Automotive Technology Vision 2019
July 26, 2019
July 26, 2019
Digital technologies of the past decade allowed automakers and suppliers to double down on innovation and kick their transition from vehicle manufacturers to technology companies into high gear. Today, industry leaders are embracing a new set of “post-digital” technologies—namely Distributed Ledger, AI, Extended Reality and Quantum Computing (or DARQ)—as catalysts for change.
Beyond enabling operational and design improvements, these new technologies are allowing automotive manufacturers to understand consumers and markets—and pursue relevant opportunities—as never before. This is critical in the post-digital era, where demand is communicated instantly, and gratification is expected immediately. The dual objective for speed and hyper-personalization underpins the current flurry of Mobility-as-a-Service (MAAS) activities. Traditional OEMs, along with—and often in collaboration with—new automakers, digital natives and technology giants are looking to be first to market.
Despite concerted efforts to commercialize MaaS solutions and self-driving vehicles, profitability remains elusive. The fact that new mobility services are taking longer than expected to “get up to speed” poses an existential crisis for digital startups. For traditional automakers and suppliers, it’s a different story.
Unlike their digital-native competitors, they have their original business models to fall back on—as well expertise in mass production, powerful distribution and sales networks, strong brands and, in many cases, a loyal customer following. The fact that they have built-in advantages does not mean, however, that they should stop plowing ahead with their MaaS and autonomous driving programs. With their foot on the gas, they will define—or redefine—their role in the future of transportation.
85%
Of automotive executives agree that integrating customized services and real-time delivery will usher in the next wave of competitive advantage.
70%
Believe the combination of new technologies—including distributed ledgers, AI and extended reality—will transform their organizations over the next three years.
In the post-digital era, traditional automotive industry players will benefit from a new technology framework that can guide and accelerate their forward momentum. This framework comprises three core elements:
New technologies are ushering in a new era of mobility. It’s an era of massive expectations. An era of momentary markets and global opportunity. An era characterized by companies growing and transforming their core businesses, while also pivoting to new opportunities. As the next wave of MaaS and self-driving programs advance, forward-thinking automotive manufacturers will not sit idly by. They will use this time to set their course.
The future of the industry will be characterized by partnerships that deliver more than any one company could deliver on its own.
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