By 2023, nearly 69% of passenger vehicles sold will exchange data with external sources for communication, safety and entertainment. As software permeates an industry traditionally ruled by hardware, automakers will need to take a page out of software-as-a-service (SaaS) providers’ book to adapt from “build and sell” to “build and maintain” – a business model that demands regular updates and artificial intelligence-enabled alerts on vehicle performance and service needs.
Many large OEMs lack the support and structure to keep pace in demand for innovation in areas like AI and machine learning. Adjusting to the new market with be exciting and challenging. Henry Bzeih, CTO and SVP of Automotive at Flex, has 3 tips for automotive OEMs to organize their businesses and capitalize on emerging innovation.
Partner with AI experts
The connected car requires a different skillset than its hardware-dominant ancestor – OEMs building connected vehicles should consider a partner that understands the bridge between hardware and IoT.
Consider an acquisition
Fill your knowledge gap and bring the expertise you need in-house through an acquisition of a machine learning, shared mobility or predictive modeling start-up.
Redefine the vehicle
Begin regarding vehicles as a mobile living room or office, in which device pairing and experience is seamless.
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