Automotive Cloud Technology to Drive Industry’s New Business Models
The automotive industry has seen tremendous advancements, but by far the fastest evolving and potentially most transformative is Automotive Cloud Technology (ACT). ACT is the heartbeat of the connected world and a necessity for the disruption of shared computing resources, devices, and data services. But the main difference between ACT and any other cloud computing technology revolves around the use of software, telemetry, machine learning, specialized schema-less databases, and control systems able to connect vehicles to the automotive value chain.
The applications that would utilize ACT are limitless; advanced vehicle connectivity, mobile computing, infotainment applications, machine learning, telemetry, voice and video data communication, big data driven applications, fleet tracking services, ride sharing services, remote diagnostics and repairs, telematics coded commerce, insurance compliance and approvals, enterprise applications, and even cross-platform integrations. Envision an economic model that was cloud generated from vehicle software, able to make decisions and provide service and part replacement recommendations. This is what major disruption looks like!
Already, the lines between driven machines and technology have begun to blur. From startups and car manufacturers to big technology companies, marketplaces, telecommunication, and mobility vendors, the automotive industry is in the midst of reinvention as new business models are birthed and communication barriers broken down. As the dust settles we are witnessing the emergence of integrated platforms and services that promise to support our evolving transportation needs from now into the undiscovered country.
ACT has evolved to the point where it facilitates the building of new ride sharing business models for a new breed of smart cars, thereby creating a teutonic shift that promises to rattle the foundations of major car manufacturers and profoundly alter the structure of global supply chain and retailing. Consumer mobility patterns are also realigning the automotive value chain from push to pull type channels where demand triggers are no longer viewed as a linear sets of activities, but a real-time network where any point in the chain can electronically contact any other for shared services and decision making.
Take Uber, Lyft, or any of the other emerging modes of transportation services, for instance; all are a direct result of advancements in connected car initiatives. This has led to intensified competition by manufacturers, suppliers, and retailers to drive down the cost of goods and labor through seamless integration and information sharing with buyers, whether they’re using smart devices to search for a ride, accessing products and services for purchase, or simply evaluating ETAs. The role of wholesalers and retailers is also changing with the emergence of new marketplaces that are private by nature so one can quickly evaluate local demand, process orders, and move inventory to the right place at the right cost.
By leveraging Automotive Cloud Technology, many leading part manufacturers and brands have already begun the technology implementations necessary to tie their product data to vehicle services with industry specific apps to facilitate direct orders by consumers and smart vehicles. This new business model fundamentally reshapes the distribution channels with distributors expected to participate and collaborate with technology vendors to market products anywhere.
From the driver’s seat, connected vehicle POS systems will stimulate demand for products and services, as well as push alerts and responses back to the manufacturers in real time. With Automotive Cloud Technology, retail chains can maximize growth opportunities by leveraging five distinct types of data such as vehicle, OEM and aftermarket telematics encoding, diagnostic key chains, marketplaces for pricing and delivery, and vehicle services. Suddenly, the process of linking data from vehicle to POS to marketplace to POS to vehicle is both less complicated and costly.
This is no ripple in the pond. For organizations to succeed it is imperative they understand the incoming tsunami that is cloud computing and connected vehicle technologies and react accordingly by acquiring or working with Automotive Cloud Technology to unleash truly innovative solutions.
Pavana Jain, CEO and Co-Founder of SHIFTMobility Inc.