The digitalization of the world’s major industries continues to accelerate as one of the world’s major automotive companies is creating, in concert with Google Cloud, a “software-defined vehicle” with full-scale, digital-twin capabilities as Renault Group now bills itself as “a tech company.”
While this broad trend has been underway for some time, the shift toward data-driven digital operations is accelerating as global corporations forge long-term partnerships with major cloud providers to fuse traditional businesses with cutting-edge cloud and edge technologies to drive entirely new revenue opportunities.
We can clearly see this unprecedented level of vision and innovation in the language used by Renault Group in announcing its massively expanded relationship with Google Cloud. Here are a few prime examples of how a one-time “car company” now positions itself.
- “The ‘Software Defined Vehicle’ will bring together the best of the automotive and digital worlds to allow for new on-demand services and continuous upgrades to be delivered to the car, building on the existing Android Automotive Operating System and Google Cloud technology collaboration.”
- “This collaboration on cloud computing, initiated in 2018, is accelerating today with the creation of a Digital Twin, a virtual twin of the vehicle that will feature the most advanced Artificial Intelligence (AI) capabilities, for an easier and continuous integration of new services into the vehicle and the creation of new onboard (In-Car Services) and offboard applications.”
- “The Renault Group will eventually transform its entire operational model to the cloud for more agility, better performance, and higher profitability.”
Again, I know we’ve all seen this general type of evolution coming, but in my humble opinion, the press release from Google Cloud and Renault Group presents a remarkably ambitious commitment by a longtime global powerhouse to create a future radically different from its storied past.
And in that announcement, the very first words from Renault Group CEO Luca de Meo are not about high-powered engines and improved torque and world-class suspension and are instead all about “electronic architecture.”
And then be sure to notice the subject that follows immediately after that attention-getter: customer expectations.
“The complexity of the electronic architecture of cars is increasing exponentially, driven by the sophistication of the functionalities and services expected by customers,” de Meo says in the release.
“Equipped with a shared IT platform, continuous over-the-air updates, and streamlined access to car data, the SDV” — look at that: The concept of a Software Defined Vehicle has already become an acronym! — “approach developed in partnership with Google will transform our vehicles to help serve future customers’ needs.”
And, as in the case with Google Cloud’s sweeping deal with Ford, the digitalization surge encompasses the entire scope of the customer experience: “from the design of the car to its market launch through its production, and, ultimately, to bring added value to our customers,” de Meo said.
For Renault Group, the expanded partnership means not only high-tech vehicles for its customers but also a high-tech future built around a full commitment to a deep and broad strategy of co-creation.
“With Google,” said de Meo, “we are going beyond mere cooperation: A software champion and a mobility champion are joining forces to create game-changing technologies.”
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