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Harvard Case - The Nut Behind the Wheel to Moral Machines: A Brief History of Auto Safety

"The Nut Behind the Wheel to Moral Machines: A Brief History of Auto Safety" Harvard business case study is written by Neil Malhotra, Ken Shotts, Sheila Melvin. It deals with the challenges in the field of General Management. The case study is 12 page(s) long and it was first published on : Oct 20, 2014

At Fern Fort University, we recommend a comprehensive strategic approach to address the evolving landscape of automotive safety. This strategy involves leveraging technological advancements, fostering a culture of safety, and promoting responsible innovation to mitigate risks and enhance consumer trust.

2. Background

This case study delves into the history of automotive safety, highlighting the pivotal role of technological innovation and regulatory changes in shaping the industry. It emphasizes the importance of 'moral machines' ' vehicles designed to prioritize safety and ethical considerations. The case study showcases the evolution of safety features, from seatbelts and airbags to advanced driver-assistance systems (ADAS) and autonomous driving technology. It also explores the ethical dilemmas arising from these technological advancements, particularly in the context of autonomous vehicles.

The main protagonists are the auto manufacturers, regulators, and consumers who are all key stakeholders in the future of automotive safety.

3. Analysis of the Case Study

The case study highlights the dynamic interplay between technology, regulation, and consumer behavior in the automotive industry. We can analyze the case using a combination of frameworks:

  • Porter's Five Forces: The case highlights the competitive rivalry among auto manufacturers, the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, and the threat of substitute products. This framework helps understand the industry dynamics and the pressures on automakers to innovate and improve safety features.
  • SWOT Analysis: A SWOT analysis of the automotive industry reveals strengths like technological advancements, global reach, and established supply chains. However, weaknesses include potential ethical concerns, regulatory uncertainty, and the need for public trust in autonomous driving. Opportunities lie in developing new technologies, expanding into emerging markets, and promoting sustainable mobility solutions. Threats include competition from emerging players, cybersecurity risks, and potential consumer resistance to autonomous vehicles.
  • Strategic Planning: The case study emphasizes the need for a proactive strategic planning approach by auto manufacturers. This involves aligning their vision with the evolving needs of consumers and regulators, anticipating technological advancements, and developing robust risk management strategies.

4. Recommendations

To navigate the complex landscape of automotive safety, we recommend the following:

  1. Embrace Technological Advancements: Auto manufacturers should prioritize the development and integration of advanced safety features, including ADAS, autonomous driving technology, and connected vehicle systems. This involves investing in research and development, fostering partnerships with technology companies, and ensuring seamless integration of these technologies into vehicles.
  2. Foster a Culture of Safety: Auto manufacturers need to cultivate a strong internal culture that prioritizes safety in all aspects of their operations. This includes implementing rigorous testing protocols, promoting ethical decision-making, and fostering a culture of continuous improvement.
  3. Engage with Stakeholders: Open and transparent communication with consumers, regulators, and other stakeholders is crucial. Auto manufacturers should actively engage in dialogues to address concerns, build trust, and ensure responsible development and deployment of new technologies.
  4. Promote Responsible Innovation: Auto manufacturers should prioritize ethical considerations in the development and deployment of autonomous driving technology. This involves establishing clear guidelines for decision-making algorithms, addressing potential biases, and ensuring transparency in data collection and usage.
  5. Invest in Education and Training: To ensure public acceptance and safe adoption of autonomous vehicles, auto manufacturers should invest in public education campaigns, driver training programs, and the development of comprehensive regulatory frameworks.

5. Basis of Recommendations

These recommendations align with the following considerations:

  1. Core Competencies and Consistency with Mission: Embracing technological advancements and prioritizing safety are core competencies for auto manufacturers. These recommendations are consistent with their mission to provide safe and reliable vehicles.
  2. External Customers and Internal Clients: These recommendations address the concerns of external customers (consumers) and internal clients (employees) by promoting safety, transparency, and ethical considerations.
  3. Competitors: By embracing technological advancements and fostering a culture of safety, auto manufacturers can gain a competitive advantage in the market.
  4. Attractiveness ' Quantitative Measures: Investing in safety features and promoting responsible innovation can lead to increased consumer trust, market share, and long-term profitability.

These recommendations are based on the assumption that auto manufacturers are committed to ethical and responsible innovation, and that consumers are increasingly demanding safer and more advanced vehicles.

6. Conclusion

The future of automotive safety lies in the responsible development and deployment of innovative technologies. By embracing technological advancements, fostering a culture of safety, and engaging with stakeholders, auto manufacturers can navigate the challenges and opportunities presented by the evolving landscape of mobility. This approach will not only enhance consumer safety but also strengthen the industry's reputation and build trust in the future of driving.

7. Discussion

Other alternatives include focusing solely on regulatory compliance, delaying the adoption of autonomous driving technology, or prioritizing cost-cutting measures over safety investments. However, these alternatives carry significant risks, including potential legal liabilities, consumer backlash, and a loss of competitive edge.

Key assumptions include the willingness of auto manufacturers to invest in research and development, the availability of skilled talent, and the public's acceptance of autonomous driving technology.

8. Next Steps

To implement these recommendations, auto manufacturers should:

  • Develop a comprehensive strategic plan: This plan should outline specific goals, timelines, and resource allocation for investing in safety technologies, fostering a culture of safety, and engaging with stakeholders.
  • Establish cross-functional teams: These teams should be responsible for coordinating research and development, product development, marketing, and public relations efforts related to safety.
  • Invest in training and development: Auto manufacturers should invest in training programs for employees to enhance their understanding of safety technologies, ethical considerations, and best practices.
  • Monitor and evaluate progress: Regularly assess the effectiveness of safety initiatives, track key performance indicators (KPIs), and make adjustments as needed.

By taking these steps, auto manufacturers can ensure that they are on the right track to building a safer and more sustainable future for mobility.

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Case Description

Driverless cars - once the stuff of science fiction - are fast becoming reality. Indeed, some automotive companies have said they expect to sell autonomous vehicles to the public by 2020. The advent of such self-driving vehicles raises numerous ethical and legal questions that will need to be addressed before such cars can hit the road in significant numbers. This case traces the history and evolution of auto safety in the United States, beginning with the very first automotive-related fatality on September 13, 1899 and ending with a coming era in which, some predict, humans will be banned from driving their own vehicles and machines will be obliged to have ethical systems.

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