Here are the keys to driving epic change in the auto industry
September 14, 2020
Gritting my teeth, I punched a few keys on the dash, turbocharged the engine, and pinged the Riddler’s position back to Headquarters. Then, I hit the gas as hard as I could.
I was nine.
What child of the 70s didn’t pretend their dad’s Buick was the Batmobile, with hi-tech features like remote connectivity and over-the-air (OTA) upgrades? Today, automotive leaders are using digital twin and thread to create the car of the future, unlocking new capabilities, services and revenue streams as they go. Learn how to leverage these technologies as you navigate the industry shift from manufacturing to mobility.
You know as well as I do: The way people engage with cars has changed.
Last year saw a worldwide decline in auto sales by 4 million vehicles, while the popularity of smart products and services like Alexa Auto, self-parking and SiriusXM’s connected maintenance bundles grew. No car? Grab an Uber. No driver? Let Waymo take the wheel.
By 2030, less than 55 percent of the industry’s profit share will come from vehicle and aftermarket sales, compared to 70 percent today. Mobility services will make up the rest. To capitalize on the shift, original equipment manufacturers (OEMS) must fully digitize the vehicle and share that data across new and diverse ecosystems. Digital twin, digital thread and multiparty systems are key enablers.
Figure 1. The automotive industry is undergoing a digital transformation toward a more service-centric, connected mobility ecosystem.
A digital twin is the digital identity of a physical object, in this case, a car. Through cryptography and blockchain, we can authenticate digital twins in a trusted, undeniable and transparent way. Unlike a vehicle identification number (VIN), they can’t be created or counterfeited without access to a blockchain identity network, in which each party has its own trusted digital identity.
Whereas physical vehicles are born in a factory, a digital twin can be generated before manufacturing begins. From that moment on, ecosystem partners can continually add information to it across the vehicle’s lifecycle. This ever-growing collection of data makes up the vehicle’s digital thread. It includes everything from parts and condition to usage and behavior, with the entire ecosystem contributing data “from cradle to grave.”
Figure 2. Digital thread and twin create opportunities for everyone in the ecosystem, whether it’s streamlining maintenance or embedding in-vehicle retail capabilities.
Together, digital twin and thread serve as your vehicle’s DNA with a daily diary. That data can be used to improve and invent all kinds of experiences, but it requires strong ecosystem collaboration. So how do you mobilize data across your network without sacrificing privacy and control?
Multiparty systems provide a shared data infrastructure to enhance trust, transparency and collaboration—even among competitors. Using technologies like blockchain and distributed ledger, they allow ecosystem partners to see and agree upon a single record of data in real time. No copies, no back-and-forth. Another key trust factor: They give you unprecedented control over the data you share, allowing you to specify who can see it, for what purpose and how long.
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With digital twin and thread, multiparty systems make the car itself the single source of truth that everyone can agree and act upon at once.
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This collective agility allows us to track, validate and monetize vehicle data and events on the spot, across the ecosystem, over the car’s lifecycle. Purchases, wear-and-tear, late night trips to Taco Bell—you name it.
Efficiency and savings are a given, but the new services and revenue streams that emerge from multiparty system collaboration will drive value for everyone involved:
And that’s just a preview. In our next two automotive posts, we’ll explore more use cases in detail and outline how to set up your own multiparty system that puts the vehicle at the center of every mobility interaction.
This is where the industry is going, and adoption is already under way. Leading organizations are aligning on the standards and governance required to build these powerful new mobility ecosystems.
The time is now for OEMs to come together and maximize this window of opportunity. Take the wheel and lay on the gas—there’s runaway revenue to catch.
Read more of this series:
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Digital twin has an image problem: It’s only good for manufacturing. These 5 use cases dispel that idea.
In the first of a three-part series on automotive industry transformation, learn how digital twin and digital thread are driving the future of mobility.