Analyzing Digital Operations in the Automotive Industry: A Report

This report provides a detailed analysis of managing digital operations within the automotive industry. It begins by justifying the importance of digital operations and reviews the evolution of the industry's digital landscape, highlighting current trends and challenges such as the rise of autonomous vehicles, electric cars, and the increasing volume of data. The report then evaluates the opportunities and challenges associated with these digital issues, including the impact of new data availability, the need for innovation, and changing consumer behaviors. It further discusses the digital tactics and strategies employed by automotive companies to address these issues, such as the integration of AI and IoT, and the development of 3D printing technologies. The report concludes with recommendations for business organizations and a discussion on the future direction of digital operations in the automotive sector, emphasizing the need for continuous adaptation and innovation to meet evolving consumer demands and technological advancements. The analysis includes the impact of environmental concerns, global market dynamics, and regulatory changes on the industry's digital strategies.

Managing Digital Operations

Table of Contents
INTRODUCTION...........................................................................................................................1
1.Justification and rationale of the Managing Digital Organisations..........................................1
2.Review of Evolution and current state of digital issues...........................................................1
3.Evaluation of challenges and opportunities of these Issues.....................................................3
The availability and the interpenetration of new data................................................................3
4.Analysis and discussions of the digital issues affecting the organisation................................4
5. Digital tactics and strategies undertaken by business organisation .......................................5
6. Conclusion and recommendation for business organisation ..................................................7
7. Future direction of issues........................................................................................................8
REFERENCES................................................................................................................................9
Books and journal.......................................................................................................................9

INTRODUCTION
Managing digital operation is any function of the organisation which I proactive instead of
reactive. this starts from, develops to support Ops, Biz Ops, etc by integration the power of data,
in this company can learn from the new technology to benefit the customers.
Automotive industry is ballistically the industry dealing in auto mobiles by continuous
innovation in their product and services to satisfy the needs and demand of the customers by
altering and bringing the innovative change and new technology.
In this report, the study is based on the issues and challenges faced by the organisations of the
automotive industry and their solutions to satisfy the customer ants.
The study also covers the different opportunities variable with the companies of the industry
which they take an advantage by putting effort in implementation of new technology .also, the
recommendations regarding the issues are explained.
To assess the challenges and opportunities associated with digital operations
in the context of Automotive sector
1.Justification and rationale of the Managing Digital Organisations
The companies of the automotive industry have expanded since many years but as per the
changing requirements of the consumers and it is required by the organisation to make changes
in their products and services also so that they can continue to retain their customers and
maintaining their brand image in the industry(Abrell and et.al., 2016).
It is required to manage digital operations according to the needs of the consumers , some
challenges which are faced by the company are digital disruptions which make industry disrupts
in their current manufacturing process as this issue has caused car to became highly intelligent,
communicative instrument that will benefit the customers buy fulfilling their needs. the demand
for connected cars and environment friendly car is also another challenge faced by industry they
are need to be solved as a contribution to the economy.
2.Review of Evolution and current state of digital issues
Earlier, the automotive industry is not a high industry as cars were just a novelty item and
thy are not a major force which represent the industry. In the 1900s the cars were just marketed
to the average families as they have fairly limited audience because the cares are very expensive
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and time consuming to produce and are not affordable by the public. Afterwards, the assembly
lines lowers the car prices through which other people are also able to afford the cars and
gradually the auto mobiles take off that is there I a time of great growth of the automotive
industry and many consumers bought their first cars during the 1920s. And moving towards the
required and necessary changes are made in the auto mobiles including focus on the safety
purpose, improving fuel economy etc. and then cares production leads to global business and
after the resources get rare the producers started to make innovative changes in the auto mobiles
by making the small size cars which is more convenient and
efficient(Constantinides,Henfridsson and Parker, 2018) .The automobile industry has make
adjustable changes according the need and wants of the consumer.
The current state of the digital issues are expected to be solve din coming year. The
solution to the issues are planned as auto mobiles are the fast on their way to become a tech
accessories. some major issues which are on the way solve to are:-autonomous driving- it as
just as and elevator and customers have to us as elevator operations in which they just have to
press the button and car will wok automatically by suing cameras, sensors, GPS to connectivity
and algorithms .it includes the collaborations' of different advanced technology(Gassmann,
Enkel and Chesbrough 2010).
The main aim to manufacture these cars is to protect public from accident and
deaths .this self driving technology is going to being experimented all-over the world as anything
works related to the internet or is in digitalized form, the threat of cyber security arises. the
changing patterns in car use and consumer behaviour also is the another issue which is faced by
companies to maintain their brand value(Hess, Matt, Benlian and Wiesböck, 2016).The demand
for electric carts are high as it is eventually benefiting the environment also by protecting them
from pollution which occurs from the usage of gas and fuel. People are also demanding the
technology integrated cars which connect all the other devices over ioT and provides a
experience across devices which includes tablets, mobile phones, etc.
Artificial intelligence has the one of the top buzzword across industries. The developers
are expectation to use the power of AI to improve safety, comfort and the performance. The
emergence of dependence of other technologies which drive automotive development and they re
significantly impacting the safety, efficiency, and comfort. The 3D printing as a transformative
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piece of technology and that will be the world's first 3D printed car roll on the production
platform which wills seen on the roads soon.
3.Evaluation of challenges and opportunities of these Issues
There are various challenges faced by automotive industry in the view of satisfying the
Customers according to their tastes and preferences. Some challenges are :-
The availability and the interpenetration of new data
According to the analysis this is evaluated that the modern cars are collecting around 215
GB of data per hour from different inbuilt sensors and cameras. These are the data which allow
real time, insights which are drawn about the performance, speed, condition, components , etc.
this is done to give as breakdown to the accidents and it prevents from similar events in the
future(Nambisan, and et.al., 2017).Transferring the storage data, analysis this will contribute
huge amount of data which changes the parts of the automotive industry work.
self – driving cars-
the another challenge for the automotive industry is to introduce self driving cars or it
can be said as the cars without drivers , that is they operate automagically without the human
effort either by just pressing the button or just giving the instructions to the sensor technology.
Some companies like Uber, Apple, Tesla etc are giving the facilities and are working on the self
driving technology. But the challenge for the industry is that it is possible to have driverless cars
in reality?.the industry should get ready about this drastic change in technology which will be
demanded in near future. The industry should get ready for this so that they can satisfy the
demand and can leave their impact in the market and industry.
Innovation is the need of the hour-
Customers demand their taste and preference in the existing product which requires full
efforts in research and, development and innovation in the product according to the latest
technology which will than satisfy the customers needs and preferences and also helps
companies to maintain their profitability(Potti and Saurav, 2016).The rapid growth in research
and development in different countries are creating and generating many opportunities for the
companies. some opportunities are :-
Favourable economic and demographic trends regarding the digital electrical carss
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It helps the organisation in meeting their targets .rising income of the people also helping
the companies to increase their sales volume an profit margin increasing population brings
people more active in fulfilling their living standard needs which ultimately increases the
demand of the automobile in the market. These are the basic opportunities which are available to
automobile industry through which they can take an advantage in the respective areas.
Continuous government focus on supporting the automotive industry in their digital
products
Through the different plans of the government and various other initiatives' government
wants to achieve the long term growth in the automobile industry and also seeks for reducing
the emissions and oil dependence. This creates an opportunity for the automobile industry to
create a innovative product with advanced technology in addition with the government support
which ultimately helps in expansion of the industry as well as the economy of the country.
The change in the tastes and preference so the customer regarding the need of
autonomous vehicles is a biggest opportunities available to the industry as they can fulfil this
demand by putting their efforts on research and development regarding the autonomous vehicle
and using advanced technology they can generate these types of auto mobiles which ultimately
satisfy the customers needs and wants and help the to create a strong brand value all over the
world and also get benefited with capturing larger share of the market in entire industry.
4.Analysis and discussions of the digital issues affecting the organisation.
The digital issues affect the organisation in many ways including their profitability,
margins, cost ,employee turnover , goodwill, competition and many factors which directly or
indirectly affects the organisational performance(Rawlinson and Wells, 2016.). These digital
issues are required to be solved at the early stage only so that these can e eliminated or solved
and organisation and industry can be capable of being satisfying the customers demand and
needs and the issues are threats as well the opportunities for the companies of the industry as:-
Environment friendly cars is the next challenge for the industry as to producing the cars
which are environmental friendly that is they do not pollute the environment instead they protect
the environment as with increasing population the demand of vehicles also increasing which
ultimately harm the environment and causer damage to the nature and environment.
This can be done through avoiding the use of fuel and gas instead production of electrical cars
can protect the environment and also the people living in the society.
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Another is of autonomous vehicles which is also affects the organisation as the
development of such cars require high effort in research and development in addition with the
special skills of the producers which leads to the most costly function of the organization.
Digital sources in car buying process is also a stress for the organisation and the
consumers are buying the cars by searching it online and making the orders and payments
without stepping their foot in a dealership contract(Ross, Beath and Sebastian, 2017).This
makes the problem for the companies afterwards as buyers do no visit the car and their
operations and they are unable to judge the car functions digitally and any problem in future will
disrupt the complete organisation .innovation of the electric cars is also the challenge for the
organisation to protect the environment from pollution and any harm which can cause by the
automotive.
Electric cars will help in reducing the usage of fuel and gas which will ultimately
contributes towards the environment. Complete and effective research and development is
required by the organisation to implement the advance technology in such a way that it helps in
protecting the environment in all way which benefits to the environment, economy and also help
in improving people's health. Due to the increasing globalisation nth industry need to have the
knowledge of the foreign markets so that they can innovate and alter their products accordingly
in such a way that they can retain their customers for long run.
Matching with the changes of other country markets make industry possible to e competitive and
they will be able to capture the larger share in the automotive industry for long run.
Increasing regulations leads to the problem for auto maker's that there entire model line-
ups has to maintain an average levels of higher mpg and lower emissions. The companies of
automobile industry are expects to improve the fuel's efficiency at least by 20% and maximum to
60%.and it all depend son the company and their regulations.
Implementing cost of new technology and managing them requires higher cost as it is
also a major challenge faced by the company to control the cost effectively and efficiently there
are various opportunities available to automotive industry(Zailani and et.al., 2015).
Hence, above explained are discussions of some issues and challenges faced by trhe automotive
industry and their companies.
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5. Digital tactics and strategies undertaken by business organisation
Everyday new trends are introducing in the automotive industry. Even when the
technology is getting updated day by day but every change comes with the cost and likewise
automotive industries too are facing a lot of challenges which includes introduction of highly
intelligent cars are becoming a problem for businesses that are still working on traditional pattern
and also the competitiveness between companies is increasing day by day in the competition of
getting better from others (Constantinides, 2018). Moreover, by introducing new technology very
frequently retaining customers is getting difficult and also not everyone is knowledgeable about
new innovations and technology which create issues for the company. The tactics and strategies
undertaken by business organisation are-
Audience engaging – To engage the customers and make them aware with the new product and
technology is the most important aspect of automotive industry. This can be done by using social
media not just as a social platform but as a tool of engagement through which people can know
about the company and their recent innovations. Use of sites like Facebook, Instagram, twitter
etc. can help the company to reach out to people as fast as possible and can increase the sales of
the company and by introducing some campaign on social media it can create publicity and can
attract many consumers.
Free trial services – Automotive industries recently introduced a strategy to retain the customers
which is to avail them with free trials of cars they want to purchase. To use free trials the
customer needs to make an account and then the account can be upgraded with money in the
same way if a customer likes the trial of the car, its more likely of the customer to buy it.
Special treatment to VIP customers – The customers who are loyal to the company and its
services and has contributed in increasing the sales of the company and profit as well require a
special treatment from the company. The special focus of company is on attracting, motivating
and influencing the VIP customers of the company (Rawlinson, 2016). Also, company can
arrange a conference meeting for these customers and can make them understand about the new
innovations in their car.
Prioritize the customer – The most important strategy of automotive industry is to treat their
customers as god. The customers should be provided with all the relevant information about the
company and its new products. Also, customer's feedback and suggestions are taken into account
and improvements must be done in the process or product wherever the product is lacking.
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Reviews and experiences – The company can use paid reviews as a strategy to attract
customers. Reviews on you tube, social sites, television about the car and its new features can
attract customers to buy the product (Abrell, and et.al., 2016). Also, on company's official
websites, company can add a option of customer's experience where consumers will share their
experience of the product and if they have complains a team of compliance handling can address
the problems of the customers.
Email marketing- Although it sounds like a waste of time and efforts but email marketing can
be useful in the situation where customer is looking forward to buying a car then an email can be
a way of attracting him to buy company's product. All the details along with contact number,
details about the price and features can be emailed to the customers and there is a huge
possibility that customer will come to the showroom to buy the product.
6. Conclusion and recommendation for business organisation
Conclusion
The assignment showed the evolution of automotive industry provided with set of logical
explanations that how automotive industry changed and developed in past few years with vast
number of changes in technology and innovations. It showed the digital issues faced by
automotive industry from new innovations, creativity to retaining its customers. After discussing
issues the assignment concludes the challenges and opportunities faced by the industry and it
evaluated each and every factor with its pro and con. At last the report is summed up with
recommendations that an automotive industry can follow and strategies used by the industry to
increase their market share and to expand themselves in the market.
Recommendations
The company should use high tech technology to connect globally to its customers and
their supply chain and have a database that should contain the details of each and every customer
and also the information about its outlets and stores (Potti, 2016) .
The company should increase its corporate social responsibility and should do social campaigns
on reducing carbon footprints, pollution control etc. to attract the attention of the customers and
then can launch electrical car which will increase the reach of the company.
The company should have a data which can show the details of how, when and where were the
defective parts were made so that company can identify the supplier who has supplied the
defective product to the company. This can save the cost of company that the company has to let
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go in the form of warranty and guarantee when it has to exchange the defective parts and can
provide customers with quality services.
The company can use a software that shows the area of improvement. With the help of
this software company can find out its weakness and strength and can work on their weak area
and can provide its customers with effective quality services which will retain the customers of
the company.
7. Future direction of issues
The needs and wants of customers need to be satisfied and company should come up with
appealing products else customers' loyalty would turn into a myth. To sort out the issues of
customers the direction of automotive industry would be that petrol cars would no longer exist in
future as electronic cars would soon takeover the market. The another innovation that will
expand its roots in the market is connectivity between cars which will ensure that no cars get
crash with each other. It will allow the cars to have communication with each other via Wi-Fi
networks (Nambisan, and et.al., 2017). This software will allow cars to talk, to know conditions
of weather and road which will reduce the amount of road accidents. The other direction which
can be seen in future is to see people sharing cars for work purposes to decrease pollution and to
save their expenditures which can impact the profit of automotive industry.
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REFERENCES
Books and journal
Abrell, T., and et.al., 2016. The role of users and customers in digital innovation: Insights from
B2B manufacturing firms.Information & Management. 53(3). pp.324-335.
Constantinides, P., Henfridsson, O. and Parker, G.G., 2018. Introduction—Platforms and
infrastructures in the digital age.
Gassmann, O., Enkel, E. and Chesbrough, H., 2010. The future of open innovation. R&d
Management. 40(3). pp.213-221.
Hess, T., Matt, C., Benlian, A. and Wiesböck, F., 2016. Options for formulating a digital
transformation strategy. MIS Quarterly Executive. 15(2).
Nambisan, S., and et.al., 2017. Digital innovation management: Reinventing innovation
management research in a digital world. Mis Quarterly, 41(1).
Potti, R. and Saurav, S., 2016. Logistics for global automobile manufacturing industry.
In Innovative solutions for implementing global supply chains in emerging markets(pp.
129-140). IGI Global.
Rawlinson, M. and Wells, P., 2016. The new European automobile industry. Springer.
Ross, J.W., Beath, C.M. and Sebastian, I.M., 2017. How to develop a great digital strategy. MIT
Sloan Management Review. 58(2). p.7.
Zailani, S., and et.al., 2015. Green innovation adoption in automotive supply chain: the
Malaysian case. Journal of Cleaner Production .108. pp.1115-1122.
Online
4 Challenges Facing the Automotive Industry, 2018[Online]Available
through:<https://content.accesscommercialfinance.com/blog/challenges-facing-the-
automotive-industry-2018>.
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