The automotive industry is facing unprecedented disruption. Original equipment manufacturers (OEMs) and tier 1 suppliers continue to see the importance of software investment in their growth strategies.
Early adoption is crucial as it will strengthen their position in an expanding ecosystem of connected cars, internet of things (IoT), autonomous technologies, and the impact of smartphones on in-vehicle experience and intensifying regulatory and safety mandates. Selecting the most suitable incremental technologies to optimise valuable resources, however, will be most crucial.
Digital Transformation of the Automotive Industry, recent research from Frost & Sullivan’s Future of Mobility Growth Partnership Service programme, finds that spend on digitalisation will transform the component hardware-driven automotive industry into one focused on software and solutions. Investments into digital automotive are expected to reach $82.01 billion in 2020.
Five key pillars
The study explores business activities, process improvements, and the development of competencies and business models across five key pillars:
- connected supply chain;
- industrial IoT (IIoT) and Industry 4.0;
- connected and autonomous cars;
- digital retailing; and
- mobility-as-a-service (MaaS).
“Digital transformation will affect the entire automotive value chain including design, production, distribution and retail; reshaping the traditional automotive business model. New models will consider data, connectivity and customer centricity, along with cybersecurity,” said Frost & Sullivan Mobility senior consultant, Sriram Venkatraman. “As a result, drivers of digital initiatives within the industry will change from CEOs, CIOs and IT departments; by 2020, chief digital officers will begin to steer both strategic and digital initiatives of OEMs across luxury and economy brands.”
OEMs and tier 1 suppliers will seek partnerships with technology vendors and specialists for cloud computing, cyber security, telematics, connectivity and 3D printing solutions. Robert Bosch, Harman International, Continental, Magneti Marelli and Denso are already focusing on digital initiatives. OEMs – like Ford, GM, Tesla, Volkswagen and Toyota that focus on connected cars, autonomous driving, and mobility – must now prepare to compete with technology and semiconductor manufacturers, as well as mobility companies.
Other upcoming market developments
Other upcoming market developments include:
- Robust upstream and downstream technology investments from automotive companies will realise recurring revenues from new services; IT spend will increase from $37.95 billion in 2015 to reach $168.8 billion in 2025, exhibiting a compound annual growth rate of 16.1%.
- An increased investment focus on electric vehicles, new mobility services, multi-modality, artificial intelligence, and autonomous vehicles.
- Disruption of the automotive industry supply chain, as more than 1,700 new digital startups enter the market.
- Enhanced security across both horizontal and vertical business layers, as businesses begin to integrate IoT and big data analytics more.
- A country-specific, digital retailing strategy for new and used cars, in addition to aftermarket and servicing.
“By 2030, the digitalisation roadmap in the automotive industry will move from digital services to car-as-a-service (CaaS) to MaaS, making vehicles an element of a connected living solution,” noted Venkatraman.
“Automotive companies adopting custom digital initiatives will be able to successfully leverage their software investments, access new markets, and easily adopt best practices.”
Other topics recently covered under the Mobility Growth Partnership Service include: Cloud and the Car – Use Cases, Business Models and Impact Analysis; Automotive Industry IT Spending – Key Focus Areas, Trends and Future Outlook; Automotive Dealer Management System (DMS) Market—Growth Opportunities and Digital Transformation, Forecast to 2022; State of Automotive Cybersecurity: Key Trends, Solutions, OEM Activities and Vendor Profiles; Disruptive Satellite Communication in the Automotive Industry; and Strategic Analysis of the Automotive Keyless Access Systems Market.
BGI Ethiopia Gets New keg tracking solution- Keg Track&Trace
BGI Ethiopia (Source: 8Sigma)
Montelektro, a leading system integrator in the brewing industry, and 8Sigma, a premium MES provider delivered solution KegTNT (Keg Track&Trace) to a brewery in Addis Ababa.
KegTNT is a software solution that tracks kegs throughout their life stages while inside the brewery and within the whole supply chain.
In addition to the mentioned brewery, during 2021, KegTNT will be implemented in two more breweries owned by the same company, BGI Ethiopia, whose long brewing tradition dates to the first half of the 20th century. The BGI Ethiopia’s owner is French Castel Group, one of the largest African and among the world’s ten largest beer producers.
The Ethiopian customer required a new, modern solution that will enable them to better manage its keg fleet, reduce costs related to the ownership of kegs, improve quality control, ensure better maintenance supervision, and to prevent possible keg losses.
Montelektro and 8Sigma’s scope of supply included the implementation of KegTNT solution that collects and saves all the data about kegs’ lifecycle, tracking it by using the RFID technology.
Its main purpose is to provide real-time tracking and traceability of each keg in the fleet, and better maintenance and quality control.
The scope also included a tablet application for tracking operations inside the brewery and a smartphone application for the sales agents. From now on, maintenance, laboratory, and warehouse staff can use tablets equipped with an RFID reader to manage everyday tasks related to the keg fleet. Sales agents can also report, track, and resolve all complaints through the application on their smartphones. All information is available in real-time, so staff can react immediately and identify potential problems even before they happened.
Within this project, KegTNT was also integrated with a keg filling plant (capacity of up to 900 kegs/h) that is fully automated and robotized. This integration enables the brewery to automatically collect and analyze data about kegs’ filling, like production rates, reject rates, downtimes, and other elements required for an efficient production.
These features of KegTNT should help BGI Ethiopia not only to improve resource utilization and the management of keg fleet, but also to preserve its good reputation and a desirable market position.
“Last year was very challenging for the whole world. The brewing industry, just like all others, was in turmoil. We are satisfied because we have managed to conclude the project in one of the three contracted breweries in the circumstances of travel restrictions. On this occasion, we would also like to thank Montelektro for their trust and partnership on another project we have successfully delivered together.”, said Vladimir Lukić, director at 8Sigma.
Apart from the mentioned project, 8Sigma and Montelektro continue to cooperate. The most important common project is the development and implementation of MES (Manufacturing Execution System) solution for the brewing industry, named BeerVision.
BeerVision schedules, tracks, and manages all production activities inside a brewery, from raw materials to the finished product – beer.
During production, this Industry 4.0 solution collects and analyzes data about the brewing process in real-time and provides fully integrated data for all operational activities. It connects and integrates the process control system (PCS) with Enterprise Resource Planning (ERP).
With BeerVision, companies can make decisions faster and easier and manage their businesses much more efficiently. It also helps them improve their product quality and reduce costs.
Egypt, Toyota Tsusho discuss manufacturing natural gas-powered microbuses
CAIRO – 13 October 2019: Egypt and Toyota Tsusho discussed on Sunday how the giant Japanese company can contribute to the government’s plans to manufacturing natural gas-powered microbuses.
During his meeting with President and CEO of Toyota Tsusho Mr. Ichiro Kashitani, Prime Minister Mostafa Madbouli emphasized Egypt’s keenness to best utilize its resources by reducing diesel exports’ expenses and transferring diesel-fueled vehicles to natural gas-powered ones or to bi-fuel vehicles that are capable of running on two fuels (natural gas and gasoline) through offering payment facilities.
Mabdouli further stressed that the transfer process needs to be implemented through manufacturing companies that working on Egypt’s soil, in order to enhance local manufacturing, and transfer expertise, according to a cabinet press statement about the meeting. He also ensured that the government is serious in its plans to implementing the transfer process through providing funding programs and incentives to encourage owners of old microbuses.
These ambitions go the lines with the government’s latest unveiled plan in August, aiming to turn 50,000 vehicles into gas-powered annually.
Mabdouli also stressed the government’s readiness to discuss the details of the implementation of the program and accelerate the process according to a specific schedule.
For their part, Toyota Tsusho delegation presented their proposal of “manufacturing high quality microbuses in a way that will meet the Egyptian government’s converting the fuel-powered vehicles.”
In a previous interview with Business Today Egypt magazine, Toyota Tsusho Kashitani explained his company’s strategy about using diversified fuels, based on the global trend to electrification, while maintaining an environment-friendly technology.
“In order to realize the fuel transfer plan by government, natural gas field development would be necessary to be accelerated and we are ready to support it by expansion of the offshore rig project as referred above,” Kashitani added during the interview.
Messe Frankfurt studies holding international textile exhibition in Egypt
Shirts- CC via Maxpixel/ Sony Ilce-7
CAIRO – 19 May 2019: Messe Frankfurt Exhibition GmbH is studying holding an international fair for textile products in Egypt for the first time, announced Egypt’s Ministry of Trade and Industry in a statement on Sunday.
“The exhibition will be an important platform for bringing together exporters and importers from around the world to exchange experiences and views in this field,” the statement read.
The exhibition comes in light of Egypt’s strategic plan to be a trade hub serving the African countries, the ministry said, noting that the country aims to be an international center for all international exhibitions.
Member of the Executive Board of Messe Frankfurt GmbH Uwe Behm said that the company has been cooperating with Egypt for 100 years, adding that the company aims to hold this big international exhibition due to Egypt’s distinguished and strategic geographic place in Africa and in the Arab World.