Drivers of Change Report: Socio-Economic and Legal Framework

This report delves into the drivers of change within the automobile industry, with a specific focus on Tesla. It identifies and analyzes key trends, including technological disruptions like autonomous vehicles, artificial intelligence, and alternative energy sources, alongside demographic and socio-economic shifts. The report examines the implications of these drivers on Tesla's business model, including the adoption of new technologies, resource constraints, and sustainability initiatives. It further explores the legal and socio-economic frameworks influencing the industry, including the impact of customer awareness, changing preferences, and the significance of government regulations. The analysis incorporates various sources, including academic research and industry reports, to provide a comprehensive overview of the evolving landscape of the automobile sector and Tesla's strategic responses to these challenges. The report also discusses the significance and timeframe of the perceived drivers of change and its impact on Tesla.

Drivers of Change
ASSIGNMENT PART 2:

Drivers of Change
 Definition:
Factors that bring a major change in the entire industry in question.
Trends Affecting Business Models:
 Technological
 Demographic
 Socio-economic

Drivers of Change
in Automobile Industry
 Innovation of disruptive technologies
 Digitalization and Automation of the value chain
 Resources for business continuity
 Sources of unpredictability
 Climate Change, Resource depletion and environmental impact
 Unprecedented scrutiny

Technological Trends
 Disruptive innovations
 Cloud
 Connectivity
 Context
 Use of smart technologies to address the disruptive innovations
 AI-based platforms and solutions
 Alternative materials and energy sources
 New business models

Demographic and Socio-economic
trends
 Resources for business continuity
 Sources of unpredictability
 Customer Awareness and changed preferences
 More investment to foreign markets

Significance and timeframe of the
perceived drivers of change
Factors Timeframe
1. Mobile & Internet technology 2015 to 2017
2. Advances in computer power and
big data:
2015 and 2017
3. Advanced manufacturing and 3D 2015 to 2020
4. Rapid urbanisation 2000 to now

Significance and timeframe of the
perceived drivers of change
 Advanced robotics and autonomous transport: Impact of this driver will only
be observed that between 2018 to 2020. For example, the tech giant like Tesla
will incorporate the robotic languages in its car manufacturing
 Artificial intelligence and Machine learning: The major impact of this driver
can only observed in between 2018 and 2020. Tesla has already incorporated
Machine languages in its automated car. It is observed that Tesla’s fleet is driving
about as many miles as each day and around 15 million – fleet has driven in its
entire existence

Drivers of Change and its implication
on Tesla
 Increasing vehicle autonomy
 Machine language incorporation
 Shift to alternate energy sources
 Natural resource constraints and carbon emission
 Reducing the negative environmental impact in the form of pollution and waste

Disruptive Technology: Tesla
 Autonomous vehicles
 Energy Storage
 Increasing use of solar power in the manufacturing
 Light weight vehicles
 Sustainability in terms of resource consumption and waste management

References
 Castelvecchi, D. (2015). Will Tesla's battery change the energy market?. Nature News.
 Chen, Y. and Perez, Y., 2018. Business model design: lessons learned from Tesla Motors.
In Towards a Sustainable Economy (pp. 53-69). Springer, Cham.
 Clark, B., Parkhurst, G. and Ricci, M., 2016. Understanding the socioeconomic adoption
scenarios for autonomous vehicles: A literature review.
 Kushwaha, G.S. and Sharma, N.K., 2016. Green initiatives: a step towards sustainable
development and firm's performance in the automobile industry. Journal of Cleaner
Production, 121, pp.116-129.
 Park, E., Lim, J. and Cho, Y., 2018. Understanding the emergence and social acceptance of
electric vehicles as next-generation models for the automobile
industry. Sustainability, 10(3). Drivers of Change. [online] The Future of Jobs.), p.662.
 Rimmer, M., 2018. Elon Musk’s open innovation: Tesla, intellectual property, and climate
change. In Intellectual Property and Clean Energy (pp. 515-551). Springer, Singapore.
 weforum.org (n.d. Available at: http://reports.weforum.org/future-of-jobs-2016/drivers-of-
change/ [Accessed 4 Feb. 2020].