Car Manufacturers Embrace New Challenges with Digital Empowerment
The Best Path towards Digitalization for Automotive Industry under VUCA Environment
Cham Zhong
Vice President of Tencent
President of Tencent Intelligent Mobility and Transportation
Welcome
China has entered the stage of high-quality development. In the 14th Five-Year Plan period, accelerated technological development and emerging advantages of digital economy are serving as the new economic growth drivers for China. Digital transformation is essential to the development of enterprises. Along with the accelerated digitization, China’s automotive industry is facing an unprecedented reorganization of the value chain.
Meanwhile, the COVID-19 pandemic and regional unrests have further restricted the supply capacity and sales growth around the globe. Facing the unpredictable atmosphere, the automotive industry needs to make corresponding changes and improve its ability to cope with risks and uncertainties through systematic digital reform.
Tencent Intelligent Mobility
The Best Path towards Digitalization for Automotive Industry under VUCA Environment
In recent years, the global automotive industry has entered a phase of rapid digitization while facing unprecedented uncertainty. On the one hand, under the impact of “black swan events” such as the resurgence of COVID-19 pandemic and uncertainty in the international situation, the global automotive industry is facing multiple challenges in R&D, supply chain, manufacturing, and sales. On the other hand, due to the momentous changes in the industry, new phenomena such as new mindsets in car manufacturing, new technology development and application in mass production, new business model creation, and consumption upgrade are constantly emerging, all impacting or reshaping the traditional industrial structure.
Facing such a complex situation full of uncertainty, it is important for car manufacturers to quickly improve their ability to adapt to changes and resist risks.
Focusing on several key areas of digitization, the white paper will provide insights on trends and solutions to enhance the resilience of the automotive industry to cope with uncertainties and risks, with a view to enabling safer and more efficient production and management, more user-friendly connectivity and services, and more innovative and intelligent products for the car manufacturers.
Key points are as follows:
- Five Highlights of Cloud Service Development in Automotive Industry
- Integrating Autonomous Driving R&D Process on Cloud
- Building a Safe and Efficient Connectivity Platform
- Enabling Smart Industry Park with Digital Twin
- Establishing a Full User Life-Cycle Sales Operation System
- Creating Integrated Digital Workspace
- Ensuring In-Depth Security System Throughout Cloud-Channel-Device Integration
- Constructing a Technically Robust Cloud Foundation
- Co-Creating an Open and Innovative Ecosystem
2022 CIO and Technology Executive Agenda: An Automotive Perspective
5 November 2021
Automotive companies clearly lag behind the leaders in composability practices. The 2022 Gartner CIO and Technology Executive Survey, focused on the concept of business composability, reveals several gaps automotive CIOs must address to increase the digital competitiveness of their organizations.
Overview
Key Findings
- Companies displaying high business composability deliver superior business performance, especially in times of volatility. Automotive companies trail top performers.
- The gap between high business composability companies and the average automotive organizations is wide in terms of the percentage of digital-enabled processes, both internally and externally. Few industries overall do well in the ratings compared to individual companies that are very composable.
- IT budgets are rising in automotive but much more slowly than for the cohort of highly composable businesses, with new automotive spending focusing on cybersecurity and cloud platforms.
Recommendations
CIOs advancing IT optimization and modernization in manufacturing and automotive must:
- Make your IT organization more capable of adapting to change by creating new targets around flexibility and agility. Then determine what technology investments would help the overall enterprise become more adaptable to change. It is important to determine just how composable you would like it to be or is practical.
- Invest in technologies that help to share information inside of the organization and outside. Create a hub of information that can be used by employees and consumers, and serve as the basis of new business capabilities.
- Get the most out of technology investments by arranging the appropriate data governance, processes and talent so that the main areas of investment can be successful.