Automotive transformation: embracing a data-driven mindset

The automotive industry is undergoing a huge transformation, driven by the rise of electric vehicles and digitisation. By 2025, almost a quarter of total car sales worldwide will have an electrified engine.

As the use of electronics inside vehicles increases, so too does the exchange of information about what happens inside and outside of these vehicles. 

The rise of smart cities has enabled these connected vehicles to provide real-time data, contributing to safer, greener, and more efficient transport systems. 

And with global revenue for smart city technologies expected to reach $165.8 billion by 2028 - it’s clear that companies that offer data-driven solutions will create more value.

The looming digital divide: born digital vs. traditional players

But, with advancements in GenAI, data, cloud computing and algorithms set to reshape the global economy, traditional non-digital automotive companies risk falling behind to those that were born digital if they don’t keep up.

Professor Venkat Venkatraman is one of the leading authorities on automotive digital strategy and has consulted with companies such as General Motors, General Electric, IBM, Microsoft and Sony. 

His latest book ‘Fusion Strategy: How Real-Time Data and AI will Power the Industrial Future’ discusses how automotive companies need to transform their approach and use real-time data and AI to fuel their products, strategies and customer relationships.

In this blog, drawing on insights from ‘Fusion Strategy’, we’ll explore how automotive companies can become more data-driven to avoid falling on the wrong side of the next great digital divide.

Embracing the ‘fusion frontier’

Venkat believes that a ‘fusion frontier’ is approaching - a future state where all industrial products are embedded with sensors, software and real-time functionalities, merging physical and digital domains. 

For automotive companies with a background in creating analog products, moving to producing digital technology can be particularly challenging. 

The challenge becomes even harder if the vision is not shared across your business. Many great ideas have failed because different business functions couldn’t work together to focus on building digital competencies.

One example is companies building new digital displays, software functionality or network connectivity - assuming these are ‘smart’ products that will delight customers. When in fact, the focus should also be on capturing and tracking real-time product data - and using this analysis to deliver better products and services to customers. 

Start harnessing real-time data

So how can businesses stop taking data for granted and start harnessing the value of real-time data?

The first step in introducing a new way of working with data across your business, is establishing your data vision. A well-defined vision directly shapes decision making and processes, and by communicating this business-wide, you’ll ensure that all teams are working together towards the same goals.

By realigning your company’s metrics for measuring digital success, you can begin to move towards a culture of innovation and growth. Clear and actionable metrics, such as data quality scores and usage rates, are essential for tracking progress and making informed adjustments to your strategy.

A data maturity assessment evaluates aspects such as data governance, analytics capabilities, and data literacy within the organisation, identifying strengths and areas for improvement to build a comprehensive data vision and strategy.

Build a ‘dream team’ for your data journey

To deliver true value from data, collaboration between data and business teams is essential. Data teams should not be siloed as cost centres but seen as integral to service delivery and innovation. 

Venkat believes that teams that consistently measure data generated actively (by using a product) or passively (by giving feedback) - are able to deliver better experiences to customers. This, in turn, builds loyalty and returning value.

By fostering a collaborative culture around data, automotive leaders can guide their teams to embrace a data-driven mindset. This will not only provide better products to customers, but will give businesses a distinct competitive advantage.

Ready to unlock the power of your data?

We help automotive and mobility leaders to realise their digital ambitions - from harnessing the value of data to creating a culture that powers your data vision. Learn more about how we help our leading automotive clients here. 

Join us on 24 September at 12pm to hear from renowned Futurist, Tom Cheesewright, in our live webinar 'A vision of a digital future: What does the next decade look like?'.

Tom Cheesewright regularly features on BBC World News, BBC Radio 4, Times Radio, and LBC, and brings over 20 years of industry experience, including in automotive. Tom will share insight into how companies should prepare for the next 10 years of tech transformation.