Untapped potential of automakers

The topic of Big Data & Analytics is becoming increasingly popular in the wake of new technologies and digital innovations in the automotive industry, and is being addressed by The majority of companies already classify this as increasingly relevant. This primarily involves analyzing customer data and evaluating vehicle data, as well as predicting service and product trends. However, the industry still faces major challenges in this regard. Companies lack comprehensive data access and cross-divisional data provision. In addition, there is a lack of internal expertise and resources throughout the automotive industry. This is shown by the results of a recent study by the management consultancy BearingPoint. As part of the study, 120 decision-makers from major automotive manufacturers and Tier 1 suppliers across Europe were surveyed.

According to the study, the Big Data & Analytics technology trend in the automotive industry is already relevant for 94 percent of respondents, but is only fully deployed by seven percent. Another 24 percent have just introduced big data & analytics. The technology is no longer limited to the area of marketing and sales. In the future, the focus of big data & analytics applications will also spread to other areas of the company. Rapidly increasing application potential and high benefits are seen along the entire value chain. These include customer understanding and control, rapid identification of relevant trends, and improved products and services.

Due to the increasing digitalization of the automotive industry, the importance of Big Data & Analytics is also growing. The megatrends Industry 4.0 and Connected Cars are rapidly driving the topic forward. It is encouraging that the majority of automotive service providers have recognized the great opportunities of Big Data & Analytics and are investing more and more in its development. This is illustrated by the planned investments of over ten percent. However, the whole thing is still in its infancy. As the study shows, the potential must be exploited even more.

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At 50 percent, data protection and data security top the list of challenges that still need to be overcome. This is a general, cross-industry problem, as companies have to comply with both statutory and internal company as well as contractual regulations. Lack of expertise (44 percent) is another barrier to the expansion and implementation of Big Data & Analytics applications. Only 13 percent of respondents said that their company has the expertise in this area internally. The remaining 87 percent have to rely on external expertise. One reason cited by a large proportion of respondents is that qualified personnel with the necessary skills are not available on the labor market. On the other hand, more than half of the study participants also reported that their company does not have enough positions for Big Data & Analytics. As a result, more and more companies are relying heavily on external IT service providers and consultancies.

For 43 percent, the third biggest challenge is the lack of data availability due to a lack of cross-divisional data exchange along the entire value chain, which means that the potential of Big Data & Analytics cannot be fully exploited. For the majority of respondents, a cross-divisional data pool would be the solution to simplify data procurement and analysis.