Redefining car ownership with digitized services

Car-as-a-Service, the innovative technology powered revolution in the automotive industry.

It’s no denying that the automotive industry is going through a major evolution by digitally transforming business processes, introducing new business models, and retaining customer loyalty through technological innovations that are fueled by changing customer behavior. With the success of these innovations, customer expectations are now having businesses to provide more personalized, digital, on-demand services.  

A recent Cox Automotive survey shows that consumers see the need to own a car as decreasing, with nearly 60 percent of respondents who say that access to transportation is necessary, also saying that owning a vehicle is not – a 13 percent increase from 2015. Key to this was the cost of ownership, with 48 percent of respondents saying owning a vehicle is not financially viable. 

As Car-as-a-Service becomes a new subscription model on how the automotive industry approaches car ownership, the operational and technological side to offering the subscription-based model could be far more complex for automotive manufacturers. A decade ago, this type of business model would not be plausible. It takes a specialized technology service provider coupled with an agile cloud solution and an innovative futureproof platform to help auto manufacturers provide car ownership in a subscription-based model become a reality. 

An automotive manufacturer recently chose Annata 365 with Dynamics 365 to provide a new business model into a developing market, Brazil. This is an innovative solution that offer an end-customer experience that is consistent at a brand level and allows the end-customer to experience the brand as a service, a way of car ownership to consumers with short-term and long-term subscription payments. With car subscription still being considered as a new service in Brazilit’s clear that consumers are beginning to opt for more sustainable forms of consumption and the Product-as-a-Service model is being  more favorable compared to its conventional car ownership methods. 

To roll out the subscription-based plan, the organization needed to provide its customers with a unique experience in the subscription of a vehicle, in which the customer would be able to execute a 100% online contract through the new website without leaving the comfort of their home. For this model to work, they needed a solution that would meet its entire commercial, financial, legal, after-sale process and would also be integrated to its dealers and manufacturing plant, keeping a clean and efficient operation. 

Annata set out to achieve these goals by offering a solution that combines Microsoft cloud services (Microsoft Business Applications, Azure, Modern Workplace and Data Analytics) coupled with Annata 365, Annata 365 Sales and Annata Analytics. These solutions allowed the manufacturer to execute digital marketing campaigns targeting potential buyers to select and customize the vehicle and payment plan of their choice directly from the website which then performs data validation, credit analysis, legal analysis, and digital execution to the contract. 

With its first phase successfully launched in early 2020, the organization found itself ready to weather the global shutdown that the COVID-19 pandemic had caused. With their digital framework ready, they were able to re-invent themselves and offer what customers really want, flexible short-term leases, vehicle subscription services and simplified contract extensions at cost-effective terms through its digital platforms with almost zero human interaction. The only time that human interaction was needed is when the vehicle is being delivered to the customer. 

Today, the organization provides a seamless and reliable subscription-based service that delivers personalized omnichannel communication methods to its customers with pre-sales, sales and after sales services through its strategic technological overhaul with Annata’s high growth digital platforms. 


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