Blockchain Technology In The Automotive Industry
While the research showed that there are many opportunities presented by blockchain technology, it also stated that just a small percentage of suppliers and OEMs are ready to apply blockchain technology. Very few of them have an accurate understanding of blockchain solutions in the commercial sector.
Companies like Tesla and other emerging electric software-laden companies have proven that the automobile industry is ready for disruptive innovation. While the common disruptions are in the manufacturing of vehicles, the blockchain technology has made some other behind the scene disruption possible in the automotive industry.
In the automotive industry, blockchain technology can be applied in things like mobility, supply chain and finance. It can be used to track part distribution and aftersales. Dirk Wollschlaeger, Ben Stanley, and Matthew Jones the authors of the study stated:
“Right now, part traceability during the lifecycle of a vehicle is limited. This is why it’s easy to add counterfeit parts to the mix. Some service centers use counterfeit parts. By implementing blockchain technology, we will solve many of the issues surrounding recalls, consumer safety and fake products.”
The report continued:
“Blockchain technology can also improve operational efficiencies in areas like authentication access, financial transactions between parties involved, loyalty, and customer experience. Blockchain will change the way business is done for the better.”
According to the report, 54% of executives in the industry expect that new business models are going to influence investments in blockchain technology. 51% of suppliers and 39% of OEMs only had little knowledge of blockchain organizational strategies. Even at this, it is too early to start counting successes. The authors continued:
“Many of the executives who participated in the study do not have a general understanding of a functional organizational blockchain strategies.”
Another aspect of the development of blockchain technology is skill. The study showed that there is a shortage of skills in the industry. About 42% of suppliers and 37% of OEMs said that shortage of skill is one of the factors that have hindered the adoption of blockchain technology. The more blockchain technology gets applied in different industries, the greater the need for skilled individuals will be. These skilled individuals will be responsible for putting the technology in motion.