Lead Questions for the Disruption in Detroit: Ford, Silicon Valley, and Beyond (A) case:
1. What digital capabilities should Ford build to ward off the threats it faces?
To defend against these threats, it would be wise if Ford were to pursue some of the digital
capabilities listed below:
Autonomous driving technology: Ford needs to invest in the development of autonomous cars.
Building internal capabilities and partnerships with the best high-tech companies in LiDAR, sensor
fusion, and mapping technologies are probably required. This would demand a commitment of
millions of dollars in investments and allocating some significant time in research and development.
This would be viewed as one of the most disruptive new inventions in the automobile industry.
Connectivity and Infotainment Systems : Ford must go on innovating with improvements in smart car
technology, including infotainment systems, such as SYNC. Inclusion of the software platforms, for
instance, Apple CarPlay and Android Auto, and partnership with companies such as Amazon on
incorporation of smart home technology will provide more value to customers. The interconnectivity
enjoyed by everyone with other devices, cloud services, and smart homes becomes more valuable
every day.
Big Data and Analytics: Advanced analytics data capabilities will help Ford understand customer
behavior, improve performance of vehicles, and predict maintenance requirements. It would use
connected vehicle data to provide customized services and optimize utilization of the vehicle.
Predictive maintenance and real-time customer experience improvement through insights would
also be integrated.
Electric Vehicle Platform: With increasing demand for electric vehicles by the consumer, Ford needs
to prepare strong electric vehicle platforms. This should involve further research into battery
technology so that it can partner with firms such as LG or Tesla in perfecting the production of better,
higher-performance batteries, so that the firm doesn't lose all the battles in the EV market.
Mobility-as-a-Service (MaaS): Ford should focus on how to create digital platforms that can offer
Mobility as a service, like the type of platform that ride-hailing companies like Uber have started
allowing. The creation of Ford Smart Mobility LLC and testing of services involved in car-sharing and
ride-hailing are on the right track. Global extension of these services will help the company cash in
on changing transportation preferences.
Cybersecurity: With more connectivity and autonomous driving, Ford will have to be pretty fortified
with cybersecurity in order to safeguard user data as well as to protect the vehicles themselves
against hacking. Protecting vehicle networks along with ensuring consumer trust in connected and
autonomous systems is key.
Cloud and Software Integration: Ford should embrace and enhance the ability to provide cloud-based
services and software updates remotely in the vehicle. With the big techs (e.g., Microsoft, Amazon),
Ford must provide cloud storage, remote diagnostics, and OTAs software updates, thereby reducing
costs and maintaining alluring customers' satisfaction.
Developing such digital capabilities will enable Ford not only to protect itself from new threats but
also to become a leading player among the up-to-date automotive industry shifters.
2. Identify a few firms Ford may partner with for its digital transformation. What kind of
partnerships should Ford initiate?
In finding possible partners for the digital transformation of Ford, one has to consider firms that
would help to advance Ford's capabilities on the aspects of technology, data analytics, electric
vehicles, and autonomous driving. A list of some of the potential partnerships that Ford could start
is observed below.
Technology Companies
Google: A partnership between Google would be beneficial for Ford to upgrade its software
development and make it better in a field such as Waymo on autonomous driving or in cloud
computing.
Microsoft: A collaboration with Microsoft would bring in access to better cloud services and AI tools
to be used at Ford for better data analytics and connected vehicle technology.
Apple: An alliance with Apple is an excellent opportunity that would aid in the development of its
iOS integration into Ford's vehicles and a better infotainment experience to tech-inclined users.
Electric Vehicle Specialists
Tesla: Although Tesla is a competitor, here also, strategic partnerships might consider sharing best
practices in terms of battery technology and charging infrastructure.
BYD: BYD is a large Chinese EV player; it can be a means by which the former could scale its electric
vehicle offerings by strategically collaborating with it and leveraging the house of knowledge of BYD
in terms of battery technology.
Mobility Services
Uber or Lyft: In collaboration with ride-sharing companies, Ford will establish new modes of mobility
and explore the possibility of autonomous ride-hailing services.
Zipcar: Car-sharing services offer a relationship in which Ford gains knowledge on consumer
behavior and preferences while increasing its market share.
Data Analytics Firms
Palantir Technologies: Association with a data analytics company like Palantir would contribute a lot
to Ford's efficient use of big data for predictive analytics towards better supply chain management
and customers' insights.
IBM: Partnership with IBM in AI and machine learning will significantly improve consumer data
insight for Ford as well as enhancement in vehicle performance.
Research Institutions
MIT Media Lab: Innovation in the automotive technology field can be spearheaded by partnerships
with research organizations, such as MIT, especially in areas like autonomous systems and smart
transportation solutions.
Types of Collaboration Ford Needs to Engage
Joint Ventures: Ford should execute joint ventures with technology firms for developing co-products
or services in new offerings, mainly electric vehicles and autonomous driving.
Research Collaborations: Develop research collaboration with universities or tech labs to study new
technologies of strategic interest to Ford.
Supply Chain Partnerships: Collaboration with battery manufacturers or raw material suppliers to
ensure a stable electric supply chain for the autos.
Mobility Ecosystem Development: Creating partnerships in the mobility ecosystem and offering
integrated services where ownership of the vehicle is bundled along with ride-sharing and other
transportation alternatives.
Innovation Labs: Develop innovation labs or incubators with tech companies to promote new ideas
and accelerate the pace of leading-edge automotive technologies.
Through these partnerships, Ford can position itself as a leader in this dynamic automotive
landscape, leveraging its ability to deploy technology to advance product offerings to serve evolving
customer needs.
