How the Internet of Things Has Shaped the Automotive Industry

How the Internet of Things has shaped the automotive industry in relation to innovative product.

Project Proposal:

Proposal Rationale:

The automotive industry has witnessed a transformation which has been technology-driven. This has allowed the automakers to collect data about their customers and to also better understand them, as well as impacting the products and the designing processes in manufacturing the technologically advanced vehicles on the road today. Innovation within the cockpit technologies, safety features and also advanced materials have allow vehicles to become much cleaner, lighter and ultimately safer for consumers. Because of these innovations, vehicles are now also becoming a connected product, allowing for greater public acceptance as it changes the way consumers stay connected while traveling such as being able to control and monitor your car from your smartphone (Deloitte, 2014).

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This study will aim to understand how the Internet of Things has impacted on the automotive industry, how it has evolved and the effects it has brought about, both positive and negative. This information will be found by collecting data from relevant sources through interviews and surveys. The findings from this project will then be presented into a conclusion which will consist of how the internet of things has impacted the automotive in their product development.

Company Background

Jaguar Land Rover is a company that brings together two highly prestigious British car brands – Jaguar and Land Rover which Tata Motors acquired from Ford in 2008. Since, its success has flourished, with memorable vehicles and innovative technologies that add to a long-lasting legacy (Jaguarlandrover.com, 2019).

The multinational company holds its main centres in the UK with its engineering centres at Whitley and Gaydon, where the products are designed, and the Castle Bromwich assembly is where they are manufactured. The India based parent group is one of the world leaders in the auto manufactured industry and has large global footprint with presence in more than 80 countries across the world (Jaguarlandrover.com, 2019).

Jaguar is the largest UK auto manufacturing employer by providing jobs to over 25,000 people directly and over 170,000 people indirectly. The company also has an excellent exporter of the automobiles with more than 80% of the vehicles manufactured in the UK being sold abroad Jaguar Land Rover is committed in to the development of the automotive industry and invests a large portion of the company’s revenues in to the research and development of their products (Uniassignment.com, 2019).

Aims and Objectives:

The research aim of this project is to investigate how the internet of things has impacted the automotive industry, looking closely at Jaguar Land Rover in particular and how this has aiding in creating their innovation products.

In order to carry out this research, the aim is to answer the following research questions:

1. Investigate the impact internet of things has had on research and design of their vehicles
2. Explore previous methods for innovative product before the digital age
3. To ascertain the value add to customer satisfaction through their enhanced smart connected products
4. Investigate the impact that smart connected products has had on the company’s success or failures

Literature Review:

An in-depth review of the literature surrounding the topic area has been conducted in order to reach and conclude on the research questions. The review begins with understanding the concept of ‘Internet of Things’, how it has evolved and its impacts such as benefits and potential drawbacks: going forward this will aid in understanding the responses received during the information gathering stage.

What is the Internet of Things:

The Internet of Things, also called the Internet of Everything or the Industrial Internet, can be defined as the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data (Lee and Lee, 2015.)  There are currently an estimated 26.66 billion connected devices world-wide which is a vast increase since the 15.41 billion in 2015. Within the next 6 years it’s predicted there may be as many as 75.44 billion devices (Statista, 2019) which amounts to a fivefold increase in 10 years.

Smart, connected products offer numerous opportunities for new improved functionalities, it enhances the reliability of the product, gives greater utilisation for products, and capabilities can surpass traditional product boundaries. These products can vary and there are three different types of components. Physical components being the first – these are the mechanical and electrical parts of a product such as an engine in a car. The next type of component is the smart component which are the sensors, microprocessors, data storage, controls etc. and within a car these would be the anti-lock braking system, the rain sensors on a windscreen etc. Thirdly there are connectivity components which are the ports, antennae and protocols enabling wired or wireless connections with the product. Connectivity serves a dual purpose: It allows information to be exchanged between the product and its operating environment, its maker, its users, and other products and systems. Connectivity also enables some functions of the product to exist outside the physical device, in the product cloud.  (Porter and Heppelman, 2014)

Strategy Implications:

When creating a strategy, one much decide on which smart, connected product capabilities and features to pursue. Questions must be asked in the planning stage such as what sort of features can be created which will deliver real value to the customers whilst also being conscious of costs. Also, the value of the capabilities or features will depend on the market segment. The strategy must also focus on remaining competitive and therefore which features or capabilities of their products can reinforce that (Mastorakis et al., 2017).

The strategy must also focus on how much functionality to include in product or in cloud. This will have implications as there will be a higher unit price for those with more functionality in product whilst more functionality in cloud will lead security and accessibility risks. This decision will be helped or influenced by the response time, automation, network availability etc (Enterprise and Burkitt, 2019).

Closed or open systems approach will also need assessed. Closed approach customers purchase the entire smart, connected product system from a single manufacturer, key interfaces are proprietary. Whereas open approach allows any entity to participate in and interface with the system.

Other aspects must also be considered such as:

-          How data should be captured, secured and analysed,

-          The ownership of the data and whom has access rights,

-          Decide on whether to enter new business routes, and

-          Decide on the organisational scope.

Methodology:

This section will explain and discuss how the project question will be addressed and the methods selected to carry out the research.

Method

With having such a precise research aims, a qualitative research method will be used as it will allow the researcher and author to investigate the topic in sufficient detail.

Research Design

The most effective research method suited for this project will be using and conductive semi structured interviews with employees within Jaguar Land Rover. This will entail of an interviewer asking a range of questions which will have already been organised. The conversation can verve off the predetermined questions but remain within the topic areas to gain as much detail as required. This method allows for informality and flexibility.

Each interview will focus around the following areas:

• Background and context to how the internet of things is being used in new vehicles
• Benefits or pitfalls that have occurred as of result in the smart connected products
• Key risks and success factors involved
• Next steps and future predictions

Data Collection

The researcher of this study has gained contacts with Jaguar Land Rover whom have given their direct approval and agreement in assisting in the research through participating in any interviews and completing surveys as required.

Reliability

The researcher will ensure that the reliability of all information gathered is to a high level by not asking any persuasive questions during the semi-structured interviews. Notes will be taken during these interviews to ensure all information gathered is recorded, enhancing its dependability.

Research Ethics

The researcher of this study has been able to secure ethical approval to carry out this research by a manager within Jaguar Land Rover. The author will ensure that the information published in the project will be kept professional and no confidential information will be disclosed.

Conclusion

It is anticipated that this research will develop in-depth knowledge and expertise around the topic as well as a high level of understanding of the overarching impact that smart connected products bring to the company.

Project Plan:

References:

• Deloitte (2014). Acceleration of the connected experience Vehicle connectivity and evolving customer expectations. USA: Deloitte USA, p.3.
• Jaguarlandrover.com. (2019). [online] Available at: https://www.jaguarlandrover.com/2016/technology-innovation-1 [Accessed 6 Jun. 2019].
• Uniassignment.com. (2019). The History Of Jaguar Land Rover Management Essay. [online] Available at: https://www.uniassignment.com/essay-samples/management/the-history-of-jaguar-land-rover-management-essay.php [Accessed 8 Jun. 2019].
• Lee, I. and Lee, K., 2015. The Internet of Things (IoT): Applications, investments, and challenges for enterprises. Business Horizons, 58(4), pp.431-440.
• Porter, M.E. and Heppelmann, J.E., 2015. How smart, connected products are transforming companies, Harvard Business Review, 93(10), pp.96-114.
• Mastorakis, G., Mongay Batalla, J., Mavromoustakis, C. and Pallis, E. (2017). BEYOND THE INTERNET OF THINGS Everything Interconnected. SPRINGER, p.150.
• Statista. (2019). IoT: number of connected devices worldwide 2012-2025 | Statista. [online] Available at: https://www.statista.com/statistics/471264/iot-number-of-connected-devices-worldwide/ [Accessed 16 Jun. 2019].
• Heppelmann, J. (2018). Expanding Industry Boundaries with the Internet of Things.
• Enterprise, S. and Burkitt, F. (2019). Six Ways To Define Your Internet Of Things Strategy | Articles | Chief Technology Officer. [online] Channels.theinnovationenterprise.com. Available at: https://channels.theinnovationenterprise.com/articles/six-ways-to-define-your-internet-of-things-strategy [Accessed 16 Jun. 2019].