The Future of Driverless Cars: Challenges and Opportunities

This assignment explores the current state of autonomous vehicles, their potential to revolutionize transportation, and the investments being made by governments and manufacturers. It also touches on the challenges that come with implementing these vehicles, such as regulatory hurdles and technological limitations.

REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Information technology abbreviated as IT is defined to be use of computers, storage and
infrastructure to create and process the information in form of electric data (Bradshaw-Martin,
and Easton, 2014). This is used in context of business organisation to improve quality and
quantity of work being carried out at workplace. This assignment takes into consideration the
technological innovation of driverless cars in Audi. It helps in identifying the changes which take
place in market and in auto-mobile sector. Various aspects of technology in the form of pricing,
features, functions and speed will be carried out in this report as well.
MAIN BODY
Innovation is referred as a concept which aims to either create a new product or evolve
the existing line-up. The concept of innovation has been embedded in technology which has
assisted in evolving it on a regular basis. It undertakes the research so that design and
functionality of existing products can be improved and new knowledge is generated. It has
become essential for the organisation to undertake innovation so that their efforts in market can
be prolonged and competitive advantage can be availed by an institution.
One such innovation in the business world is Driverless Cars. It is defined to be vehicle
which can operate without assistance or intervention of human beings. The other names which
are given to driverless cars are automated, robotic or autonomous vehicle. The major
organisations such as Toyota, Audi and Ford have been identified testing this concept of
driverless cars in the country. It undertakes help from software and reaches to its destination.
This assignment will focus on the automated cars which are being initiated by Audi. This
organisation has redefined its offering A7 and A8 into robotic cars and have been introduced in
the market (AUDI'S NEW A8 SHOWS HOW ROBOCARS CAN WORK WITH HUMANS, 2017).
These efforts are carried out to ensure that customers are offered with future oriented products
and services. Parent organisation for this car-maker is Volkswagen group which has formed a
separate department to inculcate technology in cars. This is carried out due to inclination of
people towards the technology. It has formed new subsidiary which looks after the formulation
of intelligent cars for complete Volkswagen group. The prime reasons for same is that there is a
huge potential in robotics cars for future that can act as a major source in providing competitive
edge to the corporation.
1

The efforts this organisation are directed towards improving position of company in the
market. The efforts of a business organisation are directed in achieving a superior business
position in the market when compared with their competitors. The changes in operating market
have been very frequent and therefore, a business aims to direct its efforts in creating something
futuristic (Kirkpatrick, 2015). The organisation that is unable to cope with changes desired by
consumers will face a strategic wear out. It has been identified that innovation has been accepted
in the market easily but there lies a risk with its acceptance by the masses. It is a costly and time
consuming approach which can lead an organisation to new heights if appreciated by the
prospects. It helps an organisation to get bigger and better in the operating market. Management
at Audi has identified that automated cars carry a higher potential in the future market and have
made efforts to capitalise upon the same. Going ahead with the right strategy, a business
organisation can take advantage of market circumstances to enhance their profitability in market.
In present market scenario, it has been identified that innovative organisation is the most
profitable business. This fact states the importance for an organisation to be more productive.
Inculcation of technology (IT) in car manufacturing has garnered appreciation from the
target customers. The cars manufactured are more technology oriented and intelligent than
before. For instance: cars such as Audi's A4 and Q7 comes with Vehicle to infrastructure
communication channel (V2I). This technology will be able to identify the concerned
infrastructure such as traffic lights and time structure as well as alter its functionality
accordingly. This inculcation of technology will make an organisation stronger and confident to
build and launch automated cars in the near future. This organisation has carried out joint efforts
in the Stanford University to emerge as a winner of 150 mile course of automated vehicles.
Therefore, it is essential for the organisation to stay a step ahead as every manufacturer is
making efforts in this segment and pursuing use of artificial intelligence in cars. Google, a major
software manufacturer, is deriving its efforts in building of smart cities for the future. Audi has
been ahead of its competitors when it comes to build self-driven cars. Company is making
continuous efforts in testing robotic cars and has been challenged by high traffic in the city (Audi
made a big move in the self-driving car game this week, 2016).
Pricing of automated cars from Audi goes beyond the affordability of masses. At present,
company is offering robotic technology in its premium cars. The latest product of the company
have been introduced at level 3 of autonomy. The company is first ever to touch this milestone
2

amongst its competitors. The level 3 of autonomy refers that car will be automated only to a
certain speed limit and beyond that, it will need assistance of driver. The car will be able to
automatically accelerate, steer and brake in traffic conditions. It has been identified that this
technological revolution will definitely improve the state of mobility of people but will not be
affordable anytime soon. The affordability and availability are the two main barriers to which
target customers are exposed too. The auto-mobile manufacturers are costing a bank for their
inventions and are not taking into consideration mass affordability of product. To add self-driven
technology, it is essential to add plenty of sensors and wires so that functions are performed
ideally. The cost of addition of equipment raises aggregate expenditure of production of good
which goes beyond buying capacity of masses. It has been research upon that additional
technology adds around $20,000 to 30,000 to the cost of production of car.
It is possessed with radars, ultrasonic sensors, camera and laser scanners which will help
a car in carrying out its robotic functions in an ideal manner. The rival organisation Tesla which
carries an edge in the building of automated cars has announced that they will be able to deliver a
level 5 autonomy car by 2019. At present, only a marginal number of cars possess this capability
of running on autopilot system by the country. Audi has introduced traffic jam pilot which can be
employed right away to experience extraordinary technology. The other features which are
equipped in the car are 10.1 inch touchscreen display, voice control, self-learning navigation and
adaptation to road conditions. Along with such functions, there are features such as foot massage
and remote control luxury features. Cars are equipped with hybrid functionality so that they are
more futuristic and sustainable in the near future.
The speed of the car in traffic jam pilot is recorded at 37mph and can conform with rules
and regulations for state and national highways (Why Audi Created a New Business Devoted to
Self-Driving Tech, 2017). The authorities are now seeking permission from the government to
reach around 81 mph and according to the suitability of road circumstances. But to achieve the
same, there are various requirements such as clear marking, sign boards and separation of
oncoming traffic on the roads. However, the critics have stated that auto-pilot system on cars are
now challenged by higher speed to which they are yet to find a solution. The decision making
and sensor fusion is to be enhanced to cope with upcoming challenges. The safety and scalability
which have been offered by Audi have superseded the efforts of Ford, Volvo and Google. The
3

government has given its consent on the Traffic Jam Pilot and engineers are working tirelessly to
attain Level 4 or 5 of autonomy.
Intel has been employed in the autonomous driving systems in Audi. The company has
taken assistance from processors of PSG (programmable solutions group). These processors help
in providing a great deal of flexibility in programming of hardware and software (Report: Intel
inside New Audi Autonomous Car System, 2017). This portion of software is looking after the
grounds such as object, map fusion, parking and functional safety. Company with the help of this
programming tool has helped to develop first car running of level 3 of autonomy. This
organisation has emerged as a frontrunner and able to deliver the robotic software to consumers.
The installation of Artificial intelligence has been successful in managing pace and production
capacity of the company. Along with AI, combination of the LIDAR has been deployed which
consists of variety of sensors and scanner which help in running car on automated mode.
However, the scanners are similar to that used in air-planes which help in managing traffic along
with avoiding collision. This driving system has been called as Semi-automated as per the rules
of government. The refinement of software will take another year or two to reach to level 4 of
directly catching up stage 5.
Brand value is defined to be benefits which are availed by an organisation due to
possession of well-known brand name in the operating market. If an organisation carries an ideal
brand name in market then it can simply generate higher revenue for the company. It can be
categorized on the cognitive and financial grounds. Latest statistics define that current valuation
of the company stands at $14.1 billion. It is #37 amongst most valuable brands in the country.
Efforts of the company towards technological innovation or production of automated cars
carries a positive impact on the brand equity of an organisation. The inculcation of innovative
efforts and measures help organisation in attaining a superior advantage as compared to
competitors. The technological advancement when adopted in manufacturing cars will assist
organisation in charging additional price for offerings of a business.(Shchetko, 2014).
Innovation measures taken by the organisation have realised dream of having
autonomous cars that have been realised to a major extent. The cars which are 100% automated
are on the testing stage. The future of robotic cars seems to be extremely positive. The
investments which are experienced is exceptional. The testing of driverless vehicles have
received an investment of around 20 million euros in the past year. The government has been
4

supportive of this advancement and has altered the laws and regulations relating to car-makers.
The reports from a newspaper daily suggested that United Kingdom government is incurring
heavy expenditures to make sure that automated cars are street ready. The UK government is
facing technological and other challenges head on so that autonomous cars are launched very
soon. Driverless cars are said to revolutionise the manner in which people are leading their lives.
CONCLUSION
It can be concluded from the above report that driverless cars are a type of disruptive
innovation. It tends to redefine the manner in which tasks and activities are being accomplished.
The position of automated cars has redefined in the market and is extremely close to become a
reality. The government and manufacturers are making continuous efforts in making these cars a
reality. It is essential for the government to relax the rules and regulation so that these can be
tested at an ideal rate. The investment which this sector has been receiving needs to be
channelized in the right direction. The technology in this sector are priced as premium which will
not be able to serve its purpose. The innovation must be offered at price which is affordable by
everyone. It is essential for every car manufacturer to employ its resources in this domain so that
better value and profitability can be ascertained in the coming 2 -5 years.
5

REFERENCES
Book and Journals
Bradshaw-Martin, H. and Easton, C., 2014. Autonomous or ‘driverless’ cars and disability: a
legal and ethical analysis. European Journal of Current Legal Issues. 20(3).
Kirkpatrick, K., 2015. The moral challenges of driverless cars. Communications of the ACM.
58(8). pp.19-20.
Shchetko, N., 2014. Laser eyes pose price hurdle for driverless cars. The Wall Street Journal. 21.
Online
Audi made a big move in the self-driving car game this week. 2016. [Online]. Available through:
<https://www.businessinsider.in/Audi-made-a-big-move-in-the-self-driving-car-game-
this-week/articleshow/55913360.cms>.
AUDI'S NEW A8 SHOWS HOW ROBOCARS CAN WORK WITH HUMANS. 2017. [Online].
Available through: <https://www.wired.com/story/self-driving-car-user-interface/>.
Report: Intel inside New Audi Autonomous Car System. 2017. [Online]. Available through:
<https://newsroom.intel.com/news/report-intel-technology-audi-a8/>.
Why Audi Created a New Business Devoted to Self-Driving Tech. 2017. [Online]. Available
through: <http://fortune.com/2017/03/15/audi-self-driving-car-business/>.
6