good enough for automakers to simply employ the mechanics and engineers with the most advanced skills; it is critical to acquire the best possible pool of advanced designers, digital and technological scientists, and software and social engineers, for example. Although the exact formula for this new type of talent team is still up in the air, one thing remains certain: It will be mandatory for automakers to develop teams that can take advantage of the many opportunities created by digital disruption.
“The growing skills gap evident in the automotive industry is made worse by quickly perishable skills. And even those engineers and other employees with college degrees aren’t learning everything they need to know in college, or learning lasting skills.”
Eliminating the Automotive Industry Skills Gap, Ward’s Auto
All these quickly evolving trends in the automobile industry make it easy to feel overwhelmed. Keep your organization educated with the right tools to remain an automotive leader.
For more information, attend this year’s Best Practices: Automotive Conference in Detroit, Michigan, September 18-20.