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New Transportation Ecosystem: OEMs Are Not Significant Players

The expected life cycle of existing business models is trimming. As a result, the impact of sustainable competitive advantage has changed, and managers in every industry should be aware of the opportunities in their business environment to prepare for innovation.

As innovation is the way of surviving in any business, today’s business models with a static character have no permanence, so managers must design dynamic business models capable of continuous improvement.

The business ecosystem is one of the innovative models in the digital world that emphasize cooperation and synergy between different businesses to develop and create the highest value for customers.

As an example, if you purchase a theater ticket on a website, a taxi company can offer you transportation service with a discount; However, these businesses are not related to each other, but they play a typical role in creating value for the customer by actively cooperating as players of an ecosystem.

However, unlike simple cooperation contracts between two companies, being in an ecosystem involves a complex set of actors that, while actively competing and cooperating, have economic benefits for the players.

In the world’s transportation system, these ecosystems include product manufacturers, service providers, and IT giants that identify opportunities in an integrated manner and cooperatively use them to achieve common goals and aspirations despite the breadth and diversity.

Imagine a symphony orchestra; While the orchestra is composed of various instruments and musicians, each of them performs their music line, and the whole piece, under the regulation of the conductor, becomes a unified and pleasant music that provides an excellent memory for the audience. In a transportation ecosystem, the involved players, such as OEMs, suppliers, and transport companies, can use the technological capacities of their competitors with the least risk. Joint capital ventures also have access to research and development possibilities using shared CAPEX.

In this ecosystem, OEMs will develop based on core products, manufacturing, and sales, creating an integrated system of actors from raw materials to finished products and after-sales services. However, they must go beyond traditional products and look for new research and innovations to transform the industry. As far as it can be mentioned, these are not OEMs that play a critical role in a transportation ecosystem. Non-automotive players make new recommendations to develop the industry and create new standards for customers.

These are not OEMs that play a critical role in a transportation ecosystem. Non-automotive players make new recommendations to develop the industry and create new standards for customers.

Currently, self-driving cars (without a driver) are receiving much attention worldwide and represent an autonomous ecosystem based on AI, where the vehicles can think, learn and act. Although cars are the fundamental layer of this ecosystem with their same old well-known appearance (with wheels and seats), these self-driving technologies drive the vehicle by sensors, cameras, radars, maps, and other sources and make decisions to accelerate.

The new transportation fleet monitors cars using asset management software based on metrics like speeds, fuel level, miles driven, and battery. But this is the orchestration that turns a fleet into a service. The fleet orchestration will occur through technologies that manage vehicles and currently include service configuration, service level definition, operation automation, mobility service provider, and MaaS (Mobility as a service) platforms. Nevertheless, fully autonomous services have yet to be provided; businesses are turning to capture as much of the value chain as possible because they recognize that all industries’ future is digital, which is closer to us than we think.

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