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Global Value Chain Data for Mexico in the Automotive and Electronics Sectors

Transforming established global value chains (GVCs) into resilient, customer-focused networks will be a challenge. Global data flows have enabled the rise of the so-called "supply chain 4.0," where data flows are integrated and multidirectional instead of linear. Integrated information flows enabled by supply chain 4.0 create new opportunities to enhance productivity, facilitate communications, coordinate logistics, and expand employment opportunities. Supply chains have relocated from the back office onto the value-enabling front lines of customer segmentation and product differentiation. Future-focused manufacturers across the globe and in Mexico have started extracting more value from the data they collect, analyze, and share across their supply networks. International data flows have also allowed digital platforms to source critical digital services across borders, creating entirely digital value chains.

To explore Mexico’s automotive and electronics sectors’ ability to transform their GVCs, and make them more competitive through datafication, digital transformation, and smart manufacturing, IADB hired a Tambourine Innovation Ventures (TIV) expert. TIV’s produced a scoping paper that reviews and analyses Mexico’s current position and potential for using and harvesting GVC data for the automotive and electronics sectors. Through this study on GVCs data, TIV’s expert broadened the IADB’s and Mexico’s understanding of the importance of data transfers for GVCs, production, and trade, thus underlining that data is critical to all companies and not only to the so-called "high-tech companies."

Data protection, sharing, and security were central to the paper, as they are the driving force of digitized automotive and electronics sectors. The study reviewed how datafication, data protection, sharing, and security impact Mexico's automotive and electronics industry. This information was analyzed from a global perspective and the viewpoint of Mexico to provide a holistic picture of the situation when identifying trajectories for entry, growth, and upgrading along GVCs that rely on datafication and digital transformation. TIV’s expert also offered recommendations for regulators and policymakers on facilitating successful GVCs' data functioning and guidance for businesses on harvesting data for growth and digital transformation.

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