After a prolonged and disheartening drought for two years, things are finally looking up for the auto sector. Due to positive consumer sentiments and new models being introduced in the market, the auto sector is showing signs of revival. The credit, partly, goes to IT. Ask automotive majors like Honda Motor and TVS, for instance, who have come up with innovative IT strategies and solutions to contribute to their companies’ growth.
According to Sanchit Vir Gogia, Chief Analyst and CEO, Greyhound Research, a couple of new technologies have been pretty much reshaping the auto and manufacturing sectors. “A lot of these new technologies are available online and are being delivered through the cloud and this removes entry barriers. As a result, there is a positive sentiment in the market and CIOs start implementing special projects which do not need a lot of dedicated spend for months,” he says.
Another factor that can help IT departments enable growth in the auto sector, says Gogia, is the new government, if it dedicates a part of its budget to secure manufacturing and infrastructure. “If the new budget allows manufacturing and infrastructure to get more secure then auto companies can scale better.” And this will lead to investment in newer technologies like new software modelling tools and M2M.
According to Gogia, IT can help sustain this sales growth in the automobile industry by streamlining supply chain and introducing automation and digitization in manufacturing techniques. “In terms of Internet of things (IoT), IT can do RFID tagging and M2M tagging to optimize sales,” he says.
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