The Future of Competitive Strategy

Introduction

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©2022 MIT. This excerpt is from The Future of Competitive Strategy by Mohan Subramaniam, published by The MIT Press.

provide drivers with information on the current and projected state of charge, along with the amount of charge time necessary for any planned distance. At charging stations, these cars alert users if the charging stops unexpectedly owing to a power outage, plug removal, or simi- lar event. Cars car even map routes that ensure adequate charge for a journey. Ford also channels data through its in-vehicle communications sys- tem, called SYNC, and an array of apps available through its app store, connected via a user’s smartphone. Beyond taking a driver from point A to point B, Ford’s apps offer services that resonate with the driver’s lifestyle during the ride. One such example is an app that permits order- ing Starbucks coffee through Alexa. 6 By assessing the real-time loca- tion, weather, and traffic data, the car predicts the precise time that Starbucks should expect the driver, ensuring prompt availability for a drink pickup, without the driver needing to wait in line. In the mean- time, Ford’s MyPass app automatically completes the purchase through a connected bank. Such features make Ford’s modern cars operate as “smart phones on wheels.” 7 Yet Ford also recognizes that these initiatives are just a start. Many more milestones lie ahead in its digital transformation journey. Ford is working to vastly expand its “smart” driver-assist features to make its cars fully autonomous. It plans to achieve 100 percent “uptime” in commercial fleets, with each car predicting component failures and scheduling repairs while also prearranging for requisite spare parts availability. 8 Another of Ford’s goals is to expand its app-based services beyond, say, ordering coffee with new offerings, such as helping drivers find empty parking spots or proposing alternative routes when driv- ers are stuck in traffic jams. Key Takeaways and Emerging Questions Ford’s example offers some useful takeaways for other firms. Not every firm will want or need to invest billions in the coming decade. Yet every product can interact with users in new ways through data. Product-generated data can open new business opportunities for every