- Read "Automakers become Software Companies" on pages 104-105 of your textbook Management Information Systems - 13edition - Write a short essay ( 23 double space) using any word processing application or hand written with your solution to the case. Remember to integrate in your essay your answers the case study questions and include a list of the references used to document your solution using the APA Style. As the smarthone market continues to expand transportation methods, and to do this, cars need and initiatives like smart electric. grids continue to to be equipped with sofrware that can monitor and pick up steam, another industry has hegun getting enhance vehicle function at the most basic levele "smarter" with software and appse the automoThe eventual system would require that cars feed bile industry. Ford, BMW, and other automobilc increasing amounts of information to systems companies are enhancing their vehicles with onwhose purpose would be to minimize highway con board software that improves the customer experi- gestion. The system would also require an indtsery ence, and the auto industry is working on technology standard, which does not exist as of yet, Ford hat that will allow cars to be managed via the cloud. doubled its investment in vehicle-to-vehicle comAutomakers are finding that software is a way of munication technologies and HMW is also contineadding more "value" and freshness to their prod. ing to develop ways for vehicles to communicate uets without having to invest so heavily in new. with one another on the road to avoid collisions. vehicle production. It takes Ford Motor Company, With the inclusion of sottware in their cars, for example, about two and one-half yeais to plan, atomakers are entering uncharted territory. They design, and build a new car. Design and production, must now devote rrsources to updating and testing including metal stamping equipment and assembly their software, as well as establishing ways to line setup, must be finalized long before the cat provide the updated software to their customers. rolis off the line. But the auto makers can create Car companies need to coordinate their car devel. a new software interface for a tar within months. opment cycles more closely with their software and update it again and again over the life of the development cycles. Also, many of the technolocar without much lead time. This enables Ford and gics included in automobile software packages raise other automakers to significantly imptove the pas- the same privacy concerns surtounding location senger experience and add new features to cars. tracking that have often plagued smartphone mas. years after they are built. utricturm and app developers Ford is perhaps the automaker doing the mokt to innovate with software and apps. Its My Ford noterwan ugeraden to its customers. The company Jouch interlace is an in-dash couch semen avat! able for select vehicles with controls for navigation, What cars have an atvanced rouch screen music, phone integration, and temperature, Ford cuntel parui running the MyFord Touch interfice. has upgraded this interface and the Sync software The stick contains a software upgrade that will behind the interface, adding tablet and smartphrone improve navigation controls, the music and phone integration and better voice response- In 2010, ford features, as well as the ability to control car temadded support for the online music streaming ser- perature. The upgrade also contains code that wil vice Pandora, which is very popular among young upgrade system speed and improve the intertace potential buyers. This update enables drivers to based on common eriticisms from Ford owners connect their tablets and smartphones to the Sync Although Ford says it plans to continue Issuing system to access music and other apps using voice software upgrades this way, the company hopes commands. that customers will get into the habit of checkuse of software to alleviate urban congestion ing the Ford Web site for software upgrades on Chairman Bill Ford Jr. has championed the by investing in technology that responds to the the technology in their cars remaining constant problems created by traffic in the biggest cities. throughout the life of the car, newer cars are poised Theoretically, technology might help cars to avoid to change all of that tratficjams, to reserve parking spaces in advance, Ford has hired thuman-machine interiace engik and possibly to even drive themselves. neers, whose job is to analyze how their customes To manage vehiclen in this way, cars need to be interact with the software in thelf cars Often, these connected to some kind of central system, which engineers ase customer feedbuck to make clanges would coordinate with public transit and other to the software. Customers complained that we much information was available on each screen of sensitive customer data and to provide: robust the interface, so Ford moved the most commonly privacy options. On the other hand, automakused features to more prominent ers are hoping that younger customers who have: positions on screen and increased their font size, grown up using Facebook are less likely to care: relegating the rest to submenus. Feedback has been about privacy, and features that collect highly positive. Ford has also asked dealers to dedicate targeted information about a car's location and more time and personnel to hands-on technology driving habits. training to help customers master its interface. BMW is also investing a whopping $100 million GM, Daimler, and other companies are all in mobile apps, hoping to market them to their developing new features for their cars that operate customers as "premium services." Some analysts online in the cloud. Users will be able to remotely are skeptical of the decision to invest that much track their cars (you'll never forget where you money, but BMW believes that mobile apps will parked again) and diagnose problems with the car, become an increasingly attractive selling point for like low tire pressure or the need for an oil chango. customers of its BMWi electric and hybrid cars. Corporations will be able to track employee use Although the fucure of cars sharing information of company cars by interpreting car sensors and with other nearby cars is still years away, automakengine readouts. Manufacturers will be able to drs are excited by the possibilities afforded by smart aggregate and analyze the data from customers' softwareard apps cars to identify quality problems and, if necespossibilities are limited only by the imagination of Ceplariny Nexte- +11 Car Toch, "normanon Woek, July 27, 2012: automakers. Mikn Ramsey. Avoldimg Giridock with Smart Autos, The Wall GM will allow its app developers to access Sinet foumal, Fichriary 2?, 2012; Joseph if White, "Now Driweris its computer systems to improve app function, Jemeal, May 2, 2012, Chris Murphy, Ford is Now a Software Auto analysts believe that automakers will make Suddenly Loves Mobile Apps." Informanot Wrec. March 2.201 . mistakes as they learn how to properly handle and Chuck Squatriglia, 'Ford Brings SmartPhone Apps to Your Dashhoard, Wred, April 20, 2010 CASE STUDY QUESTIONS 1. How is software adding value to automakers' products? 3. What value chain activities are involved in enhancing cars with software? 2. How are the automakers benefiting from software-enhanced cars? How are customers 4. How much of a competitive advantage is software benefiting? providing for automakers? Explain your