17 Sep Software development and IT services for trucking companies
IBM has recently released a study addressed directly to trucking future and trucking future digital TRANSFORMATION
The report Research Insights Truck 2030 Digitally reinventing for the long haul answer the question how much the digital world will transform the trucking industry and how much digitalization will reshape the trucking.
the process will change significantly
What previously was a very singular, manual, labor- intensive process of picking up and delivering a package has been replaced by truck companies implementing logistic processes called capacity-as-a-service, crowdsourced delivery, truck platooning, optimized predictive maintenance, driver/truck/road specific routing, smart cargo, automated driver assist, and the list goes on and on. And this doesn’t even include the transformation that is happening with powertrain and emissions through the electrification of the vehicle.
Thanks to digital technologies such as cloud, artificial intelligence (AI), Internet of Things (IoT), advanced analytics, and machine learning, these and many other truck capabilities and mobility services are available today or are expected to be readily available by 2030.
Many predictions about 2030 support this vision:
– Every person will own 15 connected devices
– The truck-as-a-service market is anticipated to surpass $99.2 billion
– One billion lines of code will be needed for a fully autonomous vehicle
– The universe of sensors will reach 100 trillion
– 80% of commercial vehicles will be connected.
Technology advancements, customer expectations, and the global workforce are expected to be the top truck industry influencers for the next 10 years.
In 2030 the following external factors will influence the industry:
69% | Technology advancements
62% | Customer expectations
51% | Global workforce
46% | Goods mobility
46% | Outside competition
39% | Sustainability
35% | Localization/market protection
34% | Sharing economy
31% | Macroeconomic factors
26% | Regulatory
Digital reinvention provides a path for commercial vehicle organizations to create exceptional experiences, innovative strategies and business models, new ways to work, and new expertise, either in-house or through ecosystem collaboration.
– New experiences: Powered by digital and data, consumer desires are driving new expectations and business models in goods mobility, new capabilities for fleet management, and new personalized experiences for the operation of the truck itself.
– New focus: Digital innovation continues to be paramount for truck companies to differentiate and will open up new routes to growth and brand loyalty.
– New ways to work: Platforms, intelligent automation, and data and digital technologies such as artificial intelligence (AI), cloud, and Internet of Things (IoT) will power responsive operations leveraging new work strategies.
– New expertise: The race to digital reinvention requires a strategy that addresses the need to reskill internally.
Organizations could fill skill gaps through new hires, outsourcing, and even purchasing technology companies— all while leveraging an extended ecosystem.
Current global freight volumes are estimated to grow by 70% over the next decade.
Current global freight volumes are estimated to grow by 70% over the next decade.6
New logistics concepts, such as truck platooning, driver/ load share, and capacity-as-a-service are giving fleet owners new opportunities to optimize their fleets and improve their operating performance. Smart freight can self-identify and self-monitor, which is important for product tracking, environmental sensing, and problem detection and resolution.
Enhanced driving features are the top priority for both 2020 and 2030. Vehicle-focused attributes such as monitoring and uptime tend to have a higher focus in 2020. Automated vehicle safety significantly increases as technology advances over the next 10 years. And the total cost of ownership decreases as vehicle reliability and efficiency improves and the industry moves to more usage-based models.
Drivers will continue to be critical participants in goods mobility. 62% of the Visionaries and 46% of the Others expect delays in the rollout of truly autonomous commercial vehicles.
Fleet owner loyalty
Enhanced driving features are a top priority for creating fleet owner loyalty in both 2020 and 2030.
To meet driver expectations, truck companies will likely need to deliver digital products and services that focus on vehicle usage and driver personalization (see Figure 3).
Industry executives indicate that vehicle usage capabilities are the highest priority. At the top of the list for both 2020 and 2030 is vehicle features that promote driver safety. Value-added mobility and emergency services are also
a high priority today. From a driver personalization perspective, data security and privacy and integration with the driver’s personal devices are important.
Trucks will be able to “recognize” drivers and personalize content displayed to them. Trucks will also continuously learn and offer new suggestions based on driver interests. For drivers who are health conscious or have a medical condition, the truck can monitor their health, alert them of issues, and share the information with other health- related devices.
There are significant opportunities for fleet owner and driver loyalty through the generation and use of vehicle data.
Truck companies will also benefit from vehicle data. The Visionaries (77%) have a higher expectation compared to the Others (52%) that data will provide high value to uncover new revenue streams. And adjacent industry products and services will be greatly enhanced by data according to 65% of the Visionaries versus 47% of the Others.
Today’s operations must be dynamic, responsive, and interconnected to an organization’s ecosystem and workflows. This requires end-to-end enterprise visibility, real-time insights, and decisive actions.
Truck manufacturers that leverage intelligent automation to build these capabilities are poised to address challenges today in workforce productivity, supply chain challenges, and customer service disruptions. At the same time, intelligent automation also positions them for the future with operational efficiencies through intelligent workflows.
Intelligent automation allows employees to focus more time on customer-related priorities and dramatically enhances an enterprise’s ability to respond, adapt, and thrive in an everchanging competitive landscape.
Organizations that build a robust automation program combine a broad set of technologies—including robotics, bots, and devices—with AI capabilities such as machine learning, natural language processing, augmented intelligence, and computer vision and hearing. A blend of the appropriate technologies for the task at hand supports intelligent workflow efficiencies but can also help drive revenue and profit.
Dominance of digital
Six out of ten of the Visionaries agree that some truck OEMs will significantly outsource their vehicle production operations to focus on becoming digital companies, versus five out of ten of the Others.
Digital initiatives are expected to bring high value across the business functions of the organization and those functions directly impacting the customer. 59% of respondents say digital technologies will drive high value
in deploying customer experiences. Business processes and workflows will benefit according to 57% of our survey respondents. 55% indicate manufacturing automation is a perfect candidate for technologies such as IoT, AI, and software-based robotic process automation.
Digitized products and services enable the brand transition from functions and features to experiences for 51% of respondents. New personalized products and services can be offered in a subscription or pay-as-you-use model, for instance.
47% of survey respondents expect new business models to be enabled through digital initiatives. The opportunity to integrate the truck with other aspects of a driver’s life opens the door to new business models in industries such as insurance, finance, and health.
Actionable insights into the movement and condition of materials and goods throughout the supply chain allow companies to proactively predict and respond to issues— instead of reacting after the fact. And technologies such as virtual and augmented reality and wearables assist workers in finding new ways to improve and optimize the plant floor.
When asked how they see their organizations allocating their investments in digital initiatives over the next 10 years, executives cite cloud computing, AI, and IoT among their highest investments (see Figure 10).
In addition, with improvements in printing technologies and materials, interest in 3D printing is growing. Its potential for use is expanding beyond just creating prototypes for low- volume production and re-manufacturing. For instance, Volvo Truck’s Vulcan project looked at how the design of a truck engine can be improved through 3D printing.