Top Tech Challenges Disrupting & Revolutionizing the Auto Industry



The transformation the automotive industry is undergoing can be almost entirely attributed to the shift in technological trends in regards to consumer behaviors. During the extensive research Best Practices in Automotive Conference does every year, 2017’s report identifies the most pressing challenges that automotive companies are facing today.



The following themes made the list of top concerns:

  1. Digital Disruption – A car is no longer just a car. Digital disruption has caused a car to become an inter-connected, highly intelligent, communicative instrument. And the future will only allow more collaboration between vehicles and everything traffic related. As a result, this will reinvent traditional business models within the automotive industry and completely alter the existing ecosystems. Auto organizations need to recognize this monumental disruption to stay afloat.

“In a world where the future is far from certain, automotive companies will need to develop new core capabilities to survive.”

IBM’s Report: Digital disruption and the future of the automotive industry

  1. Connected Car – This can rightfully be considered the epitome of what is now commonly referred to as the Internet of Things. The amount of data being consumed and transmitted from a connected car is truly staggering, enabling a depth of technology such as language process, cloud computing, and automotive sensors.

“The IoT-enabled “connected car” turns the vehicle itself into a hub for an entire ecosystem of connected services that offer consumers a wealth of benefits including enhanced safety and security, a richer user experience and a new suite of product offerings.”

TechCrunch, How Connected Cars Have Established A New Ecosystem Powered By IoT

  1. Transportation as a Service (TaaS) – Transitioning from a mere form of transportation to an entire media-immersed experience, Transportation as a Service will be taking over the initial objectives of automotive transit. In addition, if this shift consequentially moves individual car ownership—where barely-used cars take up enormous amounts of space—to service-based mobility solutions, cities will become inherently less crowded, more efficient, and more livable.

“. . . The traditional business model of car sales will be complemented by a range of diverse, on-demand mobility solutions, especially in dense urban environments that proactively discourage private-car use.”

McKinsey’s Disruptive trends that will transform the auto industry

  1. The Talent War – Understandably, all these once-unimaginable advancements have catapulted the necessary talents, experiences, educations, and management abilities into a whole new echelon. It is no longer good enough to simply employ to most advanced skill-set within mechanics and engineering—it is critical to dominate an entire pool of advanced designers, digital and technological scientists, and software and social engineers, to name a few. Although the exact formula for this new talent team is still up in the air, one thing remains certain: it will be absolutely mandatory for these OEMs to incorporate all the opportunities created by digital disruption.

“The growing skills gap evident in the automotive industry is made worse by quickly perishable skills. And even those engineers and other employees with college degrees aren’t learning everything they need to know in college, or learning lasting skills.”

Ward’s Auto: Eliminating the Automotive Industry Skills Gap

With all these quickly evolved trends in the automobile industry, it’s easy to feel overwhelmed. Keep your organization educated with the right tools to stay in the automotive-know. Attend this year’s Best Practices: Automotive Conference in Detroit, Michigan September 18-20.

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