by Nada Welker | Jun 3, 2024 | Artificial Intelligence
The AI application areas
The use of AI can be divided into 7 different application areas. However, in view of the continuous development of AI technologies, this is only a snapshot of the current situation.
[infobox headline=”At a glance”]
- Integrating AI can make businesses more efficient and unlock new avenues for innovation.
- A tailored strategy, analyzing the business model and identifying market opportunities, is crucial.
- A thorough examination of the competitive landscape and organizational adjustments are necessary to successfully implement AI.
- Leveraging AI-driven tools enables comprehensive optimization of business processes and the value chain.
[/infobox]
The areas of application for artificial intelligence (AI) are diverse and range from image generation and coding to language processing and 3D modelling.
In the field of image generation, AI enables the automated creation of images, including for commercial purposes, which saves time and money and supports the creative process.
In coding, AI models are used to generate code, which speeds up software development and increases developer productivity.
Text generation is another area of application where AI models can create text based on specific inputs, which can be used for content creation, translation and other applications.
In the video sector, AI enables the creation, editing and optimization of videos. This in turn simplifies the production of content.
In speech processing, AI models can convert text to speech, analyze and synthesize speech, which is used for voice assistants, subtitling and more.
AI also has applications in 3D modelling and research and development, where it can simulate, analyze and optimize complex models to gain valuable insights and drive innovation. Artificial intelligence in research, for example, accelerates knowledge gain through data analysis, predictive modelling, optimization of experiments, laboratory automation and the discovery of new drugs and treatments.
The selection of AI tools is differentiated depending on the area and use case, whereby the use of AI tools from a single category or from several categories may be required. The market for AI tools requires continuous monitoring and analysis.
Future-proof: How to implement AI in your company
In the fast-paced world of technology, it’s essential that organizations equip themselves for future-facing technologies such as Artificial Intelligence (AI). Integrating AI can not only increase efficiency, but also open up new opportunities for innovation and growth. But how can you ensure that your company is optimally prepared for these changes?
In his presentation on “AI – opportunities and risks of artificial intelligence”, held on 19 April 2024 as part of an information event initiated by Dr Natalie Pfau-Weller, member of the state parliament for the Kirchheim/Teck constituency, Dr Michael Müller makes the following recommendations:
- Discover new business models
- Win against the market and competition
- Develop innovative products and services
- Strengthen your corporate structure
- Optimize your value chain
A comprehensive strategy
A crucial step is to develop a comprehensive strategy that is tailored to the specific needs and goals of your organization. Here are some key points to consider when developing your AI strategy:
Analyze the existing business model
Before you start integrating AI, it is important to thoroughly analyze your current business model. Identify potential AI application areas to optimize processes or open up new business opportunities.
Competitor analysis
Analyze how your competitors are already using AI and what benefits they are deriving from it. Also take a close look at what mistakes your competitors are making or have made in this regard. This can help you understand how AI is being used in your industry and what opportunities and risks are associated with it. Gain a competitive advantage over the competition.
Develop innovative products
Develop innovative products and services: Use Artificial Intelligence to develop innovative products and services that fulfill your customers’ needs and differentiate your company from the competition. Make data-driven decisions and implement more efficient processes.
Review your organization’s capabilities and structures
Ensure that your organization has the necessary skills and structures in place to successfully implement and use AI. This can include training employees, introducing new workflows and adapting the organizational structure. For new hires, make sure you hire professionals with AI skills and foster a culture of innovation to support the successful use of AI.
Identify innovative business ideas
You should also identify innovative business ideas for your company that could be realized through the use of AI. Evaluating the financial feasibility and precise implementation strategies of these ideas is essential to prepare your company for the challenges and opportunities of the future. By acting early and developing a sound AI strategy, you can ensure that your company remains successful in an increasingly digital world.
Optimizing the value chain
Check where in your company you can use AI to improve efficiency in production, logistics, sales or customer service.
Example of using artificial intelligence in your company – process mining
After you have already implemented robotic process automation (RPA), enterprise service management (ESM) and ERP automation, increase your use of process mining to automate business processes. Process mining analyses existing processes and identifies potential problems before they occur. It supports process optimization by correlating data flows. Tools such as
- Celonis Execution Management System,
- Kofax Insight,
- IBM Process Mining,
- Signavio Process Intelligence
- UiPath Process Mining
provide a solid basis for these tasks. We will soon be publishing a separate blog article about process mining on our website.
XaiTeck Solution
At XaiTeck GmbH, we have developed a holistic pyramidal approach to improve the effectiveness and efficiency of a company through artificial intelligence.
Level 1- Monitoring of legal requirements & trends and macroeconomic factors
- AI-supported text analysis: Automatic extraction and analysis of relevant information from text sources such as news articles, legal texts and economic reports.
- Sentiment analysis: identification and evaluation of sentiment in texts to recognize potential risks and opportunities at an early stage
- Predictive analytics: Forecasting future developments based on historical data and current trends in order to make informed decisions.
Level 2 – Monitoring & optimization of business models
- Process mining: Analyzing business processes using event logs to uncover inefficiencies and potential for improvement.
- Simulations: Modelling business models and simulating different scenarios to assess the impact of changes.
- Machine learning: Automatic identification of patterns and correlations in company data to find optimization opportunities.
Level 3 – Consolidation and optimization of supplier networks
- Clustering algorithms: Grouping of suppliers according to similar characteristics to optimize the supply chain.
- Network optimization: Automatic identification of the most efficient supply paths and routes.
- Negotiation support: AI-based tools for analyzing negotiation data and developing optimal negotiation strategies.
Level 4 – Management and refinement of specific assets, services and products
- Predictive maintenance: Forecasting maintenance requirements and optimizing maintenance intervals to reduce downtime.
- Recommendation systems: Personalized product recommendations for customers to increase customer satisfaction
- Chatbots: AI-supported customer support tools for answering customer questions and solving problems.
Level 5 – Monitoring and refinement of organizational processes
- Workflow automation: Automation of repetitive tasks to increase efficiency and reduce errors.
- Robotic Process Automation (RPA): Use of software robots to automate processes that were previously carried out by humans.
- AI-supported decision-making: Supporting managers in decision-making by providing relevant information and analyses.
Level 6 – Monitoring and optimization of specific process steps
- Anomaly detection: Identification of deviations from the norm in process data to recognise potential problems at an early stage.
- Root cause analysis: Automatic identification of the main causes of process errors.
- Optimization of processing times: Reduction of the time required to complete processes.
XaiTeck Solution’s approach shows how a holistic pyramid approach can improve the effectiveness and efficiency of an organization. From monitoring and analyzing legal requirements to optimizing supplier networks and refining organizational processes, this system offers a comprehensive range of AI-powered solutions. Automated text analyses, predictive analytics, machine learning and robotic process automation are used not only to optimize current processes, but also to predict future developments and initiate appropriate measures. This holistic approach paves the way for the transformative further development of companies in an increasingly digitalized world.
The market volume for AI will grow rapidly in the coming years
The increasing use of artificial intelligence (AI) in companies promises a wide range of benefits and opportunities for the future. From the optimization of processes to the creation of personalized customer experiences, new opportunities for growth and innovation are opening up. The market volume for AI is expected to grow rapidly in the coming years.
However, this development is also associated with risks and regulatory challenges that need to be overcome. There are also ethical concerns. In the next article, we will take a closer look at these aspects and examine how companies can seize these opportunities while minimizing the risks and meeting ethical requirements in order to make the most of AI’s potential. Feel free to contact us right here if we can support you with the implementation of AI solutions or if you have any further questions.
by Nada Welker | Feb 19, 2024 | Artificial Intelligence, Electrification, Future Trends, Know-How and inspiration, Market development & Trends, strategy in change
Electrification plays a crucial role in sustainable wine production, facilitating the modernization of vineyard operations to enhance energy efficiency, reduce environmental impact, and actively support energy transition goals.
In Level 5, focusing on vineyards and grapevines, electrical technologies offer diverse opportunities for optimizing grape varieties, cultivation methods, and maintenance practices to reduce environmental footprint:
Electric technologies contribute to improving energy efficiency by making traditional processes more efficient and resource-friendly. Reducing environmental impact is achieved through the use of eco-friendly electrical devices throughout the wine production cycle.
Areas of application for electrical technologies in viticulture include
Irrigation for sustainable wine production
- Electric pumps enhance irrigation by ensuring efficient and resource-friendly water supply.
- The electrical technology optimizes water usage and contributes to sustainable irrigation practices.
Soil cultivation for sustainable wine production
Electric devices preserve the soil during cultivation by offering specific advantages compared to conventional, fossil-fueled machinery:
- Reduced soil compaction: Electric devices are often lighter than their conventional counterparts. Their lower weight leads to reduced soil compaction, meaning the soil is less densely packed. Reduced compaction promotes better water permeability and facilitates plant root growth.
- Precise control: Electric devices enable more precise control and adjustment during soil cultivation. This precision allows winemakers to better regulate the depth and intensity of soil cultivation, thereby minimizing soil disturbance.
- Pollution prevention: Electric devices do not emit exhaust gases on-site. This reduces air pollution in the work environment and minimizes the deposition of harmful substances in the soil, contributing to healthier soil quality.
The use of electric tools minimizes soil compaction and erosion, thereby improving soil quality in the long term and contributing to sustainable agriculture and wine production.
Pruning for sustainable wine production
Electric devices enable efficient and precise pruning of grapevines, optimizing maintenance processes by:
- Precision and control: Electric devices often offer advanced technologies for precise pruning and control. This allows winemakers to tailor the pruning exactly to the needs of the vines to ensure optimal growth conditions.
- Preservation of vines: Precise pruning prevents healthy parts of the vines from being accidentally removed. This helps maintain the health of the vines and maximizes grape yield and quality.
- Increase in efficiency: Electric devices are often more powerful than conventional ones, allowing for faster processing of large vineyard areas. This increase in efficiency leads to time and resource savings in vineyard maintenance.
- Comfort of work: Electric devices are generally lighter and easier to handle than manual tools or heavier conventional machinery. This makes the work of winemakers easier and contributes to a more pleasant working environment.
This precision contributes to the health of the vines and promotes sustainable wine production.
Fertilization for sustainable wine production
Electric devices support efficient and precise fertilization, enabling more effective resource utilization.
- Electric fertilizer spreaders and dispensers are often equipped with advanced dosing technology. This allows for precise control over the quantity and distribution of fertilizers. Winemakers can dose the exact amount of nutrients required by the plants without excess.
- Variable fertilizer application: Electric devices can be equipped with variable rate systems based on data such as soil analysis and plant requirements. This enables customized fertilization, adjusting the quantity of nutrients supplied to different areas of the vineyard or even individual vines.
- Real-time monitoring and adjustment: Electric fertilizer spreaders can often be monitored and adjusted in real-time. This allows winemaker to respond to changing conditions during the fertilization process to ensure optimal nutrient supply.
- Minimization of environmental impact: Precise dosing and application of fertilizers help avoid over-fertilization. This reduces the risk of nutrient loss, minimizes water pollution from excess fertilizers, and contributes to reducing environmental impact.
Resource-efficient wine production – The Harvest
Electric harvesting machines contribute to efficient and resource-efficient harvesting by offering various advantages:
- Precise control and selection: Electric harvesting machines enable precise control during the harvesting process. This ensures that only ripe grapes are harvested, while unripe or damaged fruits are sorted out. As a result, the quality of the harvested grapes is improved.
- Efficient working speed: Electric harvesting machines are often able to work at a constant and efficient speed. This leads to faster harvesting and allows for efficient utilization of labor and resources.
- Reduced physical strain: Compared to manual harvesting methods, electric harvesting machines reduce the physical strain on workers. This contributes to improved working conditions and the health of the harvesters.
- Energy efficiency: Electric harvesting machines can be more energy-efficient than their conventional, fossil-fueled counterparts. This helps reduce overall energy consumption and minimize the ecological footprint of the harvesting machines.
- Minimization of losses: Through precise grape capture and handling, electric harvesting machines minimize the loss of harvested produce. This helps maximize overall yield and conserve valuable resources.
Overall, these factors contribute to increased overall efficiency and resource-efficient harvesting in viticulture through the use of electric harvesting machines.
Example: Digitization in Harvesting and Winemaking – BlueCircle Cloud Platform
At level 5, encompassing harvesting and winemaking, the BlueCircle Cloud Platform stands out as a pioneering example of utilizing digitalization technologies in viticulture. This innovative platform combines advanced Artificial Intelligence (AI) with optimization functions to enhance control over the entire wine and grape supply chain, while attracting and educating top-notch viticulture talents.
Key Features of the BlueCircle Cloud Platform
AI-based software for comprehensive control:
- The platform offers a software solution that enables precise control over all processes of the wine and grape supply chain.
- By implementing advanced AI, data-driven decisions are promoted, and optimization opportunities are identified.
Optimization of S&OP (Sales and Operations Planning):
- The software supports Sales and Operations Planning (S&OP) through accurate forecasts year-round.
- Improved S&OP allows for efficient planning and alignment of operational processes with sales objectives.
AI-driven real-time alerts:
- Utilization of AI for real-time alerts on unpredictable weather and other conditions affecting yield, quality, ripening, and harvest.
- Data-driven harvest scheduling to prepare for changing environmental conditions, ensuring harvest security.
- A continuous learning process enables all users to benefit from the latest developments and best practices.
The BlueCircle Cloud Platform stands out as an example of innovative digitalization in viticulture by not only increasing efficiency but also improving the quality of wine production through data-driven decisions and continuous optimization. By integrating state-of-the-art technologies into harvesting and winemaking, a forward-thinking, sustainable approach to viticulture is facilitated.
Electrification in viticulture is thus more than just a technological advancement. It enables sustainable practices for resource-efficient wine production, reduces the ecological footprint, and actively contributes to the energy transition. Winemakers who integrate these technologies into their operations not only benefit from efficiency gains but also contribute to making viticulture more sustainable and future-proof. Contact our experts for professional exchange. We are happy to advise you.
by Nada Welker | Feb 5, 2024 | Electrification, Future Trends, Market development & Trends, strategy in change, Technologies for new markets
The conference on “Energy transition in Viticulture – New Concepts for Sustainability” at the Weincampus Neustadt was a great success. The event took place on January 31, 2024, in the auditorium of the Service Center for Rural Areas (DLR) Rheinpfalz as an interactive format, attracting a diverse group of wine experts, vintners, and enthusiasts.
Participants were invited to delve into the challenges posed by the energy transition for the German wine industry. The focus was on the issues and opportunities for small and medium-sized wine businesses, particularly in terms of potential savings and the generation and storage of renewable energy. Commencing at 4:30 PM, the event provided an in-person experience at the DLR Rheinpfalz auditorium, with the option for virtual participation via the livestream at https://schlagabtausch.ef-sw.de/.
Energy transition in Viticulture – Panel Participants
The panel discussion brought together renowned experts from the wine industry to share their perspectives. Discussion participants included Dr. Michael Müller, Managing Partner of Magility GmbH from Wendlingen am Neckar, along with Jochen Schmitt from Weingut Egon Schmitt in Bad Dürkheim, Matthias Wolf, Managing Director of Weingut Schloss Ortenberg, Hans-Christoph Stolleis, Owner of Weingut Stolleis in Neustadt an der Weinstraße, Saskia Wörthwein, Managing Director of Weinmanufaktur in Untertürkheim, and Moritz Prinz zur Lippe, Apprentice at Weingut Ökonomierat Rebholz in Siebeldingen.
A Sign of Sustainability in Wine Production
The discussion focused on ways to make wine production more sustainable, shedding light on the role of renewable energy in viticulture. Participants learned how small and medium-sized wine businesses can achieve savings while contributing to the energy transition. The conference was free of charge, allowing for spontaneous participation, fostering a broad engagement and ensuring diverse perspectives were heard.
In conclusion, the event served as a successful forum for exchanging ideas and information about the energy transition in viticulture. Weincampus Neustadt thereby set an important example for more sustainability in wine production and promoted dialogue between industry experts and practitioners.
The Multidimensionality of Viticulture: A Look at the Levels of Success
Viticulture, a complex and multifaceted industry, is influenced by various levels ranging from global trends to specific growing conditions. Dr. Michael Müller provided a closer look at these levels in his presentation, vividly summarizing them for the participants.
Level 1: The World – Global Trends and Politics
At the highest level, global trends and political decisions on a global scale come into play. Climate change and globalization are examples of factors that can influence viticulture worldwide, requiring continuous adaptation by the industry.
Level 2: Region – Climatic Conditions and Legislation
The second level is the region, where climatic conditions play a crucial role. In Germany, wine regions like Pfalz, Mosel, Rheingau, and Baden are of great importance. Here, laws, regulations, infrastructure, and cultural factors influence viticulture. The German Wine Law is an example of a norm with significant influence on the regions.
Level 3: Soil, Terroir, Topography – Influence on Taste
On the third level, soil, terroir, and topography come into play. These complex factors mutually influence each other and significantly shape the taste of the wine. Each wine-growing region has its own peculiarities that manifest on this level.
Level 4: Vine, Vineyard – Grape Variety, Cultivation Method, Care
The fourth level encompasses the vine and the vineyard. Here, the choice of grape variety, cultivation method, and care are crucial. Different grape varieties are suitable for various cultivation methods, resulting in a diverse wine landscape.
Level 5: Harvest, Vinification – Technique and Vinification
The fifth level includes the harvest and vinification. The choice of harvest technique, vinification, and aging significantly influence the quality of the wine.
Level 6: Brand, Marketing, and Sales – Identity and Distribution
On the sixth level, brand, marketing, and sales take center stage. Here, brand identity, marketing strategy, distribution channels, and sales play a decisive role in market success.
Overall, this hierarchical approach illustrates that viticulture is a multidimensional industry, requiring careful considerations and adjustments at each level to ensure quality and competitiveness. A profound understanding of each level enables vintners to operate successfully in this challenging environment.
Energy transition in Viticulture – Summary of Participant Voices
- Need for Savings: There was unanimous agreement among participants that measures to save resources and energy in viticulture are inevitable.
- Reflection and Implementation Speed: It was emphasized that while much thought is given, faster implementation and more speed in deploying solutions are necessary.
- Future Investment: Participants saw adapting to sustainable practices as an investment in the future.
- Start-ups’ Need: There was a desire for more support from start-ups that can develop innovative solutions for winemakers.
- Focus on Wine Production: Participants stressed the importance of focusing on wine production and leaving technological solutions to others.
- Knowledge Source: The question of acquiring know-how was raised, emphasizing the need for more best-practice exchange and forums.
- Experimentation and Trying Out: The necessity to experiment with new approaches and technologies was underscored.
- Government Assistance: Politics were urged to assist in challenges such as slow approval processes, for example, for cables in the ground.
- Grid Adjustments: Criticism was voiced about mismatched grid structures, with a demand for improvements.
- Priority for PV Rooftops: Prioritizing photovoltaic rooftops was suggested.
- Profit Assurance for Winemakers: It was emphasized that sustainability measures should also serve to secure profit for winemakers, enabling the implementation of new concepts.
- Action over Words: There were multiple appeals not only to talk but to actively take measures. Exchange and collaboration were highlighted as key factors.
In conclusion, gratitude was expressed for insights from a different perspective that enriched the discussion.
Energy transition in Viticulture – Magility Summary
The digitalization and electrification in viticulture shape a sustainable future. From harvest to marketing, innovative technologies enable efficiency gains, quality improvements, and active support for the energy transition. Winemaking enterprises pursuing intelligent solutions are not only embracing eco-friendly practices but positioning themselves as pioneers in sustainable viticulture. A holistic examination across all levels – from harvest to marketing – creates a path to a future-oriented and environmentally conscious wine cultivation. In the coming days, our blog will delve into the different levels of action in viticulture. Look
by Nada Welker | Sep 12, 2023 | Uncategorized
Visitor surge at IAA MOBILITY 2023
IAA MOBILITY 2023 witnessed record levels of international participation, with 750 exhibitors from 38 countries, making it a truly global event for exhibitors, speakers, guests, and journalists. The event showcased in excess of 300 world premieres and innovations, underscoring the exhibitors’ exceptional innovation capabilities. More than 500,000 visitors attended the event from September 5th to 10th, with over 100,000 people present at the IAA MOBILITY’s Open Space in the heart of Munich on Saturday alone. International media coverage increased by over 70 percent compared to IAA Mobility 2021, with 3,700 accredited journalists from 82 countries in attendance. This high level of international presence was also reflected in the visitor demographics, with approximately 30 percent of the attendees originating from 109 different foreign countries.
Engagement with Stakeholders, Politics, Society, and Business
The IAA MOBILITY was inaugurated by Federal Chancellor Olaf Scholz, and it featured over 500 high-profile international speakers at the IAA Conference, providing exclusive insights into the future of mobility. This included many leading CEOs from both established mobility and tech companies as well as promising startups. Notable international figures, such as Oscar winner Natalie Portman, Mars mission candidate Alyssa Carson, and climate advocate Sophia Kianni, also took the stage in Munich.
The intensive dialogues and constructive debates with various stakeholders from politics, society, and business at the Open Space and IAA Summit are crucial elements in achieving climate-neutral mobility successfully.
The recent images broadcasted from Munich vividly depict the automotive industry’s unwavering commitment to preserving Germany’s status as the “Land of the Car” while aligning with climate objectives, the welfare of individuals, and economic prosperity. The advanced concept introduced in Munich has demonstrated consistent success this year.
Magility @ IAA Mobility 2023 – Our Perspective on the New IAA Mobility
IAA Mobility 2023 served as a crucial platform for the global automotive industry to showcase its latest technologies and innovations. From the vantage point of an automotive technology consulting firm such as Magility GmbH, the following trends become particularly prominent.
Electromobility
The electrification of automobiles remains the most significant trend in the industry.
The use of electromobility is increasing worldwide due to legal regulations and financial incentives. New emissions regulations in China and Europe, along with government incentives in the USA and Europe, are making electric vehicles more attractive to consumers. Simultaneously, advanced driver-assistance systems are paving the way for semi-autonomous mobility in the near future. The utilization of shared mobility, especially among Generation Z, is expected to rise significantly. The increasingly digital and connected lifestyle of consumers is also driving higher demand for seamless mobility solutions, particularly in the micro-mobility and last-mile transportation sectors. The automotive industry must embrace comprehensive connectivity as the foundation to address this mobility revolution.
IAA Mobility 2023 showcased numerous new electric vehicles, including models from established manufacturers like BMW, Mercedes-Benz, and Volkswagen. Many Chinese OEMs are actively contributing to this trend, offering their electric vehicles at competitive prices. The significance of charging infrastructure for electric mobility was further highlighted during the IAA MOBILITY.
Vehicle batteries are becoming “virtual power plants” within a smart grid. Swiss startup Hive Power demonstrated how smart grid balancing works.
Connectivity
Connectivity is another crucial trend in the automotive industry. The growing importance of connectivity for vehicle manufacturers stems from the fact that cars are becoming increasingly digitalized devices on wheels. Connected vehicles can communicate with other vehicles, infrastructure, and the internet, opening up new opportunities for safety, convenience, and entertainment.
This transformation requires traditional automakers, initially not primarily software companies, to build their expertise and establish partnerships to acquire the necessary skills to manage the complexity of software-defined vehicles. Investments in enabling seamless connected digital experiences are necessary to meet consumer expectations. Simultaneously, automakers must address the challenges of data management and cybersecurity as the volume of data, both within and outside the vehicle, continues to grow.
To better align themselves with connectivity, automakers must strike a balance between the costs of developing mobility services and the potential revenues from digital offerings. They need to accurately assess consumer willingness to pay in different markets and segments and strategically determine where to focus their efforts. Connectivity is crucial for enabling the new era of mobility, not just a means to an end. The IAA Mobility 2023 showcased numerous new connectivity solutions.
Sustainability
The concept of “sustainable mobility” goes beyond emission reduction and the development of alternative propulsion systems. It also encompasses the more efficient use of transportation modes. In public transportation and shared mobility, better utilization can help reduce the number of vehicles in urban areas. Smart cities and vehicle connectivity offer opportunities for smarter and more sustainable traffic management.
The question of whether we can achieve entirely emissions-free driving in the future becomes intriguing due to new projects related to E-fuels and carbon capture. There are many opportunities in the mobility sector to become more sustainable and improve the lives of billions of people and the environment.
The automotive industry is acutely aware of the challenges posed by climate change and is working to make its products and processes more sustainable. Sustainability was a central theme at the IAA Mobility 2023. “Circular economy” is a current buzzword and was a challenging topic in the IAA Mobility Visionary Club.The concept of a circular economy holds the potential to deliver eco-friendly mobility while posing both an opportunity and a challenge for the automotive sector. At its essence, it strives to generate new without depleting fresh resources.
Such an approach enables the sustainable use of finite resources and contributes to reducing CO2 emissions. A new label for sustainable vehicles was also introduced at the IAA.
[infobox headline=”At a glance”]
- The IAA MOBILITY 2023 recorded record participation with 750 exhibitors from 38 countries.
- Over 300 world premieres and innovations were presented.
- The event attracted more than 500,000 visitors, including over 100,000 on a single Saturday.
- International media coverage increased by over 70 percent compared to 2021.
- German Chancellor Olaf Scholz opened the event, and over 500 high-profile international speakers discussed the future of mobility.
- Electromobility remains a key trend, with increasing adoption due to legal regulations and financial incentives worldwide.
- Connectivity is becoming increasingly important as cars are becoming digitally connected devices on wheels.
- Sustainable mobility goes beyond emissions reduction and alternative propulsion and includes more efficient use of transportation.
- New projects involving E-fuels and CO2 capture could enable a carbon-neutral future.
- Additional trends include software-defined vehicles, artificial intelligence, and advanced safety technologies.
[/infobox]
The automotive industry is undergoing a massive technological transformation, with electrification, connectivity, and software development shaping the future.
Other Trends at IAA Mobility 2023
Additionally, the IAA Mobility 2023 featured the following trends:
- Software-defined Vehicles: Software is becoming a critical success factor in the automotive industry. New providers of automotive operating systems, such as SONATUS from California, are emerging.
- Artificial Intelligence: Customers increasingly expect personalized products and services. Automotive manufacturers and suppliers are working to personalize their offerings with AI. Numerous new personalized products and services were showcased at the IAA Mobility 2023. For example, German company XaiTeck, which defines applications using Explainable Artificial Intelligence and Knowledge Graphs, presented its innovations.
- Security: Security is a central theme for the automotive industry. The IAA Mobility 2023 introduced various new safety technologies, with a focus on autonomous driving systems. Cybersecurity companies like Magility Cyber Security GmbH also made their presence felt.
The IAA Mobility 2023 demonstrated that the automotive industry is undergoing a massive and profound technological transformation and facing international competition. Electrification, connectivity, and electronification (software) are the most critical technological trends that will continue to shape the industry in the coming years from Magility’s perspective.
by Julia Riemer | Aug 3, 2022 | Future Trends, Market development & Trends, strategy in change
Rapid and disruptive developments are repeatedly taking place in the mobility industry. One such change is the digital business transformation in the automotive industry. Increasing connectivity, the IoT, Mobility as a Service (MaaS) and Software as a Service (SaaS), the implementation of new features and services or apps, these are all elements of this business transformation. It evokes increased customer expectations, which manufacturers are responding to by focusing more on the consumer experience. And it requires new regulations for technical areas, which are joined by those for the environmental compatibility of corporate activities. Both together are drivers of investments in digitization.
Automotive experts predict that connected vehicles, smart factories (Industry 4.0) and a wealth of available customer data will drive this development. According to Frost & Sullivan’s Future of Mobility report, IT spending will rise from $38 billion in 2015 to more than $168 billion in 2025.
What can we expect from the digital business transformation in the automotive industry?
A look at history shows that some central aspects of the buying experience in the automotive industry have hardly changed over a long period of time. E-commerce has long been available to dealers and customers for the sale or purchase of new cars. Nevertheless, most customers preferred the traditional buying experience to the digital one. Even the introduction of digital tools such as iPads in showrooms has hardly changed customer behavior.
Now in 2022, customers of all provenance are increasingly willing to make their purchases, including car purchases, online. Automotive companies of all types, whether they operate offline, B2C, or B2B in eCommerce, will seek to further enhance the digital buying experience and further connect with customers digitally, whether through social media, an app, or a website.
The consumer experience is also the focus in the further development of the automobile itself. The car, which used to end with the body, is becoming a software-defined car, i.e., a software-centric electronic device on wheels that can communicate with the infrastructure and the back end, contains AI applications, can be updated over the air (OTA), and no longer has much to do with the way a traditional vehicle functions.
Challenges of digitalization in the automotive industry
Most initiatives to manage technological change in the automotive industry revolve around technology-driven trends and customer requirements and remaining competitive. Trends such as digital transformation in manufacturing, concern for the environment, increased requirements for software solutions, mobility-as-a-service and predictive analytics bring numerous benefits, but also present the industry with at least as many challenges. We have summarized some of them.
Investments
In the current difficult economic climate, maintaining liquidity and risk managing are of particular importance.
Companies investing in the digitization of the automotive industry need to focus on the most valuable use cases with the highest ROI. Predicting the ROI of new technologies and identifying optimal use cases in the automotive industry will remain one of the biggest challenges.
Just a few years ago, autonomous vehicles were heralded in the press as the biggest game changer. Since then, the outlook of seeing fully autonomous vehicles on the road has shifted significantly into the future. A 2020 Deloitte survey found that most consumers in Germany (67%) and Japan (61%) are not willing to pay more than $500 to equip their cars with autonomous vehicle technologies.
Similarly, innovative powertrain technologies. 58% of German and 54% of U.S. consumers said they would not pay more than $500 for alternative fuel engines. While there are advocates for these technological advancements, the uncertain investment climate and concurrent unclear customer demand for the technology remain among the biggest obstacles.
Resistance to change
The automotive industry could do more to drive critical transformative initiatives and business models. While the range of electric cars is increasing, range anxiety remains a real problem. More and better communication would be needed here. Also, broader initiatives by the automotive industry and its associations to promote a global or at least nationwide charging infrastructure could be envisioned. The ongoing debate about whether charging infrastructure should be the responsibility of OEMs or the government could be used for this purpose.
While the automotive aftermarket has benefited from B2C e-commerce for a long time, digital commerce has been sporadic in other areas of the automotive industry. Manufacturers face similar challenges.
Customer centricity
According to a Qualtrics study, the lack of customer centricity is an urgent challenge for the digital transformation of automotive retail.
Approaches to solving this problem should ensure that the personal experience at the dealership and the digital experience on any device produce similar customer experiences. The growing number of digital natives are sensitive to these experiences, and companies need to rethink how their relationships with prospects, customers, dealers, suppliers, and vendors can help to improve the overall experience of the car owner.
[infobox headline=”At a glance”]
- Digital buying experiences in general, but especially in the context of Software-Defined Car, are shaping business transformation in the automotive industry
- Technology transformation struggles with challenges in investment, resistance to changes and customer centricity
- Five trends are significantly influencing digital transformation in the automotive industry: environment and sustainability, connectivity, autonomy, digital commerce and augmented reality
- Although the journey of business transformation requires a lot, the benefits outweigh the risks, such as innovation and expansion
[/infobox]
Examples of digital business transformation in the automotive industry
The automotive sector already offers excellent examples of digital transformation: from product innovations to operational changes and customer-focused improvements. Here are some examples of digital transformation in the automotive industry:
- Tesla has long been a pioneer in the use of artificial intelligence and Big Data. Since 2014, the company has been collecting data from drivers using onboard sensors and was able to roll out a wireless update that improved the accuracy of its Autopilot software.
- Volvo’s Polestar brand was named the best positioned car brand for online sales. Like Tesla’s models, the Polestar 1 and Polestar 2 are only available online. However, Volvo also maintains dedicated “Spaces” at physical locations at partner plants.
- BMW has introduced an IoT platform at its Regensburg plant with great success. It enabled the company to cut the time needed to roll out new applications by 80% and reduce quality control issues by 5%.
- Volkswagen partnered with AR-based application developers to tag auto parts with the right tools. This system, known as MARTA, increases the efficiency of service technicians.
- One example of overcoming the limitations of traditional offline business is TruPar, a wholesaler of forklift parts that has future-proofed its operations with unified eCommerce, CRM and ERP integration.
- Mercedes-Benz recently invested 200 million euros in the Electric Software Hub in Sindelfingen, also known as the “software integration factory,” with the aim of accelerating its own transformation. Many functions relating to hardware, software, system integration and testing will be brought together there under one roof. 19 cross-functional units work there on 8 levels and 70,000 square meters of space on the electric/electronic integration process.
The 5 most influential trends for business transformation of the automotive industry
1 Environment & Sustainability Topics
The impact of human activity on the environment remains the number one global issue. Every industry must address sustainability issues and focus on sustainable technologies. Almost every major car brand already has a fully electric vehicle on offer. According to research by CNN, Volkswagen predicts it will sell 1.4 million electric cars by 2025, and it’s quite possible that electric cars will completely overtake gasoline-powered cars by 2040:
The rise of online shopping is driving sales of electric delivery trucks. In fall 2020, Amazon ordered 1,800 electric vans from Mercedes. Joining the trend of many brands to move sales to the Internet as well, automakers are offering customers a convenient experience without having to visit a dealership.
2 Connectivity
From phones to TVs to watches, most of our devices are already networked in some form, and automotive products are catching up fast. The development of infotainment systems, for example, is advancing rapidly. Cars are getting better at understanding voice commands, monitoring parts for wear based on driving behavior, and adapting to the driver’s personality.
As a digitally enhanced driving experience becomes more standard, automakers need to accelerate updates to vehicle systems. Tesla, for example, has long been a pioneer in wirelessly updating vehicle software. OEMs see significant value in remotely updatable vehicles, and their sales are expected to increase tremendously. The further development of Over the Air Updates (OTA) will continue to be a big topic we just recently reported on in an article about SUMS (Software Update Management Systems).
3 Autonomy
Machine learning and predictive driving technologies are already widely used in the automotive industry. As these technologies advance and autopilot-ranked systems are developed, the general public will warm to the idea of letting cars drive themselves.
The automotive industry is extremely data-driven, and the amount of data being transmitted by cameras, sensors and computers is increasing daily. Assisted driving is already becoming mainstream, and these technologies will soon find their way into automotive products at all price levels.
4 Digital commerce
Digital commerce technologies are transforming the automotive industry by enabling greater efficiency, cost savings and personalization. The proliferation of new tools and the wealth of available data can be better used for customer service. One example is feedback tabs or surveys on e-commerce and social media sites that can relay information directly to the dealer or manufacturer.
5 Augmented Reality
There are many applications for augmented and virtual reality functions in the automotive industry. Virtual showrooming, for example, allows customers to sit in a chair that mimics a car seat and experience in real time what it feels like to sit in the car of their dreams. Virtual prototyping and virtual configuration can help users to visualize the final product and to understand how all the parts connect.
Service departments, for example, can use augmented reality software provided by the manufacturer to make the job easier for automotive technicians. These technologies can be used not only by OEMs, but also by service departments in the insurance and used car industries.
What are the benefits of digital transformation in the automotive industry?
As digital technologies evolve all around us, manufacturers are increasingly at the crossroads: transform and evolve, or stick with the tried and true? In the long term, digital business transformation offers many benefits, including
- Streamlining supply management in automotive production and facilitating a networked supply chain.
- Innovation of vehicle performance and design
- Expansion into new markets with the sale of automotive parts
- Omnichannel sales and customer service experience
- After-sales support and customer satisfaction monitoring
How can you get started with digital transformation?
Today, more than ever, companies need to stay ahead of the curve and get into the minds of their customers faster than their competitors. They need to identify their current and future needs and work with the right technology partner to meet them. They also need to streamline internal processes, maintain and grow relationships, and reduce costs. Magility helps your company to master the challenges in your industry and transform your brand using the digital revolution.
Enable digital transformation in your automotive business today
The pressure to go digital requires automotive companies to collaborate and partner with technology solution providers. Make digital transformation a core, inseparable part of your business, regardless of which area of the automotive industry you are operating in.
At magility, we’re here to help. Contact us now – we’ll be happy to answer your questions. Follow us for more news also on LinkedIn. We look forward to hearing from you!
