Category: Thoughts

uberization

Uberization: The next big revolution in the automotive industry?

In many nations, driving to work has become a thing of the past with the introduction of reliable and affordable services, which have given birth to the “uberization revolution.” Earlier, the automotive industry focused less on the commercial segment, which included vehicles purchased for uberization. Now with the growth in popularity of uberization, they are focusing on taking full advantage of this segment’s growth prospects. Digital innovations have raised the bar for customer’s expectations on the standards of service. To survive in this ‘era of improved customer experience’, companies planning to adopt uberization in the automotive industry must focus on these three key ingredients:IR_Brochure

Facilitate Real-Time Booking with Accurate Location And ETA

Often, proving an approximate location tracking and accurate estimated time of arrival to customers might become a difficult task in uberization. By working on this aspect, companies in the automobile industry can enhance their customer experience and offer a more reliable and impeccable service to their end-users. Apps like Uber are so advanced today that the customer who is booking a cab can see the exact driver location and distance from the pickup point; this helps to reduce the no-show rate for both the parties. Getting an accurate ETA will help the customer to plan their schedule accordingly, ensuring customer satisfaction.

Deliver Seamless Experience

An efficient user-experience can be attained through quick and seamless transactions. A major benefit of uberization today is that digital technology has made transactions more transparent and faster. Billing and payment are highly automated; thus, reducing the risk of fraud or irregular pricing. In Uber, the billing is calculated automatically based on the driver’s GPS, which is monitored by an online system that measures the exact distance covered and the payments. Customers provide the payment details at the time of signing up for the service. This automated, cashless service gives the customers a seamless experience because of the speed and convenience involved.

Establishing a Rating System

Adopting a rating system would ensure high standards of service in uberization. This can work both ways – for the driver and the rider as well. Uber has adopted this mechanism and utilizes the ratings to incentivize the drivers. Positive reviews help the drivers attract more rides and a driver with repeated negative feedback can be eliminated from the system. Having a rating system helps the companies to provide outstanding services. However, it needs to be precise and less time- consuming to be able to attract genuine customer feedback. Additional feedback and user inputs can also be used for improving the level of service provided in uberization.

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augmented reality

Augmented Reality: The Next Digitization Milestone in the Automotive Industry

Augmented reality has been raising the bar of customer experience by providing a sci-fi movie-like experience to customers. With increasing competition and entry of multiple players in the market, the automotive industry is slowly transforming by adopting the popular technologies that have already made their way to other industries. Augmented reality is one such technology that many players in the automotive industry are venturing into, considering the wide range of benefits it has to offer. Here are a few advantages of augmented reality in the automotive industry:

Virtual Test Driving of CarsIR_Brochure

 Automotive industry giants such as Volkswagen has started experimenting with augmented reality to provide virtual test drives to customers. By using this technology, the customer gets a full-blown experience of sitting behind the wheel without actually sitting inside a car.

Road Rage Reduction

Wonder how technology can influence the behavior of a person? Often, people display unruly behavior in traffic. Honking too loudly,  hitting sudden brakes, or cutting the other passengers in traffic could give rise to such behavior. But augmented reality has a solution for this too. The idea is to display a message through the windshield such as “Rushing to the hospital, late to the airport”, which could send out a communication to other passengers without giving rise to conflicts for rash driving.

Virtual Workshops For Servicing Professionals

With the growing complexity of automobiles,  the need for service employees to learn the right mechanisms for servicing a vehicle has become quintessential. With the help of augmented reality, companies can now give a hands-on training experience to employees on how to service a particular vehicle.

Perfection Of Vehicle Design

In the automotive industry, the use of augmented reality benefits the manufacturers at the design phase of a vehicle. With the help of this technology, the manufacturers can have a life-like look at the vehicle’s design and parts and make on-the-spot modifications before the final design is formulated.

Presenting Variants To Customers

Today, most of the car buyers research online before they go ahead and make a purchase. With the help of augmented reality, companies in the automotive industry can now create a digital showroom, where the customers can take a virtual test drive and inspect the design and features virtually before making a purchase. This also reduces the dealer’s wastage of space, time, and money involved in showrooms.

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automotive industry

Is China All Set to Take Over the Electric Vehicles Market?

In the recent past, China had topped the WHO’s list for deadly outdoor pollution. A major portion of this pollution can be attributed to the use of various gasoline-powered vehicles that emit poisonous gases into the atmosphere. The growing concern about pollution has prompted the Chinese government to issue new rules for companies in the automotive industry in favor of selling more alternate energy cars in the country. This has spiked up the demand and the supply of electric vehicles in the China.IR_Brochure

Interesting Facts About China’s Automotive Industry:

Wonder what makes China one of the key players in the Automotive industry?

  • China is the largest producer of vehicles in the world by a wide margin, which means there is no question of another country taking over China as the automotive industry leader in the near future
  • The biggest growth in the Chinese automotive industry is expected from the electric vehicle sector
  • The Chinese government is offering various incentives to electric car owners such as free license plates and free parking to promote the sale of the electric vehicles

Why are Companies Keen on Entering the Chinese Electric Vehicle Market?

The Chinese automotive industry is driven by factors such as low cost of production, high demand, subsidies from the government, etc. With the new shift in the trend to electric vehicles  in China, companies are focusing on meeting the demands to sustain themselves in the market.

  • There is limited competition in the electric vehicle segment of the Chinese automotive industry
  • The Chinese government is providing various incentives to the producers and owners of electric vehicles; due to this, there is an increase in the demand and an opportunity for companies in the automotive industries to meet this rising demand
  • Lower maintenance and fuel costs have also given rise to the increasing demand for electric vehicles in China
  • The Chinese government is likely to put a cap on the average fuel consumption; this would eventually force companies in the automotive industry to invest in the production of electric vehicles to survive in the market
  • There is a huge fall in the price of batteries used for the production of electric vehicle, which would facilitate the production at a much lower rate and increase the profit margins

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Automotive components

The Macro-level Trends Driving the Automotive Aftermarket Industry

For decades the automotive industry has been one of the most successful and prominent industries across the globe and has given birth to smaller industries such as the automotive aftermarket industry.The boom in the automotive industry is subsequently proving beneficial for the automotive aftermarket industry. There is a rising demand for car service and parts that are spurring new revenue and growth opportunities for businesses operating in the automotive aftermarket industry.

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Opportunities in the Automotive Aftermarket Industry

The increasing trend among automotive customers to keep their vehicles well maintained and the growing popularity of vehicle modifications, especially among the millennials have proved beneficial for the companies in this industry. Some of the main factors bringing about new opportunities in this market space are:

  • Older car owners are more likely to undertake regular car service
  • The repair and maintenance for older cars would be more, prompting these car owners to spend more on car service
  • Newer car owners, especially the millennials, spend more on car modifications and parts

Three Popular Trends Driving the Automotive Aftermarket Industry

Many lucrative opportunities are available in the automotive aftermarket industry. With the growing demand for car service and spare parts, the automotive aftermarket has started showing impressive growth. Here are three popular trends in the industry that are acting as key drivers of demand and sale in this sector:

  1. The Climbing Average Age of Vehicles

 The increasing average age of cars has proved to be a positive aftermarket trend for the past few years. Improvement in car service facilities provided has made the vehicles longer lasting and facilitates smoother functioning over an extended period.

  1. Globalization of Original Equipment Manufacturers (OEM)

The tremendous growth in the global vehicle registration has put pressure on OEMs to accelerate the use of global platforms and modular architecture. This means that the number of vehicles produced will rise rapidly, increasing the demand for spare parts and other car service facilities. This opens more opportunities for the automotive aftermarket companies.

  1. Technological Advancement in the Automotive Aftermarket Industry: Boon and Bane

Technological developments in the automotive industry have given a boost to the automotive aftermarket industry. It has facilitated the faster availability of spare parts and improved car service facilities. However, improved services and better quality products also act as a challenge for this industry, especially in instances where the recommended interval between oil change,  gap between routine maintenance of vehicles, etc. have become more. This acts as a loss of regular business for the companies in the aftermarket industry because these are the stages at which most of the repair opportunities are discovered and business is generated for them.

           To know more about the trends driving the automotive aftermarket
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automotive industry

Digital Transformations Reshaping the Future of Automotive Industry

Digitization and technological advancements are gradually changing the face of the automotive industry. The consumers have become more demanding in terms of gaining a digitally enhanced experience, which has subsequently forced the companies to revamp their digital and technological offerings. Here are some of the key digital transformation trends in the automotive industry:IR_Brochure

 Transformation in the Car Buying Process

 The conventional form of car buying is a stressful process. The hassle of having to deal with a negotiating salesperson is gradually changing in the industry. Thanks to the development of technology, customers today are well informed about a car well before they step into a showroom. This transformation has provoked dealers in the automotive industry to go digital. Many popular websites also serve as an information and virtual display source by the click of a button for customers aspiring to buy a car.

 Self-driven Cars

 Self-driven cars are a breakthrough invention in the automotive industry. It is expected that self-driven cars will decrease automotive accidents and deaths and will also give the people, previously constrained, the freedom to travel. However, there are various regulatory barriers for the growth of self-driven cars because of the usage of the internet, which is exposed to threats such as hacking.

 Connected supply chain and improved manufacturing

 Like  most other industries, the digital transformation trends are being used to personalize a customer’s needs in the automotive industry. Digitizing the connected supply chain drives down cost, engages the consumer, and collects data to serve the consumers better. In addition, digital transformation has helped in bringing about transparency in the supply chain, delivery, and accelerating design and manufacturing.

 Predictive Maintenance

 Machines are not as smart as human beings; however, the digital transformation in the automotive industry has been a game-changer in making vehicles smarter. The vehicles being designed today have the ability to report various maintenance issues that would otherwise go unnoticed by a vehicle owner. Vehicles can now indicate if the tires need air or if a part must be replaced. This helps reduce the risk of unforeseen vehicle breakdowns and maintenance requirements.

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Shared Mobility

Is Shared Mobility Hurting the Growth of the Automotive Industry?

Today, the roads and highways have been overcrowded with vehicles. Governments and activists around the world have been crying for efficient mobility solutions to reduce overall traffic flows, environmental pollution, and cost of vehicle ownership and transportation. Shared mobility solutions look forward to solving such problems with transportation services that are shared among users, such as public transit, bike sharing, car sharing, carpooling, shuttle service, and neighborhood jitneys. Recent studies show that the growth of the shared mobility market is higher than the rate of global vehicle sales. The preference for such a sharing economy can transform the auto industry.IR_Brochure

Will Shared Mobility Slow the Growth of Auto Sales?
Although it looks likely that there will be fewer vehicles on the road due to the growth of the shared mobility market, the automakers can still reap benefits out of it if they can position themselves for the future. Since ride sharing, car sharing, and carpooling drives up the vehicle utilization rate, such vehicles will have to be replaced or serviced more often. Numerous research reports suggest that shared mobility will only partially replace car ownership.

How will the Automotive Industry React?
In a bid to increase their revenue pool, automotive manufacturers will diversify towards on-demand mobility services and data-driven services. Such shared mobility and data-driven services will ensure recurring revenues from services such as car sharing, e-hailing, software upgrades, carpooling apps, and remote services. Considering that the car rental market requires huge investment to buy fleets, automotive manufacturers could explore rental services along with other shared mobility strategies.

The Future of the Automotive Industry
The automotive industry is highly dependent on autonomous technology that will allow the car to become a platform for passengers and drivers to use their saved time on other personal activities. The use of self-driving cars would allow the service providers to optimally reposition the vehicle, increase coverage with a small fleet, and reduce the fixed-cost base; thereby, decreasing inner-city congestion.

Automakers and their suppliers need to understand the current requirements of the consumer and design mobility solutions that cater to their needs. Although shared mobility would inhibit the vehicle sales to some extent, automotive players can position themselves to reap benefits through recurring revenue streams and extended services.

To know more about shared mobility market, shared mobility solutions, ridesharing, carpooling, and automotive industry:

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Augmented Reality

How Augmented Reality Can Change the Face of the Manufacturing Industry?

Manufacturing industries across the globe are increasingly adopting all the latest disruptive technologies of the 21st centuries including IoT, VR, automation, robotics, and big data analytics. Augmented reality is no exception to this statement. The outrageous success of Pokémon GO fueled the widespread acceptance of the augmented reality technology within numerous industries. The ability of this technology to augment digital information onto physical elements and objects has limitless possibilities in the manufacturing industry. It can also cut down operating costs and production downtime in addition to ensuring a smooth flow of operation.IR_Brochure

Helps with Complex Assembly
The manufacturing process has grown complex over time, requiring the assembly of hundreds and thousands of components in precise sequence. Missing any small component or the sequence could severely compromise the product’s quality. Augmented reality eliminates the use of documents such as instructions and dynamically projects all information on the field of view all the times.

Cut Down on Maintenance Time
Today, companies have to rely on the availability of the technicians for any maintenance tasks. Augmented reality can enable any person to do mechanical tasks by guiding them through 3D models to carry out the maintenance tasks. Additionally, it also eliminates the need for any maintenance manuals and displays the machine’s status in real time for timely maintenance.

Training Assistance
There are multiple ways in which augmented reality can be useful for training purposes. Firstly, companies can use the AR technology to supplement employee’s existing knowledge with expertise delivered via telepresence, rather than training each one individually. Also, it can mix training with practice by feeding training information right on top of actual parts and assemblies.

Error Prevention
Errors in manufacturing lead to product defects, which, in turn, increases customer dissatisfaction. For instance, while inspecting the bracket installation in a fuselage assembly, manufacturers can use tablet cameras to superimpose a virtual image of the designed product and compare it against the real product. This technology helps engineers to detect flaws and make necessary changes quickly.

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supplier slection

Selecting the Wrong Supplier Could Cost You: 6 Ways to Make The Right Choice

A decade ago, manufacturers based their supplier selection criteria mainly on parameters such as the price, flavor, or the supplier’s location. However, with the government’s and industries’  emphasis on stronger quality and safety of food products, selecting the right suppliers has become a critical and complex decision for the manufacturers to make.Supplier selection based on the quality of ingredients may involve some initial cost for business. However, it will pay off over time. Here are a few steps that will help you avoid mistakes while undertaking supplier selection:

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Identify Supplier Options

Before setting up a supplier selection strategy, gather opinions from various stakeholders such as members from research and development, marketing, purchasing, quality assurance, etc. An open and transparent communication strategy about the material specifications should be established with the suppliers. Apart from the cost, other factors such as delivery commitments, reliability, responsiveness and customer service of the suppliers should be evaluated.

Measure Supply Performance Before Supplier selection

This is an essential step in supplier selection. Businesses should conduct an audit and assessment program before signing the contract with a supplier to ensure that the supplier does not have any significant compliance or quality system failures that would ultimately affect the manufacturer’s production capabilities. This audit must be undertaken from time to time, even after the contracts have been signed after supplier selection.

Ask the Supplier for Feedback

A self-assessment questionnaire is a tool to attain supplier feedback. It is useful in identifying performance gaps and to discover how suppliers understand their operations. In addition to these assessments and audits, it is also beneficial to monitor various informative metrics that add value to the business such as documentation errors, perfect shipments, rejected lots, gaps in supplier selection, etc.

Gain A Certified Status

A certified status is attained when both the parties receive a positive performance, and the supplier-manufacturer relationship grows stronger. Sustained successful performance is the key to attaining a certified status.

Develop a Partnership

Strategic partnerships facilitate better supplier/manufacturer relationships and ensure the production of high-quality products. Strategic partnerships help to attain the best quality products at the desired prices as there is a better understanding between manufacturers and suppliers.

Satisfied Customers Should Be the Goal

Selecting suppliers should be ultimately based on providing the best quality products at affordable prices, which results in satisfied and loyal customers. Suppliers who understand this need and act accordingly will be the most beneficial for business.

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industrial automation

Industrial Shift to Automation: A Game Changer in the Industrial Scenario?

In recent years, industrial automation has facilitated the control over various operations of an industry without any significant intervention from humans, using various control devices. Companies use a set of technology in automation strategies to get the desired performance or output. Some of the advanced technologies used in industrial automation involve control strategies such as cascade controls, modern control hardware devices such as PLC’s sensors, other final control devices, standalone computing system, communication system, and human-machine interfacing systems.

advantages of industrial automationIR_Brochure

Types of Industrial Automation 

Based on the flexibility and the level of integration in the manufacturing process, Industrial automation systems can be classified into four basic types:

  1. Fixed Automation

In this type of automation, the sequence of operations to be performed is set by the equipment configuration. It is mostly used in the case of high volume production. Some examples of fixed automation systems are distilled process, assembly lines, machine transfer lines, etc.

  1. Programmable Automation

In programmable automation, the sequence of operation can be changed by changing the program. The sequence of operation varies based on the different product configurations, and new programs can be entered for new products, into the programmable devices. This kind of automation can be found in industrial robots, batch processes, and steel rolling mills

  1. Flexible Automation

This is an extension of programmable automation, but there is a greater flexibility to deal with product design variations. In this case, the sequence of the process should be changed so that the programmer can give commands in the form of codes

  1. Integrated Automation

This type of industrial automation is entirely under the computer’s control. From the designing process to the dispatching, the entire system is entirely automated. Robots handle everything including the equipment in this system.Integrated automation has simplified various industrial processes. The new trends in industrial automation deal with latest communication protocols and control devices, which help control field devices such as control valves and other final control elements. The automated industry also uses some instruments or smart devices that have communication capabilities and also the ability to control processes without interfacing to the other field level control devices.

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Heavy Machinery

Top Six Categories of Heavy Equipment

Heavy equipment vehicles refer to heavy-duty vehicles, which have been specifically designed for assisting in construction work. Although every heavy machinery has their own standard themes, there are certain equipment within it which are specialized for specific jobs. Each type of heavy equipment has its respective place in particular industries, be it construction, moving materials, or farming. The six leading industries and categories of heavy equipment are discussed here.IR_Brochure

Construction Industry

Dump trucks, cranes, and bulldozers are the most prominent type of heavy machinery used in this industry. Dump trucks are used to carry dirt and other forms of sediments to build sites for laying the foundation. Cranes are used for spreading it on ground level for the building; they are also essential in hoisting up and putting in place enormously heavy objects. Bulldozers are another commonly used heavy equipment in numerous construction projects due to their versatility. These conventional types of heavy equipment seen in modernized construction contribute to faster, safer, and cost-effective building plans.

 Farming Industry

Heavy equipment plays a prominent role in this industry. The most commonly used heavy machinery in farming include tractors, off-road vehicles, harvesters, and tillers. A majority of the heavy machinery used in the farming industry is not very applicable to other industries, making them a more specialized category.The tractor remains the most widely used heavy equipment, one of the main reasons for this being its versatility. Other heavy machinery available for farming include planters, farm drills, grain carts, etc. that are strictly dedicated only to growing crops.

 Forestry

Land clearing is a prominent part of forestry and construction alike. However, forestry is more focused on the production of paper goods, plywood, and other tree-based products. Heavy equipment such as wood chippers, skippers, knuckleboom loaders, and feller bunchers are used to harvest wood and create many different things. Mulchers are an excellent option for land clearing.

Material Handling

This industry involves activities related to packing, loading, and shipping in a warehouse setting. The most commonly used heavy machinery in this sector is the forklift. Certain models of forklifts are also designed for wear and tear of a construction site and for moving around a lot of building materials. Though a few newer heavy equipment in this industry has started to pick up, the forklift has dominated this sector for a while and will remain a significant piece of equipment for both construction and shipping.

Transportation Industry

Trucks and trailers are the most commonly used heavy equipment in this industry. The trucks used for delivery are mostly in the form of semi-trucks, whereas dump trucks are widely seen in construction because they are designed to handle rougher terrain on construction sites comparatively.

Grounds Care

Grounds care contains a set of equipment that are specifically designed for a lawn, golf course, or any other grassy property. One of the most commonly used heavy machinery in this industry is the lawn mower, which brings in a vehicular approach to the classic grass cutting. Some of the other widely used equipment include weed whackers, compact tractors, and sweepers.

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