digital transformation for automotive industry

Why the Automotive Industry Needs a New Digital Strategy

(3 minute read)

There’s no doubt the pandemic has seriously impacted the automotive industry, with OEMs, suppliers and dealerships seeing a sharp drop in customer demand. But the pandemic is only one piece in a series of challenges the industry has been facing – mostly driven by the move toward Connected, Autonomous, Shared and Electric (CASE) initiatives.

Automotive OEMs and their suppliers will need to address current supply chain disruptions, production capacity issues and workforce constraints in the short, mid and longer term. This includes taking a look at strategies to increase operational efficiency and meet business continuity objectives, along with expanding digital tools and platforms.

Taking a different approach to digital transformation will be key to future success. This will require moving away from the traditional model of lengthy technology projects toward a more service-based approach that provides a quicker, smarter way to respond to changes in technology, the industry and the business.

Challenges and Opportunities in the ‘New Normal’

Preparing for the ‘new normal’ will require a thorough review and reprioritization of current strategic roadmaps and investment efforts. This includes looking for opportunities to optimize existing business processes and taking steps to improve supply chain visibility and lines of communication to better detect and remediate potential issues early.

The following are a few of the challenges that can also become opportunities for future growth:

  • Aftermarket Service: Service and repair will likely become a significant part of the automotive business, as both consumers and businesses postpone purchasing new vehicles. Automotive aftermarket service companies will need to look for ways to optimize and improve service processes, while providing a great customer experience through digitalized touchpoints.
  • Supply Chain Visibility: Automotive companies must continue to improve their digital supply chain planning and provide better visualization and optimization of the entire supply chain. This will involve integrating processes for demand, inventory and operations planning to enable collaborative decision making.
  • Manufacturing & Outbound Logistics: The pandemic has significantly disrupted the current manufacturing environment, with some plants operating at lower capacity. Using this time to analyze and improve manufacturing processes can result in greater manufacturing efficiency, with cost reductions and an overall higher quality of parts.

The Path to a New Digital Strategy

It’s not surprising that companies that were further along the path toward digital transformation are adapting to the crisis better than their peers. The changes made to their business models and working processes allowed them to pivot more rapidly or accelerate changes already underway.

But taking on large-scale transformation projects no longer makes sense in the current climate of uncertainty, where no one can see far enough ahead to make long-term plans. The automotive industry needs a new approach that will make its transformation efforts fast, flexible and forgiving.

This new approach is Digital Transformation as a Service (DTaaS). No matter what your business challenges may be, NTT DATA Business Solutions has an approach that allows you to capitalize on new opportunities without a massive capital investment, and with the ability to pivot and refocus as business conditions evolve.

  • A dynamic technology roadmap to plot your course
  • A flexible delivery model so you can pivot, as needed
  • Subscription pricing – simple, easy, affordable

This new approach can help you break down barriers so your business can continue to grow – even in these uncertain times.

For more information about how your business can rethink its digital strategies, I encourage you to download our e-book, Rethinking Digital Transformation for the Automotive Industry.

Download the e-book

Brian Everett
Brian Everett
Industry Solution Principal

As an industry solution principal at NTT DATA Business Solutions, Everett is responsible for demand generation, sales, and solution development activities in the chemical and life sciences industry. He has been with NTT DATA Business Solutions for 17 years and has worked in the SAP ecosystem for 21 years. Prior to working as an industry solution principal, Everett has held the NTT DATA Business Solutions positions of director of mid-market solutions, project manager, manager of industry solution development, and application management support manager. He is part of the NTT Data Global One team and has applicative industry experience in manufacturing, consumer products, automotive, professional services, and life sciences. Everett has a bachelor of science degree from Miami University (Ohio) with a concentration in marketing and statistics (1996) and a master of business administration from the University of Cincinnati with a dual specialization in finance and management (2005). Hobbies include running, biking, golf, and playing saxophone in a community band.

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