Innovation Analysis Report: MGT5MIO - Driverless Car Advancements

This report provides an in-depth analysis of innovation within the automotive industry, with a specific focus on the development and impact of driverless cars. It examines the major sub-types of autonomous vehicles, highlighting the integration of advanced technologies such as radar, lidar sensors, and artificial intelligence. The report discusses key milestones in the evolution of driverless cars, including the standardization of car-pedestrian interfaces, legal challenges, geographical limitations, insurance considerations, and the importance of marketing and design. Furthermore, it emphasizes three major future developments: the potential elimination of the need for drivers, enhanced safety features, and the reduction of traffic violations. The report concludes that driverless cars represent a significant advancement, promising safer roads and a more efficient transportation system.

Running Head: MANAGING INNOVATIONS
MANAGING INNOVATIONS
Name of the student
Name of the University
Author’s Note

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Table of Contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Conclusion and Recommendations............................................................................................4
References..................................................................................................................................6

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Introduction
In the era of rapid increase in competition and growth innovation has become the key to
sustain in the market. Innovation refers to implementation of various ideas and concepts in
the existing product or technology to distinguish it from the other similar products and
services and to gain a competitive advantage. The demand for technological innovation has
seen a major increase in the market. The importance of artificial intelligence has increased
rapidly (Galindo and Méndez 2014). This project aims to discuss the major types of
innovation that has been focused on by the Car industries and emphasises on how the
automobile sector has set milestones for this innovation. It will also focus on 3 future
developments that can be made in order to sustain the product in the market and gain a
competitive edge.
Discussion
The automobile industry from the time of its establishment has undergone various
technological and social changes. The industry has rightly determined the need and
importance of innovation in its cars and other automobiles (Kaur and Rampersad 2018). The
manufacturers in the automotive or Car industry take various approaches to innovations, of
which three major innovations are as follows:
1. Incorporating updated and advanced technologies into the existing automobiles in the
market.
2. Enhancing the supply chain management and implementing effective manufacturing
techniques to improve quality.
3. Adapting the business models in a proactive manner as the market experiences a
decline in individuals who are owning cars.
Driver-less cars or Autonomous Cars

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Autonomous cars are those models of cars that are designed with superior technology models
and are assumed to be one of the most disruptive innovation of the generation (Rosca, Arnold
and Bendul 2017). These cars will be able to sense the environment and could be operated
without an actual human driving the vehicle. Driverless cars, also known as self-driving cars,
can be an innovative modification, in this era of growing Artificial Intelligence (AI). These
are those cars that would not require human drivers or external human control to safely run
the vehicle (Alheeti, 2015). These cars would have sensors and some software that would
control, navigate & drive these vehicle. These software would help the cars to navigate
roadside symbols such as traffic signals, road signs, which would help to analyse and reduce
fuel consumption and emission. Hence, Automobile companies such as Tesla in case of
driver less cars would be beneficial from this innovation as this change will attract a new
group of customers who somehow avoided purchasing cars as they were unable to drive (Rice
2019). Driverless cars are of one of the biggest innovation of the recent time and various
automobile companies are looking forward to it in order to have a competitive advantage in
the market.
The main innovation in the driverless cars would be developing an artificial intelligence
model inside the car. Major sub-types of autonomous or driver-less cars are as follows
1. Radar and Lidar sensors in the cars to enhance the adaptive cruise control keeping in
mind the availability of frequency. Also, Lidar sensors will help in assisting the cars
with lane change systems (Richtel and Dougherty 2015). It would allow the cars to
traffic and other signals.
2. Artificial and Emotional Intelligence: development of artificial intelligence will allow
the cars to detect obstacles on the road and follow traffic signals (Thierer and
Hagemann 2015). Human drivers relied on the subtle non-verbal communication

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through eye contacts and body languages which would be incorporated in the cars
with the help of Artificial and emotional intelligence models.
5 major milestones in case of driver less cars are as follows:
1. Standardising the car pedestrian interface: The challenge is to share the road with the
conventional cars and ensure that the number of accidents are reduced (Alheeti,
Gruebler and McDonald-Maier 2015). Hence, developing the pedestrian interface is
the first milestone that the driverless car manufacturers are looking for.
2. Overcoming legal challenges: Autonomous cars will require some new amendments
in the traffic codes, which becomes another big challenge for the car companies
(Stilgoe 2017). Hence, overcoming legal challenges will be another milestone that
would take the manufacturers one step towards their victory.
3. Expanding coverage outside the well mapped areas: Autonomous cars come with
certain geographical limitation based on the selected installed maps and areas and
thereby increasing the risk while parking in the parking garage. The next milestone or
major achievement would be developing or expanding the coverage areas installed in
the cars outside the well mapped area (Kaur and Rampersad 2018). Also, parking
garage needs to be altered accordingly.
4. Receiving insurance companies on board: The increase in demand of autonomous cars
in the near future can have serious public relations to overcome (Kessler 2015).
Autonomous cars supporters claim that the key factor to reduce the risk and
presumably, insurance costs is leading to reduction in driver agency outside of
emergency - and determining the revised role that drivers would play is working to
fall to insurers.
5. Making the driverless cars look cool: Driverless car or autonomous cars is one of the
grand innovation in the history of automotive industry. Hence, it looks forward for a

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great demand and enthusiasm in the public (Murswieck etal, 2017). The main
challenge here would be marketing and designing the product to be one of the coolest
model to meet up the demand of the coming generation (Moran and Lasser 2017). It is
estimated that around 21 million cars would be sold globally by the year 2035.
Conclusion and Recommendations
From the discussion above it can be concluded that driverless or autonomous cars would be
one of the grand innovation in the automobile industry. There would be various developments
in the future due to this innovation, of which the three major developments would be one,
need of drivers can be eliminated, it also comes with safety guarantee and would ensure that
there is a massive reduction in the number of accidents. It would also decrease the risk of
traffic violation acts as everything will be systemised and recorded in an algorithmic way that
would never disobey the traffic rules. Hence, driverless cars would not only enhance the
expectations of the future generation but would also result in making roads safer and would
reduce the number of accidents.

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References
Aaij, R., Amato, S., Anderlini, L., Benson, S., Cattaneo, M., Clemencic, M., Couturier, B.,
Frank, M., Gligorov, V.V., Head, T. and Jones, C., 2016. Tesla: an application for real-time
data analysis in High Energy Physics. Computer Physics Communications, 208, pp.35-42.
Alheeti, K.M.A., Gruebler, A. and McDonald-Maier, K.D., 2015, January. An intrusion
detection system against malicious attacks on the communication network of driverless cars.
In 2015 12th Annual IEEE Consumer Communications and Networking Conference
(CCNC) (pp. 916-921). IEEE.
Baruch, J., 2016. Steer driverless cars towards full automation. Nature, 536(7615), pp.127-
127.
Carlson, W.B., 2015. Tesla: Inventor of the electrical age. Princeton University Press.
Clinton, L. and Whisnant, R., 2019. Business model innovations for sustainability.
In Managing Sustainable Business (pp. 463-503). Springer, Dordrecht.
Galindo, M.Á. and Méndez, M.T., 2014. Entrepreneurship, economic growth, and innovation:
Are feedback effects at work?. Journal of business research, 67(5), pp.825-829.
Ingle, S. and Phute, M., 2016. Tesla autopilot: semi autonomous driving, an uptick for future
autonomy. International Research Journal of Engineering and Technology, 3(9).
Kaur, K. and Rampersad, G., 2018. Trust in driverless cars: Investigating key factors
influencing the adoption of driverless cars. Journal of Engineering and Technology
Management, 48, pp.87-96.
Kessler, A.M., 2015. Elon musk says self-driving tesla cars will be in the us by summer. The
New York Times, 19.

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Moran, D. and Lasser, M., Comigo Ltd, 2017. Alerting predicted accidents between
driverless cars. U.S. Patent 9,841,762.
Murswieck, R., Fortmüller, A., Geldmacher, J. and Murswieck, S., 2017, September. Cultural
differences in involving customers for creating and managing innovations to success.
In European Conference on Innovation and Entrepreneurship (pp. 823-828). Academic
Conferences International Limited.
Rice, D., 2019. The Driverless Car and the Legal System: Hopes and Fears as the Courts,
Regulatory Agencies, Waymo, Tesla, and Uber Deal with this Exciting and Terrifying New
Technology. Journal of Strategic Innovation and Sustainability, 14(1).
Richtel, M. and Dougherty, C., 2015. Google’s driverless cars run into problem: Cars with
drivers. New York Times, 1(September).
Rosca, E., Arnold, M. and Bendul, J.C., 2017. Business models for sustainable innovation–an
empirical analysis of frugal products and services. Journal of Cleaner Production, 162,
pp.S133-S145.
Stilgoe, J., 2017. Seeing like a Tesla: How Can We Anticipate Self-Driving
Worlds?. Glocalism: Journal of Culture, Politics and Innovation, 3(0), pp.1-20.
Thierer, A. and Hagemann, R., 2015. Removing roadblocks to intelligent vehicles and
driverless cars. Wake Forest JL & Pol'y, 5, p.339.

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Appendix
Elon musk the CEO of Tesla co. states that designing and developing driverless cars required
a massive efforts and ensures that it would come out with 99.9999% security. Three major
development that the company would undertake are as follows:
1. Developing and standardising the car pedestrian interface: The challenge is to share
the road with the conventional cars and ensure that the number of accidents are
reduced.
2. Building Radar and Lidar sensors in the cars to enhance the adaptive cruise control
keeping in mind the availability of frequency. Also, Lidar sensors will help in
assisting the cars with lane change systems.
3. Artificial and Emotional Intelligence: Development of artificial intelligence will allow
the cars to detect obstacles on the road and follow traffic signals. Human drivers
relied on the subtle non-verbal communication through eye contacts and body
languages which would be incorporated in the cars with the help of Artificial and
emotional intelligence models.