The Auto Industry is being transformed by Big Data

A decade ago, big data was a fascinating concept. Today, it is a common feature in modern businesses. Data is fundamentally valuable. Depending on how you use it and what you collect, data can help you gain better business insight, change your direction and show you why your business operates the way it does. The benefits of data collection on a large scale are even greater. Carwatch Weekly compiles a summary of vehicle recalls that were published during the week prior. Although we get our data from various regional markets, we do not claim to have all the information.

The Auto Industry
You might not realize how big the auto industry is. While there are many big-name manufacturers of automobiles that design and build vehicles for mass consumption, you should also consider the vast network of suppliers they depend on to produce and ship the parts. Distributors are responsible for selling and relocating these vehicles. Don’t forget customer service and safety. The auto industry has a wide reach and uses large data at every level.

Analyse value. Big data helps companies to understand the true value of their cars. This information is valuable for designing new cars, but it’s even more important when valuing older cars. Kelley Blue Book’s valuation services are more accurate and efficient than ever, and vehicle recyclers such as the Clunker Junker offer vehicle owners a higher amount for their junkers.
Management of supply chain. The most important application of big data is the analysis of the value and flow between specific processes within multiple organizations. This analysis is used in supply chain management in the automotive industry. Companies must know where they are getting their parts, what they cost, how efficient they are being delivered, and how that affects the company’s profitability. Companies are optimising their strategies by utilizing complex data processing to gain insight into these dimensions.
Cost reduction. The auto industry is seeing overall cost reductions through big data. Companies can use big data to determine which material is more beneficial than another and then make changes to their processes that will increase efficiency or maximize productivity. This means that companies can put together vehicles at a lower cost and consumers are reaping the benefits. Vehicles are cheaper for consumers, while vehicle manufacturers still make a profit.
Safety improvements Big data is also being used by companies to analyze vehicle safety. Companies can make hundreds of improvements to their vehicles by analyzing millions of data points from test crashes and simulated situations. This will increase their ability to withstand immediate and long-term events. Both consumers and companies benefit from this. They have safer vehicles and happier customers. This is gradually making our roads safer.
Understanding the consumer. Automakers use big data to understand their customers’ needs and wants. This allows them design more appealing and practical vehicles for the masses, which gives consumers more of the products they want and increases sales for the manufacturer. Automakers also gain key insights from this data that can be used to design more targeted advertising and marketing campaigns. This will save money while increasing efficiency, and maximize exposure for their most important brands.