What the Automotive Industry Has to Learn From IT
Technology and InnovationIndustrialTechnologyTechnology, Data, and Digital
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May 15, 2020
Technology and InnovationIndustrialTechnologyTechnology, Data, and Digital
The AutoData Editora article, “What the automotive industry has to learn from IT,” quoted Russell Reynolds Associates Consultant Tatyana Araujo de Freitas on how the automotive industry is looking to adopt a more dynamic and adaptive management model. A translated excerpt of the article is below.

AutoData Editora

The digital features that have raised manufacturing to another level in the automotive sector, especially as a result of the intensification of investments in 4.0 lines, do not restrict the business culture change in the technical field with the adoption of new processes. It should also bring about changes in the way companies interact with the need to develop cutting-edge products and with the supply chain.


Recruiters expect a sharp drop-off in assignments in the short term, but with bright spots in positions that focus on the strongest property sectors and on firms’ internal operations.


The point of view is put forward by the study, Building a Future-Proof Automotive Leadership Team​, developed by executive recruitment firm Russell Reynolds Associates. Built on research that surveyed thirteen senior automotive executives, what can be inferred from the survey is that this industry, with the advancement of technology, needs to incorporate a more flexible philosophy regarding technology into its frameworks.


“Not only in Brazil, but around the world, companies in the automotive sector have taken some time to understand that it is time to open up the management model to a context in which ideas, changes and decisions happen more dynamically,” said Tatyana de Freitas, a consultant at Russell Reynolds. “And it's time to break away from the traditional model in which the automotive industry was conceived.”


The assumption is that with the advancement of technology in manufacturing and vehicles, the sector also needs to evolve in management just like IT companies. The study shows that by 2030 software deployment in cars will jump from 10% to 30%, a scenario which, according to the consultant, is expected to impart a new way of looking at the market by automakers and their supply chain:


“The most recent movement in the industry is the proximity of startups to more quickly understand how market changes occur. However, there is no point in betting on acquisitions without absorbing the best that technology companies have, which is the flexible management model and the ability to quickly react to changes and errors. Today you cannot simply focus on product development: You have to consider other factors. Today's consumer is at the heart of the business.”


In that sense there is something to be learned from the startups. First of all, look for the best professionals and create an environment that can retain them in the company. And they, according to the consultant, exist in the country: “Career is viewed differently by professionals. The preferences today are different, they are not only focused on possibilities of stable work. Hence the importance of the human resources department in the context of transforming a traditional industry.”


To read the full article, click here.