How Data Can Fuel Innovation in the Automotive Industry?


Customer data can power customer-centric models while delivering enhanced customer experience. 

The evolution of the internet of things (IoT) and connected devices has significantly been transformed the automotive industry in the last few years. As these technologies generate a voluminous amount of data, automotive companies seek to leverage them to drive innovation. The recent technological advancements and proliferation of AI, cloud computing, cognitive technologies and especially smartphones, are not only redefining the industry but also empowering customers who actively look for unique experiences. They expect a seamless end-to-end experience while selecting and buying a car.

As the innovation of connected vehicles with automated piloting is becoming reality, it is bringing digitization in the global automobile sector. This is also uncovering the irrefutable significance of data and forcing companies to leverage big data technologies to derive meaningful insights from that data. Currently, vehicles contain 60 to 100 sensors on board that gather data on speed, fuel consumption, emissions, usage data for resources and security. These data can be leveraged to find out patterns and address quality issues in cars.

Using data analytics tools here can be effective in augmenting both customer satisfaction and quality management at a rational cost. Most forward-looking firms are using predictive analytics to foresee and detect high congestion zones based on data amassed from automotive companies that can help them make strategies for building smart cities. Predictive analytics also assists companies in comprehending customer buying patterns to envisage which products customers want and when.

In today’s digital age, as the expectations of customers are increasing day by day, meeting their preferences and delivering improved customer customers is creating massive pressure on auto companies. It is expected that by 2025, millennials will represent over 45 percent of the potential car-buying cohort, making the largest new-car-purchasing demographic. This means automotive OEMs need to understand their preferences and adapt to them in order to deliver a personalized experience.

In this regard, thinking about digital technologies such as Chatbots, robotic process automation (RPA) and self-service knowledge-based technologies can be a beneficial approach. By leveraging and offering these solutions through apps with gamification strategies in place, companies can accomplish additional benefits and help drive growth with less linear customer experience. Such advanced technologies are even emerging as cost-effective ways for customer engagement.

So, having a rounded view of customers’ preferences will help carmakers in designing the future product, molding effective customer experience, and deliver overall business efficiency. 

As the world already approached digital transformation, the automotive industry is increasingly making technological breakthroughs to stay relevant in today’s competitive landscape. From autonomous vehicles to connected cars and AR dashboard displays to full integration with phones and smartwatches, the automotive industry is on the cusp of innovation delivering enhanced automotive car experience to users. According to a report, the automotive market is predicted to reach US$6.7 trillion by 2030. It is also predicted that over 70 percent of new cars sold during the same year could have self-driving features, while just 15 percent could have fully-autonomous capabilities.

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