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Digital transformation in the automotive sector

by Azahara 14/Sep/2018

The automotive industry is one of the sectors characterized by being constantly searching for process optimization and innovation. Thus, digital transformation, understood as digitalization and automation of complete work flows is a key factor to remain competitive and adapt to the demand of its users. In this article, we tell you how the uses of solutions that contribute to the process of digital transformation are increasingly essential in this sector.

The digital transformation is currently on everyone’s lips, but in many cases you do not have all the knowledge of what it really is and the repercussions it has beyond digital marketing. The integration of innovative tools within the business organization and its internal processes has become essential to achieve the minimum of competitiveness necessary to survive in the market.

The study prepared by Keyland “Coefficient of current implementation and future trends of the industry 4.0” shows that the automotive sector is leading this digital transformation that all companies are going through. Although, while it is true, warns of the danger that runs the Spanish industry to lose its competitiveness due to its slow digitization.

Great acceptance of the digital transformation in Automotive

On the other hand, each industry has its own characteristics and conditions that make that transformation is not done in the same way or with the same speed. The company EY conducted a study on the current state of the automotive sector and highlighted six main drivers of change, among which is the best knowledge of the consumer in the digital market and the integration of digitization in the value chain.

Regarding the reluctance to use new technology, it seems that within this sector there is very little. According to the global survey conducted by PWC to managers, 85% expressed their interest in implementing these tools to reach potential customers and were convinced that the investment for these changes will not fall on deaf ears.

The automotive industry has an important weight within the Spanish economy (as in the rest of the world): it represents 10% of the national gross domestic product and offers work to 9% of the active population. That’s why the importance of not being left behind and know how to adapt to the technological changes of the moment.

Main tools of digital transformation in the automotive sector

Big data is a reality that many companies know how to take advantage of for their benefit and others have not yet discovered the tremendous potential that the data hide. For example, a connected car is capable of generating 25GB of data per hour. This huge amount of information must be used by the company.

For this same reason, companies within the automotive sector must have specialized tools for real-time analysis of all these data, both to know in greater depth the brand user as well as to identify trends and get the most out of it of them.

According to a study by the Federation of Associations of Automotive Dealers, the use of data in the sector will reach the value of $ 750,000 million in the year 2030. As well, most users are interested in data functionalities for have a safer and more efficient vehicle.

The technology that has penetrated the industry the most has been the cloud: half of the respondents claim to have implemented this technology in some way, usually for the creation of private clouds or the use of software for the customer relationships management (CRM).

This digitization of the sector not only brings opportunities for growth and improvement, but also involves risks that must be taken into accounts and knows how to value and reduce as much as possible. That is why the experts advocate an increase in cybersecurity measures and the use of blockchain technology to achieve an autonomous structure of data management, without problems and unwanted gaps.


The Internet of Things (IoT) is a reality that has already been implemented within the automotive industry and over the years will become normal in a car. According to the Business Insider magazine, the turnover of the connected car market will double in 2021 (from $ 8 million in 2017 to $ 15 million in 2021).

As we talk about smart cities, we can also talk about smart cars. It is predicted that in 2021 there will be more than 94 million of this type of vehicles worldwide, 35% more than the number of 2016.

The application of location intelligence within the automotive sector is also very important in this transformation process and can be applied both at the highest levels of the hierarchy in strategic decision making and in geomarketing.

Generally, companies in the sector have several brands and, if there is no clear separation of their strategies and targets, there may be internal competition. Thanks to the penetration data of each of the brands, captured on a map, the visualization is much clearer, from which the relevant decisions can be made.

The penetration of the brand can also be compared with competitive data and analyze if your company is in the optimal position or you have to modify something of the strategy to reach the desired objective.

The automotive sector, accustomed to finding new ways to improve the efficiency of their way of working, is betting very strongly on the digital transformation to adapt to the needs of the current market, which seeks greater customization and adaptation to the demand of the users and greater flexibility in their processes.

These developments materialize in different ways and parts of the process, from the adaptation of the web page so that users can dedicate more quality time to the purchase decision to tools that allow to evaluate the penetration of a brand within a territory and take executive decisions based on this information.

TAGSautomotivedigital transformation

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