Driving the Future: How Autonomous Vehicles will Change Industries and Strategy
Question 1: Thoughts on the trend towards autonomous vehicles (AV); Decisive And Irreversible; reasons
As evidenced in the provided case study, the Autonomous Vehicles (AV) represent a modern innovation which have broad implication in societal practices. In particular, they ease human motion and also sustainability in the environment of operations. The irreversible and decisive nature of the autonomous vehicles is identified by Faisal et al. (2019) as impacting on the extent in which the value of this industry has increased to the current $90 billion. This is with a projection of the value increasing to upto $2,500 billion as Saudi Arabia (KSA) intend to achieve their vision 2030. Similarly, in the case study, referencing to a Barclays Research study findings, it had been noted that the self-driving taxi have increased in the ratio of 9:1 with self-driving shared ride taxi being 15-18:1. Hence, this trend will not reduce but will continue expanding immensely with multiple stakeholders being engaged.
However, Kato et al. (2015) offered an abundant of caution that despite of the AV being irreversible and decisive, there is a need for societies and governments to significantly invest on resources and also human skills. The human skills capacity would also be significantly increased by ensuring they invest appropriately with the R&D opportunities and strategies. This is particularly important since part of the COVID-19 pandemic has elicited a paradigm shift in the operations with the need for embrace on modernised technologies being evident. For instance, the Artificial Intelligence, Machine Learning among other technologies improve the capability for interaction scope and their operations.
Question 2: Autonomous vehicles impacting an industry
From an individual experience working in the healthcare sector, the AV have significantly impacted on the success of operations in this industry. This is a progress of what Al-Hanawi et al. (2019) identify as the Saudi Arabia (KSA) investing SAR20 Billion in digitising the healthcare sector. This is in the areas of developing new and innovative technologies such as AI, the big data and cloud computing. The rationale of this is harnessing responsiveness of the healthcare industry in KSA and responding in the overall patients needs. Specifically, the AV could contribute to revolution of this industry by influencing on the innovativeness and easing the scope of their operations. Specifically, as highlighted in Easa (2021) highlighted that as a best practice, autonomous vehicles could be appropriately be adopted in delivery of prescriptions. This is a core area which would be disrupted as evidenced in the case study. This is by the deliveries being made free of charge and patients getting their medicines after they unlock the vehicle through verification of their identification. It is expected that there is a need of improving the autonomous vehicles which would be in a position of covering a significant enormous segment. Specifically, after the emergence of COVID-19A, delivery of medication to patients was a huge challenge owing to the complications with accessing populations. Similarly, as a best practice in future, with the systems put in place appropriately, healthcare provision would be harnessed by adoption of autonomous vehicles.
For explaining on the impact of AV to the healthcare sector in KSA specifically, it is appropriate to adopt the Kim & Mauborgne’s Eliminate- Reduce- Raise- Create Grid (Basri et al., 2011). This is identified as an appropriate gool for driving organisations in focusing simultaneously on elimination and reduction and raising and creating while unlocking new blue ocean. This is by ensuring an elimination, reduction, raising, creating a framework which is the best practice in creating uncontested market spaces. For the healthcare industry in KSA, the use of the model is as shown in table 1;……
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