Tencent recently commissioned technology research and consulting firm Gartner to write a white paper titled “Digitalization to meet new challenges and avoid new risks; digitalization to help automakers turn crises into opportunities.” This white paper explains important changes in the automotive industry, the path to digital transformation, and why and how technology companies and cloud services are part of the solution for automakers.
The automotive industry is undergoing a digital transformation
Tremendous changes are taking place in the global automotive industry. Changing consumer expectations, growing regulatory scrutiny, the pursuit of autonomous driving, and other technological innovations are forcing automakers to rethink their business models and relationships with customers.
To win new and existing customers and drive growth, the entire value chain from R&D to manufacturing must be re-evaluated through the lens of digitalisation. Technology companies are now an integral part of the auto manufacturing ecosystem, along with auto and component manufacturers.
At the heart of digital transformation are cloud-based technologies that address the sector’s unprecedented data needs. To be successful, it needs to digitally connect every device in the automotive industry chain by integrating AI, cloud, big data, consumer connectivity and other capabilities. Only then can brands respond to evolving markets.
Three trends turning the market upside down
One. Cars are becoming more environmentally friendly and intelligent.
Autonomous driving has become a new industry trend in the drive for smart and sustainable vehicles. Electric vehicles and other new energy vehicles are growing massively to phase out fossil fuel vehicles. Software and computing power are now just as important as hardware and will become the core competitiveness of automobiles. As more countries work to reduce carbon emissions, automakers are expected to play a leading role in driving sustainability through the products they make.
2. Consumers are in the driver’s seat of change.
Digital native Gen Z consumers are an influential segment among first-time car buyers who rely on online channels and word of mouth to make decisions. Automotive companies must align their marketing strategies with digital touchpoints to create flexible digital supply chains while directly engaging users.
three. The value of a car extends to the after-sales experience.
According to blank According to consulting firm Deloitte, the automotive aftermarket will represent 55% of the entire value chain by 2025. This highlights the importance for automakers to invest in providing high-quality, personalized after-sales service to improve the user experience throughout the vehicle’s entire lifecycle. To build and maintain customer loyalty.
A People-Centered Digital Transformation Path
Human-centered digitization means everything from product design and manufacturing to digital marketing must be user-centered. A new business model defining the future of the automotive industry.
Our white paper showed that successful people-centric digital transformation occurs when the entire product and service supply chain is designed with the end user’s perspective in mind. To this end, companies must establish a digital network that connects R&D, design, production, manufacturing, sales, and after-sales service, and provide users with global access and closed-loop, full-cycle digital services.
A next-generation digital infrastructure is critical to spur digital transformation in the automotive industry. This includes efficient and reliable cloud computing services, robust data infrastructure, and rigorous security measures to strengthen cyber resilience. These changes do not happen overnight, but companies must take steps to drive digital transformation with the stakeholders critical to facilitating this process, including parts suppliers, car dealers, service providers and users.
Minimizing risk through product and enterprise digitization
Automotive companies can increase their resilience to supply chain disruptions by digitizing their products. Enterprise digitization, underpinned by modular, data-driven systems, can optimize the entire supply chain to increase efficiency and promote sustainable growth.
Cloud service providers have become strategic partners for automotive companies looking to integrate their operations with cloud management across the value chain. To facilitate the transition, cloud services must meet business requirements for:
One. Urgent cloud native and agility requirements
2. Strict data compliance and security requirements
three. closer integration of technology and business;
4. flexible and open continuous evolving capabilities; and
5. Autonomous and controllable data asset management.
The digital transformation of automotive companies is only possible with an intelligent cloud network. This enables efficient, secure and real-time delivery of computing power and services.
Speed up R&D and design
Technological changes and fierce market competition have reduced the R&D cycle for new vehicles to as little as two years. As the digital twin becomes the standard for evaluating the entire lifecycle of a vehicle, manufacturers are forced to process and evaluate vast amounts of data.
The white paper found that each autonomous test vehicle generates more than 1TB of data per day, which requires specialized storage solutions. Automotive companies also need a sophisticated digital infrastructure to perform large-scale simulations.
High-Performance Computing (HPC) tools that can be applied to the many types of computer-aided engineering (CAE) simulation software currently considered essential by car manufacturers can help you find a powerful, flexible, affordable, and environmentally friendly solution. These solutions reduce R&D investment and improve efficiency.
Race towards autonomous driving
The road to commercially available autonomous vehicles will face several obstacles, such as stringent data regulations and the need for good computing and data storage facilities to support the rollout. This requires integrating advanced technologies such as AI, Internet of Things, and HPC into standardized operations.
Technology companies will play an important role in supporting automakers on their way to autonomous driving with scalable, autonomous hybrid cloud platforms that include pluggable network components and modular designs.
Tencent’s self-driving cloud platform provides a one-stop solution to support automakers in autonomous driving research and development. The platform offers the following key features:
One. Efficient data management and retrieval
2. Automatic labeling of datasets using AI
three. automated scenario building;
4. high performance storage and
5. Efficient operation of all R&D aspects of autonomous driving.
Sales and Marketing become a two-way relationship
The marketing of finished car makers was one-sided. However, the growing number of digitally savvy consumers has shifted to the use of interactive digital marketing solutions that combine paid public traffic, including pre-sales of e-commerce sites and social media accounts, with private traffic sources such as WeChat and mini-programs. , the company’s own official website for maintaining relationships with customers throughout the product lifecycle.
By leveraging interactive channels, automakers can build lasting relationships with customers, create value for customers through targeted marketing, and introduce value-added services.
Strengthening the future competitiveness of the automobile industry
This white paper concludes that smart manufacturing partnerships enable the automotive industry to automate, personalize, green and flexibly upgrade production lines based on data and AI capabilities.
With the advent of cloud computing, which has scaled and revolutionized the industry, automakers must consider: strategy update, Integrate this new type of infrastructure with your operations to keep pace with the ever-changing industry environment.