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Digital Transformation Trends

Latest Trends in Digital Transformation : Automation, AI and More

4 min read By: Sumesh Soman

15 January, 2025

Latest-Trends-&-Innovations-in-Automotive-Digital-Transformation

Introduction

Porsche is an emotional brand, and technology like this brings our technicians’ learning experience to a new and exciting emotional level that is right in line with our brand image,” says Kjell Gruner, President and CEO of Porsche Cars North America. “We want to provide our technicians with the leading-edge technology they need to stay on top of the latest developments and get expert help when necessary so they can deliver on our service promises.”

Source: Porsche Newsroom

 

Automotive executives had foreseen the transformative impact of generative Artificial Intelligence (AI), Machine Learning (ML), Augmented Reality (AR), Virtual Reality (VR), and connected cars for their efficiency gains and better experience with their brands. These new-age technologies unleash new levels of efficiency, productivity, and innovation for automotive customer experience journeys, even post-purchase experiences.  Industrial robots at production factories, ADAS (Advanced Driver Assistance Systems) for safer car driving experience, autonomous self-driving cars, and many more advancements are there to proactively transform the automotive world. The leading automotive brands are adopting the latest digital transformation trends, which enhance the experience and reinforce brand loyalty.

Mixed Reality Revolutionizing Automotive Service

Here, I want to try and peek a bit further into the future with the Porsche Cars North America (PCNA) and Microsoft collaboration for mixed reality technology and the revolutionary HoloLens 2 to empower its dealer partners and part supplier network. In this collaboration, PCNA agreed to use Microsoft HoloLens 2, Dynamics 365 Mixed Reality apps, Dynamics 365 Guides, and Dynamics 365 Remote Assist to transform the service experience. It’s very possible with the help of Guides, technicians can view a 3D hologram of a car to get into the inside view of the car and find the part that needs to be fixed.

Now, without leaving Guides, the technician can connect to the PCNA expert technician through a remote connection via Teams and fix the troublesome issue remotely. And here comes the interesting part: if there is a need to replace a part, the technician can search and place the order online with the nearby part supplier and get it delivered in minimal time. So, even though I have no doubt that it will empower the service experience, the part suppliers must have sophisticated digital capabilities to fulfill these demands.

Microsoft Newsroom

Image credit: Microsoft Newsroom

We have another example: the collaboration between Mercedes-Benz USA and HoloLens 2 to simplify the complex service and repair of modern cars.

Now, a service technician who works at Mercedes-Benz of Coral Gables, can wear a HoloLens 2 and share his view of the car part or car system in question while talking with one of the company’s remote technical specialists, via Dynamics 365 Remote Assist. If he needs to peer deep inside the layers of machinery, the technician can gesture with his fingers at, say, the engine and immediately see a 3D hologram that appears next to the car. Watching from a laptop or desktop computer, the remote specialist can ask the technician to turn his head toward a specific part or sensor, then share wiring diagrams, notes or other visual information directly into the view of the HoloLens 2,” as published by the Microsoft Newsroom.

 

AI and Data-Driven Transformation in Automotive Supply Chains

It’s interesting to sometimes think about where it’s all heading; the answer is the future of car service experience where the connected experience reflects. Today, we think about the possibilities and future to define experiences that we probably dreamt about. Artificial Intelligence (AI) brings some transformation changes in the part suppliers, OEMs, and aftermarket network for the future. The original equipment manufacturers (OEM), first-tier suppliers, second- and third-level suppliers, and even logistics providers also benefit from using AI to enhance the service experience.

Artificial Intelligence analyzes customer data insights, reviews inventory levels, and defines pricing for these suppliers. It also helps them forecast parts and component demands to manage supply and inventory. With these forecasts, suppliers can place their more accurate requirements with OEMs and aftermarket players to minimize the OOS (out-of-stock), remove the wait time, and mitigate downtime, which ultimately improves customer experiences.

Predictive Automotive Maintenance and Digital Twin Technology

But I think it will be more effective with the use of technologies like Digital Twin, Machine Learning (ML), Vehicle Sensor data, Sound-based detection, Over the Air (OTA) Updates, and more, along with AI. Yes, I’m talking about ‘Predictive Automotive Maintenance.’ More and more of our cars are smart and digitally connected; the predictive maintenance strategy of automotive works using these advanced technologies and data. Predictive maintenance uses machine learning algorithms and artificial intelligence with data of these modern automobiles collected from sensors, IoT, connected apps, equipment logs, and other sources to predict when a part, component, or car needs repair, replacement, or service. It uses historical data to provide data analytics insights to predict future outcomes with significant accuracy.

Let’s understand how Digital Twin helps automakers identify any future failures. Before the final production of vehicles, the digital twin integrates with the car sensors and industrial IoT in the factories to provide detailed health diagnostics of components to minimize product recall. It enables OEMs, parts suppliers, and aftermarkets to boost their sales and revenue by forecasting predictive maintenance routines. They can keep their stocks ready for these spare parts as required for forecasted maintenance. Tire manufacturers can also prepare their production according to the predicted routine and streamline it.

“We are developing applications using AI to optimize production scheduling, drive workflow efficiency and control machine parameters. In other areas of the business, we have been able to improve our sales forecasting by using AI for checking the weather conditions, exchange rates, etc, which allows us to provide much better availability of stocks at a lower working capital,” says Hizmy Hassen – Chief Digital Officer at Apollo Tyres Ltd.

 

I would like to highlight the Vehicle Maintenance Workbench (VMW) developed by Infosys, which clubbed the two leading technologies, AI and ML, to predict fleet failures and schedule preventive maintenance to optimize maintenance schedules, costs, and fleet performance. Interestingly, it helps their client to improve vehicle fleet availability by 10%, increase vehicle life span by 15%, and reduce the total cost of operations by 20%. It also empowers them to forecast spare parts demands and accommodate them in a timely manner from part suppliers to minimize downtime. Parts suppliers can also use these forecasts to manage their ordering process and improve their supply and logistics without any delivery delays.

The Role of Insurance and Aftermarket in AI-Powered Automotive Services

Similarly, we have an interesting stakeholder in this technology-driven service and spare parts network — an Insurance Company.  Car insurance companies have a key role in revenue generation for parts suppliers. In this connected world, where cars are connected and in-car data of driver behavioral patterns is available, these insurance companies also analyze these insights and schedule service routines. Additionally, they can also forecast the parts to be replaced, so using car insights, ML analysis, AI prediction, and car health data from insurance companies can schedule service, and accordingly, these service stations can anticipate their parts requirements with suppliers or aftermarket. However, the aftermarket parts search is not organized, but thanks to advanced technologies like HoloLens 2 powered by AR and VR, the parts images and other details can be captured, which makes the search easier for compatible parts in case the owner prefers an aftermarket service network.

Porsche AG’s AI-Based Platform and the Future of Automotive CX

Lastly, I would like to share Porsche AG’s recent development. They launched an AI-based platform to improve the customer experience (CX) and service technician experience, minimize warranty risk, and increase service center profitability by predicting the potential source of errors.

Due to the increasing connectivity in vehicles, it is becoming more and more important to analyze error patterns in the vehicle at an early stage. We see great potential in Sensigo’s AI platform to shorten workshop visits in the future and thus further increase our customer satisfaction”, said Daniel Schukraft, Vice President After Sales at Porsche AG.

 

Keeping customer experience at the core of this development, the focus is to create a streamlined, impactful, and lasting experience where the basic deliverables are minimal downtime, wait time, and safety of car owners. The roles of AI, ML, digital twin, in-car data insights, and other advanced technologies with parts suppliers and OEMs are crucial. These parts suppliers and OEMs should have a significant digital presence and connected parts database to streamline the supply chain and logistics network. At Krish, we are here to help them up their digital presence game with our expert consultation and brand experience expertise. Share your comment here to discuss it in detail.

Digital Transformation TrendsDigital transformation trends in automotive parts suppliersLatest Digital transformation trends in automotiveTop digital transformation trends in automotive
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Sumesh Soman is an Enterprise Sales and Client Management professional with expertise in eCommerce & online marketing. Since a decade, he has been working as a strategic, digital commerce consultative resource for global clients. Having deep relationships with key platform and ecosystem partners, he is an expert at empowering driven and efficient digital transformations that exceeds client goals.

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