The effects of the COVID-19 pandemic are likely to be felt for years, which will require all business leaders to remain vigilant against market changes and be hypersensitive to providing a safe working environment for their employees. While some back-office tasks can be performed by remote workers, assembly line tasks cannot be performed through a Zoom meeting. The change will remain, and carmakers and suppliers must act now to be well prepared.
Product safety must remain a priority. Massive changes were on the horizon long before the outbreak of the pandemic. The transformational impact of CASE (Connected, Autonomous, Shared and Electrified) together with the demand for greater sustainability, better fuel consumption and increased safety cannot be overestimated. Innovations, especially in the field of electric vehicles, have taught several difficult lessons about the need for careful testing before introducing new technology and components. The risk of fire posed by lithium-ion batteries is just one example. This issue has been analyzed from all sides and reforms and safeguards have been put in place. However, the key benefit is that the impetus for innovation needs to be balanced by the need for caution and control. Fortunately, product lifecycle management solutions can help automakers and suppliers manage the entire process, from the R&D phases to testing validation and technical change management.
The automotive industry has recently undergone several paradigm shifts, mainly due to the seemingly unstoppable CASE (Connectivity, Autonomous, Sharing/Subscriptions and Electrification). This has an impact on every aspect of the industry, from product design and development to manufacturing, distribution, sales, services, talent and the aftermarket. The user experience has also undergone a major transformation, with even mid-priced vehicles now equipped with countless luxuries. Extra benefits that become a standard fare include heated seats, camera parking and collision avoidance sensors. These types of major changes require an unprecedented level of business agility and appropriate agile technology solutions. Cloud solutions provide flexibility and scalability in implementing new business entities and models, new business processes, and new partnerships
Modern vehicles use a wide range of microchips, regardless of the level of equipment, from the basic to the highest range. I expect that the shortage of chips will persist to a significant extent in 2022, which is a significant obstacle that the industry must address. Unfortunately, there are no quick and easy answers. Some OEMs take matters into their own hands and transfer the production of microprocessors to their own hands. While this may mean more control, many experts find it economically impractical because automotive chips are usually low-value commodities and investing in chip production that is extremely capital-intensive can take years to settle. Alliances and partnerships for cooperation will be more important in 2022 as organizations work together to expand their purchasing power. Ford's recently announced partnership with GlobalFoundries is a case in point. Cloud-based collaboration tools help manage these relationships across many businesses.
For manufacturers who think ahead, the software saves the situation. While microchip manufacturing may not be the solution for every organization, turning to supply chain management technologies is certainly a tactic that every OEM and automotive supplier can use. Supply chain planning tools can help manufacturers monitor inventory, deliveries, shipping routes, expected deliveries, and the impact on sales orders in the event of delivery delays. While problem visibility may not cause components to arrive faster, problem awareness helps you prepare, find alternatives, and set realistic expectations among customers.
Business intelligence turns chaos into actionable strategies. Many organizations enter the unexplored territory and cannot rely on previous strategies or historical plans. Advanced intelligence, artificial intelligence, machine learning and digital platforms will be crucial. Only advanced, modern solutions will be able to meet the challenges. Organizations will become increasingly aware of the value of intelligent analysis and machine learning / AI and will invest in solutions with these integrated features.
The environmental consequences will continue to have a significant impact on industry trends and direction. "Circular industrial sustainability" and "carbon neutrality" are two terms that have entered the production vocabulary and are increasingly appearing in discussions about the future direction of the automotive industry, and some people see electric cars as a panacea for everything that bothers us. However, it is important to note that electric cars present their own set of environmental challenges, including the high energy consumption used to produce them (especially aluminium), the highly destructive and toxic extraction of critical rare earth elements, the looming problem of huge batteries filled with toxic chemicals, which will need proper disposal, and the growing demand for (largely fossil fuel) electricity. To address these and other challenges, a broader and holistic view of the problems and challenges is needed - instead of fixing only on exhaust emissions - together with acting in good faith and fact-based conversations between different and often very different ones. political and socio-economic interests. The ability to efficiently collect and mine data from a wide range of sources inside and outside the industry to inform these decisions will be an important factor in this regard.
While 2022 is likely to bring more of the same challenges that bombed automakers last year, there are likely to be some new surprises. Organizations need to be prepared for familiar challenges, but perhaps more importantly, for the unforeseen ones. If we have learned anything in the last year and a half, then it is that we can no longer take the 'normal' for granted. Resilience, agility, adaptability and cooperation are the new coins of the empire. Highly agile, flexible digital "cores", such as Infor's cloud ERP suites, can provide a solid foundation on which to thrive in an ever-disrupted world.