PLATFORMS & DATA
BIG DATA AND THE AUTOMOTIVE INDUSTRY
Tilburg, October 10th 2017
While car users perceive data privacy and security as becoming more important, traditional purchasing criteria slowly become less important. Traditional purchasing criteria such as safety features and the driving system of a car will become less important due to self-driving vehicles having these (safety) features strongly embedded. Consumers will be less concerned with the purchasing criteria of the past and more concerned with how they can make efficient use of their driving time. The future of self-driving cars will enable customers to use their “driving time” to benefit from customer-oriented products and services offered by third parties. These offerings will happen mainly through digital platforms. These digital platforms will become a rich source of data since all interactions on these platforms can be monitored, resulting in precious vehicle and consumer data for all stakeholders within the automotive industry.
The question is, are stakeholders within the Dutch automotive industry already working with big data? Since big data is becoming more present in the automotive industry, KPMG analyzed which stakeholders within the Dutch automotive industry currently have access to data and have the capabilities to utilize the data. These key stakeholders consists of car lease companies, importers, dealerships, insurance companies and suppliers. In a research performed by KPMG, the connected car is here to stay, it is stated that currently 33% of the stakeholders within the automotive industry have data scientist and the capabilities to analyze connected car data. This percentage can be explained through the fact that most stakeholders do not yet experience the full benefits of the wide variety of data streams the connected car generates. Another side note is the fact that most connected car devices, apps and platforms are still in a stage of development, resulting in an inability for stakeholders to fully utilize the data streams the connected car has to offer.
While big data is becoming more present, it becomes increasingly more important for the stakeholders to establish a data driven focus. If stakeholders within the automotive fail to do so, this might lead to short or even long-term customer churn. Luckily some stakeholders acknowledge the current changes and anticipate to the rapidly changing automotive market through the creation of platforms, apps and devices to support the connect car. An innovative company, Crossyn, already offers a single sign-on platform which combines both vehicle and consumer data for a wide variety of stakeholders within the automotive industry. These stakeholders include insurance companies, car workshops, car users, etc.
But why are single sign-on platforms, apps and devices so important in the era of Big data? These apps and devices are important since they are able to gather raw vehicle and consumer data. Noteworthy is however, that a trusted third party is needed to help turn the raw data into clear insights. These clear insights can be used by the stakeholders to further improve and personalize their services and offerings. Raw data and clear insights will become increasingly more important as the connected car will gain in popularity in the upcoming decade(s).
In conclusion, the connected car era will disrupt the automotive industry as a whole. The biggest challenge for the automotive industry will be combining data and multiple connected car services on an easy accessible platform to create a holistic customer experience. Big data will push the future automotive industry to new levels of platform integration, new data driven business models and a change in overall strategy. Big data, the internet of things, the connected car and autonomous vehicles are no longer futuristic, they are here to stay.
Author: Jeroen Nissen