How the Auto Industry will look in the future

The automotive industry will be in the next years a milestone for the future of mobility, with specialists in the SAP digital solution monitor anticipating that the sector will be marked by digitization, the need for presoning supply and the emergence of trans-industrial ecosystems.

In the new connected economy, automotive companies need to define a structured vision of digital transformation, in which both employees and management need to be aware of the goals and benefits of digitization. For Original Equipment Manufacturers (OEMs), IT is no longer to be considered an isolated company department or just a cost factor. Employees must perceive software solutions as an engine for innovation, consumer orientation, and the development of new services, and digital technologies must be understood as ways of differentiating from competition.

Even if users continue to appreciate technological innovations, driving dynamics and comfort in the future, full mobility, as a general experience, enhanced with many connected services, will become the most important benefit. Digital companies, such as Amazon, Apple and Google, are one step ahead of automakers, placing customers unconditionally in the spotlight, say SAP.

Consumers must be offered with personalized mobility solutions instead of generic models of vehicles with different technical specifications. Availability and flexibility in providing a means of transport, fast and simple booking and payment processes, added value and price transparency are factors that drive success in digital mobility services. As more and more young people give up buying and driving cars, the automotive industry will be able to attract new consumers only by harnessing this digital added value through a customer-oriented approach.