A tectonic shift is taking place in the auto industry. Changes in technology, consumer behavior, and emerging markets are disrupting traditional modes of operation. In order to succeed, OEMs, dealers, and ancillary companies must adapt quickly to the changing landscape, embracing challenges and opportunities by harnessing the power of data.

Today’s vehicles are more sophisticated and complex. Electronics, software, and online connectivity all pose new service, security, and privacy challenges and opportunities. In addition, the industry must contend with changes in the way cars are used, as well as how and where they are marketed:

• Some automakers and auto marketers, such as Tesla and Carvana, are offering direct-to-consumer purchase models that eliminate dealerships altogether.
• Vehicle subscription programs and sharing models are changing what it means to own a car.
• Unlike earlier generations, Millennials don’t see cars as a means of independence. Instead, freedom means using services like Lyft and Uber.
• Emerging markets are creating unprecedented demand for vehicles, and the people who live there expect digitally connected cards from day one.

Automotive industry players must invest in data management to protect and grow their relationships with customers. Automakers and dealers must “look under the hood”—gathering not only sales and service information but data garnered from loyalty apps, social media platforms, and even vehicles themselves—to understand and predict their customers’ buying decisions and evolving transportation needs.