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The Automotive Revolution: How Cloud Automation is Driving the Autos Revolution

The Automotive Revolution: How Cloud Automation is Driving the Autos Revolution

~5 minutes read

In today’s fast-paced business world, companies are constantly seeking ways to streamline operations, reduce costs, and increase efficiency. One of the most transformative trends in recent years has been the rise of business process automation (BPA), which leverages technology to automate repetitive and time-consuming tasks. At the forefront of this automotive revolution is cloud computing, which is enabling businesses of all sizes to access powerful tools and platforms for automating key processes. The automotive revolution is truly changing the industry.

The automotive industry in particular is undergoing a dramatic transformation thanks to automation powered by the cloud. The autos revolution is seeing vehicle design, manufacturing, sales, and service processes all being re-envisioned through the lens of automation. From robotic assembly lines to automated inventory management to AI-powered predictive maintenance, cloud technologies are driving unprecedented efficiency and agility across the automotive value chain. The autos revolution is making a huge impact.

In this article, we’ll explore the basics of business process automation, with a focus on how cloud technologies are enabling the autos revolution and transforming industries of all types. We’ll look at key use cases, benefits, challenges, and best practices for successfully implementing process automation in the cloud. The automotive revolution has far-reaching effects.

Note:

To fully capitalize on these insights, it’s crucial for automotive companies to establish clear business and financial metrics to measure the success of their automation initiatives. For guidance on selecting the right KPIs, read our article Mapping Your Business Success: Business and Financial Metrics.

What is Business Process Automation?

At its core, business process automation involves using technology to automate manual, repetitive tasks in order to improve efficiency, reduce errors, and free up human workers to focus on higher-value activities. BPA can be applied to processes across all business functions, from finance and accounting to human resources to customer service. The autos revolution leverages BPA extensively.

Examples of processes that are commonly automated include:

Data entry and validation
Invoice processing and approvals
Employee onboarding and offboarding
Customer support inquiries
Inventory tracking and reordering

By automating these types of routine tasks, businesses can dramatically reduce cycle times, improve data accuracy, enhance compliance, and lower operating costs. A McKinsey study found that up to 45% of activities individuals are paid to perform can be automated by adapting current technologies. The automotive revolution takes advantage of these automation opportunities.

The Role of Cloud Computing

While business process automation is not a new concept, the rise of cloud computing has been a game changer in terms of making powerful automation tools accessible to organizations of all sizes. In the past, implementing process automation often required significant upfront investments in hardware, software, and technical expertise. The cloud has removed those barriers by providing subscription-based access to feature-rich automation platforms. The cloud is a key enabler of the autos revolution.

Key cloud technologies that are enabling business process automation include:

Software-as-a-Service (SaaS) applications for functions like accounting, HR, and customer relationship management
Low-code/no-code development platforms that allow business users to build automated workflows without coding
Robotic Process Automation (RPA) tools that can mimic human actions to complete repetitive tasks
Artificial Intelligence (AI) and Machine Learning (ML) services for intelligent automation

Note:

Artificial Intelligence has been one of the SaaS Industry Trends for 2022 and continues to be so now. You can learn about other trends by reading 7 SaaS Industry Trends for 2022.

With cloud-based automation tools, businesses can implement automated processes quickly and affordably, without the need for major IT infrastructure or specialized programming skills. The cloud also provides the scalability to easily expand automation as business needs evolve. The automotive revolution makes extensive use of these cloud capabilities.

Automotive Industry Use Cases

The automotive industry is at the forefront of applying cloud technologies to automate key business processes across the value chain. By digitizing and automating core functions, automakers and suppliers are achieving new levels of efficiency, agility, and customer-centricity. Here are a few examples of how cloud-based automation is driving the autos revolution:

Design Automation

Cloud-based design platforms are allowing automakers to collaborate in real-time with global design and engineering teams. AI-assisted generative design tools can automatically create and test thousands of design permutations to optimize for desired parameters like weight, cost, and performance. Automated workflows can streamline the entire design process from ideation through validation. The automotive revolution is transforming vehicle design.

Manufacturing Automation

In automotive manufacturing, cloud connectivity is enabling a new generation of flexible, data-driven production. Connected robots and machines can automatically adjust to changes in demand or product specifications. Real-time production data can feed into cloud-based analytics tools to optimize equipment performance and predict maintenance needs. Automated guided vehicles powered by cloud AI can efficiently move materials within plants. The autos revolution is driving smart manufacturing.

Sales & Distribution Automation

For auto sales and distribution, cloud platforms are automating key processes like inventory management, order fulfillment, and invoicing. Centralized cloud systems can give dealers real-time visibility into global vehicle supply to optimize ordering. Online configurators with automated recommendations are enhancing the customer buying experience. And blockchain-based systems are enabling automated supply chain tracking and payments. The automotive revolution is reshaping sales and distribution.

Service Automation

In the after-sales service domain, automakers are leveraging the cloud to automate everything from scheduling to parts procurement to remote diagnostics. Connected vehicle data can automatically trigger service appointments and parts orders. Augmented reality tools can guide technicians through repair steps. And AI chatbots can provide automated customer support and scheduling. The autos revolution is transforming the service experience.

Key Benefits

By embracing cloud technologies to automate core processes, automotive companies are realizing significant benefits as part of the automotive revolution:

Efficiency: Automation can dramatically reduce time spent on routine tasks, enabling employees to focus on higher-value work. One auto supplier was able to reduce its back-office workload by 30% through automation.
Speed: Automated processes can be completed much faster than manual ones. For example, one automaker reduced its vehicle design time from 8–12 weeks to just 2–4 weeks with generative design automation. The autos revolution enables unprecedented speed.
Cost Savings: Automating repetitive tasks reduces labor costs and potential errors. An IBM study estimated that automotive companies could see cost savings of 50% from implementing automation in areas like finance, procurement, and supply chain. The automotive revolution drives major cost reductions.
Agility: Cloud-based automation enables companies to quickly adapt processes to changing market conditions or customer needs. During the pandemic, cloud tools allowed automakers to rapidly shift to remote collaboration and digital sales. The autos revolution enables flexibility.
Insights: Automated processes generate vast amounts of data that can be analyzed for continuous improvement. Data from connected vehicles and production systems can reveal optimization opportunities in real-time. The automotive revolution is fueled by data insights.

Implementation Best Practices

To realize the full benefits of cloud-based business process automation, automotive companies should follow these implementation best practices as part of the autos revolution:

Start with Strategy

Develop a clear automation strategy tied to business objectives. Prioritize use cases based on potential impact and feasibility. Conduct a thorough assessment of current processes to identify prime candidates for automation based on factors like volume, complexity, and manual effort required. Engage business stakeholders to ensure alignment on automation goals and success criteria. A strategic approach is crucial to the automotive revolution.

Note:

Learn how to reduce your cloud bills by implementing the 5 best practices outlined in our article Cloud Cost Optimization: 5 Best Practices to Reduce Cloud Bills.

Build the Right Team

Assemble a cross-functional team spanning business and IT. Identify automation champions within business units to drive adoption. Provide training to upskill employees on automation tools. Clearly define roles and responsibilities for designing, building, testing, and maintaining automated processes. Foster a culture of collaboration and continuous improvement. The right team is essential for the autos revolution.

Choose the Right Tools

Evaluate cloud automation platforms based on criteria like ease-of-use, integration, security, and scalability. Consider a mix of tools optimized for different use cases (e.g. RPA for repetitive tasks, low-code for citizen development). Look for tools with pre-built connectors and templates for common automotive processes. Ensure data governance and compliance requirements can be met. Selecting the right tools is critical for the automotive revolution.

Optimize Processes First

Before automating a process, make sure it is optimized and standardized. Automating a bad process just makes bad things happen faster. Use techniques like process mining and value stream mapping to identify bottlenecks and non-value-added steps. Streamline processes to be as efficient and logical as possible before layering on automation. Process optimization is a key part of the autos revolution.

Start Small and Scale

Begin with a pilot project to prove out the automation concept and generate quick wins. Target a process that is well-understood, has high manual effort, and clear success metrics. Use learnings from the pilot to fine-tune the automation approach. Then gradually expand automation to more complex, end-to-end processes. Communicate success stories to build momentum. Starting small and scaling up is important for the automotive revolution.

Govern Effectively

Manage Change

Proactively engage employees impacted by automation. Communicate the rationale and benefits of automation early and often. Provide training and reskilling opportunities to prepare workers for new roles. Encourage feedback and address concerns transparently. Celebrate team members who embrace and evangelize automation. Managing change is an integral part of the automotive revolution.

Measure and Iterate

Establish KPIs to measure the impact of automation initiatives. Monitor bot performance and continuously improve automated processes based on data insights. Track metrics like cycle time, throughput, error rates, and employee productivity. Use A/B testing to optimize bot configurations. Share performance dashboards with stakeholders and gather feedback. Treat automation as an ongoing program, not a one-time project. Continuous measurement and iteration is essential for the autos revolution.

By following these best practices, automotive companies can set themselves up for success with cloud-based business process automation. A strategic, disciplined approach to automation can help avoid common pitfalls and ensure that automated processes deliver maximum value for the organization.

For example, Ford Motor Company successfully implemented a cloud-based RPA program by starting small with a few high-impact use cases in finance and then scaling to over 100 bots across the enterprise. They established a global automation center of excellence to provide governance and best practices. Ford also prioritized change management, with bot-building hackathons and training sessions to engage employees. As a result, the company was able to automate over 13,000 manual hours per month and achieve a 30% efficiency gain in some processes. This is a prime example of the automotive revolution in action.

As the automotive industry continues to transform, effective business process automation will be a key enabler of digital agility and competitiveness. By leveraging the power of cloud technologies and following proven implementation best practices, auto companies can position themselves to thrive in the era of intelligent automation. The autos revolution requires a commitment to automation excellence.

Automation ROI

For automotive companies considering investing in business process automation, it’s critical to have a clear understanding of the potential return on investment. A key framework for calculating automation ROI is the “hours-to-value” model. This involves estimating the number of hours currently spent on a manual process, multiplied by the hourly wage of the workers involved, to determine the annual cost. Demonstrating ROI is crucial for advancing the automotive revolution.

Then, the cost of implementing and running the automated solution is subtracted to determine the net annual savings. For example, if a finance process takes 10,000 hours per year at an average wage of $50/hour, the annual cost is $500,000. If an RPA solution can automate 80% of that process at a cost of $100,000 per year, the net annual savings would be $300,000, for an ROI of 300%. The autos revolution delivers compelling returns.

Of course, these calculations should also factor in harder-to-quantify benefits like increased speed, accuracy, and scalability. But the hours-to-value model provides a starting point for building the business case for automation. ROI analysis is an important part of the automotive revolution.

The Future of Automation

As cloud technologies continue to advance, the opportunities for business process automation in the automotive industry will only accelerate. Trends like 5G connectivity, edge computing, and autonomous vehicles will enable even more real-time, intelligent automation use cases. The autos revolution has an exciting future ahead.

At the same time, the rise of automation will require the auto workforce to evolve and adapt. While some repetitive roles may be fully automated, new higher-skilled positions will emerge to implement and oversee automated systems. Auto companies will need to prioritize reskilling and change management to help employees thrive in an increasingly automated industry. Workforce transformation is a key consideration for the automotive revolution.

Ultimately, cloud-based automation is not about replacing human workers but rather augmenting their capabilities. By leveraging the speed and precision of automated systems, auto employees can focus on the creative, strategic, and customer-facing activities that deliver the most value. The automotive companies that successfully harness this human-machine collaboration will be the ones that win the autos revolution in the years ahead.

Conclusion

The era of digital transformation has ushered in exciting new possibilities for business process automation. By leveraging the power of cloud technologies, companies across industries are re-imagining processes to be more efficient, intelligent, and agile. For the automotive industry, cloud-based automation is driving a full-scale autos revolution, transforming every aspect of how vehicles are designed, built, sold, and serviced.

Of course, implementing cloud process automation is not without its challenges. Companies must approach automation strategically, with the right mix of tools, talent, and governance. By starting small, building momentum, and continuously iterating, automotive organizations can harness the full benefits of automation to thrive in the digital age. The automotive revolution requires a holistic approach.

While this article focused on how cloud technologies are driving the automotive revolution, it’s important to note that the power of the cloud extends far beyond just one industry. To learn more about how cloud computing is transforming businesses across sectors and the surprising influence of shadow organizations on IT infrastructure, check out our in-depth article Unleashing the Power of Cloud Technologies: The Influence of Shadow Organizations on Your Infrastructure.

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