As IPO proposals value Uber at an eye-popping $120 billion, auto makers are racing to gain ground in everything from car sharing to driverless technology. At stake: who will control the future of transportation.
Answer the questions after reading the article.
QUESTIONS:
- (Introductory) In your own words, summarize the central premise of this article.
- (Advanced) What is the role of software in the auto industry?
- (Advanced) In your estimation, which firms are best-positioned to be successful in the auto industry – software and tech firms or traditional auto companies? Explain.
- (Advanced) What would it take for traditional auto makers to be successful in the future?
- (Advanced) What are the career implications of the trends that are discussed in this article?
1-Summarize the central premise of this article.
This article streamlines new auto industry trends. It has been revealed that many automakers in the competitive automobile industry are looking to transform their business model to meet the needs of transportation in different regions of the world. Automobile companies are in the limelight due to pertinent investments in developing the ride-hailing services. Many firms such as Honda, Toyota, General Motor, and many others aim to make some changes in the business model to convert automobile manufacturing into transformation services. They are inspired by Uber ride-sharing industries. However, these auto firms are intending to look forward and make driverless cars. Investments regarding artificial intelligence and software development are quite visible, and it can change the future of the current automobile industry (Colias, Higgins and Boston).
2-The role of software in the auto industry
The role of software in the auto company is important, as far as the future of the automobile industry is concerned. For Instance, many companies are looking to develop software to shape driverless cars to meet the needs of ride-hailing services. Uber has gained success in many regions. However, losses in recent quarters have also put some question marks on the current transformation services. The software development in the automobile industry refers to the development of future transportation. Transportation without drivers will reduce the cost for people and enhance the visibility of people’s mobility. The example of auto driver car of Google is an example of it. Also, Toyota is looking to invest in Uber to inject its outputs in Uber transportation. Interestingly, the intention is to develop or reshape the transportation process (Colias, Higgins and Boston).
3-Firms best-positioned to be successful in the auto industry
In my opinion, software and tech firms are better positioned in the competitive market. Traditionally, Ford and Toyota contain mass production to meet the needs of customers. However, they enhanced the visibility of the positioning through investing in software development and the purchase of artificial intelligence. Including Uber, these companies aim to use modern technology to make a difference. The best positioning can be justified by navigating the hiring process of these firms in California and Israel’s tech hubs. Through developing both internal and external business processes, the positioning process has been increased by firms (Colias, Higgins and Boston).
4-Traditional automakers to be successful in the future
Some work is to be done by traditional automobile companies to be successful in the future automobile industry. It is the best time for these firms to gather all necessary assets, including financial and technological resources under one roof. Instead of prioritizing the profitability in the industry, the pertinent move is to invest and develop to meet the future needs of customers. Firms are acknowledging the need for collaboration with different technology firms such as Google and Intel to justify the transformation process. It seems a complete journey to use both internal and external resources to become modern automobile organizations. Technology has to play a vital role in this transformation process, and several initiatives such as technology investments are examples (Colias, Higgins and Boston).
5-Career implications of the trends that are discussed in this article
Many career implications can be derived from the article. For Instance, companies, especially top automakers in the automobile industry, need skillful people to rationalize the technology in the work process. Instead of focusing on business and administrative education, people must have to get technical education, especially software development and programming, to get the space in these top automobile companies (Colias, Higgins and Boston). As mentioned, companies are investing in advanced technology to become modern transportation companies. Already, firms have an immense range of employees in production houses. Separate business models will need employees with different skills and intentions. Thus, a career in the automobile industry is visible. However, people must change their intentions when choosing different fields (Colias, Higgins and Boston).
Work Cited
Colias, Mike, Tim Higgins and William Boston. “Will Tech Leave Detroit in the Dust?” Wall Street Journal. Wall Street Journal, 20 October 2018. 5 November 2018. https://www.wsj.com/articles/can-detroit-become-a-software-business-1540008107.
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