Automakers Become Software Companies

When it comes to the form of value that the use of software within automakers has brought about, it is evident that is has cut the costs and also the time that is required when it comes to the time that is required in the production of vehicles. Another aspect is that the use of software has allowed for there to be a form of improvement in the management of products as they can be managed on the cloud (Laudon and Laudon, 2013). A good example of how much value the use of software has brought about in the automaker industry is the case of Ford Motor Company. The usual time that was taken before to plan, design, and builds a new car is approximate for two years.

This entails any pre-production aspect before the final rollout plans are commenced. The software-enhanced cars have as such benefited customers greatly (Laudon and Laudon, 2013). On the other hand, the software is also benefiting the automakers in a number of ways. They are offering the access to uncharted territories of experimenting and provision of high-end cars that allow them to plan, design and produce cars, while at the same time, being able to update the cars to the desire or comment of the customers. What value chain activities are involved in enhancing cars with software? The value chain activities that are involved in the enhancement of software-enhanced cars can be viewed or explained in the case of Ford Motor Company. The company has been in operation for over seven decades and as such, its incorporation of technical aspects such as the software-enhanced is an effective illustration of the value chain activities in enhancing cars with software.

Additionally, the software-enhanced cars take less time to be planned, designed and produced unlike the previous traditional approach that was taken in the manufacturing of cars and as such, meaning that more cars can be produced within a given period of time and also at a lower cost. This will give the automakers a competitive advantage as they will approach the market with a brutal form of approach where they will present their products in surplus. Therefore, based on this, the reduction of the time that is required to produce the cars, and also the costs are the form of competitive advantage that is provided for these companies. The ability of the software to also upgrade is also an effective way to view the form of competitive advantage that the software-enhanced cars are offering for these automakers.