Automakers Become Software Companies (Page 130)

1.How is software adding value to automakers’ products?

•     Software adding value to automakers’ products by cutting the cost and time for new vehicle production. In addition, by using on-board software, it can help to improve and allow the automakers’ products to be managed via the cloud. 

•     For instance, Ford Motor Company take about two and one-half years to plan, design, and build a new car. Design and production, including metal stamping equipment and assembly line setup must be finalized long before the car rolls off the line. 

•     But, by using the software, the automakers can create a new software interface for a car within months and update it again and again over the life of the car without much lead time. This enables Ford and other automakers to significantly improve the passenger experience and add new features to cars years after they are built. 

•     Hence, from the example, we can conclude that software can add value to the Ford Motor Company products while cutting the cost and time for new vehicle production. 

 2.How are the automakers benefiting from software-enhanced cars? How are customers benefiting?

•     Automakers benefiting a lot from software-enhanced cars. Firstly, software helps to alleviate urban congestion by investing in technology that responds to the problems created by traffic. The eventual system would require that cars feed increasing amounts of information to systems whose purpose would be to minimize highway congestion.

•     Besides, automakers are entering uncharted territory with the inclusion of software in their cars. This is establishing ways to provide the update software to their customers. 

•     Furthermore, many of the technologies included in automobile software packages raises the same privacy concerns surrounding location tracking that have often plagued smartphone. This is the best way to roll out software upgrades to its customers.

•     By implementing software-enhanced cars, it can easier the customers to navigate the road and car with additional software. Besides, customer will get benefits to solve traffic jams problems. 

•     At the same time, by using the software-enhanced cars, customers will be able to communicate with each other or other people if anything is possibly happen on the road. Other than that, all smart phone user can connect and analyse data on car application. 

 3.What value chain activities are involved in enhancing cars with software? 

•     According to the article, value chain activities that involve in enhancing cars with software can be illustrated by the activities of software-enhanced cars by Ford Motor Company. Take for example, in Ford Motor Company , MyFord Touch interface is an in-dash touch screen available for select vehicles with controls for navigation, music, phone integration, and temperature. Ford has upgraded this interface and the Sync software behind the interface, adding tablet and smartphone integration and better voice response. 

•     In 2010, Ford added support for the online music streaming service Pandora, which is very popular among young potential buyers. This update enables drivers to connect their tablets and smartphones to the Sync system to access music and other apps using voice commands. 

•     Besides, Chairman Bill Ford Jr. has championed the use of software to alleviate urban congestion by investing in technology that responds to the problems created by traffic in the biggest cities. 

•     Furthermore, Ford has doubled its investment in vehicle-to-vehicle communication technologies and BMW is also continuing to develop ways for vehicles to communicate with one another on the road to avoid collisions. 

•     Hence, by upgrading their system, it can help the company to get more competitive advantages and their products will be demanded in the market.

 4.How much a competitive advantage is software providing for automakers? Explain your answer? 

•     According to the article,Software provides more competitive advantages for automakers. Generally, Software provides the automakers a competitive advantage of allowing cars to be managed via the cloud. 

•     Take for an example, Ford Motor Company is enabling the software that operate online in the cloud for cars to enables users to be able to remotely track their cars or even diagnose problems with the car such as the problems of low tire pressure or need for an oil change. These software development provide a new platform for automakers to enhance many car drivers’ life by just a touch of a finger through a touch panel. Those are the competitive advantages that software provides for the company which is adding values to the company compared to other automakers company. 

•     They develop themselves with variety progress and it is far away developed compare to other companies. The reason why software providing for automakers with so many competitive advantages is software upgrading the quality of the cars and support the cars with many convenient facilities.