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A configuration method key to EV market success

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A configuration method key to EV market success

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Jesper Blak Møller argues the significance of synchronising product, pricing and engineering information early on

The demand for electrical autos (EVs) is rising sharply. Within the US alone, the EV market reached a document excessive in 2022 of an estimated 918,500 gross sales—a rise of over 50% from 2021.

Assembly elevated demand in a well timed style is usually a problem for any automobile maker, however EV firms particularly expertise some distinctive hurdles to quick manufacturing instances. Shortages of digital elements, lithium batteries and uncooked supplies can create a glut of orders with few automobiles rolling off the meeting line.

Nevertheless, it’s not simply how these autos are manufactured that’s creating this example; it’s additionally how they’re bought. The pattern of automobile shopping for is quickly shifting on-line, which suggests these producers whose product, pricing and engineering information are already aligned on the manufacturing facet are usually not solely offering their clients with a greater shopping for expertise, however are additionally a step forward of the competitors. A configuration administration method can play a key in making this occur.

The challenges of EVs

EVs are nonetheless comparatively new, they usually’re nonetheless going through enormous competitors as a result of they require an entire new sort of manufacturing line from what’s used with a gasoline-powered automobile. On the similar time, there’s a built-in competitors between shopping for an EV versus shopping for a conventional automobile. That makes it much more vital for EV producers to know precisely what they’re producing, what options they wish to present and what choices with which to equip automobiles in every area for a given mannequin yr. These aggressive elements imply that they should supply one thing further: a greater shopping for expertise for the shopper.

A configuration administration method may also help producers to ship extra autos, sooner and at better revenue margins whereas nonetheless exceeding buyer expectations

As EVs develop into extra widespread, extra and totally different laws are rising, significantly across the chemical compounds contained within the batteries that energy EVs and utilized in totally different elements of the manufacturing course of. These differ by nation and are frequently evolving. For EV producers, staying in compliance with these laws makes it further vital that they keep exact management over the definition of the elements and supplies they put into their merchandise.

Then there are altering calls for for the customer expertise. A current research discovered that Era Z is the fastest-growing phase for EV buy consideration. Youthful individuals have totally different calls for in relation to the shopping for expertise than the earlier generations. They wish to begin the shopping for course of at house, determine what choices they will get in a sure automobile of their nation, and decide the worth. They wish to proceed that purchasing expertise at a seller or in a showroom. That’s an omnichannel expertise and this requires that EV producers have full management of their product definitions and costs to make sure a clean, coherent and constant shopping for expertise.

Extra cohesion throughout features and departments

As producers within the EV house sort out these challenges, they want a cohesive answer that spans the assorted departments concerned. This may assist with inside collaboration to construct merchandise, align on product definitions, and decide what choices can be found for a sure automobile and so forth. Most automobile producers immediately don’t personal all the manufacturing and improvement of all of the elements that go right into a product; they’re doubtless sourcing some elements from sub-suppliers. That additionally makes it extra vital for them to have a single supply of fact for working with the product definition.

Right now, extra customers search an omnichannel shopping for expertise. This additionally requires alignment throughout engineering, manufacturing and repair, and gross sales. Having a single supply of fact ensures that gross sales departments know precisely what they will realistically supply clients. It permits a clean, frictionless transaction from order to supply with no back-and-forth spent on correcting errors or misconfigurations.

A configuration administration answer gathers product configuration from the gross sales, service, manufacturing and engineering departments and validates all potential configurations

There’s additionally a necessity for flexibility on the patrons’ behalf whereas additionally decreasing complexity on the manufacturing facet. As an example, think about should you may set up the identical seat in all automobiles with choices for heating and cooling, after which patrons can allow these choices later in the event that they wish to. You wouldn’t have the complexity of managing 15 several types of automobile seats in a number of markets.

A demanding youthful technology doesn’t simply settle for the ‘one dimension matches all’ idea. They need a automobile that’s precisely configured to their wants. They need the choice to resolve later if they need heated seats and to activate that choice then. The configuration course of lives on.

Why select configuration administration?

A configuration administration answer gathers product configuration from the gross sales, service, manufacturing and engineering departments and validates all potential configurations. Then the system organises this information in a file that’s condensed and simple to entry, validates this information, and offers quick and correct entry to it within the configuration course of.

With this method in place, clients have a greater shopping for expertise as a result of misconfigurations aren’t potential; there’s no back-and-forth to right a buyer’s order. Engineers aren’t capable of design a product that you could’t manufacture. The gross sales workers don’t have the power to promote a product that you could’t engineer. The manufacturing operate can’t obtain an order that’s unfulfillable, and the service division could have a transparent image of the put in base to allow them to supply environment friendly, worthwhile upkeep.

The automobile buying panorama is swiftly transitioning in direction of full on-line transactions, and demand for EVs is rising sharply. Producers which have already synchronised their product, pricing and engineering information throughout manufacturing not solely improve the person expertise but in addition achieve a aggressive edge. A configuration administration method may also help producers to ship extra autos, sooner and at better revenue margins whereas nonetheless exceeding buyer expectations.


The opinions expressed listed below are these of the writer and don’t essentially mirror the positions of Automotive World Ltd.

Jesper Blak Møller is Director of system structure at Configit

The AutomotiveWorld.com Remark column is open to automotive business determination makers and influencers. If you want to contribute a Remark article, please contact editorial@automotiveworld.com

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