EBK MANAGEMENT INFORMATION SYSTEMS
EBK MANAGEMENT INFORMATION SYSTEMS
16th Edition
ISBN: 9780135192047
Author: LAUDON
Publisher: VST
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Chapter 11, Problem 13CSQ

Explanation of Solution

Challenges posed by self-driving car technology:

Nowadays, automated self-driving cars and the related technology are being considered by all major automobile manufacturers. Of course, there are significant challenges posed in their development.

Management challenges:

The management and their decision making are impacted by the following issues:

  • Initial investment is high as well as resources required are of much higher cost than that of the actual vehicle.
  • Development of the self-driving model as well as its maintenance is another challenge.
  • Business model and working structure for self-driving cars is difficult to understand.
  • Similarly, constraints like public traffic, on road safety, time, and money pose important challenges for a product’s success.

Organisational challenges:

The organisations to develop a supply chain and effective business structure, need to overcome these challenges:

  • Establishing efficient communication and collaboration with related companies...

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