With the rapid advancement of technologies such as autonomous driving, cloud computing, e-car, machine learning, blockchain and networking, the automotive industry is transforming from manufacturers to providers of mobility services. While trends such as durability, safety, convenience and personalization, which gained momentum during the COVID-19 pandemic, are also consistent across the automotive industry, technology has played a key role in its recent development. Automotive players are now using digital technologies throughout their value chain, from product design, procurement, production, supply chain, sales and marketing as well as post-service. marketing. While on the one hand they need to digitize their core processes to stay competitive, on the other hand they also need to come up with new business models for the changing market scenarios.
Pillars of future growth
Therefore, to delve deeper into the defining trends, opportunities and challenges that would shape the future of the automotive industry, and how industry leaders have embraced game-changing technology, CNBCTV18.com in association with SAP has held a forum with the pillars of the automotive sector. The forum began with a fireside chat with Ashok Minda, Group Chairman and CEO, Spark Minda, on the topic “Pillars of future growth‘. The changing paradigm of the automotive industry in India makes it clear that technology is one of the main engines of growth. Speaking about future trends and key areas of technology adoption in the automotive industry, Ashok Minda said: “Artificial intelligence and Machine learning are blessings for the automotive industry: increased productivity and improved technology to reduce operating costs. Employee safety, controlling energy consumption and reducing energy costs to improve the life of a machine have also become very important factors for any manufacturing unit. With Industry 4.0, organizations are using IoT where data can be collected automatically and then analyzed by AI and ML to identify areas for improvement.
Automotive CFOs: Calibrating the Change Accelerator
Traditionally, the CFO has been the keeper of the budget and the protector of all critical assets. However, today CFOs of the new era must grasp key performance indicators that will guide the future of the organization. Like CFOs in all other industries, leaders in auto finance have also become the engines of the digital transformation vague, fundamentally rethinking how they assess future growth and make financial decisions. Therefore, to discuss the changing role of today’s CFOs in the automotive industry, CNBCTV18.com was joined by Andres Hager, Executive Vice President and CFO of VE Commercial Vehicles Limited, S. Chandramohan , director and chairman of the Finance- TAFE group, Manish Prasad, vice-chairman. , Metallurgical, Mining, Miscellaneous and Automotive Industry – SAP India Pvt. Ltd., Sunil Bohra, Group Executive Director and CFO – Minda Industries, TR Srinivasan, Group CFO – Varroc Engineering Pvt. Ltd, and Jagdeep Oberoi, CFO of Sunbeam, during an exciting panel discussion on “Calibration of the shift accelerator‘.
Speaking of how technology adoption is helping businesses, Manish Prasad said, “Automotive companies have a much greater need for collaboration today. These collaborations do not only concern customers and suppliers, but also various partners according to new business models and processes. Today, collaborations only concern networks and the extended enterprise. Automotive companies need real-time budgeting and expense tracking for overall improvement in the efficiency of their operations. This is where financial operations also improve the customer and employee experience and can reduce overall costs by 10-25%.
The challenge of the CIO
Having overcome the challenges posed by the pandemic, companies are now focusing on building resilience and creating competitive differentiation in the market. CIOs across all industries are shifting gears to lead change efforts both internally and externally. Digitization and adoption of technology is also taking the lead in the automotive industry, reimagining success in the years to come. The change for today’s business leaders is to bring technology to the forefront and CIOs play a key role in digital adoption. Thus, CNBCTV18.com also invited CIOs in the automotive industry to discuss how technology provides a competitive advantage to the automotive industry. The roundtable was moderated by Parna Ghosh, VP and CIO-UNO Minda Group, Sharad Aggarwal, Chief Digital and Information Officer- JK Tire and Industries Limited, Manish Prasad, VP, Metal, Mining, DIscellaneous and Automobile industry– SAP India Pvt. Ltd, Sandeep Pradahan, CIO-Exide Industries, and Kishore Hirani, CIO-Amara Raja.
Speaking about the role that digital technologies play in maximizing resource management and improving the use of industry assets, Sharad Agarwal said: “The automotive industry uses digital technologies to increase productivity, throughput and profitability. This is driven by multiple factors starting with IoT that allows you to capture data at the sensor level. KPIs have improved by 50% over the past 20 years and now we need to improve by 50% more over the next two years. It is a reality made possible by the homologous synchronization of human efforts aided by ML and AI ”.
The bottom line
So the automobile industry is experiencing a paradigm shift with intelligent and data-driven operations throughout its product value chain. In order to keep pace and be ready for the future, industry leaders will need to accelerate digital transformation with a focus on system solutions, data and process analysis and automation, that are integrated into their key processes. The digital revolution has propelled the sector by several years in a few months and this technological wave is here to change our outlook on transport and mobility.
This is a partnership post.