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Within a few years self-driving cars will be a regular sight on the roads of this world. Consumers and companies will start to take autonomous vehicles for granted, but few people will ask questions about what happened to the once glorious car manufacturers and the millions of jobs attached to it all around the globe. With cars slowly becoming a commodity rather than a status symbol, the Fords, Volkswagens and Toyotas out there will need to find a way to stay relevant. Utilizing points of differentiation and turning them to profits will be crucial. Here are some of my suggestions on how car manufacturers will be able to earn money once their products are autonomous and how to partly prevent them from becoming commodities. The basis of the following three ideas is the assumption that when consumers don’t need to keep their eyes on the road anymore they will behave like at home or at their workplace.

1. Every car is advertising space. Probably the most obvious and most profitable option, especially in connection with location-based services or new technologies like augmented reality. Every consumer will receive personalized ads and companies will have lower customer acquisition costs due to the high relevance of the targeted ads.
2. Every car is an office. While some executives with drivers already use their cars as offices, this will get much more comfortable and convenient with more space and improved functionalities for everyone. Consumers will be willing to pay for superior car offices.
3. Every car is a place of entertainment. This will not just include all possible ways to enjoy a movie or series, but also the growing market of gaming. Imagine playing a car racing game including the real surroundings with AR!

Furthermore, if car manufacturers want to successfully take part in networks, all programs running on the car’s hardware will need to be openly sourced much like the apps on all common platforms today. In my opinion, in autonomous vehicles content will be the only source of product differentiation, not the hardware that is the car itself.

Do you disagree? Why? And what other ways to earn money will car manufacturers have? Please leave your ideas in the comments, I’d love to hear more of them!

 

References
Wilson, B. (2017). Autonomous Vehicles…Inevitable and Imminent?. Retrieved from https://www.linkedin.com/pulse/autonomous-vehiclesinevitable-imminent-bill-wilson
Image Source: https://www.benzinsider.com/wp-content/uploads/2015/01/mercedes-f-015-interior-9.jpg

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Yes, you have read right but no, that is not the meaning of BIM just this one time. Up until recently most of us have only ever heard of BIM in the context of this Master’s degree at RSM. However, there are probably more people in this world that know BIM as the abbreviation for ‘Building Information Modeling’.

The architecture, engineering and construction (AEC) industries as a whole have not seen much digitization in the past 20 years, but it is now time to level up and get ready for transformation. BIM is a process that gives AEC companies the opportunity to better plan, design, construct and manage projects. Throughout a project designers create digital 3D-models that include data associated with physical and functional characteristics of a building. BIM covers the whole life cycle of a building (see image) from planning to demolition and stores in-depth information about the technologies needed, the costs and the timeline. While it also simulates the best execution right from the start, changes made are comprehensible and everyone involved gets updated about these changes in real time.

BIM’s main advantage is the enhancement of collaboration among AEC professionals by giving everyone involved a better overview of the project, how their individual contributions fit in and by providing information symmetry. But there are other tremendous benefits: Companies will experience better cost predictability, improved timelines, fewer errors, optimized designs, a better understanding of a building and much reduced project risks.

 

In my opinion, BIM is changing the way humanity builds, maintains and destroys buildings and it is here to stay. BIM will be growing strongly in the short term as well as in the long term: Benefits from the integration of other new technologies like virtual reality, augmented reality, various sensors, and laser scanning are already dawning on the horizon. Therefore,BIM usage will be essential for AEC companies to successfully compete in an increasingly global environment with greater urbanization and limited natural resources.

On top of the above outlook to the future, do you think BIM can be expanded to other projects that require the management of various contributors outside of the AEC industry?

 

 

Sources:

Autodesk Building Solutions. (2017). What is BIM (Building Information Modeling)? [Video]. Retrieved from https://www.youtube.com/watch?v=suNadRnHy-U

Autodesk.com. (2018). What Is BIM | Building Information Modeling | Autodesk. Retrieved from https://www.autodesk.com/solutions/bim

NBS. (2016). What is BIM?. Retrieved from https://www.thenbs.com/knowledge/what-is-building-information-modelling-bim

Original front image source: https://static.seekingalpha.com/uploads/2018/1/2/330973-15149413380899262.jpeg

BIM image source: http://www.buildingincloud.net/wp-content/uploads/2016/07/BIM-Fasi.png