The transportation industry is experiencing drastic changes as connected vehicles, autonomous cars, electric cars, and ridesharing re-imagine the automotive landscape. Automobile manufacturers are racing to redefine market leadership with purpose-driven designs while transforming customer experiences. As vehicles are transforming to “computer on wheels” fueling digital transactions and data monetization – data security and visibility have become one of the core challenges across the value chain.
Blockchain is rising as an innovation that enables secure digital transactions including payments through distributed ledger system that ensures security via immutability of records, improved transparency, and enhanced supply chain visibility and traceability. Though Blockchain has been leveraged across industries like financial services, the exploration of use cases in the automotive industry is comparatively recent.
Discovering new ways to leverage Blockchain in Automotive industry
For the transportation industry, blockchain enables the highest levels of interactional and transactional data security (through strong public key infrastructure encryption), along with real-time insights across the customer journey. And when combined with advanced analytics, blockchain can enable advanced intelligence and predictability to deliver personalized experiences and enhance decision making. Also, initiatives like MOBI (Mobility Open Blockchain Consortium) that involve technology companies, academic institutions and NGOs play a transformative role in increasing the adoption of Blockchain, distributed ledger, and similar other technologies through a holistic approach to develop industrial solutions.
Vehicle identity is one of the key elements that enable a broader range of applications that can meet the industry challenges in downstream processes including vehicle insurance, financing, vehicle payments, etc. Blockchain enables higher levels of transparency in supply chain processes like managing quality issues and defects. It also improves overall accountability by key players in the automotive supply chain including the end customers by better tracking the sales, service, modification, and refurbishment. This level of advanced analytics will also allow for timely identification of major warranty and other issues, substantially reducing overall costs on recall campaigns for OEMs (Original Equipment Manufacturers).
Platforms and Marketplaces
In the age when digital and data are leaders, the mobility industry is working to discover new approaches to manage, share and monetize electronic data. Digital marketplace combines an ecosystem of players to share data, insights, apps, and services to exchange value-added services. These marketplaces can deliver information ownership/protection, revenue disbursement, dynamic management of contracts/alliances, without any intermediary intervention.
Platforms that facilitate real-time tracking of data without third-party intervention allow for open market pricing and competition. These platforms can also enable dynamic contracts and traceable information for auto-arbitration when needed. Blockchain also enables collaborative services by key players including transporters, maintenance service providers, parts suppliers, insurance companies and finance companies, resulting in better customer experiences and satisfaction.
Besides generating new revenue opportunities for electric vehicle manufacturers, utilities and charging infrastructure providers, these digital marketplaces also can enable new ways for consumers to become part of Electronic Vehicle (EV) ownership and charging ecosystem. E-mobility manufacturers like eMotorWerks have supported distributed marketplaces (positioned as “Airbnb for EVs”) to enable peer-to-peer charging models through a public blockchain transaction layer. These platforms will facilitate charging station or homeowners to rent out their stations to EV drivers and get payments or carbon credits for their services through digital tokens immaterial of the model of the car or electricity provider.
As automobiles become the new means of delivering superior mobility experiences for customers, the concept of car will advance into a packaged offering comprised of value-added services that not only leverage product capabilities but also radically enhance experiences and lifestyle of customers.
To learn more about Digital Transformation in the automotive industry, talk to our team!