Predictive Analytics for The Automobile Sector

predictiveanalytics1The automobile sector is increasingly using big data to produce efficient products and enhance the driving experience. The existing automobiles are extremely instrumented.

Until recently, the information was mostly in the vehicle, but there is an opportunity to use the information and comprehend the cars functioning or the consumers’ choice in a better manner.

The information can be fed back into the design process to maximize the consumers’ experience. The automotive sector is on the verge of a big data explosion.

Automobile firms have the prospect of leveraging modified sources of big data to expedite the product design, improve vehicle performance, and enhance the driving experience.

The sources of data include:

  • Unstructured data produced internally – emails, consumer comments, design notes, service and maintenance notes.
  • Unstructured data available outside (social media, blogs, product reviews).
  • Sensor-generated data (sensors, onboard communications, GPS, telematics) – This is vital as manufacturers shift towards the “connected vehicle” with more than 10,000+ sensors for each vehicle generating various data, including MPH, MPG, RPM, oil pressure, water temperature, engine temperature, tire wear, oil viscosity and fuel efficiency.

The big data can yield insights into the automobile sectors key business functions:

Warranty Analysis

Automotive firms can enhance their capability to predict warranty costs/warranty liabilities by configuring consumer information, dealer service notes and current warranty claims data.

Predictive Maintenance

The huge amount of data created by 1,000s of onboard sensors delivers the opportunity to overcome nonconforming events along with initiating corrective actions on the critical product performance issues.

Product Performance

Development personnel would want to review the performance of the vehicles along with a distinct vehicle subsystem to facilitate improved product design in the future.

The ability to evaluate a distinct product’s performance assists in reducing the product development cycle by identifying the key development functions.

Parts Forecasting and Distribution

Any information on warranty trends (the car, component, geography, season) can enhance the efficiency of inventory, distribution, supply chain systems while eliminating unwanted costs. This would be a win-win scenario for customers, dealers, and manufacturers.

Dealer Satisfaction

Analyzing social media and the blogs could help in understanding the dealer satisfaction. At the same time, automotive firms can access other sources of data to comprehend and evaluate driver behaviors to enhance the complete driver experience.

The new data sources are:

  • Embedded car sensors.
  • On-board navigation (GM’s OnStar, Ford SYNC).
  • Telematics (like Progressive Snapshot).
  • GPS-enable Smartphone apps.
  • Weather conditions.

Transforming marketing environments, increased competition, cost pressure, and instability are resulting in a change in the market outlook. Leveraging cutting-edge analytics would create an exponential value.

In order to completely benefit from analytics needs a wide-ranging set of competencies that integrate various functions and groups across the organization.

Analytics would enable an automobile organization to have an insight across various domains of the business, thereby facilitating informed decision making.

Please visit AcademyFT review to know about how Academy of Financial Trading has helped thousands of students.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s