How Data can be Used to Drive Innovation in the Automotive Industry

As connected vehicles with automated piloting become a reality, they are bringing digitization to the global automobile industry.

Auto Tech Outlook | Sunday, January 31, 2021

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The evolution of the internet of things (IoT) and connected devices has significantly transformed the automotive industry in recent years. Because these technologies generate a large amount of data, automotive companies are looking for ways to use them to drive innovation.

Fremont, CA: As connected vehicles with automated piloting become a reality, they are bringing digitization to the global automobile industry. This is also revealing the undeniable importance of data and compelling businesses to use big data technologies to derive meaningful insights from that data. Currently, vehicles have 60 to 100 sensors on board that collect data on speed, fuel consumption, emissions, resource usage, and security. These data can be used to identify patterns and address quality issues in automobiles.

Using data analytics tools in this situation can effectively improve both customer satisfaction and quality management at a low cost. For example, most forward-thinking companies use predictive analytics to predict and detect high-congestion zones based on data gathered from automotive companies, which can assist them in developing smart-city strategies. Predictive analytics also helps businesses understand customer purchasing patterns, predicting which products customers want and when they want them.

As customer expectations rise, meeting their preferences and providing better customer service is putting enormous pressure on automakers in today's digital age. By 2025, millennials are expected to account for more than 45 percent of the potential car-buying cohort, making them the largest new-car-purchasing demographic. This means that automotive OEMs must understand and adapt to their customers' preferences to provide a personalized experience.

Consider digital technologies such as Chatbots, robotic process automation (RPA), and self-service knowledge-based technologies in this regard. Companies can achieve additional benefits and drive growth with a less linear customer experience by leveraging and offering these solutions through apps with gamification strategies in place. Such cutting-edge technologies are even emerging as low-cost methods of customer engagement.