Cloud technologies: the future of the automobile

At the start of 2022, the automotive industry in France is in a delicate situation with a 25% drop compared to 2019. The main suspect cited being the shortage of semiconductors, all aggravated by the pandemic, which is is thus felt by all suppliers of electronic and automotive components.

The conflict on Ukrainian soil is more likely to intensify the problems of general shortage of electronic components. The automotive industry must therefore take the right measures to counter an upcoming cost increase. In a sector that consumes many resources, it is necessary to anticipate in order to manage the vagaries of local and international markets such as environmental regulations or shortages of components. Digital technologies and particularly the cloud, give companies the means to anticipate.

The Cloud enables the leveraging of Artificial Intelligence (AI) and Machine Learning, making decision-making much more intuitive and the value chain much more responsive. The good news in the automotive sector is that even before the pandemic, the digital transformation to the cloud had begun, to catch up with popular trends such as the autonomous car, connectivity, electric or shared mobility. .

It is now important for manufacturers to know how to efficiently allocate their resources.

More supply chain visibility

The traditional prediction method showed its weaknesses during the pandemic. So much so that even regulatory authorities have digitized. Technology can play a key role in predicting or mitigating risk and allow automakers to be much better prepared.

For example, a transparent supply chain could help identify constraints for international shipments and therefore identify areas of supply chain congestion more quickly. Additionally, AI would help determine what steps to take to eliminate problems or plan alternative logistics.

Open technologies and the cloud

Transforming technological systems is not easy. All the more so in view of the large number of mature and stable systems as well as the interconnections between the various supplier infrastructures. The majority of systems in the automotive industry use traditional enterprise resource planning (ERP) solutions with a host of custom systems.

To operate smoothly in this new environment, companies quickly turned to solutions based on open cloud technologies. They make it possible to deploy new functionalities quickly and efficiently. Additionally, an open cloud environment facilitates the adoption of features such as application programming interfaces (APIs) and AI.

Most ERP vendors are taking this opportunity to implement this integration using open cloud technologies. This requires integration using a new platform where open technologies are superimposed.

This marks a turning point in the different layers of custom application development. All of which makes the adoption of these technologies faster. Note that this applies not only to automotive companies, but to IT in general.

A new way of doing business

Since B2C and B2B interactions cannot remain as they are, companies have had to adopt the digital approach. Automotive OEMs have introduced click-and-buy models for buying cars online and continue to make the experience ever more immersive to compensate for the drop in dealership traffic.

However, these changes will not be fleeting, even once the pandemic is behind us, this new agility and these conveniences for users and companies will remain relevant.

The automotive industry has always been faced with challenges, whether environmental issues, new consumer demands or technological innovations. The pandemic has further exposed the vulnerabilities of an uncertain environment, with supply chain disruptions and unpredictable customer demands.

Adapting quickly to changing market conditions is an asset for every car manufacturer. Open cloud and cloud-native technologies have a vital role to play in this regard.

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