Driving the Future:

How Autonomous Vehicles Will Change Industries and Strategy

Group 6
Ayushi Puri | Kanhaiya Bhardwaj | Satyam Agarwal | Srikar T | Sumit Raj
 Trends Towards Autonomous Vehicles (AV)

Future Advantages that

By 2030, self-driving cars are fasten adoption
expected to create $87 billion • Time saving
worth of opportunities for • Shared use of resources
automakers and technology • Increased efficiency
developers • Increased safety and
security

Early Adoption
In closed environments such Mature Phase
as university campuses, By 2040, nearly 75% of
airports, golf courses, holiday vehicles can be
parks and retirement villages autonomous

Challenges
Sales Challenges in adoption of
Fewer overall units of AVs in developing countries
automobiles will be produced and environments with
and sold because of AV's complex road network
sharing flexibility
Decisive vs Irreversible?

Not irreversible as the growing technology can

provide consumers with the AVs but it's the adoption
rate which determines the success

Autonomous Vehicles will not become mainstream

on majority of complex road traffic networks such as
India.

Manual controls and semi automation rather than totally

automated vehicles will be the future, like the current
hybrid transmission system

Questions of privacy and security may restrict its

adoption and growth rate.
Industries that will be Impacted by Autonomous Vehicles

Automobile Manufacturing and

01 Technology

02 Car Isurance Companies

03 Law and Police Forces

04 Government
 Industries that will be Impacted by Autonomous Vehicles
Autombile Manuafcturing and
Car Insurance Companies
Technology

 Sales will drop for conventional  With expected decrease in

vehicles significantly once accidents, car owners will spend
autonomous vehicles can be less on insurance.
summoned via apps and shared by  Auto insurance industry will not
multiple people. disappear altogether, as cars will
 Will create market for retrofit still face risks such as flooding,
vehicles with self-driving damage or theft
abilities.  Other than miles one expects to
 With widespread adoption, drive, model, make and style of
cybersecurity vulnerabilities car will assume greater importance.
need to be addressed and  In long run, insurance companies
assessed. With more connected will need to adjust their business
vehicles, attack surface for strategies to reflect the reality of
hackers might increase. fewer accidents.
 Industries that will be Impacted by Autonomous Vehicles

Law and Police Forces Government

 Autonomous vehicles have  Ordinary cars might be gradually

potential to cut police forces (in
half).
 Need for stopping people for
traffic violations will decrease
significantly as autonomous
vehicles will be programmed to
obey all traffic rules.
 Also, it will be easier to spot and
catch people for other crimes as
well as crime-fighting opportunity
may be reduced with driverless
cars.
banned and car-sharing services
will increase. This will result in
less number of cars on the road.
 Govt. revenues may decrease due
to reduction in taxes, tolls, and
fines from traffic violations.
 With fewer cars, existing roadway
infrastructure would be used
more efficiently and the need for
new roadways may decrease.
 Reduction in police force would
help reduce expenditure.
 To-be New Opportunity – Autonomous Semi-Trailer Trucks

Eliminate Reduce
• Driver shortage • Elimination of jobs for
(manpower) drivers
• Driver fatigue • Reduced business for
• Insurance cost for restaurants and motels
companies along highways

Raise Create
• Safety of drivers • Connected vehicles
• Reduced labour demand • Easier traffic and route
• Increased fuel efficiency navigation via
• Reduced accidents interconnected vehicles
• Operating time flexibility
• Transportation time and
cost to companies
 To-be New Opportunity – Unmanned Vehicles via App

Eliminate Reduce
• Decision making while • Elimination of jobs for
driving taxi drivers
• Investment in buying a • Reduced business for
vehicle and restaurants and motels
maintenance along highways
• Need for paying parking • Redution in short-haul
fee flights

Raise Create
• Reduce road congestion • Beneficial for physically
• Reduce accidents challenged people and
• Safer surroundings for minors
cyclists, pedestrians and • Productive time while
bystanders. travelling
• Reduced commute time • Connectivity to places
and increase convenience where public transport
As opposed to owning self-driving cars and public transport is not available
 Evolution of AV’s
A cart designed by Leonardo da Vinci that could
move without human intervention.

1868 - Robert Whitehead invented a torpedo that

could propel itself underwater used by navies.

1945 – Worlds 1st cruise control to

Smoothen the ride that used a
1933 - Mechanical Mike autopilot prototype mechanical throttle
designed by Sperry Gyroscope Co for a to set a vehicle’s speed
13,000-mile flight around-the-world.

VaMoRs – 1987 - German engineer Ernst Dickmanns Tsukuba Mechanical (JAPAN) produced an
fitted a sedan with a bank of cameras and 60 autonomous vehicle that recognized street
micro-processing modules to manoeuvre markings and travelled at about
it based on objects on road. 20 miles per hour.

2001 - U.S. Department of Defense Research

2015 - Tesla’s semi-auto “Autopilot”, enabled Arm, sponsored a set of challenges that
hands-free control for highway and freeway Promoted autonomous technologies further.
driving. Delivered in the form of a single
update overnight.
 Role Of Different Players - AV
FCA

Continental Car2Go
Bosch
Aptiv DriveNow mytaxi

Magna BMW MERCEDES Uber

AUTOMAKERS (MANUFACTURERS)
Intel
HERE
HERE
Jaguar
Mobileye NVIDIA
Landrover Lyft

FCA WAYMO

Intel
TECHNOLOGY PROVIDERS Harman Baidu
Honda Lyft
HYUNDAI GM
KIA
Cruise
Aurora
Mobileye
Samsung
Telenav
Velodyne Lyft

FORD
SERVICE PROVIDERS
Saips
Ford
Argo AI
Gett Autoliv
Audi Civil Maps
Uber
MOIA Geely
Delphi
VW VOLVO
NVIDIA Microsoft
HERE Zenuity
INNOVATORS (STARTUPS) Aurora NVIDIA

Collaborations in AV
 Shift of Profit Pool- AV

o A profit pool is defined as the total profits earned in an

industry at all points along the industry’s value chain.

o From a revenue standpoint, car manufacturers and

dealers dominate the industry, accounting for almost
60% of sales. But the profit-pool lens reveals a
different picture.

o Auto leasing is by far the most profitable activity in the

value chain, and other financial products, such as
insurance and auto loans, also earn above-average
returns.

o The stake of software tech companies will further

increase in automotive industry with furthering of
autonomous vehicles and help new industries
dominating the profit pool.
 Autononomous Driving Technology - A Blue Ocean Strategy

• Unprecedented benefits has been brought by

Autonomous Driving vs Traditional Driving these disruptive innovations
• Autonomous driving shows different
characteristics when compared to traditional
driving
• Disruptive innovation includes
 Different ownership form
 Freedom of time
 Infotainment
 Automated driving control and decision
making
• These disruptive innovations can be added value
parking space

freedom of time
new user demand
human intervention

need to drive

fuel consumption

driving sensation

data recording
need of driver's license
road safety

connectivity
infotainment
accidents

vehicle sensors
gas station and maintane...

in car environment
price for consumers
vehicle driving component

respect for the environment

automated driving control ...

to the value propositions
• These attribute fits autonomous driving into new
perspective ‘blue ocean’
• Some elements will be eliminated:
 Steering wheel and pedal
 Driver’s license
Autonomous Driving Traditional Driving  Driver’s liability
 Technology Innovation vs Value Innovation

Reduces risk Value addition

Reduces buyer risks in Focuses on adding value
terms of financial, physical, to customers. Makes life
emotional or reputational easy, simple, productive,
risks
Value convenient and stylish

Enables shift
Innovation New arenas
Makes shift possible from Creates new markets
low margins and competition for profitable growth
by enabling transition from opportunities
red ocean to blue ocean

• Technology Innovation does not create new markets. It just enables newer and better ways of completing processes.
• In order to make a hassle-free dive into a blue ocean from a red ocean, companies must focus on Value Innovation
rather than Technology Innovation.
Thank You!