Predicting Automotive Parts Failures with Blockchain – From Needle in Haystack to Hidden Opportunity
The automobile of today has between 20 to 150 microprocessors along with a network of sophisticated sensors that monitor the external environment. These devices control everything from door locks and infotainment systems to engine management and airbag deployment. As manufacturers transition from electromechanical devices to adaptive systems that compliment new features like autopilot navigation and lane keeping assist, the number of sensors and electronic gadgetry will grow dramatically.
Suppliers and OEMs are currently sitting on a treasure trove of data. As vehicle technology continues its maturation and information becomes more accessible, the tools to capitalize on this data will become increasingly valuable. Equitable access to vehicle-generated information has already shifted the centers of power within the automotive industry and created an opening for new arrivals in the form of technology companies, now partners in the mobility market of the near future. However, increased access incurs increased competition. A study from McKinsey suggests that “by 2030, OEMs could gain market power through their firsthand access to car-generated driving and diagnostic data, which will be of even greater importance as the market shifts to favor more optimized customer experiences”. As traditional inter-business relationships face disruption throughout the value chain, preparedness for the coming onslaught of new business models will determine whether organizations are successful, absorbed during consolidation, or driven out of business.
Former TIBCO CEO Vivek Ranadivé stated that “if you have just a little bit of the right information a couple of seconds or minutes in advance, it’s more valuable than all of the information in the world six months after the fact”. The advent of blockchain technology realizes this advantage regarding the consumption and interpretation of automotive data. “The real power of blockchain comes from enabling networks of people and things to transact with each other without intermediaries,” said Ford’s Alan Gordon. Simplified, this means increased transparency throughout the supply chain. A good case study is that of agriculture, where bacteria outbreaks force mass recalls that lead to health issues and severely cut into profits. “From Walmart’s research, current, predominately paper record keeping systems, take about seven days to trace through the supply chain. Utilising blockchain they were able to shorten this to a 2.2-second turnaround.” For the automotive industry, blockchain can evaluate supply-demand at any point in the network so that services can be effectively planned and delivered, part failures pinpointed, and class action recall lawsuits avoided. In our connected aftermarket ecosystem, timing is everything. By leveraging the enhanced traceability that the technology provides, from detailed service history and components replaced down to the makeup of OEM versus aftermarket parts in any individual vehicle, organizations gain the means to more accurately evaluate vehicle fair market and resale value, previously made difficult by disparate records spread across multiple systems.
But these are far from the only benefits of enhanced technology. SHIFTMobility’s innovative Genie AI, currently deployed in leading automotive businesses, autonomously manages many complex business processes by leveraging the speed and security of blockchain. With blockchain-powered solutions, parts manufacturers and OEMs gain the ability to quickly diagnose vehicle problems with auto-aware smart devices and automatically predict the demand for vehicle maintenance and repairs. Not only will this move the parts supply closer to consumers or service points, but also mitigate the strain of unusual demand surges when a component fails unexpectedly. The benefits are clear: instant access to services, reduction in wait times, faster recalls, and lower costs for manufacturers and distributors. Automotive parts commerce is complex, but with SHIFTMobility it doesn’t have to be.
Learn more about SHIFTMobility’s vision for the future of automotive technology here.