The automotive industry, like many other industries, is accepting digital transformation, but it brings a lot of challenges to the industry as it is not familiar with the digital concepts.
FREMONT, CA: Prompt and disruptive change is nothing new in the automobile business, and digital transformation is the next big disruptor. In the automotive business, trends such as greater connection, environmental laws, IoT, wireless solutions, and heightened customer expectations are driving investments in digitalization. From design to manufacture, distribution, and retail, technology has already pervaded many elements of the automotive value chain. Connectivity, artificial intelligence, and a plethora of customer data, according to industry analysts, will drive investment well into the future.
The digital revolution has made people's lives easier and more convenient, and the car sector is no exception. Autonomous vehicles, production, maintenance, marketing, and sales are all embracing digital technologies. These improvements, however, are not without their drawbacks.
Here are a few challenges of digital transformation in the automotive sector:
Customer centricity
A critical obstacle to digital transformation is a lack of client focus. Enacting customer-centric organizational change, on the other hand, frequently necessitates the implementation of national corporate programs. It is essential for the in-person dealer experience and the digital experience on all devices to be indistinguishable for these programs to thrive. Brands must consider how their interactions with customers, retailers, suppliers, and vendors can assist improve the overall experience of car ownership as the number of digital natives grows.
Resistance to change
While B2C eCommerce has long helped the automobile aftermarket, other aspects of automotive eCommerce have seen inconsistent digital adoption. Manufacturers face a similar set of problems. According to one survey, vehicle makers anticipate a 24 percent increase in digital expenditure in the coming years. Despite this, issues exist due to the industry's lack of digital maturity and the speed with which these changes are implemented.
Investment
Businesses that invest in automotive digitization must stay focused on the most attractive use cases with the highest return on investment. Predicting the return on investment of new technology and discovering ideal use cases in the automobile industry will continue to be the most challenging problems.