Effect of Emerging Technologies and Trends on Business Operations

This report analyses the impact of emerging technologies and trends on business operations with a focus on Tesla Motors. It discusses the background of the technology, trends, market, and other factors influencing the subject followed by the affected market that will discuss the customers point of view on the technological adoption of the firm. Following that a business case will be discussed to offer some recommendations for strategic changes before summarising and concluding the paper.

Running head: EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS
OPERATIONS
Name of the Student
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1EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
Table of Contents
Introduction................................................................................................................................2
Background................................................................................................................................2
Affected Market.........................................................................................................................5
Business Operations...................................................................................................................7
Conclusion..................................................................................................................................9
References................................................................................................................................10

2EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
Introduction
Technology is one of the most prominent driving force for the advancement of the
different sections of the society. Business is one of those section and has witnessed major
changes because of emerging technologies and trends. The introduction of ERP, cloud
computing, big data and similar other disruptive technologies are assisting the organisations
in simplifying their operations and in the process enhance their productivity (Wagner,
Beimborn and Weitzel 2014). The enhance productive is due to better resource utilisation,
easy organisational communication, enhanced accuracy and others which ultimately offers
sustainability to the organisation. The report in development will discuss and analyse the
effect of the emerging trends and technologies on the business operations. The subject of the
paper will be Tesla Motors which is one of the major technology driven organisation in
existence and have established itself as one of the well-repeated company based on
technology. The paper has offered an insight into the background of the technology, trends,
market and other factors influencing the subject followed by the affected market that will
discuss the customers point of view on the technological adoption of the firm. Following that
a business case will be discussed to discuss and offer some recommendations for strategic
changes before summarising and concluding the paper.
Background
Tesla Motors is considered as one of the most innovative and its operations are based
on the technology. The subject of the paper has attached itself to the title of
“techpreneurship” rather than the term entrepreneurship which acts as witness to the
dependency of the firm on the technology. Elon Musk, CEO of the Tesla has also stated that
the subject is too much reliant on the automation for its business operations which has been

3EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
claimed as the reason for the setbacks that the organisation has been facing in the recent
years.
The PDMS (Product Data Management System) has been an integral part of the Tesla
motors since its inception in 2002 and is considered as the source for the success of Tesla in
such a short period of time (Waurzyniak 2015). The PDMS is the system within Tesla that is
responsible for managing of the product data and devising strategies for the use of that data
(Ptak and Schragenheim 2016). Additionally, MIS (Management Information system) based
CAD has enabled the subject to produce such efficient and effective electric vehicles and
sustain its position as one of the leaders in electric vehicle industries. The manufacturing
process of the subject is not the limitation of technology. It further enhances to automated
organisational resource management, production scheduling and multiple others. The
Fremont factory of the subject is home to one of the largest 3D hydraulic printing press in the
world.
Enhanced autopilot technology of the subject is also one of the most disruptive
technology and is trending. The enhanced autopilot is the technology that offers the Tesla
cars to control and drive the cars without assistance of the driver (Wu 2018). The technology
developed by the internal team of the subject was inspired by the internal business operations
of the subject. The automated processing and operations within the organisation inspired the
firm to offer the same advantage to its customers and hence they opted for the development
of the information system that can assist drivers in driving. The team took consideration of
the most disruptive technologies and combined them to formulate a sensory information
system that can sense the environment and make necessary changes to the navigational route,
acceleration and other functions of the cars (Rogerson 2017). The hype of the technology in
discussion is so high that one of the most prominent marketing content of the subject is its
autopilot technology. Marketing is one of the crucial business operation of any organisation

4EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
and in case of Tesla the core marketing factor is innovation and the autopilot is
complementing its business operation (marketing).
Another notable technology that is driving the advancement of Tesla is the AI
(Artificial Intelligence) based robots that are capable of self-propelling tasks when then are
not in use. The 200 robots that are part of the subject’s Fremont factory are capable of
performing different tasks as assigned to them (Ivanchenko 2017). The monitoring of the
deadline is also automated which is controlled by the ERP (Enterprise Resource Planning)
software of the subject that goes by the name Track Time. However, due some technological
errors the organisation had faced some setbacks in the past which they need to assess before
establishing themselves as sustainable leader in the automobile industry.
The discussion above can be summarised to state that the robotics and the factors that
are associated with it (such as AI, PLC used for controlling and monitoring robots, CAD used
for programming & designing robots and others) are the emerging technologies that are
driving the operations of the subject. With further research and development in the area of
robotics the subject’s productivity and performance will enhance. To keep themselves
updated with the robots and their upgradation, the subject has acquired Perbix, an
organisation that designs robots for commercial sell (陳陳陳 2018). The acquisition of the Perbix
will enable the subject to keep their in-house systems updated according to their needs.
Additionally, the management information systems of the subject are also a key
factors for the competitive advantage that they are enjoying. The MIS (management
information system) of the subject are disruptive in nature and are continuously upgraded
with emergence of new technology and trends. PDMS, DESY, RMS and multiple similar.
Tesla have also developed a workflow system by the name of Tesla 3DX to support its
organisational process (Sharma et al. 2018). In the past also Musk have taken unorthodox

5EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
approach and instead of by a trusted ERP system they had developed their own system that
would be compatible for their organisational operations. Warp was the system developed
based on the most disruptive tools and technologies of 2012 and had over-the-air updates
which kept it competitive with the emerging technologies and trends (ElTantawy and Aamodt
2018). Hence, it would be justified to state that along with robots, the MISs of the subject are
also crucial that are driving the sustainability of the firm.
Affected Market
One of the technologies that is accelerating in today’s world is the self-working
machines. The reason for the attention that the automated machines are entertaining is
associated with the accuracy and ease it offers. One of the machines that is witnessing major
scholarly work in the discussed self-working is the vehicles. Self-driving vehicles is the new
trend that is being pursued by almost every major automobile manufacturer and the subject of
the paper have also a segment dedicated to the technology in discussion.
Self-driving vehicles are vehicles that are enabled with the capability of sensing the
surrounding and make necessary changes to the vehicles, direction, acceleration and other
vehicle associated function without any input from humans (Du and Tan 2016). The vehicle
in discussion attains its objective through assistance of tools & technologies such as the GPS
(Global Positioning system), radar, odometry, computer vision, laser light along with control
system and sensory information (Anderson and Giovanardi 2014). The subject of the paper
has also tested its own self-propelling vehicle which is still partially automated in nature.
Enhanced Autopilot (formerly known as Tesla Autopilot) is a driver assistance system that
offers the vehicle capability of self-parking, changing lanes, reaching the drivers position
from parking, garages or other spots or receiving a notification along with multiple other
capabilities (Dikmen and Burns 2016). However, Tesla is planning to launch a full-fledged
self-driving car in the near future.

6EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
Another notable fact about the self-propelling & driving technology of the Tesla
vehicles is that it had witnessed major failures. The failures of the systems have had some
causalities and have acted as catalyst for the alteration of the customer’s perception towards
the emerging trend of autonomous driving of the vehicles. The sections following have been
categorised to state the customer’s needs and expectations results due to the introduction of
the technology in discussion. Another topic that had been discussed in the following sections
is the impact that the technology in discussion has cited on the business operations of the
subject.
NEEDS
The technology and economic both are booming which have resulted in a chaotic
situation for the vehicles customers. The chaotic situation in discussion is traffic and a
solution for the same has emerged as one of the prominent need for the customers. Autopilot
is one of the solution for the problem because using real-time GPS tracking, the cars’ system
selects the safest and fasted route for the destination (Kohl et al. 2017). Additionally, driving
assistance was also one of the needs for the customers that are fulfilled by the technology in
discussion. The autonomous driving is also beneficial in saving trouble and in the process
enhances the productivity of the users.
EXPECTATION
Tesla is one of those firms that have gained high expectation from the customers
because of the innovative solutions offered by it and hence the autopilot system offered by
the company also holds high expectations. The expectation of the customers from Tesla
Autopilot or Enhanced Autopilot is that it will offer them the ease of driving along with other
benefits that are offered by the subject of the paper. However, due to the unfortunate accident
of Joshua Brown who was driving an autopilot mode of Tesla model had cited adverse effect

7EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
on the expectation of the customers or in other words had increased the expectation to include
safety features in autopilot (Ross 2018). A survey conducted by AlixPartners cites that the
interest of the consumers of Tesla Autopilot decreased by about 3 percentages (Bloom et al.
2017). A survey by Boston Consulting Group cites that the expectation of induction of safety
features in the tesla autopilot had increased from 71% to 81 % (He, Meng and Qu 2017). So,
it would be justified to state that the expectation of the customers is and will be changing
according to the development of the technology.
IMPACT ON BUSINESS OPERATIONS
The autopilot technology of the Tesla is one of the most disruptive and prominent
marketing technology of the firm. Hence, it can be stated that the business operations such as
marketing is one of the most benefitted operation of the firm. However, it is not the only
operation that had been benefitted by the Autopilot technology. The firm has also used the
technology for its basic manufacturing operations. The robots used in the manufacturing
processes have also been automated based on the technology used for the automated driving
(Kehoe et al. 2015). The manufacturing robots have earned a responsiveness due to the
sensory information system used in the autopilot technology. The robots can now sense
obstacles and in the process have enhanced their safety capability and productivity of the
robots.
Though, it should be noted that the failures of the autopilot in the real world scenarios
have resulted in some adverse effect on the organisational operations. The death of Joshua
Brown has landed the firm in legal troubles and have also received criticism from the
customers and experts (Ross 2018). However, the sales of the firm remain unaffected but the
perception of the customers may affect the sustainability of the organisation in the long run.

8EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
The following section has discussed the potential strategies that may offer sustainability and
success to the organisation in long run.
Business Operations
The basic problems of the that had been identified that are associated with the Tesla
are the technological flaws (in autopilot) and failing to keep up with the promises made by
the firm (in case of delivery of vehicles). A common factor that is associated with both the
challenges faced by the firma is the problem of budget or improper utilisation of the budget.
According to Stringham, Miller and Clark (2015), Tesla is using more budget than its
capability. The authors suggest that to compete with the automobile leaders such as Toyota,
General Motors and others, the firm has jumped into mass production with Model 3. They
also state that other automobile leaders have a strong contingency budget reserve while Tesla
being a start-up does not have such a strong reserve which is a threat to its sustainable future.
Additionally, mass producing cars has also limited its capacity to invest in disruptive
technologies.
Moritz et al. (2015) has offered recommendations for organisation in which they have
suggested that the firm should pursue its strategy of value creation rather than capital
creation. However, if the organisation does not fulfil its promises of delivering vehicles while
maintaining its quality that will have adverse impact on the goodwill of the firm. Hence the
following points can be adopted by the subject so that it can have a sustainable future and
earn success at the same instance.
Just in time approach: Adopting the discussed approach can prove to be of great benefit for
the organisation. The discussed approach takes consideration of the production schedule and
accordingly decides the size, density and need for inventory (Chiu, Yang and Lin 2017).
Tesla on adoption of the discussed technology will earn the capability keep its production

9EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
intact without investing much in maintaining its inventory. Toyota in its initial stage when it
was suffering from the post-world war consequences used the deemed technique and
sustained itself.
Innovation with quality: Tesla is known for its innovation however; the innovative firm has
suffered some technical flaws which are raising questions over its quality. Hence, Tesla
should establish a research team and analyse the technologies that other giant firms are using
to upgrade its own. For the self-driving technology Tesla can look towards Waymo, Google
and other automobile giants (Williams 2017). Similarly, for the internal operations of the firm
which are responsible for the delayed production, the firm should have contingency plan and
backup tools to ensure that the production remains uninterrupted.
Budget inflow: One of the prominent things that Tesla needs to do is enhance its budget
inflow. It can be done by selling less crucial patents and inviting investment from the market
leaders or its sister firm SpaceX (Turner 2016). Additionally, increasing its other offerings
sales will also enable the firm to increase the budget inflow. The batteries produced by the
Tesla are manufactured cheaply in comparison to the cars and can also bring a strong inflow
of the capital.
Conclusion
The report in discussion can be emphasised to state that Tesla is one of the most
innovative firm and it is riding the success with assistance of disruptive technologies and
trends. The above statement can also be taken into witness to state that use of emerging
technologies and trends in business operations can offer success and sustainability. However,
inadequate use of the same can cite problems. Hence, it is recommended that the use of the
technologies should be dependent upon the environment and capability of the firm because
exceeding it can cite troubles as is the case with Tesla. The paper has also offered an insight

10EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
into the strategic approach that can offer Tesla the sustainability it needs. Hence, in
conclusion it would be justified to state that emerging technology and trends can pave way
for sustainable future of an organisation.

11EFFECT OF EMERGING TECHNOLOGIES AND TRENDS ON BUSINESS OPERATIONS
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