Author: marielbalo

Written by Chris Baker, PMBA Class of 2018; Matt Cerce, PMBA Class of 2018; Phillip Cameron, PMBA Class of 2018; Eliza Kanovsky, PMBA Class of 2018

 

It is expected that autonomous vehicles (AV) will boost the global economy by $7 trillion by 2050 ($2 trillion in the US). ¹ However, to capture this added value, Original Equipment Manufacturers (OEMs) need to maintain their position at the top of the industry value chain that is poised to make a dramatic shift. Essentially, OEMs need to adapt and selectively claim new touch points with their current and potential consumers. ² That means, OEMs will have increased mobility to match the required connectivity and changes in vehicular value from 90 percent hardware and 10 percent software to 40 percent hardware, 40 percent software and 20 percent content. ³ Further supporting this shift is the $7 trillion economic growth cited herein. $3.7 trillion is attributed to Consumer Mobility-as-a-Service, $3.0 trillion is attributed to Business Mobility-as-a-Service, and $203 billion can be attributed New Pilotless Vehicles. The OEMs are adapting accordingly to capture this value as each piece of this added value is outside of their standard business model, General Motors (GM) vertically integrated through acquisition of Cruise Automation, a Silicon Value startup⁴, Ford acquired SAIPS, a company focused on machine learning and computer vision⁵, and Daimler’s use of car sharing via “Car2Go” and “Mercedes me” to further expand their portfolio and connectivity⁶.

It is paramount that OEMs continue to adopt an increasingly mobile approach to business so that they maintain a connectedness to the changing demands of the consumer and capture this added value. Consumer interest in AV centers on the ideas of increased safety, convenience and productivity⁷. That means spending more time with your family, but also gives access to individuals that previously couldn’t get to work such as the elderly and disabled. By staying at the forefront of this cutting-edge technology, OEMs can achieve new levels of success and maintain its position in the industry while increasing the connectedness of all individuals’ interactions with society.

 

This blog is part of a series created under the direction of Bonnie Pierce, Lecturer in Strategic Management and Public Policy, for the GW Business School class “Business and Society: Autonomous Vehicles.”

 

¹ Marshall, Aarian. “RoboCars Could Add $7 Trillion to the Global Economy.” June 3, 2017

² A.T. Kearney. “How Automakers Can Survive the Self-Driving Era.” 2016. A.T. Kearney, Inc

³ A.T. Kearney. “How Automakers Can Survive the Self-Driving Era.” 2016. A.T. Kearney, Inc.

⁴ Liuima, J. “Impact of Autonomous Vehicles on Auto Industry.” September 23, 2016.

⁵ Etherington, Darrell. “Ford Acquires SAIPS for Self-Driving Machine Learning and Computer Vision Tech.” August 16, 2016.

⁶ Daimler Company Website. https://www.daimler.com/products/services/mobility-services/

⁷ Based on Industry Interview with Daimler Company Representative

Written by: Andrew Brennan, PMBA Class of 2019, Idan Erez, Global MBA Class of 2019, Samuel Lada, PMBA Class of 2019

 

Advancements in technology continue to pave the way for the implementation of autonomous vehicles. Effective deployment of such technologies could dramatically reduce the number of automotive-related deaths each year.  Continually testing the technology is imperative as it becomes increasingly more complex and sophisticated. According to RAND research, deploying and testing technology by 2020 will accelerate its perfection and potentially save 500,000 American lives over the next 50 years.¹

Over the last few years, only 21 states² and 17 cities³ have enacted legislation addressing the advancement of this technology. At the federal level, the House and Senate are working to pass legislation that would help accelerate the development. Other state regulations, and hesitant policymakers, however, prohibit testing and are only delaying the realization of significant reductions in automotive-related deaths. These states are at a competitive disadvantage as technology companies, automotive manufacturers and other key stakeholders look to deploy AVs and invest in the states open to testing and improving the technology.

 

Machine learning, like the human driver, relies on experience. The more miles traveled today, the faster the technology can develop and the more quickly lives are saved tomorrow. With more than 37,000 automotive-related deaths each year, the time to act is now. Policymakers must work with key stakeholders to develop appropriate legislation that allows for the testing, refinement and advancement of the technology. Waiting for near-perfect technology will delay the realization of economic and societal benefits, and more importantly, result in preventable deaths.

 

This blog is part of a series created under the direction of Bonnie Pierce, Lecturer in Strategic Management and Public Policy, for the GW Business School class “Business and Society: Autonomous Vehicles.”

 

¹ Bauman, Melissa, “Why Waiting for Perfect Autonomous Vehicles May Cost Lives”, November 7, 2017, RAND Corporation

² National Conference of State Legislatures, “Autonomous Vehicles - Self-Driving Vehicles Enacted Legislation”, January 2, 2018

³ Bloomberg Philanthropies – The Aspen Institute, “Is your city getting ready for AVs? This is a guide to who’s doing what, where, and how.”

Written By: D’Antione Copeland, Lee Fauteux, Bobby Peddireddy, Gina Romero, Global MBA Class of 2018

 

Like many other smart devices, autonomous vehicles will eventually become a part of the Internet of Things (IoT). Autonomous Vehicles (AVs) will need to share enormous amounts of data with smart infrastructure and other connected cars in order to operate safely and efficiently under a variety of different conditions. Existing wireless networks simply do not have the capacity to handle the 4,000 GB of data that Intel predicts will be shared per car on a daily basis.¹ To accomplish this, wireless data grids will have to move beyond the capabilities currently offered by 4G networks.

The fifth generation wireless, also known as 5G, is a fast approaching network system that is set to be available in late 2018. 5G will have a wider bandwidth, faster speeds, higher capacity, improved network coverage, and less latency than 4G networks. Experts predict the 5G network is what is needed to successfully launch autonomous vehicles.² Autonomous vehicles will shape the future of mobility and infrastructure because they will possess technology that communicates with other cars, roads, bridges, pedestrians, etc. This aggregated data will lead to the creation of Smart Cities with smart infrastructures, and the 5G network is vital to properly gather and process massive amounts of data in real time. It is essential that AVs have this ultra-high speed network because communication between vehicles and infrastructure must always be completely up-to-the-minute to ensure the safety of everyone on the road. The bandwidth and speed made possible by 5G networks will benefit AVs by making cloud computing more able to reliably aid connected cars in making split-second decisions.

 

This blog is part of a series created under the direction of Bonnie Pierce, Lecturer in Strategic Management and Public Policy, for the GW Business School class “Business and Society: Autonomous Vehicles.”

 

¹ Landau, Deb. “Intel 5G: The Communications Key to Autonomous Driving” January 2017.

² Segan, Sascha. “PC Magazine: What is 5G?” May 2017.