What happens when two industries with fundamentally different clockspeeds converge within a single product? In a recent Knowledge@Wharton article, Program on Vehicle and Mobility Innovation Director John Paul MacDuffie discusses the challenges of integrating IT-based technology, such as computer-based collision avoidance systems, into automobiles.
MacDuffie highlights the tight integration of the automobile industry in contrast with the more modular structure of the IT industry. He predicts a shift in the auto industry toward looser integration as tech firms confront existing automotive product architecture, industry structure, and supplier and dealer relationships. Incorporating such technologies into vehicles also raises concerns of price and legal liability.