Reference no: EM131681428

Case Scenario: BUSINESS CASE

Avoiding a Future of Crippling Car Congestion

Speaking at the 2012 Mobile World Congress, Bill Ford, the executive chairman of Ford Motors, outlined a plan for "connected cars" to help avoid crippling traffic congestion by mid-21st century. Connected cars are vehicles linked to various mobile networks and intelligent systems and capable of M2M communication. Need for Intelligence on the Road Imagine roads with four times as many vehicles. That's the forecast-an increase in the number of cars on the world's roads from one billion in 2013 to four billion by 2050. To avoid the global risk of overcrowded roads, Bill Ford proposes creating an intelligent global transportation network that integrates communication between vehicles, a transport infrastructure, and individual mobile devices. He said: If we do nothing, we face the prospect of "global gridlock," a never-ending traffic jam that wastes time, energy and resources and even compromises the flow of commerce and health care. Cross-Industry Collaboration Needed for Success In order for his proposed solution to succeed, the automotive and telecommunications industries need to cooperate; and their engineers and IT experts will need to collaborate. New networking technologies and business relationships are critical to success. Ford explained: No one company or industry will be able to solve the mobility issue alone and the speed at which solutions take hold will be determined largely by customer acceptance of new technologies. The telecommunications industry is critical in the creation of an interconnected transportation system where cars are intelligent and can talk to one another as well as the infrastructure around them. Now is the time for us all to be looking at vehicles on the road the same way we look at smartphones, laptops and tablets; as pieces of a much bigger, richer network. IT solutions are already tackling traffic congestion problems and shaping what transportation will look like in 2025 and beyond.

Ford's "Blueprint for Mobility" Plan Under the banner "Blueprint for Mobility," Bill Ford detailed what it will take to make congestion-free motoring-or at least congestion-controlled-a reality in the coming decades, utilizing a combination of connected cars, connected roadways, and a totally redesigned mobile infrastructure. In the short term, within five to seven years, Ford Motors will be developing more intuitive in-car mobile communications options and driver interfaces that alert drivers to traffic jams, accidents, and other road conditions warranting attention. The company is also working on M2M communication projects, such as vehicle-to-vehicle warning systems. In the long term, Ford sees a radically different transportation landscape where pedestrian, bicycle, private car, commercial, and public transportation traffic will be woven into a single mobile network to save time, conserve resources, lower CO2 emissions, and improve safety. Bill Ford also suggests that connected cars should be about making journeys more efficient by providing alternative transportation options if congestion is unavoidable.

1. Explain the concept of connected cars.

2. Why does Bill Ford see a need for connected cars?

3. What does Ford mean by "global gridlock"?

4. Brainstorm a few other ways in which an IT network could help to reduce global gridlock. Do not limit yourself to current mobile network capabilities.

5. If no action is taken far in advance of the forecasted car congestion, what do you foresee will happen?