Gartner CIO Agenda for Automotive Digital Transformation

The automotive space is traditionally synonymous with complex supply chain management, disjointed large manufacturing information systems, and inefficient business application development cycles that use extensive resources. But automotive executives are working to change that.

Gartner recently took a look at the Automotive industry with their report, 2017 CIO Agenda: An Automotive Perspective. This report dives into digital transformation of Automotive: the challenges, expectations, and goals for CIOs in the industry.

Focus on Innovation

Looking at the current automotive landscape, it is easy to see that the focus is on innovation through technology. Gartner research confirms that Automotive is more invested in new products and capabilities than most other industries. The evolving nature of the automobile, pushed forward by connected-car services, autonomous vehicle capabilities, and new environmental regulations, has led to a dramatic investment by all car companies and suppliers in transformative technologies.

"The automotive industry is in the midst of a transformation as the core product of an automobilebecomes the software loaded into it and not the engine powering it."

Vehicles are now gaining the bulk of their value from the IT department, either through software that aids in development and manufacturing, or through systems that enable new business models.

Technology Investment Priorities

Gartner polled Automotive Industry CIOs on the technology areas in which they will be investing the most going forward, these are the top 3:

1. Business Information (BI)/Analytics: Automotive CIOs believe that BI and analytics will impact the way their businesses are run more than any other technology. Successful analytics tools can help form actionable customer segments, improve customer retention, boost forecasting ability, and ultimately boost sales.
2. Enterprise Resource Planning (ERP): ERP will continue to be a key area of investment going forward. ERP systems can optimize operations for efficiency, reduce costs, and maximize profitability. ERP implementations; however, generally require a considerable amount of time, financial resources, and cooperation among all areas of the company.
3. Cloud Services/Solutions: 30% of respondents view cloud services and solutions as an essential investment opportunity. The automotive industry is still learning how to best use cloud platforms to their advantage. if implemented appropriately, cloud can greatly improve automotive company processes. Many organizations are now utilizing cloud to perform new services, collect big data, and deliver beneficial content to vehicles.

Digital Transformation Platform

The demand for innovative solutions in the Automotive industry is higher than ever. However, these innovations require the backing of flexible and efficient solution platforms to be successful. Automotive CIOs must streamline their systems with agile software to compete and win, in this fast-paced, innovative market.

The advantages of a low-code application development platform approach is that it enables organizations to innovate with new applications while they leverage their current technology investments; including the ability to:

• Turn big data into actionable information delivered to decision makers in context
• Extend ERP systems with modern user interfaces and mobile capabilities
• Gain agility and scalability with an application platform that operates on-premises, in the Cloud, or as a hybrid model

Visit our Automotive Resources Center to learn how Appian's agile platform is benefiting the Automotive and Manufacturing industry.

Jo Seidel

Senior Automotive Account Executive