The automotive industry is challenged to forge strategic alliances in order not only to meet the constantly changing mobility requirements, but also to anticipate future trends at an early stage.
The automotive industry is challenged to forge strategic alliances in order not only to meet the constantly changing mobility requirements, but also to anticipate future trends at an early stage.
( Bild: gemeinfrei / CC0)

blockchain technology Golden times, stormy times

| Author / Editor: Alexander Waldi / Jochen Schwab

The automotive industry is facing major challenges. With IoT, Machine Learning and Blockchain, software companies offer the right tools for transformation into an intelligent company.

"Stormy times" is predicted by the German Association of the Automotive Industry. The fact is that the automotive industry is no longer just shining golden as in previous years. Vehicle manufacturers are now fighting for supremacy in the mobility landscape against large IT groups from Silicon Valley and are transforming themselves into mobility service providers - triggered by four megatrends: Connected, Autonomous, Shared and Electrified (CASE). Customers want networked and self-propelled vehicles that emit as few pollutants as possible. And the trend is toward shared mobility; it is no longer so important to own a car yourself. New business models and optimized processes are required.

Automotive supplier accelerates digital transformation

The difficult phase in the German automotive industry is also putting increasing pressure on automotive suppliers. The art is to keep a clear view even in difficult times and not to lose sight of important investments in the future. The automotive supplier Schaeffler is laying the foundations for a sustainable IT landscape with a strategic partnership with SAP, thereby accelerating the digital transformation of the company. With the help of SAP solutions, the group intends to optimize its business processes. The goal: to create competitive advantages with regard to digital transformation. "The areas of e-mobility, industry 4.0 and digitization are core components of our corporate strategy," says Klaus Rosenfeld, CEO of Schaeffler AG. "Through this strategic partnership, we will continue to consistently implement our strategy.

Company-wide software projects used to be costly and lengthy. But new software packages and innovative technologies allow companies today to quickly and agilely develop solutions to compete in dynamic markets. In the digital transformation, new ERP software is helping the automotive industry to avoid obstacles that often arise due to older ERP systems - such as latency, complex IT landscapes, and manually controlled processes. The new solutions help companies achieve greater speed, flexibility, innovation and scalability.

Internet of Things and Blockchain easily accessible

The leading software companies also offer tools that support businesses and public organizations in their entire digital innovation strategy. In this way, digital systems make innovative technologies such as Internet of Things, Machine Learning and Blockchain accessible.

A practical scenario shows the benefits of such solutions: Mobile assets, such as fleet vehicles, forklifts or elevators, can be tracked through IoT applications. This allows fleet managers to see exactly how many vehicles are actually being used and better plan how many are needed overall. Expenses for road tolls and fuel taxes can be calculated in advance. The concrete advantages: lower costs as well as real-time analysis and forecasting functions with which even new developments with networked vehicles can be brought to market more quickly.

Blockchain technology boosts customer confidence

With the help of new technologies, the used car market could also experience a revolution in the future. Blockchain technology records all collisions and collects them in a decentralized register that cannot be changed. Damage, mileage and tire condition are also documented reliably at all times. This enables dealers to prove to customers that repairs, for example, have been carried out correctly. The value that a dealer attaches to a used vehicle would be transparent and comprehensible at all times - and the confidence on the part of the customer could be enormously increased.

The automotive industry is called upon to forge strategic alliances in order not only to meet the ever-changing mobility requirements, but also to anticipate future trends at an early stage. Stormy times could soon be followed by golden times.

This article was first published in German by Industry of Things.