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Author's profile photo Chet Harter

Digital Transformation – Loving the New Value Chain

Evolving technology melds the individual digital pillars of business into a lattice. The isolation of what was is now spanned by hyperconnectivity. Big data changes the business pillars resulting in a complete automotive value chain. In this modern-value-chain blog, we walk you through the next version of digital transformation.

Telematics — Hyperconnectivity at Its Best

Imagine an engine or a vehicle system that monitors the efficiency level of its parts. Imagine that these monitor and report wear, efficiency levels, and other issues. Imagine that your fleet commander had access to all sensor-reported data. Would that not make managing maintenance and equipment management a snap? Well, you no longer have to imagine this scenario because it is real.

Hyperconnectivity allows systems within fleet vehicles to scan performance, efficiency and note changes. That data is then sent back to your fleet dashboard for analysis and evaluation. The result is data-driven remote diagnostics.

Imagine that a fleet vehicle breaks down on the side of the road. Do you dispatch a repair team or a tow truck? Before today, you wouldn’t know. Today the vehicle itself informs you of the issue and you can make an informed decision. Tow the vehicle and send a second truck to off-load cargo. Send a repair crew to install a faulty relay switch. Either way, you make the right decision. You base that decision on the data that the vehicle produces and is communicated to you. The correct decision helps you maintain efficiency even if the even slows delivery.

Predictive Software — Driving Efficiency

The data from the telematics side of this equation channels into the predictive pillar. Predictive maintenance is a key asset in the modern supply chain.

Imagine that you can see which vehicles need servicing and what services they need. What if you could look at the data and see which vehicles need replacing? What if your system recognized the need for parts for maintenance? What if your system generated a parts list for all maintenance needs? Imagine if your system used data from vehicle telematics to optimize your supply chain? Would that not increase your ability to plan automotive enterprise resources?

You also do not have to imagine this scenario as technology makes this a reality. This is how technology bridges the distances between the five pillars of business. With Telematics hyperconnectivity and big data, your system has superior capabilities. Go to for a great example of how 3D printing will enable companies to manufacture parts or entire assemblies. The enterprise system could print parts and track inventory at the same time. The results would be sourcing optimization, increased efficiency, and decreased costs. This could also improve your automotive partner relationships.

What if your system could tell you which routes were the hardest on vehicles? Would that insight give you the correct information to change pricing for that route? Data in this system is key. It allows businesses to make informed decisions rather than guess at the right answer.

Real-Time Customer Interaction

Telematics is powerful. The opportunity is there to work with customers in real-time so that you gather their input. That caveat allows you to customize the system so that your system fits their model like a glove. By delivering unique customer experiences, you differentiate your services from your competitors. Additionally, you have the opportunity to market to the client’s needs. Rather than offer a standard set of services, the new value chain is customizable. This means that services fit the client’s needs and you gain greater marketable services.

That option is more valuable thanks to data about driver behavior. It is as though you sit in the driver’s seat, too. Real-time information, and smart tech come together to create synergy. Even pay-as-you-drive contracting becomes symbiotic.

Putting it All Together

Data is key. It begins with telematics which feed diagnostic and maintenance programs. Big data via the internet of things allows maintenance managers to drive efficiency. Optimization of parts sourcing and supply increases via outside resources such as 3D printing. With real-time input from customers, services become customized. You gain the ability to create user specific services that provide value to customers. That value leads to new revenue streams and an increase in customer satisfaction.

The new digital transformation in the automotive value chain drives engagement and efficiency. The real question is how can this model fit your business?

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