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Wednesday, April 18, 2018

Digitisation Shaping Auto Industry’s Future

April 18, 2018. Shanghai – If there is an accident involving an autonomous vehicle, who is liable? Is it the person sitting in the driver’s seat who, it can be argued, is merely a passenger while the car is operating autonomously? Is it the car manufacturer, or the company behind the data being used by the vehicle? As digitisation transforms and shapes the future of the auto industry, and related sectors such as auto insurance, these are issues players will have to face. This was among the points raised by Luz G. Mauch, Senior Vice President of T-Systems' Sales & Service for the Automotive and Manufacturing Industry during today’s talk on the Shanghai Campus of China Europe International Business School.

More than 50 senior executives from the telecommunications and automotive industries turned out to hear Mauch’s thoughts on the future of the automotive industry within the context of increasing digitisation along with the challenges and opportunities that entails. The event was organised by CEIBS Alumni International Chapter (CAIC) in collaboration with CEIBS Alumni Auto Association.

A seasoned professional in the technology space for the automotive industry, Mauch pointed out that cars are now sold as smart devices with a built-in service component, as opposed to the plain vanilla mechanical vehicles they used to be a few decades ago. He argued that upcoming trends in the automotive industry are brought about by three game changing technologies: connectivity, electro mobility, and autonomous driving. The challenge now facing bigwigs in the automotive industry is how to generate business from data, he said. Mauch told the audience that it is incumbent upon industry players to turn data into insights and insights into new business strategies – including those that would address the issue of who is liable when a machine is in control of a vehicle.

He predicted that the role of auto OEMs will evolve from manufacturer to mobility service provider, which in turn will change their very DNA. The new services under industry 4.0, such as tracking and tracing and autonomous driving, calls for a lot of data analysis. Actual data from devices (transport boxes, vehicles, machinery & equipment, etc.) needs to be recorded, and then processed at the hub, which is usually a cloud system. To put in place a modern day data processing centre, the necessary infrastructure includes networks, cloud based ecosystems, and the IoT (Internet of Things) – all of which need to be secured, he added.  

This is why the telecommunications industry is vital. “The future of telcos strongly intersects with cloud solutions and IoT applications, including verticals such as connected health, smart logistics, predictive maintenance and condition monitoring, connected home, connected cars or even smart cities solutions,” he said. “Already in 2015 we launched a dedicated digital business unit that delivers scalable cloud, IoT and security bundles.”

 

About CAIC

The CEIBS Alumni International Chapter (CAIC) is the home base for English-speaking CEIBS Alumni and provides a platform where all interaction is in English. The CAIC continues to give voice to CEIBS’ internationalisation by building an international alumni community through a variety of regular activities. It invites CEIBS alumni around the world to join in order to strengthen the international CEIBS community.

About CAAA

CEIBS Alumni Auto Association (CAAA) is one of the professional associations within CEIBS Alumni Association. As of 2018 the association has over 700 members coming from various fields in the auto industry such as parts supplier, car maker, dealer, after-sale services, research centre and related government agencies. They are all playing key roles in the development of China’s auto industry.

Writer: 
Sharad Mathur
Editor: 
Charmaine N Clarke