Leveraging IoT in Automotive Manufacturing

IoT in Automotive Manufacturing

When we think about the Internet of Things, we are no longer thinking of what might lie in the future. We are actually talking about a technology that is now and here. Connected devices have seeped deeper into industries like automotive manufacturing. Netscribes Market Research expects the global automotive IoT market to reach USD 106.32 billion by 2023, owing to the need for higher productivity at lesser costs.

The automotive manufacturing world is undergoing rapid transformation. Some say this is due to the change in how we manufacture vehicles, but others maintain this has to do with the way we use and want to use our vehicles.

Consumers no longer want to head to a dealership to purchase a car. Just like any other experience, they want their automotive experience to be connected. 

This means manufacturers are now more involved with the customers to ensure everything works seamlessly. They will remind customers to come in for an oil change or notify them when a ‘connected’ part reports that it needs servicing.

Any organization not already integrating the Internet of Things into its manufacturing is missing out on opportunities to increase profits and save time and cost.

What Automotive Manufacturers have to do with IoT

IoT has become one of the most integral components of the digital world. There are many “things” that can be connected over the internet through the cloud. This connectivity is expected to grow exponentially in the coming years.

In the automotive industry, BI Intelligence expects there will be 94 million connected cars for consumers by 2021. When that happens, 82 percent of all vehicles shipped will be connected. To understand the scale of growth here, consider the fact that in 2016, there were only 21 million connected vehicles in total.

It is critical to point out that smart technology, including the IoT, is still in its infancy, though rapidly expanding and maturing.

According to a JD Power study which included participants from the Generation Z, consumers are initially interested in cutting-edge applications of IoT such as adaptive cruise control, lane-keeping assistance, emergency braking, and parking assistance. However, they are also drawn toward the idea of knowing the health of their vehicle and how safe they are behind the wheel.

People crave information. They want to be connected with the people they love, as well as with the brands they trust. There is an urgent and growing need for automotive manufacturers to implement IoT in their manufacturing process, owing to the fierce competition and the ongoing innovation in the sector.

Using IoT for Service Enablement

Service enablement can be the most lucrative way for auto manufacturers to tap into the Internet of Things. With digital transformation, new revenue opportunities have opened up which also improve customer satisfaction.

Services such as quality assurance, upgrades, and aftermarket services can enhance a manufacturing company’s profitability.

  • Quality Assurance and Upgrades – When a customer gets a vehicle, they are excited about the new features. When they get home with the vehicle, they forget how to utilize those features, toss the user manual and never use any of those functions. This dilutes the features’ value to the customer. With IoT in place, the customer can connect back with the manufacturer for information on those functions that got them excited in the first place. In the instant gratification world of the Gen Y and Z, this capability is critical. Even more importantly, the manufacturer can monitor the vehicle for quality assurance and offer upgrades as and when necessary. Consumer’s view of the brand can improve as they receive upgrades in key interest areas such as amplified features or security of the vehicle.
  • Aftermarket Services – Added features, promotions, upgrades, automated maintenance, offers, and newly available cutting-edge tech might bring your customers back for more. Service enablement captures and generates opportunities for auto manufacturers. It gets easy to track product defects and handle maintenance matters with ease. Across a manufacturing company’s market and models, it becomes seamless to roll out recalls, technical upgrades, and other announcements. Notifications can be sent out proactively rather than reactively, impacting the customer experience positively. With IoT, companies can now manage their communication with vehicles post the point-of-sale.

Pulling out and Leveraging Data

This IoT connectivity prepares automotive manufacturers to turn that streaming data coming from 10 millions of lines of code into actionable steps that lead somewhere. The true value of the IoT can be realized when machine data is correlated to impact and uncover various KPIs such as quality, maintenance, productivity, and traceability.

The IoT can meet the auto manufacturing industry’s needs by:

  • Improving overall equipment effectiveness and throughput that positively impacts productivity.
  • Replacing condition-based maintenance with predictive maintenance which eliminates the need for a complete plant shutdown.
  • Installing predictive quality control instead of statistical or sampling-based quality assurance.
  • Monitoring and conserving energy by identifying gaps where energy is leaking and filling those.
  • Helping automotive manufacturers comply with environmental standards by influencing worker behavior. The use of connected sensors can lead units to automate environment health compliances.

To achieve this, however, companies must collaborate with an innovative leader in capturing data like this and making it work for them.

What is your organization doing today to stay in the competition tomorrow?

itelligence is an SAP Platinum Partner, capable of optimizing your manufacturing processes. Feel free to get in touch if you would like to schedule a free consultation with our domain experts.

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