The Department of Transportation has mandated that all new cars must be able to communicate digitally by 2020, and one major implication of this is the increased potential for Big Data to revolutionize the auto industry.
Big Data is the idea that digital technology has enabled the collection of massive amounts of data, and analysis of this data will lead to all kinds of new insights. In the auto industry, these insights could lead to anything from minor process tweaks to industry-wide disruptions.
The range of possible Big Data impacts is wide. Connectivity in cars is associated with everything from navigation to entertainment to performance to safety. Data insights might suggest ways to make navigation systems more user-friendly, or how to eliminate certain kinds of traffic bottlenecks.
Right now, the way that Big Data will impact the auto industry is anybody’s guess, but there are hints on what might happen. Consider the following potential implications of the auto industry’s Big Data upgrade.
How Is Big Data Impacting The Auto Industry?
1. Design and production insights
Car makers will be capable of increasingly using real-world data across their customer segments on performance, user preferences and maintenance issues to identify the gaps in areas like fuel efficiency and safety.
These gaps can then be addressed in the design and production processes.
2. Better supply chain
Car makers have to know the parts they’re getting, from where, their cost, how they are being shipped and, most importantly how those factors impact the bottom line. Complicated information processing will allow for greater supply chain efficiency and more insight on how supply chain factors are impacting products.
3. Predictive maintenance
Predictive analytics will be able to predict problems with vehicle parts more effectively than ever before. In a critical application of Big Data for the automotive industry, predictive maintenance algorithms could spur timely actions, ensuring better safety and vehicle health.
4. Value determination
Big Data will give people and businesses greater insight into the real value of cars. This knowledge can be helpful when both designing new vehicles and evaluating used cars. Valuation services, like those offered by Kelley Blue Book, will become more accurate and vehicle recyclers will be able to give owners a more precise offer for an old car.
5. Autonomous vehicles
Autonomous vehicles are the future. Their rollout and on-going viability will be heavily based on Big Data.
Autonomous cars have sensors that measure location, speed, acceleration, braking rate, traffic, pedestrian proximity and road hazards. This information allows the vehicle is to carry out various actions, typically with a lower error rate than that of humans. The sensors in autonomous cars and the algorithms behind them will only become more refined as they are shaped by Big Data insights.
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