{"id":14536,"date":"2016-11-14T19:42:57","date_gmt":"2016-11-15T00:42:57","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/general-motors-and-ibms-watson-oh-the-places-well-tell-you-to-go\/"},"modified":"2016-11-14T19:42:57","modified_gmt":"2016-11-15T00:42:57","slug":"general-motors-and-ibms-watson-oh-the-places-well-tell-you-to-go","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/general-motors-and-ibms-watson-oh-the-places-well-tell-you-to-go\/","title":{"rendered":"General Motors and IBM\u2019s Watson \u2013 Oh the Places (We\u2019ll Tell You) To Go"},"content":{"rendered":"

General Motors finds itself at a crossroads in terms of how to merge digital communications with its vehicles, and how to bring in-house the new technologies that can differentiate its products. With the proliferation of the Internet of Things and the pervasiveness of mobile app technologies that consumers use in their vehicles, General Motors is striving to remain relevant in this field and evolve both their business and operating models. To that end, GM has recently announced a partnership with IBM\u2019s Watson \u201cin an effort to leapfrog other tech companies angling for a role inside the car.\u201d[1]<\/a><\/p>\n

By means of definition, \u201cThe phrase \u2018internet of things\u2019 has arisen to reflect the growing number of smart, connected products and highlight the new opportunities they can represent\u2026What makes smart, connected products fundamentally different is not the internet, but the changing nature of the \u2018things.\u2019\u201d[2]<\/a> As a case in point, General Motors\u2019 partnership with IBM\u2019s Watson to develop a new version of their OnStar system, OnStar Go, represents just one of these many new \u201cthings.\u201d The system itself is designed to learn from the driver\u2019s behavior and tendencies and deliver personalized offers from partner organizations.[3]<\/a> For example, OnStar Go can analyze the distance to the driver\u2019s next destination, determine that he\u2019ll need to refuel prior to arriving, and plot the route to the nearest Exxon Mobil station, one of GM\u2019s partner organizations.<\/p>\n

This new technology is the first foray into a partnership of this kind between an automaker and IBM, and it represents a shift in the mindset and strategy of General Motors. Not only does General Motors have to produce quality, reliable, and well-designed vehicles, but it now also has to offer an interconnected experience for each consumer. GM, not unlike many of its competitors, faces the challenge of creating useful and seamless interfaces for its vehicle lineup to account for the proliferation of interconnected devices. Due to this shift, General Motors\u2019 competitive set in this space has expanded to include not only other automobile manufacturers, but also technology companies like Apple and Google, who have created software that allows drivers to connect to their vehicle infotainment systems via their smartphones. As such, General Motors faces significant challenges, namely: how to differentiate its technology and connect more of a consumer\u2019s daily life with her vehicle, create barriers to entry for the technology companies, and create a medium to interact with and address consumer needs all under one roof\u2014that of the vehicle itself.<\/p>\n

In response to the challenging competitive environment and shift in business model mindset, General Motors and IBM have focused on what the OnStar Go system can access that differentiates it from the Google and Apple mobile software. For instance, \u201cGM lets drivers use Apple\u2019s CarPlay and Google\u2019s Android Auto, but won\u2019t share information about the car, such as tire pressure, with those third party provided systems.\u201d[4]<\/a> General Motors will have to ensure that the services its new OnStar Go system provides cannot be easily duplicated by tech companies. At the same time, GM will have to gain rapid adoption and hope that it has not arrived on the scene too late to unseat the tech companies\u2019 place in the consumer\u2019s driving habits. How General Motors and IBM can seamlessly connect a driver\u2019s habits and purchases to retail partners, tout relevant recommendations and accurate directions, and interlay that with useful information about the vehicle itself will ultimately determine their success in the interconnected automobile technology space. But will it be enough to oust the dominant Apple and Google smartphone software and their place in driver\u2019s lives?<\/p>\n

 <\/p>\n

665 words<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

Exhibit 1: Apple\u2019s CarPlay[5]<\/a>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Exhibit 2: Google\u2019s Android Auto[6]<\/a><\/p>\n

\"exhibit-1\"<\/a> \"exhibit-2\"<\/a><\/p>\n

Exhibit 3: General Motors\u2019 OnStar app on a German customer\u2019s phone, linked to the vehicle\u2019s display system[7]<\/a><\/p>\n

\"exhibit-3\"<\/a><\/p>\n

 <\/p>\n

Footnotes:<\/p>\n

[1]<\/a> Rachael King and Mike Colias, \u201cGeneral Motors Brings IBM\u2019s Watson Into Its Vehicles,\u201d The Wall Street Journal, October 25, 2016, http:\/\/www.wsj.com\/articles\/general-motors-brings-ibm-watson-into-its-vehicles-1477432187<\/a>, accessed October 2016.<\/p>\n

[2]<\/a> Michael E. Porter and James E. Heppelmann, \u201cHow Smart, Connected Products Are Transforming Competition,\u201d 性视界 Business Review (November 2014), 4.<\/p>\n

[3]<\/a> Rachael King and Mike Colias, \u201cGeneral Motors Brings IBM\u2019s Watson Into Its Vehicles,\u201d The Wall Street Journal, October 25, 2016, http:\/\/www.wsj.com\/articles\/general-motors-brings-ibm-watson-into-its-vehicles-1477432187<\/a>, accessed October 2016.<\/p>\n

[4]<\/a> Ibid.<\/p>\n

[5]<\/a> Ron Amadeo, \u201cOne Week with Apple\u2019s CarPlay,\u201d arstechnica.com, January 22, 2016, http:\/\/arstechnica.com\/apple\/2016\/01\/one-week-with-apples-carplay\/, accessed October 2016.<\/p>\n

[6]<\/a> \u201cAndroid Auto,\u201d androidcentral.com, August, 2016, http:\/\/www.androidcentral.com\/android-auto, accessed October 2016.<\/p>\n

[7]<\/a> Rachael King and Mike Colias, \u201cGeneral Motors Brings IBM\u2019s Watson Into Its Vehicles,\u201d The Wall Street Journal, October 25, 2016, http:\/\/www.wsj.com\/articles\/general-motors-brings-ibm-watson-into-its-vehicles-1477432187<\/a>, accessed October 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"

How can General Motors merge digital communication technology with its vehicles and compete in the mobile application space?<\/p>\n","protected":false},"author":2687,"featured_media":14537,"comment_status":"open","ping_status":"closed","template":"","categories":[1067,190,1572,1301,116,788,1556,765,2042,2019,629,1140,2041],"class_list":["post-14536","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-apple","category-apps","category-automanufacturer","category-automobiles","category-automotive","category-digital","category-general-motors","category-google","category-ibm","category-internet-of-things","category-mobile-apps","category-mobile-technology","category-watson"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/digitization-challenge-2016\/","yoast_head":"\nGeneral Motors and IBM\u2019s Watson \u2013 Oh the Places (We\u2019ll Tell You) To Go - Technology and Operations Management<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/general-motors-and-ibms-watson-oh-the-places-well-tell-you-to-go\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"General Motors and IBM\u2019s Watson \u2013 Oh the Places (We\u2019ll Tell You) To Go - 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