Today, the automotive sector is confronting numerous business developments which are causing strain to the current operating models. As OEMs in the automotive industry continue to face such congregating forces, cloud computing’s swiftness, scalability and pay-per- use cost along with social, mobile and analytics technology, can have a vital role in assisting companies to adapt with the new environment. Today, an increased number of automotive companies are using cloud computing in order to reap the benefits all over the value chain, such as flexible collaboration, faster reach to market and sharing of data.
In technical terms, one may understand this as an internet based program that aids in sharing and processing information between the connected systems. This has provided us with numerous advantages and improved services at minimal effort. As everything comes online, a shift has been observed in the way consumers explore and purchase services. They can compare and analyze between providers and select what suits them best.
Resistance in Moving to Cloud
Even today, OEMs are unwilling to embrace cloud computing into their operation due to numerous reasons. Some of the significant reasons of these are the industry’s deep-rooted and comparatively conventional engineering-focused outlook. OEMs have flourished for decades by concentrating on their primary engineering proficiencies and running and building in-house processes and systems related to them. Most of the automotive administrators are still skeptical about business case of financing in cloud capabilities.
Cloud Solutions can be a game changer
Many problems are being faced by car leasing firms in terms of inventory management, tracking of existing products and customers etc. Cloud computing software will change the scenario by giving an upper hand to the car leasing firms. It can provide better inventory management software which is fast and efficient. Moreover, with the use of Big data analysis and six sigma techniques the optimization of data becomes easier and trouble free. If the accelerators want to become self-sufficient in the space of lending and leasing they can go for the product NET OXYGEN. The leasing firms have to spend a lot of time for calculating the loan amounts and specific updates required in this field, not to worry the loan restructuring and back end tools will make your working process extremely smooth and hassle free.
Rental agencies need to lay focus on getting online and concentrate on improving the customer company relationship. Here is a list of certain features that a digital interface should take into account
- Pricing analysis and comparison
- Vehicle information services
- Fleet database management
This should in turn help enhance efficiency and maximize the availability of resources. Both the clients and consumers can save on costs with an improved customer provider interaction. A digital face of the physical enterprise can cater to a larger audience at a lower marketing cost. Online branding is an effective tool available to firms to reach out to the furthest markets and analyze the potential without having to invest large amounts in that sector. Another advantage of digitizing the lease service is that you could customize your database and interface. This would be a cost effective solution and could reach out to all the connected clients without posting physical advertisements, change on a webpage would be replicated throughout the internet and accessible to all connected
A transportation company in North America was able to save around € 46 million by utilization of asset management techniques. The use of machines and storage resources has seen an increase by 60 % on an average by car leasing firms. So clearly the need of the hour is cloud and is also the best solution provider.
The Advent of connected vehicles
In spite of a moderately slight growth rate in global new vehicle sales, the market for connected car is projected to swell,
- The wholesales volume of technology connected new vehicles is estimated to grow by a 21 percent CAGR through 2020
- It is also predicted that the penetration rate for connected systems to increase from 14 percent as on 2013 to hover above 50 percent by 2020
- The rapid progression in the sales of connected vehicle will be compelled by evolution in integrated smartphone systems sector and developments in the vehicle embedded systems
Triggering cloud for Automotive Industry
Over a longer span of time, maybe 15 to 20 years from today the cloud computing structural design may have a recognized role in the automotive ecosystem, integrating all the unrelated participants, interconnections and processes along the automotive value chain.
A recent research conducted on 14,195 drivers in China, Brazil, South Africa, Spain, the United States and the United Kingdom observed the use of connected vehicle technologies and prospects for future use. The findings include:
- 65 percent of them would prefer to use an in-car feature which enables them in reading and dictating the emails while driving
- 50 percent of them are using connected traffic information technology while only 6 percent didn’t show any interest in it
- 70 percent of them showed interest in in-car educational services or e-learning.
- 95 percent are using or would prefer to use the recovery tracker assisting them to track stolen vehicles.
The Bottom Line
A cloud based leasing service is a cost effective solution for the firms, and a useful online portal for clients to choose and compare between services that suit their pockets and requirements; providing them with the freedom to customize their needs and all achieved with minimum effort.