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Continue reading to learn more about findings from IDC research sponsored by Red Hat that examines the need for an open technology approach that can support the digital transformation taking place in the automotive industry today.
Disruptive forces abound in today's automotive industry and the pace of change is only accelerating. Despite several years of record sales worldwide, the industry is bracing for a future that requires the agility to respond to three significant market dynamics:
- A shift away from vehicle ownership and toward mobility service models,
- Increasing competition and coopetition from the high-tech industry, and
- Changing expectations for the customer experience.
Faced with disruptive technologies and new business models, automakers need to rethink the value they deliver to customers and the role an ecosystem plays in their future viability. Auto OEMs must transform themselves to successfully respond to these market dynamics. Achieving transformation requires an operating environment that can build on ecosystem suppliers, technology providers, content partners, digital service providers, and customers.
Companies that transform will create new value in the market and thrive through digital transformation, applying technology for better business outcomes. IDC believes that a successful strategy for capturing value in the automotive industry will rely upon:
- Redefining customer experiences by supporting the rise of mobility services and connected vehicles, two trends that will redefine the relationship between consumers and the manufacturer
- Empowering the automotive ecosystem by creating an open technology platform that facilitates collaboration and the community required to adapt to rapid changes in the industry and software-defined vehicles
All the changes in the product and the processes to redefine the customer experience and empower the automotive ecosystem depend on an openness that many companies have previously been unable to achieve. To support this new delivery model, companies have found themselves with multiple platforms for innovation, operations, and revenue. To complicate matters, they have also been adding digital technology capabilities like analytics, IoT, and cloud on top of their legacy IT investments.
However, the need to swiftly achieve value from investments in new platforms and technologies is best achieved if systems and business processes are based on open and agile technology.
As the automotive industry continues to invest in digital transformation, IDC believes it should consider the advantages of open source architectures and infrastructure, including agility and flexibility. We see a clear need in the industry for an open technology platform that can support the digital transformation taking place today.
To understand the value of open source capabilities in the automotive industry, we invite you to download IDC’s infographic, “Connected Service Meets Open Architecture: The Future for Automotive,” sponsored by Red Hat.
We also invite you to sign up for the IDC webinar, “Open Source, Connected Service, and the Future of the Automotive Industry,” brought to you by Red Hat.
|As Program Director, Service Innovation & Connected Products, Aly Pinder Jr leads IDC research and analysis of the service and customer support market for the manufacturer, which includes topics such as field service, warranty operations, service parts management, and how these service areas impact the overall customer experience. Mr. Pinder Jr. is also responsible for research which aids manufacturers as they evaluate innovative technologies like 3D printing for service operations, augmented and virtual reality in field support, and remote monitoring and resolution in support of assets. Mr. Pinder Jr. establishes a roadmap for the manufacturer to better understand how technology can transform service and support functions to drive exceptional customer experiences and customer value, profitable revenue growth, and improved efficiency in the field.|