Betwixt and between. That phrase describes the automotive industry's predicament at this point in its evolution into a digital business. On the one hand, 45 percent of automotive industry executives who responded to Accenture's 2015 Tech Vision survey report that the pace of their company's technology adoption has increased steadily in recent years, and 83 percent say that companies in their industry will move toward real-time platforms and systems as enterprise adopts mobility and Internet of Things (IoT) solutions. Nearly as many—78 percent—say that the next generation of platforms will not be led by large tech companies, but by industry players and leaders.
Technology Trends Reshaping the Automotive Industry
In this report, The Accenture Technology Vision 2015—The Automotive View, we isolate the responses of automotive industry executives to identify the technologies that will have, probably, the greatest impact on the automotive industry over the next three to five years.
The industry is already experiencing some of those impacts. For example, boundaries between formerly distinct industries are beginning to dissolve, changing the way automobiles interact with their manufacturers, drivers, and service technicians.
Platform (R)evolution—78% agree the next generation of platforms will not be led by large technology companies, but by industry players and leaders. 58% plan to engage new digital partners within their respective industries, and 47 percent plan to engage digital technology and cloud platform leaders.
Workforce Reimagined—41% are considering adopting sensors to increase intelligence gathering about the surroundings; 34% are considering robotics to automate business and industrial processes.
Past editions of the Accenture Technology Vision have concluded that every business was becoming a digital business and predicted that large and often long-established businesses, with their deep resources, huge scale, and process discipline would use technology to drive their growth—and in the process rewrite the digital playbook.
In 2015, some of the stalwarts of the non-IT business world—in particular, automotive companies—are aggressively taking the initiative. They are proactively making big moves to deliver better outcomes to their customers, form alliances across industry boundaries to improve automotive performance and the driving experience, and use human-machine collaboration to create value in innovative ways. Senior leaders will need both boldness and clarity of focus to seize advantage in this new marketplace.
They will need to model the impact of transitioning to outcome based revenue streams, evaluate their ability to deliver hardware solutions at the edge, develop ecosystem strategies that will enable their enterprises to work with a portfolio of potential partners, many of them outside the traditional confines of the auto industry. They will need to formalize technology partner and cloud services relationships to support their platform environments, expand partner strategies to move up the value chain, and think big and broadly about the problems and opportunities that participation in platforms will reveal. And they will need to identify opportunities for leveraging technology to help the human workforce focus on tasks that are more complex, while using augmentation technologies to make jobs once reserved for highly skilled workers accessible to those less skilled. It's a challenging to-do list, no doubt, but the rewards of executing it successfully are difficult to overstate.