In 2016, McKinsey estimated that the connected vehicle would deliver $750bn in incremental value by 2030. That estimate has since been downgraded to between $250bn and $400bn, due largely to slow uptake from automotive OEMs and other ecosystem participants.
However, change is happening. Millennials have now overtaken Baby Boomers as the largest living adult generation. This change marks a dramatic shift in technological competence and changing attitudes to ownership models.
Aftersales, vehicle servicing and maintenance are key areas for customer transformation, and re-use and recycling are now key concerns for manufacturers. Additionally, all generations now have increased personalization expectations based on their everyday experiences with digital native retailers and social media platforms.
To discover and deploy new services and business models effectively and profitably, automotive companies need to better understand how customers use their vehicles and extended services.
Vehicle data has a core role to play in this understanding, and OEMs have a clear advantage in terms of generating, accessing and interpreting this data ahead of 3rd party competitors. Connected vehicles, enhanced infotainment systems and vehicle apps all provide data that can build customer insight from individual journeys. And upgrading a vehicle long after it first drives on the road is possible even today.
A new, connected model is needed to compete in today’s digital economy. A digital fabric that connects data from disparate processes, to create a complete and accurate picture across the entire enterprise. Many are looking to machine learning and AI as the silver bullet to build and retain competitive advantage. But the truth is that automotive businesses must first create the right context and data environment for these technologies to deliver the intended business value.
In this brochure, we give you ideas on how to utilize data in customer experience to win the race for the car of the future.