The Auto Industry Could Learn Something from Mobile’s Disruption Curve
Given the fact that the auto industry is approaching it’s 100th birthday, it’s imperative it keeps up with the technological advances that have hit other industries. It’s clear that big automakers have begun to dabble in business relationships with Silicon Valley, but if they really want to be ahead of the game, they must recognize the importance of the tech community and fully commit.
Similar to how the telecom industry acknowledged change with the rise of mobility and smartphones, the auto industry should take note and realize that’s probably where the future lies ahead for their success as well.
Disruption curves are all about the expansion between higher and lower end products.
For example, when Apple launched the first iPhone back in 2007 it basically dominated the design and function of mobile devices. But then other companies like Samsung improved the product and took the winning spot in the smartphone market.
The competition within this mobile disruption curve was dictated by which companies were going to focus on creating higher end products like Sony’s 4k resolution screens, and which companies preferred to design similar products at a fraction of the cost of these higher-end models and with decent technology.
This polarization of goods allowed the consumer to choose to pay for the features they wanted to use, instead of just being limited to one high-end product as we were back in 2007 with the iPhone.
The same is likely to happen with the auto industry. As open-source systems allow automakers to benefit from modern technology while maintaining unique identities and features. This means automakers can seamlessly update its technology, keeping pace with its competitors’ developments without forcing consumers to buy a new vehicle.
We are still waiting to see this shift take place, but 2016 is as good a year as any. The first car company that offers an open-source in-car system can expect to be able to offer cheaper and more easily customized cars and potentially dominate the market.