Page 131 -

Chapter 3 Strategy and Information Systems
130

So Driving Strategy
What?

How many hours do you spend per week driving a car? Think
about the productivity boost you could get if you spent that time
studying for exams, applying for a job, or responding to orders
placed on your new Web site. Also, think about how much time
your car just sits there—unused and unproductive. Could your
car be used more productively if it was shared with a friend,
sibling, or spouse? Maybe a driverless car, like those mentioned in
Chapter 4, could drop you off at school and then return home to
be used by someone else?
Businesses can also recognize gains in efficiency,
productivity, and sales that will come from using driverless
vehicles. For example, Mercedes is developing a driverless truck
that can operate autonomously once it is on the highway (a
4
driver is required to get the truck on and off of the interstate).
Not only can this vehicle transport a shipment to its destination Source: chombosan/Fotolia
faster, it can also make roads safer by eliminating fatigued
drivers and distracted driving.
To identify another potential business application of
driverless vehicles, take a look at one of Amazon’s new projects. This driverless taxi company would have other benefits as well.
Amazon recently filed a patent application for delivery trucks Passengers wouldn’t have to worry about safety. Profit margins for
5
outfitted with 3D printers. The purpose of these vehicles is to the company would probably increase due to reduced labor costs,
rapidly respond to orders by manufacturing goods while the healthcare costs, and accidents. Vehicles would never have to stop
vehicle is en route to the delivery location. You may be wondering for rest, food, bathroom breaks, and so on, so the company could
what this has to do with a driverless car, but if you combine continuously make money (except for vehicle maintenance and
Amazon’s innovation with a driverless vehicle, you now have an filling gas tanks, but both of these activities occur even with human
autonomous factory on wheels! Think about the strategic value of operators).
being able to instantly deploy manufacturing capabilities to any The implications of driverless vehicles are not just limited to
geographic location on demand. the transportation sector. They could also influence industries like
shipping, aviation, and law enforcement. If you still think new
innovations cannot take down juggernaut companies, just ask
Driving Existing Markets to Change Polaroid!
Businesses are constantly fine-tuning and adapting their
business strategies to create and maintain competitive Questions
advantages. Markets are sometimes disrupted by new entrants,
substitute products, or new innovations. It is clear that Über is 1. One mechanism that could help (1) inform the navigation of
revolutionizing transportation services around the world. In a few driverless cars and (2) update the vehicle with current road
short years, it has become a major player in the transportation conditions is Internet connectivity to other autonomous
6
industry with a $40B valuation. But is Über invincible to new vehicles operating in the area. What vulnerabilities could be
forms of competition? exploited by equipping one of these vehicles with Internet
Could a new entrant start a transportation company using access?
only driverless vehicles? One of the biggest concerns consumers 2. The feature describes a scenario in which Amazon’s mobile
have with Über is the lack of background checks and other vetting manufacturing vehicles could be operated autonomously. What
processes required of its drivers. What if you removed drivers from are some logistical issues that could arise from a delivery vehicle
the business model entirely? functioning without a human operator?