Strategic impacts on automotive incumbents in the market of autonomous driving

Automation and connectivity within the automotive industry are affecting automotive incumbents (AIs) causing significant shifts towards technology and software. These current trends enable the development of autonomous vehicles (AVs) which will become increasingly prevalent over the next decade. The complex technologies necessary to make autonomous driving (AD) a full reality and which are transforming the automotive industry entail high uncertainties and strategic challenges. The aim of this study is to examine how AD affects AIs’ businesses and strategic choices. Secondary data in the current literature about automation, AD and strategic literature concerning disruptive innovation was reviewed to study the topic. Primary data was gathered through interviews with professionals working in the field of AD. The interview analysis is based on the inductive categorization methodology of Mayring (2015) to provide thorough evaluation of the data. Chiefly, the findings revealed that attempting to seize a first mover advantage is not recommended for AIs in the case of AD. A large challenge is the lack of technological know-how needed to keep up with leading tech-companies in this field. Furthermore, competence in opening up cities and regions for AD should be developed. As disruptive technologies in general and specifically AD lack trust of customers, it is important to develop confidence building strategies. Digital features that are desired by future customers must be determined as well as an attractive business model to compete as an incumbent in the AD market. Overall, the future role of AIs in the AV supply chain is not yet clear

A Game Approach to Teach Environmentally Benign Manufacturing in the Supply Chain

Multidisciplinary models of education are needed to prepare students for their role in a global work environment. Combined with this need is the reality of the new Millennial Generation entering the educational system with a different approach to learning. This paper introduces an interactive, educational engineering game designed to appeal to the Millennial Generation’s learning preferences. Shortfall is a prototype board game with a team approach and a trial and error methodology to introduce students to environmentally benign manufacturing in the supply chain using the automobile industry as a model. After playing the game, quantitative analysis showed that on average, students gained new knowledge and a changed perception of their confidence in their answers. Qualitative analysis of data demonstrated that students felt the game also helped them with the teamwork/communication aspects of supply chain. Future plans involve converting the game to a computer format to streamline its effectiveness for multi-institutional participation

Digital Transformation: Drivers, Success Factors, and Implications

In this paper, we explore drivers, objectives, success factors, and implications of digital transformation. This investigation is conducted through a systematic literature review that focuses on empirical contributions in the Information Systems (IS) field. By reviewing prevailing empirical contributions on digital transformation, we provide insight into why organizations undergo digital transformation, how to accomplish such a transformation, and how digital transformation affects an organization

how car manufacturers become mobility service providers

Project ID: PGC2018-101022-A-100.The automotive industry, as other manufacturing industries, has evolved from competing on discrete transactions to relational agreements with customers. While previous literature calls for further analysis of the observed heterogeneity found across servitized manufacturing industries, this article contextualizes the analysis in the automotive industry. Servitization follows a sequence of stages, from offering basic and intermediate services, to new business models based on the provision of advanced services to customers. As the advanced services are related to core competencies of the car manufacturers, complex collaborative arrangements are the primary market strategy choice. This article demonstrates the challenges and opportunities related to such choices, over a set of internal and external categories and along the servitization journey.authorsversionpublishe

The Digital Transformation of Automotive Businesses: THREE ARTEFACTS TO SUPPORT DIGITAL SERVICE PROVISION AND INNOVATION

Digitalisation and increasing competitive pressure drive original equipment manufacturers (OEMs) to switch their focus towards the provision of digital services and open-up towards increased collaboration and customer integration. This shift implies a significant transformational change from product to product-service providers, where OEMs realign themselves within strategic, business and procedural dimensions. Thus, OEMs must manage digital transformation (DT) processes in order to stay competitive and remain adaptable to changing customer demands. However, OEMs aspiring to become participants or leaders in their domain, struggle to initiate activities as there is a lack of applicable instruments that can guide and support them during this process. Compared to the practical importance of DT, empirical studies are not comprehensive. This study proposes three artefacts, validated within case companies that intend to support automotive OEMs in digital service provisioning. Artefact one, a layered conceptual model for a digital automotive ecosystem, was developed by means of 26 expert interviews. It can serve as a useful instrument for decision makers to strategically plan and outline digital ecosystems. Artefact two is a conceptual reference framework for automotive service systems. The artefact was developed based on an extensive literature review, and the mapping of the business model canvas to the service system domain. The artefact intends to assist OEMs in the efficient conception of digital services under consideration of relevant stakeholders and the necessary infrastructures. Finally, artefact three proposes a methodology by which to transform software readiness assessment processes to fit into the agile software development approach with consideration of the existing operational infrastructure. Overall, the findings contribute to the empirical body of knowledge about the digital transformation of manufacturing industries. The results suggest value creation for digital automotive services occurs in networks among interdependent stakeholders in which customers play an integral role during the services’ life-cycle. The findings further indicate the artefacts as being useful instruments, however, success is dependent on the integration and collaboration of all contributing departments.:Table of Contents Bibliographic Description II Acknowledgment III Table of Contents IV List of Figures VI List of Tables VII List of Abbreviations VIII 1 Introduction 1 1.1 Motivation and Problem Statement 1 1.2 Objective and Research Questions 6 1.3 Research Methodology 7 1.4 Contributions 10 1.5 Outline 12 2 Background 13 2.1 From Interdependent Value Creation to Digital Ecosystems 13 2.1.1 Digitalisation Drives Collaboration 13 2.1.2 Pursuing an Ecosystem Strategy 13 2.1.3 Research Gaps and Strategy Formulation Obstacles 20 2.2 From Products to Product-Service Solutions 22 2.2.1 Digital Service Fulfilment Requires Co-Creational Networks 22 2.2.2 Enhancing Business Models with Digital Services 28 2.2.3 Research Gaps and Service Conception Obstacles 30 2.3 From Linear Development to Continuous Innovation 32 2.3.1 Digital Innovation Demands Digital Transformation 32 2.3.2 Assessing Digital Products 36 2.3.3 Research Gaps and Implementation Obstacles 38 3 Artefact 1: Digital Automotive Ecosystems 41 3.1 Meta Data 41 3.2 Summary 42 3.3 Designing a Layered Conceptual Model of a Digital Ecosystem 45 4 Artefact 2: Conceptual Reference Framework 79 4.1 Meta Data 79 4.2 Summary 80 4.3 On the Move Towards Customer-Centric Automotive Business Models 83 5 Artefact 3: Agile Software Readiness Assessment Procedures 121 5.1 Meta Data 121 5.2 Meta Data 122 5.3 Summary 123 5.4 Adding Agility to Software Readiness Assessment Procedures 126 5.5 Continuous Software Readiness Assessments for Agile Development 147 6 Conclusion and Future Work 158 6.1 Contributions 158 6.1.1 Strategic Dimension: Artefact 1 158 6.1.2 Business Dimension: Artefact 2 159 6.1.3 Process Dimension: Artefact 3 161 6.1.4 Synthesis of Contributions 163 6.2 Implications 167 6.2.1 Scientific Implications 167 6.2.2 Managerial Implications 168 6.2.3 Intelligent Parking Service Example (ParkSpotHelp) 171 6.3 Concluding Remarks 174 6.3.1 Threats to Validity 174 6.3.2 Outlook and Future Research Recommendations 174 Appendix VII Bibliography XX Wissenschaftlicher Werdegang XXXVII Selbständigkeitserklärung XXXVII

The Future of the Automotive Industry: Dangerous Challenges or New Life for a Saturated Market?

The automotive industry is undergoing a radical transformation. New social, technological, environmental and geopolitical challenges are redefining the characteristics of a saturated market, opening new scenarios while offering opportunities for the entry of new players. These challenges are bound to trigger reorganization of the global value chain between old and new suppliers and car makers and their suppliers, affecting the distribution of employment, the regionalization of production and the dynamic evolution of the comparative ad- vantage of nations. In this paper we address the issue of the reorganization of global value chains in the face of these challenges. The analysis will compare the relative position of core and peripheries in the North-American and European macro-regions, focusing on Mexico, which represents a significant case study for analysis of the impact of the digital transformation on the domestic value chain in an “integrated periphery”, and of trade agreements on the location policies of big multinationals. The dependency of the Mexican automotive industry on the strategic decisions of global players is considered a factor of great vulnerability, especially in a context of rapid change in the patterns of consumption, technologies and international trade agreements. For Mexico, as for European producers in the integrated and semi-peripheries, the main challenge in the near future will be posed by the radical transformation the industry is going through in electrical and autonomous-driving vehicles, which sees regions and players out- side the traditional automotive clusters in the lead. The transformations taking place are bound to change the global structure of automotive production. The rise of new competitors from the emerging economies and would-be entrants from other sectors, competing in mastering the new digital and software technologies, threatens the established structure of the industry. The pandemic has led to a spectacular acceleration in the process of change, while heighten- ing uncertainty about future developments. This is why the governments of leading countries are joining in the race, wielding carrots and sticks in support of their industries and in the endeavor to encourage risk-taking and investment in research and innovation, step up e-vehicle production while providing for the necessary infrastructures, and guarantee their companies a place in the new industr