Finding another gear: digital transformation in the automotive industry
For the automotive industry, the road ahead looks vastly different today than it did even a few years ago. Vehicles and the driver experience have shifted from physical to digital.
As with any industry, this change in direction has been driven by the consumer.
Every experience from shopping to house hunting has become personalised and ever more convenient, and consumers expect the same when it comes to their cars.
How companies respond to changing expectations and market trends will determine how appealing their proposition is to modern consumers and whether or not they can compete in a crowded market.
Digital transformation is essential to meeting these new demands, strengthening your position in the market, and crucially, staying ahead of your competition.
For digitisation to be a success, there are three challenges to overcome:
- Investment: in an economic climate where cost-control and risk management are high, business owners need to focus investment in areas that deliver the most value and ROI
- Resistance to change: the industry is dominated by large firms who are resistant to change (just look at the anxiety around electric vehicles)
- Customer focus: as with any large-scale change that impacts how a whole industry operates, the customer needs to remain a central focus