The competitive scenario of the automotive sector is driving a process of change in business models and the determinants of their success.

There are mainly two phenomena, pervasive and highly interdependent with each other, that are characterizing the entire economic and social system but the automotive sector in particular:

• the digital transformation;
• the focus on environmental issues.

Although these two phenomena offer great technical, managerial, economic and financial opportunities, on the other hand they place companies in a condition of great uncertainty in relation to the business model to be adopted.

In particular:

• digital technologies make it easier to achieve greater efficiency in production processes, ensuring high levels of innovation in organizational processes and in internal and external management operating methods;
• the absolute focus on environmental sustainability results in a reduction of the so-called “environmental footprint” forcing companies to innovate and sometimes even radically revolutionize the way they operate.

The automotive sector is one of the sectors most affected by these two phenomena.

In detail, the process of digitization and sustainability of mobility is not limited simply to the addition of new digital components or engines.

According to a study conducted by Pwc, the automotive industry will reduce the life cycles of car models from an average of about 5-8 years to 1-2 years.

This will certainly mean that customers will not change their cars annually, but regular updates will be offered to cars already on the market.

At the same time, a new challenge will be generated to address: data security.

Data security will become a priority in the coming years, including on the part of manufacturers, and will be actualized through public education campaigns on the security of automotive connectivity.

Markets, for the past few years, have been focusing on personalization of the customer experience, and the automotive industry is moving accordingly.

Market strategies are already beginning to be vertically calibrated to the individual.

In an increasingly connected world, cars will not be able to remain indifferent but will also have to integrate the “smart” concept that is progressively encompassing all everyday objects (smart-phone, smart-TV, smart-home, etc.).

The new era of the automotive industry can, according to some, be expressed through the acronym PACE, which identifies key trends:

• Personalization: it is understood vertically, meaning that it concerns the whole experience that connects to the world of the car;
• Automation: all major automotive industries are working on autonomous driving technology;
• Connectedness: the need to offer the customer a seamless and uninterrupted connectivity experience;
• Electrification: this is the strongest trend in the industry.

In this context, it is essential to offer the customer a personalized (P), automated (A), real-time connected (C) “diagnosis” and “care” solution: Eureka SmartCar (E).