A robust technological foundation is decisive for the auto industry’s digital transformation, yet its importance is often neglected in favour of customer experience. This oversight risks draining resources and eroding competitiveness.
By Mathias Heegaard, CEO of car subscription service :Dribe, subsidiary of Denmark’s largest automotive player, Semler Group.
The auto industry is undergoing a digital revolution, where technological solutions play a key role in meeting customer expectations and market demands. However, many companies in the industry neglect a crucial aspect of this transformation: the digital foundation. Building elaborate technical solutions on top of a manual and outdated foundation is unsustainable and poses significant challenges for companies as they scale and grow. If businesses invest in a solid foundation, they can reap significant benefits such as an improved user experience, efficient work processes, and time savings.
A survey from McKinsey supports that 42 percent of consumers who are considering purchasing their next car online would switch to a different brand if their current brand does not provide a satisfactory digital buying experience. The user experience of websites and apps – the visible and interactive layer for the customer – usually draws most of the attention from businesses looking to digitize their operations. But behind the visible layers, an invisible engine is running everything – the digital foundation.
An overlooked potential
At :Dribe, a subscription platform offering flexible access to cars through a user-friendly app, we have seen how investments in automation technology can pay off. Our subscription platform is built on a stable and flexible structure that automates numerous time-consuming processes, freeing up resources for our franchisees.
For example, our digital system automates invoicing, inspections, and other time-consuming manual tasks. Real-time updates ensure stable operations, while we continuously collect data on customer behaviour to tailor our offerings.
The result is a more streamlined business and an improved user experience that makes the app scalable. Our franchisees can scale without the need to expand their workforce – something many other subscription services struggle with. They often rely on manual processes, such as invoicing for transactions, which become overwhelming as subscription volumes increase. This applies, for example, to car dealerships that need to manage complex financing agreements, or car rental companies that often face challenges with fleet management and maintenance.
Our commitment to automation has earned up multiple accolades at the National Organization Awards in Greece, including awards for best technology, best mobile application, and innovation in user experience.
The time to act is now
Digitalization can seem daunting and complex but delaying action can risk loss of customers and market shares. To succeed, businesses must prioritize resources for implementing and maintaining solid technological foundations.
It requires leadership commitment and a long-term strategy. A good starting point is identifying manual processes that can be automated and work with experienced developers that can deliver flexible technologies that can adapt and grow with the business.
The digital transformation is well underway – the time to act is now.