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Infor: looking forward to the automotive industry in 2022

Publish Date: 2022.08.03


After two years of market turbulence, many manufacturers, original equipment manufacturers (OEMs) and suppliers are using agile transformation and innovation strategies to reduce risks, solve chip shortages, and reduce the impact of the epidemic. In 2022, automobile manufacturers and suppliers have gradually adapted to and coped with many challenges brought by the COVID-19. Through infor's long-term insight, we come to the following predictions:

1 turbulence will continue

At present, the impact of the COVID-19 is likely to last for many years. Therefore, all enterprise managers should be vigilant against market changes and be more sensitive to providing employees with a safe working environment. Although some background tasks can be completed by remote workers, tasks on the pipeline cannot be completed through online meetings. The impact of the COVID-19 will continue. Automobile manufacturers and suppliers should act immediately and be fully prepared.

2. Product safety is still the top priority

Admittedly, not all industry problems can be attributed to the epidemic. Before the outbreak, large-scale changes were imminent. For example, the transformative impact of case (networking, autonomous driving, sharing and electric) and the market demand for greater sustainability, better fuel economy and higher safety.

Product recalls continue to plague the entire industry, which also warns us that we should carefully test new technologies and components before launching them, especially in the innovation of electric vehicles. The fire risk caused by lithium batteries is an example. Although all parties have analyzed this problem and implemented reform and safeguard measures. But more importantly, we should not only have the motivation for innovation, but also act cautiously and carefully. Fortunately, the product lifecycle management solution can help automobile manufacturers and suppliers manage the whole process - from the research and development stage to test verification and engineering change management.

Recently, infor announced that it will support Amazon Web services (AWS) AWS for Automotive Program for the automotive industry to help infor's automotive industry customers cope with the core challenges they face, including building a more agile and flexible supply chain, attracting and retaining top talent, still thriving after experiencing large-scale industry disruptions, and promoting safety and sustainable development plans, And lay a platform foundation for future growth.

3 agility will be a priority

Affected by the revolutionary nature of case, the automotive industry has experienced several textbook changes. These changes have affected all aspects of the industry - from product design and development to manufacturing, distribution, sales, services, talent and after-sales markets. The user experience has also undergone major changes. Now even medium-priced cars have a large number of luxury configurations. Once high-end configurations are becoming standard, such as heated seats, camera assisted parking and anti-collision sensors.


Such major changes require unprecedented business agility and corresponding agile technology solutions. Fast and easy to implement cloud based solutions are more flexible and scalable in launching new business entities and models, new operational processes and new partnerships.

More enterprises will enter the chip market

From the basic model to the top model, regardless of the decoration level, modern cars use a series of microchips. Some OEMs began to handle microprocessor production by themselves. Although this means that they may have more control, many experts believe that this is economically unrealistic. Because automotive chips are usually low-value, commercialized products, and chip production investment is extremely expensive, it takes years to reach balance of payments. In this regard, enterprises should have the ability to predict changes and take actions as soon as possible to ensure adequate supply. Today, partnerships will become more important. Because enterprises will strengthen their purchasing power through cooperation, cloud based collaboration tools will help manage this multi enterprise relationship.

The problem of insufficient production capacity of automotive chips is still serious, and multiple factors have caused market fluctuations. Many insiders believe that at present, many wafer foundries at home and abroad have launched production expansion plans, and it still takes time to release capacity. It is expected that the tight supply of chips may continue until the second quarter of 2022, and the chip shortage in the automotive industry may continue until 2023. Although at present, government departments and car companies are concentrating on solving the problem of chip shortage, it is difficult to completely solve the problem in a short period of time.

5 enhancing visibility can help

Although manufacturing microchips may not be a common solution for every enterprise, for far sighted manufacturers, turning to technology to help manage the supply chain is undoubtedly a strategy that every automotive OEM and supplier can adopt. Supply chain planning tools can help manufacturers monitor inventory, delivery, transportation routes, expected delivery, and the impact of delayed delivery on sales orders. Although the visibility of the problem will not make the parts in place faster, finding out the problem is helpful to prepare and find alternatives, and letting customers see that the way to win is to meet the actual expectations.

6 business intelligence turns chaos into a practical strategy

As companies develop recovery strategies, data insight will become the key to understanding these changes and their financial impact. Many enterprises are exploring new unknown areas, which are difficult to learn from previous strategies or historical plans. Enterprises must determine new strategies and formulate new KPIs. Not only for executives, but also the whole enterprise needs new methods to predict results and measure impact. Enhancing intelligence, artificial intelligence, machine learning and digital platforms will be crucial. Only advanced modern solutions can meet these challenges. More and more enterprises will recognize the value of intelligent analysis and machine learning / artificial intelligence, and will invest in solutions with these functions built in.

01 the ratio of attracting and retaining talents will be increased

In order to maintain competition and development in 2022 and beyond, recruiting and retaining talents will be part of the strategic agenda of the enterprise. All roles have changed - soft skills such as teamwork, problem solving, data management and customer service will be as important as the ability to operate machines. In addition, with the change of case to the industry and the promotion of industry 4.0 and the Internet of things to the integration of it and ot (operation workshop technology), talents proficient in digital technology will quickly become the cornerstone of competitive advantage. Enterprises need to address the shortage of skilled staff, including software architects and developers, data scientists, and other IT professionals. In addition, there is a "silver tsunami" brought by retired skilled employees, who have accumulated knowledge for many years. The ability to acquire relevant (usually teamwork) knowledge and institutionalize it is also very important to maintain the momentum. Automobile enterprises should provide technical courses and training to help existing employees improve their skills and attract new employees.


Graduates who have just entered the job market hope to have easy-to-use software, just like the solutions they use in daily life. Enterprises should provide better and better employee experience to attract and retain the best and brightest employees, so as to win in the new normal. Talent solutions that integrate cutting-edge practices and provide rich employee experience will help enterprises recruit, train and retain appropriate employees, and find suitable positions for them, so as to maximize their potential, build a successful career, and bring more value to the enterprise at the same time.

8 sustainable development will continue to become more and more important

Sustainable development will continue to have a significant impact on industry trends and directions. The automobile industry is one of the main fields of global greenhouse gas emissions. How to reduce the carbon emissions of the automobile industry is a very important link in achieving the goal of carbon neutralization and carbon peak. Therefore, new energy vehicles also usher in development opportunities.

However, it is worth noting that new energy vehicles themselves are also facing a series of environmental challenges, including the high energy consumption (especially aluminum) caused by the manufacture of new energy vehicles, the highly destructive and toxic exploitation of key rare earth elements, the looming problems that a large number of batteries filled with toxic chemicals need to be properly handled, and the growing demand for electricity (mainly from fossil fuels), etc.


Addressing these and other challenges requires a broader, end-to-end understanding of issues and challenges. In this regard, the ability to effectively collect and mine data from various sources inside and outside the industry and provide information for decision-making will be an important driving factor. On the policy side, the government has continued to introduce policies in supporting the infrastructure construction of new energy vehicles such as charging piles to enhance the convenience of new energy vehicles; At the same time, by improving the vehicle purchase tax and other tax reduction and fee reduction policies for new energy vehicles, reduce the cost of car purchase, and encourage public transport and private car users to buy new energy vehicles. On the supply side, the increase in the output and price of power batteries, the diversification of new energy vehicle models and the improvement of charging infrastructure have all helped the development of the new energy vehicle industry.

Write at the end

Although 2022 may bring more challenges to automakers, there may also be some new surprises. Enterprises must be prepared for known challenges, and more importantly, for unforeseen challenges. We can no longer take "normality" for granted. Flexibility, agility, adaptability and collaboration are the new characteristics of this field. The highly agile and flexible digital "core" is laying a solid foundation for enterprises growing in a turbulent world.


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