Digital automaking in the automobile industry is supported by technology-driven trends, new consumer needs and new developments in artificial intelligence. Manufacturing, procurement of raw materials, marketing and sales are factors involved in this change.
Digital automaking is a process that combines simulation, three-dimensional visualizations, analytics and several tool partnerships to make automotive manufacturing easier. Since the automotive industry has been undergoing a digital transformation primarily driven by intelligent mobility, it has encouraged the market to adopt new technology and software for modern vehicles. There has also been a growing need to increase industrial processes’ sustainability, environmental friendliness and adaptability. All of this has made automotive digitalization extremely important.
Automotive digitization helps to keep precise control over business operations, which is made possible using modern technologies like ML (machine learning) and AI (artificial intelligence) to improve short- and long-term performance.
Automotive digitization has also increased the capacity to monitor each component of the supply chain while lowering costs and risks. Digital automaking can offer Automotive solutions in terms of better design, time efficiency, and many other industry solutions.
4 Activities that Can Be Digitized by Automakers Now
1. Manufacturing
Customers desire tailored goods, but they don’t want to pay more than they would for items that are mass-produced. As a result, manufacturing must be more adaptable than ever, leading to mass customization. Thus, the design, fabrication, use and maintenance of products are changing as a result of the digitalization of manufacturing. It is also changing the operations, procedures and energy footprint of supply chains and more. Digital manufacturing enables firms to provide additional options that are tailored to individual customers. Businesses can better understand supply-chain challenges, including inventory levels, delivery status and demand cycles, thanks to digital manufacturing.
The factories of the future will move from automation to autonomy, strengthening real-time communication between equipment, physical systems, and people. These factories are referred to as smart factories. The most notable advantages of a smart factory are its shop floor connectivity, advanced robotics, flexible automation, augmented and virtual reality systems, and efficient energy management. The general manufacturing sector’s global standards are established by the automotive industry.
Over the past two decades, the automotive sector has expanded tremendously. However, the main elements that will affect whether digitalization is successfully implemented are the significance of realizing a return on investment (RoI) and the willingness of employees at both the top-most and lowest levels of an organization.
2. Supply Chain
By removing the functional barriers that divide different areas, the digitization of the supply chain is a cross-functional process that spans the entire lifecycle of a vehicle or product and involves all company divisions. It allows for an ecosystem that connects all stakeholders, from raw material and component suppliers to logistics companies, dealers and customers.
Utilizing digital technology throughout the entire supply chain allows for real-time monitoring of all supply-chain stages, be it either procurement of raw materials or finished products ready to be delivered or purchased. The evaluation and management of each event’s impacts on the supply chain can help the automation of procedures and the avoidance of potential interruption.
3. Design
Design plays a significant role in the automotive industry. By digitizing design activity, design professionals can test multiple hypotheses before proceeding with the design phase. Digitalization in the designing of products has been enabled by a digital model known as Digital Twins, which represents tangible assets in 3D. Digital twins mirror the complete car or one of its components’ appearance and behavior. With great assistance from sophisticated software, businesses can collect information about configuration, sensors, inspection data, and other details to improve the product’s design.
Automobile manufacturers are among the many industrial firms that recognize digital twins’ possibilities and the potential it has to bring in the best in the business of automobiles. The design and production processes are simplified by 3D representations, improving vehicle performance and cutting costs for the manufacturers. The twin technology is quickly rising to the top of the list of software solutions used in contemporary auto manufacturing, with applications ranging from car design to predictive maintenance to boosting sales using digitally generated models.
4. Marketing
Any marketing strategy aims to tailor the right message to the right set of audiences at the right time. A marketing campaign that appeals to a 45-year-old countryside man might not affect a 23-year-old lady residing in an urban area. Therefore, the impact of marketing combined with the effectiveness of Artificial Intelligence (AI) can be the biggest boon to any business. The automotive industry can enormously benefit in how they market their brand/product by adding the power of artificial intelligence to their current data. It can lead to a strong possibility of purchasing your products early in the sales process, possibly before customers even begin looking for their new car, which is indicated by specific online activities.
As a result of recent advancements in third-party cookies and mobile advertising identifiers, AI can now assist brands in finding new prospects much more quickly by utilizing data to identify customers with similar characteristics and behaviors. This strategy can potentially increase your prospective customer base and give you an advantage over your competitors. You can identify high-priority targets by identifying the demographic categories that overlap. These solutions don’t require cookies and are more likely to comply with escalating privacy requirements because they rely on behaviors rather than personal data.
The automotive sector has modified its strategy and is now embracing digitization. Digital transformation in the automotive industry still has a lot of gaps to be addressed, but the trend toward digitization is a sign that the stakeholders in the automotive sector will be properly supplied with digital solutions in the coming days. With intelligent technology, and operations across the entire company and all departments, including manufacturing, supply chain, marketing, and sales, digital automaking will help the automotive industry to flourish in this digital era. An increasingly digital supply chain will also dismantle established barriers and greatly enhance communication. Undoubtedly, businesses must adopt a more significant digital transformation to be ready in this competitive automotive industry.
