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EngineeringBeat: Thriving with mainframe modernization

Digital transformation success in the automotive industry

Automotive customers have evolved. Today they expect digital, personalized experiences—from buying online to in-car subscriptions. Legacy systems aren’t up to the challenge. Meanwhile, the automotive industry is also under pressure to improve supply chains and innovate financing models with cloud platforms. Learn how mainframe modernization can help and how to overcome challenges that can surface during the journey.

Take a deeper dive into the business challenges driving automakers to modernize legacy systems and explore strategies to overcome potential obstacles.

Challenges driving digital transformation in the automotive industry

In a rapidly evolving environment, there are challenges automakers can face that stand out as being most critical to long-term innovation and growth. Mainframe modernization can provide the capabilities to help manufacturers overcome them.

Migrating to the cloud centralizes data, making it more accessible. At the same time, connected edge technologies enhance real-time data collection for personalization and proactive service notifications.

Migrating to the cloud allows automotive manufacturers to manage customization demands and diverse supply chains effectively. Real-time data analysis improves manufacturing processes and schedules, enabling quick adaptation to modern purchase channels.

Mainframe modernization enables the use of APIs and real-time data integration for efficient noncaptive services connectivity. Cloud-based architectures can provide flexibility and scalability to adapt to emerging finance products and regulations.

A cloud environment supports microservices and ERP enhancements, turning batch-processing inventory systems into dynamic platforms. Real-time data improves visibility and analysis of inventory for more effective stock updates and scheduling.

Today’s vehicles depend on software features and continuous connectivity for information, data-sharing, and updates. Cloud-based platforms ensure vehicles have the latest technology and stay responsive to real-time demands.

Challenges during the modernization initiative and how to overcome them

Mainframe modernization can solve many business issues that impede innovation and growth. However, modernization also comes with challenges of its own that must be managed effectively to achieve the desired outcomes.

Migrating complex systems can require a significant investment, and benefits can be hard to quantify. To address this, organizations should implement a phased plan with clear milestones and ROI metrics, in addition to maintaining regular communication to sustain executive commitment.

Mainframe product life cycle management (PLM) systems store essential design data but often aren’t compatible with modern cloud tools. Cloud migration can enable artificial intelligence (AI)-driven pipelines for secure data exchange and intelligent mapping, ensuring compatibility and preserving functionality.

Mainframe modernization in action—a potential use case

A global automaker performs a proof-of-concept to evaluate the use of Generative AI (GenAI) for software development. The project focuses on one system to explore GenAI’s ability to document, assess, and modernize the codebase. Extrapolating the results of the pilot, the automaker concludes it could expect substantial time savings. By Deloitte’s estimation, GenAI could accelerate mainframe modernization by 50% or more—which could lead to a big improvement in total cost of ownership, code quality, and agility.

Professional Engineer Works on a Computer with a 3D CAD Software and Tests the Electric Car Chassis Prototype with Wheels, Batteries and Engine Standing in a High Tech Development Laboratory.

The mainframe modernization payoff

Mainframe modernization is essential to enable digital transformation in the automotive industry. And it’s a critical issue for most automakers. In fact, based on internal research conducted by Deloitte, roughly 75% of the firm’s automotive industry clients still have a mainframe footprint. By migrating to more advanced technology platforms on cloud, automakers can gain the agility and ability to innovate that’s needed to sustain their competitive advantage and drive lasting business value.

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