Why is the car industry all of us?
In just a few short weeks, we’re moving toward the future of silicon valley mobility for some c-class people who need innovation. At first glance, this is not an industry I instinctively feel. But what struck me about the blog research around the tour was how quickly and furiously the industry, with its 100-year history, was adapting to the confusing mess. The car industry is actually a good example of the disruptive resilience of companies from other markets. That’s what I learned.
When the interruption occurs, find your essence.
When I spoke to Shelby Clark, Turo’s brilliant founder, he reminded me of Clayton Christensen’s “upcoming work” theory. Mr Christensen believes that companies should not sell products and services to customers, but instead try to help them solve their “pending work”. As far as the auto industry is concerned, “work” is not selling cars, but people from A to B.
“When a customer” is working “not owning a car, but mobility”
The combination of two disruptive trends – autonomous driving and Lyft, Uber and Zipcar – is making car ownership increasingly obsolete. The result is that people will no longer buy the average car – which is best for their average lifestyle – but hire different types of cars to fit the needs of the moment. That is why the challenge for the auto industry is to get rid of the “work” that their customers want to get rid of selling cars and providing mobility.
Many car companies are already fully aware of this dynamic, even with their “competitive” cooperation. I like what Shelby Clark said: “a lot of companies make the mistake of interrupting, but you have to accept it, integrate and accelerate it.” Cadillac, for example, is ordering car services on demand. Ford bought the company, a on-demand commuter service, and is investing heavily in artificial intelligence to start Argo AI. Gm has bought cruise automation and is working with Turo, a peer-to-peer car-sharing company. They understand that customers from A to B are no longer car owners. They all reconvert their essence into something that fits their changing environment.
Become a technology company.
The automobile industry is one of the typical atomic industries to understand the customer’s demand for bytes. Today, every industry is a technology industry. There’s no way around it. Cars and (most) other modes of transport are computers – or smart phones – on wheels. Tesla is not a car company. This is a technology company that is building a high-tech platform. This is not just because of consumer demand. This is also because it constantly analyzes its own data and optimizes how it works.
“Technology companies like apple, Google and baidu have great advantages in the auto industry.”
When most of us are thinking about “computer” car, we are considering autopilot and interact with their environment connected cars (with other cars and smart cities around equipment). Obviously, this is a big trend, but people like technology expert Ari Teman are studying how cars can interact with users sitting inside. The former sees biometric technology, “vehicles, environments or services that identify who you are and what you are”, one of the biggest changes in transport. Easy to understand when you think about these data and potential insights.
Auto enterprise transformation to the science and technology company is one of the biggest challenges facing, when they don’t like telecoms companies do when introducing smartphone into a “dumb pipes” : all data and information provided by their support is owned by the company, companies such as apple or Uber utilization. The latter knows more about the customer than they do. Like this, car companies are in danger of “losing” data on biometrics, health care, smart insurance, geo-location, driver security and other software companies. This is a big challenge for any operator.
Another challenge for the auto industry is to truly understand the nature of technology and translate it into “customer work” because it is easy to transition from traditional oems to high-tech companies. Technology companies entering the automotive industry – apple, Google and baidu – are committed to developing their own vehicles – which has a big advantage.