By Mike Allen, managing director of Cambria Private Capital
The fleet sector has seen rapid growth in recent years, with its top 50 operators seeing a 42% increase in volumes between 2009 and 2019, growing from 1,196,053 to 1,694,812 vehicles.
The growth is a testament to the resilience and flexibility of the sector, which is tackling significant disruption in areas ranging from new subscription models to electric vehicles and the broader transition to net zero.
Firms have become adept at deploying new technologies to drive efficiencies and support greener practices with GPS data and increasingly connected vehicles, informing technology that allows companies to operate greener and leaner fleets.
However, the customer must sit at the heart of any technological innovation. It's essential to engage drivers with the value-added services digital technologies can provide to enhance their experience.
Digital transformation is a well-worn phrase that is used to describe the process of deploying new technology to transform business processes for the better.
Digital transformation revolutionises how businesses function and cater to customers by integrating digital technologies across all operations. It transcends mere digitisation, instead focusing on reshaping business models, culture, and customer interactions through digital innovation.
The objectives range from boosting efficiency to enriching customer experiences and fostering new revenue streams.
For any digital transformation project to be effective, it requires a comprehensive, organisation-wide strategy encompassing people, processes, and technology.
Vital components include a well-defined plan, internal digital expertise, scalable operational frameworks, decentralised technology infrastructure, accessible data resources, and robust change management practices.
Crucially, digital transformation embodies an ongoing, iterative process of continual development to the ever-evolving digital landscape rather than a finite project with a fixed endpoint.
It's likely that fleets will use a raft of partners to deliver technological change. Choosing the right digital transformation partner entails several critical considerations.
Firstly, the partner must align with the organisation's goals and vision for the transformation, prioritising understanding over technical prowess.
Consulting closely to ensure the transformation meets business needs rather than merely completing tasks is essential. The partner should possess deep knowledge of your industry, workflows, and business processes, demonstrating experience in tailoring solutions to your unique requirements.
Flexibility and adaptability are crucial. The partner should adjust their approach as needs evolve throughout the transformation, even challenging goals and expectations if necessary.
A balance of technical proficiency and creative thinking is essential. The partner should assemble a diverse team with the right mix of skills to address all transformation aspects.
Finally, prioritise commitment to stakeholder engagement. The partner should actively involve key stakeholders, including end-users, and have a clear plan for communication, training, and change management.
If the fleet sector is to enjoy the growth it has seen over the last decade, it must be committed to embracing technology-led change.
The World Economic Forum's recognition of the onset of a fourth industrial revolution signifies a shift in the global economic landscape.
Unlike previous revolutions, which were characterised by linear progressions, this revolution is distinguished by the convergence of various cutting-edge technologies, such as artificial intelligence (AI), robotics, biotechnology, and the Internet of Things (IoT).
As a result, the economy and the entire automotive industry will see exponential change.
Through all the changes that are yet to come, it's essential to keep the customer as the 'North Star' of every business.
Ensure all business decisions, strategies, and initiatives are centred around understanding and meeting customer needs, and growth will continue.
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