How Data Analytics Is Helpful in Business Decision Making
How Data Analytics Is Helpful in Business Decision Making
How Data Analytics Is Helpful in Business Decision Making
automotive industry
Ever since Karl Benz invented the first car in 1886, the automotive industry has seen a
significant boom in business, to say the least.
From the first car to the introduction of the Ford Model T, the first mass-market car, to the
introduction of the Tesla Roadster, the first all-electric sports car, the growth of the
automotive industry has been astronomical.
In the last 140 years, the industry has improved significantly with contributions from
visionaries like Gottlieb Daimler, Ferdinand Porsche, Ferruccio Lamborghini, Enzo Ferrari,
Kiichiro Toyoda, Henry Ford, and most recently, Elon Musk.
Vehicles have now become very intertwined with our lifestyle and culture.
Along the way, the industry has changed how it has operated. While it once relied heavily on
human intervention and intelligence, it now relies on more technology-backed tools to make
decisions on design, manufacturing, marketing and sales.
One such widely-used tool is data analytics.
Data analytics is improving automotive design
Do you remember the cars of the late 1980s and the early 1990s?
This period is widely considered to be the dark age of automobile design, because of the soap
box-like design of the vehicles from that era.
Modern automobiles, however, have ditched these boxy designs in favour of flowing lines
and aggressive body panels.
These elements not only improve the look of the vehicle but also improve key performance
metrics like fuel efficiency (battery efficiency in electric vehicles), drag, braking performance
and speed.
Fuel efficiency or battery efficiency, for example, relies heavily on how much drag the
vehicle experiences. The higher the drag, the lower the efficiency.
The flowing design of modern vehicles also improves their aerodynamics, reducing drag,
which results in better fuel efficiency.
These design improvements are thanks to data analytics, which helps engineers and designers
gain insight into how their designs are impacting the overall performance of the vehicle.
Data analytics can also help engineers and designers create 3D models of the vehicle and run
computer simulations based on real-world conditions to measure these metrics.
By leveraging the power of data analytics in the design process, manufacturers can reduce
research and development costs and prototyping costs to a significant extent.
Data analytics is optimising production lines
Early automotive production relied heavily on manual labour. Even today, certain artisan
automotive manufactures use a very high percentage of manual labour in their production
lines. Manual labour is slow and inefficient, however.
In response to this, mass markets brands like Toyota and Volkswagen have shifted to a
mostly automated production line with minimal human intervention, which is fast, reliable
and more efficient than manual production lines.
Volkswagen, for example, produced close to nine million vehicles in 2020 thanks to their
optimised production line.
These production lines depend on data analytics to function efficiently and smoothly. Sensors
and cameras placed in the production line collect a vast amount of data, which is then
processed by data analytics tools and fed into the pieces of equipment that run the production
lines.
Without data analytics, the equipment that supports automated production will become
obsolete.
Analytics is helping us reduce accidents and fatalities
According to recent statistics, fatalities as a result of automotive accidents have decreased
from 3,798 in 1970 to 1,195 in 2019 in Australia alone.
The decrease in fatalities is largely thanks to better road safety regulations and better safety
standards implemented in modern automobiles.
Automotive manufactures are now including more than 50 sensors in their vehicles to collect
data from the vehicle and its surroundings, which can then be analysed and used in lifesaving
technologies like collision detection, airbag deployment, and driver eye-tracking.
Without big data analytics, this kind of technology would not be as effective as it is now.
Data analytics is reshaping the automotive industry
Automobiles are a vital part of modern society, given their role in supporting large-scale, life-
changing mobility. The industry has constantly made improvements to make transportation
better, and data analytics has helped them make these advancements.
With data analytics, automakers are creating faster, safer, and more reliable vehicles. This
will only get better in the future.