Page 23 - EngineerIT October 2021

AUTOMOTIVE SECTOR MEGATRENDS

Connected cars, autonomous and

electric driving, shared services

Built-in digitalisation strategies help organisations overcome tomorrow’s mobility challenges

By Thomas Braunmiller, Business Value Director Automotive at ORACLE

he future of mobility is unthinkable without intensive networking digitisation as an opportunity,
and data-based processes. This was a key insight coming from become less important. In
Tthe world’s largest motor-show, IAA Mobility, in Germany recently. addition to the ability to include
digital offers in the calculation
Comprehensive Investments in Cloud Connectivity from the outset, it is important
Consistently advancing — this short formula can accurately describe the to identify potential savings
expectation of the automotive industry. As one of the most important from the perspective of the
industries in this country, it has always been the subject of extensive large vehicle manufacturers
future investment. Due to digital transformation, there is a particular and their suppliers. At the Thomas Braunmiller
focus of activities on the technology trends for electric mobility, same time, it is recommended
connected cars, shared services and autonomous driving. In addition to further develop existing data-based products and services, such
to the need for suitable operating systems that connect vehicles to the as insurance, traffic management and autonomous driving, and to
cloud, development is characterised by a general modernisation of the establish them as strategic sources of revenue.
IT landscape in the automotive sector. This raises the question of which
technologies and partners manufacturers should specifically target and Accelerating the integration of digital business models
which technology options they should ideally secure in the form of an and technologies
in-house development of intellectual property. As an intersection of the trends already listed, automotive industry
companies would do well to evaluate the value chain accurately:
Reimagining traditional organisational structures which technologies are best to aggregate, analyse and draw the
As pioneering developments in the industry tend to lead to software- right conclusions from the ever-growing volume of available data in
based solutions, the mindset within the workforce and its connected and around the vehicle. This includes a complete re-evaluation of
organisation will have to evolve towards decentralised teams with business models, as well as redesigning the customer experience
appropriate skills. Given the modest number of local candidates, it from the perspective of digital interaction and new touchpoints. The
will prove critical in the race for the best talent to shift the focus away meaningful combination of digital and physical vehicle functionalities
from vehicle hardware solutions and allow sufficient time for the with connected cloud solutions are laying the foundation for a mobile
transformation process. While some manufacturers are already driving ecosystem which, in essence, reinvents driving.
the construction of specific functional areas for vehicle software, there
is an industry-wide need to reduce overcapacity, for instance in the Alignment with regulatory frameworks
area of internal combustion engines. To successfully address the challenges faced by the industry and to
follow these trends, a look at the legal framework within which each
Sustainability and a political framework from a global company operates is essential. In addition to overall business risk
perspective management and compliance and security standards, this includes
With a view to the expected development of entire electric model series the hugely important aspect of cybersecurity, specifically for vehicles,
and the (at least) partial replacement of the internal combustion engine, and the anchoring of technological compliance requirements from
each manufacturer is well advised to take along their customers, vehicle development throughout the lifecycle. Proactive engagement
investors, legislators and employees in the form of a detailed and the development of expertise in this sector is more than a nice-
sustainability agenda. CO2 footprint, availability of rare earths for chip to-have — it serves to protect important values, such as brand image,
manufacture and economic policy frameworks, such as the cooperation credibility and capital.
with different 5G providers, are important factors for the decision-
making process on what the urgent need for greater sustainability can On and on and on...
look like in a connected world. Closely associated with this is the need The automotive industry is undergoing a profound change. Although
for clear measures for investing in the appropriate technology stack some distinctive future megatrends can be identified, it is important
as well as for the policy agenda, including multi-cloud scenarios in to remember that things will not be different overnight. In fact, well-
generally restrictive countries. known and emerging technologies, processes and revenue models
will coexist in a way that the market and therefore the demand side
Data monetisation dictates. Whatever happens in future, mobility remains a marketable
The share of digital products and services is growing rapidly and, asset – and the core business of an industry that for decades has
inevitably, classic revenue models, which do not explicitly incorporate proved its ability to innovate time and again. n

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