Advanced searches left 3/3
Search only database of 8 mil and more summaries

Future Of Automotive Industry

Summarized by PlexPage
Last Updated: 02 July 2021

* If you want to update the article please login/register

General | Latest Info

First, vehicles will run on different power sources. Electric vehicles make up an increasing proportion of new models sell, and other new technologies such as fuel cells are being develop. But for some time to come, many vehicles will continue to be powered by conventional combustion engines. Second, connected systems mean that humans play a diminishing role in actually driving cars, as autonomous vehicles navigate roads, reducing accidents and freeing up people's time by converting them from drivers into passengers. Third, greater focus by customers on mobility-and reduced emphasis on ownership-will change the way cars are used, especially in big cities. These upheavals will be accompanied by broader challenges. The shift to less-complex battery power, combined with improvements in design and manufacturing, will make vehicles more robust, and many components will need to be replaced less often. The growth of battery power and digital driving systems will mean a place in INDUSTRY for both new AUTOMOTIVE players and other companies, in particular from China and the digital world. Meanwhile, re-emergence of protectionist trade barriers will push manufacturers increasingly to base production in regions where cars are sell, making large-scale exports harder, including those of German premium producers. These changes will shake up structures and systems on which auto INDUSTRY is base. As well as their traditional suppliers, automakers will need to work with new digital firms. Operations will be simplified dramatically, as rival automakers share more components such as electric powertrains and vehicle platforms. We also expect hyper-efficient mega-factories to emerge. As a result, stable market shares and supplier relationships will be replaced by winner-take-all markets for specialist technology products that are essential for making or using cars effectively. These shifts will mean INDUSTRY needs a workforce with different skillsets from today. However, industry's primary focus should be on its customers and the products it makes for them. Here are THREE major trends that will dominate products and solutions OF the new era. Until recently, customers have mostly picked a single car to fulfill an array of requirements. Choice was primarily function of mobility needs: commuting, business trips, and family errands. But drivers OF means could opt for a model that was more fun to drive and accord them social status. In the future, majority of people will be mobilists who simply want to get from point to B and are not emotionally involved in cars. They might want to go from the station or airport in a foreign city to a business meeting, buy furniture and ferry kids around, or take the occasional trip to the beach or mountains. Though drivers OF past might have chosen a model that can fulfill each of these needs, car users of the future will seek the best solution for each task. Depending on local options, that could mean ride-hailing service, taxi, rental car, car-sharing service, public transport-or, OF course, their own car.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Consumer-Centric Approach

Historically, OEMs have Build their businesses around goods-orient BMs, where customers are seen as consumers rather than collaborators in the value-creation process and the way in which goods or vehicles are used has been of less importance. In contrast to this goods-center perspective, Vargo and Lusch introduce Service-dominant logic that assumes customer as center of value creation with goods being means of Services. In this respect, automobiles are seen to be vehicles for provision of Services and work in SSs wherein stakeholders operate by using information, technology, and other resources to produce specific products / Services. SSs are thus a dynamic combination of resources that are connected through shared information usage in which value is co-create by technology and people. Therefore, Automotive SS can be broadly defined as a network of people, technology, and organizations that create and deliver mobility-related Services. Existing SS concepts offer few possibilities for OEMs to particularly plan Service development while factoring in relevant stakeholders and necessary infrastructure. A recent literature review of Frost and Lyons found that present research lacks application of SS concepts to specific domains and proposed direct research towards ontologies that are more responsive to the intentionality of actors in the system, as well as the effects of their interactions. Service provision and innovation will only occur if an organization is able to monetize them via its BM. Research on BMs arose with the proliferation of the electronic market in the 1990s and its novel approach of doing business. Though the generally accepted definition of what constitutes BM does not exist, we follow the definition by Osterwalder and Pigneur, who describe BM as the way in which companies capture, deliver, and create value. As research on BMs has mature, understanding has grown with regard to definitions, classifications, evaluations, dimensions, frameworks, and the relationship between BMs and strategy. A variety of concepts and frameworks have been introduced to capture and initiate BMs that differ in extent and depth, which comprise: Timmers three step-approach, six core components by Morris et Al., Osterwalder and Pigneurs nine-component BMC, and. Gallener Business Navigator methodology by Gassmann et Al. Among others. The focal concept of any BM is the creation of value that is closely align to the perspective one applies, distinguishing between supplier-centric, customer-centric, and stakeholder-centric views. As creational procedures occur in complex global networks rather than isolated local processes, value-creation paradigm shifts from single service system managing particular stakeholders towards collaboration as partners of multiple SSs in networks. Within these networks, tangible and intangible resources are exchanged and shared among participants to achieve certain objectives, suggesting that the customer is one of many beneficiaries, as all stakeholders co-create value to SS and expect IT in return.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Agility for Innovation

So what are some of the trends that are transforming the way the mobility industry is seeing itself and creating new business opportunities while changing the way users and we see automobile:ss McKinsey says key factors constitute ACES. IT stands for autonomous, Connectivity, electrification, and sharing. In the recent World Automotive 2019, Oct 17 conference that took place in Istanbul, IT has become increasingly clear that players involved in industry are paying increased attention towards customer-centric, agility for innovation, partnering with non-traditional players, focus on Connectivity and data and finally addressing autonomous and electric vehicles that seem to go hangs together. These trends are each by themselves very disruptive but taken together have redefine transformation. McKinsey argues that traditional revenues from traditional business models have peaked and non-traditional players are emerging from the technology space. This transformation is so fast that there is a huge urge for traditional players to find real quick solutions, build expertise to stay alive in business. To just give reference, car is going to have 200 million lines of software code in the future. All of Facebook in comparison today is roughly about 50 million lines of code. This sort of massive change requires a lot of expertise and a strong vision of how we see automobile. OEMs are ready to buy secure software functionalities, and customers are keen on customizing features. Is there space for disruptive innovation?

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Partnering

The rationales for deals between carmakers and technology companies are pretty straightforward. Carmakers contribute Automotive Design, testing, manufacturing, assembly, sales, Service expertise, and infrastructure including dealership networks, all of which are out-of-reach for technology companies to deliver, absent major Acquisition. Technology companies, for their part, are in a position to develop and contribute self-driving software, GPS mapping systems, Telematics, data science, network security, and related functions. Further, technology companies are insulated from Automotive industry short-term product development cycle, customer influence, and labor politics, which afford them space necessary to experiment with and gradually invent self-driving software over long-term time horizon. In an effort to chronicle the voyage of carmakers and technology companies in this rapidly evolving space, Water Street Partners has begun tracking and cataloging AV Partnership activity and conducting applied analysis of Partnership strategies and their economic implications. This is the first in a series of articles that will seek to inventory and explain existing and potential partnerships. Future articles will expand on this inventory, share some lessons learned and compare AV Partnership structures and ecosystems with other industries that have used partnerships to drive radical technology innovation and market commercialization. Our database of AV industry Partnerships shows that major carmakers and large tech firms are assembling numerous partnerships within this arena. Taking an integrative view, one that blends partner type, deal rationale, transaction structure, value chain, and other elements, Our analysis shows that sector partnerships fall into six models: partnership of carmakers and technology firm. Carmakers and technology firms are partnering to combine complementary capabilities that will accelerate development of AV components and software, particularly commercially viable self-driving software. Alliances are being structured as R & D partnerships, joint development agreements, or joint ventures. The Ford-Google joint venture is seeking to equip Ford self-driving cars with Google self-driving software, thus delivering an end-to-end AV product and go-to-market strategy. IT is being structured as an independent JV to ring-fence considerable liabilities associated with self-driving software. Other carmaker-tech firm partnerships are more narrowly scoped for instance, to co-develop specific component or sub-system. The Five-year Toyota-Microsoft Partnership is consolidating carmaker's Global Research in Telematics, data analytics, and network security Services to develop Connect-car technologies. Smaller software developers are more likely to be involved in component software design, rather than self-driving software. In another example, GM, VW, and Mobileye are partners to launch crowd-source mapping technology for AVs. Partnership of two or three carmakers. Carmakers are also collaborating with each other, mostly by expanding ongoing collaborations, where they exist to jointly develop AV models and select Connect-car technologies. These collaborations tend to be structured as R & D partnerships or joint development agreements but may also be through joint ventures. For example, GM-Honda R & D Partnership is considering expanding the scope of joint R & D activities from hydrogen fuel cells to self-driving technology, IT, and electrification. Similarly, Daimler-Renault-Nissan alliance is expanding its electric vehicle manufacturing collaboration to also explore AVs and related technologies.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Connectivity and Data

Ask an executive at Chrysler about the company's biggest competition, and he or she will probably start talking about Ford and Toyota. But in today's world, automakers need to think differently. Other automakers are only competitors anymore. Theyre also up against Google, Apple, and other tech giants. In order to succeed going forward, automakers need to recognize this new reality and adapt to it. Saying that cell phones have become ubiquitous in our society isnt exactly a revelation, but it is worth repeating anyway. Smart phones are particularly essential for drivers. Modern drivers are highly likely to use their cell phone to get directions, take phone calls in car, and listen to music directly from their phone. The Auto industry recognizes this, which is why OEMs roll out infotainment platforms that integrate with Apple and Android Smart phones. At the same time, weve seen a decline in the number of non-Smart phone technologies in vehicles. Remember when people used standalone GPS devices? That is completely redundant with modern Smart phone. Although many newer cars come with build-In GPS, for many drivers it just isnt major selling point. Smart phones making In-Car technology obsolete isnt anything new. In the 1990s, General Motors rolled out OnStar. In the event of an emergency, drivers could just press button to contact the telephone operator. System could also be used to remotely unlock car doors if drivers accidentally leave keys inside. During an era in which only a few people had cell phones, OnStar made a lot of sense. But once cell phone usage become norm, and cell phones got better, OnStar largely fell by the wayside. Although most GM cars produced today have feature, they are not particularly relevant. When drivers need help, they go to their phones. OnStar didnt have to descend into irrelevancy. If service could offer a broader range of features, including features that cell phones ca provide, maybe it would continue to be a major player today. For automakers, it is an important lesson. If automakers want to compete, they need to adapt to new reality where Google and Apple are reshaping society with small computers we keep tuck away in our pockets. Fortunately, there is a lot automakers can do to offer superior driving experience. Connect vehicles: how automakers can compete with Google and Apple automakers have an advantage over other tech companies. No matter how much a Smart phone can do, it still isnt part of a car. That necessarily limits what Smart phones can do, especially when it comes to In-Vehicle Data collection, a critical element of new Mobility technologies. There are a lot of things automakers can do to stay ahead of the curve, and it all comes down to connectivity. Once cars become part of the Internet of Things, automakers can offer drivers all sorts of improvements to mobility experience.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Autonomous and Electric Vehicles

Tech companies have secured their place in the fast lane of an electrified, autonomous worldand original equipment manufacturers are hurrying to keep up. Consider one leading indicator: German regulators have granted Mobileye, Intels Autonomous vehicle division, permit to test its driverless cars on public roads, in real-World traffic. Mobileye is one of the first nontraditional manufacturers to receive the go-ahead for testing, giving firm opportunity to surpass traditional manufacturers, despite their early start. As they race to keep up with digitally mind and cash-flush tech companies, Covid-19 pandemic also threatens to hamper progress for some OEMs. Conserving cash and containing costs are now urgent priorities, requiring careful calibration of research and development and capex investments. Inevitably, this involves tough choices. Daimler and BMW, for instance, have put their AV collaboration on hold in light of high costs. At the same time, Daimler has teamed up with Nvidia to develop software-base vehicle architecture for Autonomous Driving. In addition, automaker recently announced a partnership with Waymo to build a Level 4 Autonomous truckone that can drive itself without human interaction under certain circumstances. Reducing investments in in-house development for AV technologies allows OEMs to shift limited resources to more timely opportunities, such as their push for electrification. Daimler and BMW wouldnt be alone in their thinking; global crisis could serve as a catalyst for adoption of electric vehicles. European governments are using economic stimulus to push for a more sustainable postpandemic world. France, Italy and Germany are boosting EV subsidies as part of their recovery plans. The Chinese government, which previously planned to roll back EV subsidies by the end of year, has decided instead to extend some modified incentives until 2022, hoping to ease automakers ' pain. In addition, major ride-hailing companies, such as Lyft and Uber, have recently committed to shifting to 100 % electric vehicle fleets by 2030. Decisions that Automotive Leadership teams make in coming months will be critical to determining their future competitiveness. And with the number of routes to choose from, no single company can afford to win every battleground alone. But there are few practical things that OEMs can do now to reorient themselves for the reality of the impending EV-and AV-driven future. It starts with assessing opportunities, determining where to play, and making the right investment trade-offs and partnerships to stay competitive in their chosen space.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

Sources

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions.

* Please keep in mind that all text is machine-generated, we do not bear any responsibility, and you should always get advice from professionals before taking any actions

logo

Plex.page is an Online Knowledge, where all the summaries are written by a machine. We aim to collect all the knowledge the World Wide Web has to offer.

Partners:
Nvidia inception logo

© All rights reserved
2021 made by Algoritmi Vision Inc.

If you believe that any of the summaries on our website lead to misinformation, don't hesitate to contact us. We will immediately review it and remove the summaries if necessary.

If your domain is listed as one of the sources on any summary, you can consider participating in the "Online Knowledge" program, if you want to proceed, please follow these instructions to apply.
However, if you still want us to remove all links leading to your domain from Plex.page and never use your website as a source, please follow these instructions.