Chapter 3 Case Study : Automakers Become Software Companies

Question 1: How is software adding value to automakers’ products?

Software is adding value to automakers’ products by adding more value and freshness to their products without having to invest so heavily in new vehicle production. Besides that, with the inclusion of software in their cars, automakers are entering uncharted territory so they must now devote resources to updating and testing their software, as well as establishing ways to provide the updated software to their customers. Automobile software also has many of the technologies included in automobile software packages raise the same privacy concerns surrounding location tracking that have often plagued smart phone manufacturers and app developers. The existing of software also allow automakers’ automaker to aggregate and analyze the data from customers’ cars to identify quality problems and, if necessary quickly recalls. Just as with apps, the possibilities are limited only by the imagination of automakers.

Question 2: How are the automakers benefitting from software enhanced cars? How are the customers benefiting?

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 car. This is establishing ways to provide the update software to their customer. Then, 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 customer. USB stick contains a software upgrade that will improve navigation controls, music and phone features, as well as the ability to control car temperature. The upgrade also contains code that will upgrade system speed and improve the interface based on common criticism. The customers must get into the habit of checking the Ford Web for software upgrade. 

Question 3: How much of a competitive advantage is software providing for automakers? Explain your answer. 

Software provides the automakers a competitive advantage of allowing cars to be managed via the cloud.

Software used by My Ford Touch has an in-dash touch screen available for controls with navigation, music, phone integration and temperature. It also has the Sync software which enables tablet and smart phones to access music and other apps using by only voice commands. This is a competitive advantage compared to other normal cars in the market, this feature of software makes it easier for customer to use the car for own interest.

Other than that, Ford has also come out with a software to solve urban congestion by helping cars to avoid traffic jams, to reserve parking space in advance, for future planning Ford is developing ways for vehicles to communicate with one another on the road to avoid collisions.

Software that operate online in the cloud for cars which enables users to be able to remotely track their cars or even diagnose problems with the car like problems of low tire pressure or need for an oil change. These software development are providing a new platform for automakers to enhance many car drivers’ life by just a touch of a finger through a touch panel.