Deloitte Consulting shares strategic planning and action steps for automotive industry digital transformation at Alibaba Cloud Automotive Industry Digital Transformation Seminar

Over the past century, automobiles have been the most brilliant pearl in the industrial age of mankind. But the old rules of the game are being quickly broken in the new digital age.

Traditional automotive companies are facing the pressure of declining core business profits and weakening brand value. Meanwhile, digital technologies such as cloud computing, Internet of Things (IoT), 5G, artificial intelligence (AI), autonomous driving and blockchain are rapidly entering the automotive industry, and new automobile manufacturing forces are rising.

Driven by the new revolution in science and technology, what significant changes will take place in the automotive industry?

Recently, Digital Enterprise Research Institute, Ali Cloud Research Center, and Ali Cloud Automotive and Mobility Business Department jointly held a seminar titled "Focusing on the Digital Transformation of the Automotive Industry", inviting automotive industry experts and practitioners to discuss the digital transformation trend of the automotive industry and identify new growth opportunities in the era of change. Deloitte Consulting Automotive Industry Leading Partner Andy Zhou attended the seminar and shared Deloitte's practice around the topic "Strategic planning and action steps for automotive industry digital transformation".    

Ali Cloud Automotive Industry Digital Transformation Seminar (Source: Ali Cloud)

Based on the experience over years, Andy summarized five types of resources and capabilities that automotive enterprises, especially automakers, need to prepare for digital transformation: technological innovation, experience innovation, ecological innovation, organizational innovation, and process innovation. He also elaborated four directions to focus on with regard to how these can be put into practice: the vision of innovation, customer experience, operation system upgrade, and sharing enabled platform. These four elements need to be considered before the capabilities are brought in.

"The digital transformation we understand is a strategic issue, and it cannot be separated from human and organizational support. Digital DNA, of course, contains experience design in addition to implementation of digitalization. Because in order to operate, data analysis is required apart from experience design. In such a large framework, there is also a need for technological support, such as cloud technology, future work automation technology, as well as AI and IoT technologies. Digital transformation is driven by all these advanced technologies.

Deloitte Consulting Automotive Industry Leading Partner Andy Zhou shares his insights (Source: Ali Cloud)

Digital transformation is a comprehensive transformation, covering business model, product innovation, user experience, as well as talent, management, process, strategy, ecosystem and circle of friends. Therefore, each enterprise should build their own path of digital transformation by considering their own capabilities.

The seminar has initiated deep thinking on digital transformation of the automotive industry. In the era of change of the automotive industry, Deloitte Consulting will strengthen collaboration between Ali Cloud teams to help automotive companies understand cutting-edge trends, address technological disruption, capture change opportunities, and continue to advance forward in their digital transformations, creating a more brilliant future through the efforts of both sides.

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