Strategic Innovation: Mirrorless Cars - Case Study Example

Strategic Innovation Paper: Mirrorless Cars

America is a land of innovation, and it is not easy to imagine of any technology without first thinking about the United States. However, this document examines the mirrorless car currently implemented by the Bavarian Motor Works (BMW) in Germany. BMW was established in 1916 in Munich Germany and is world renowned manufacturer of luxury vehicles (Boeriu 3). The company produced over 2.1 million automobiles and 200,000 motorbikes in 2014. The has maintained its innovation in an automobile at high gear and this year they have introduced a BMW i8 mirrorless camera technology in the market to enhance the safety of the passengers and the driver (Murai 1). Whereas the company has its operations in the American market for other vehicles, the monitor camera system is unique is a new technology that is yet to spread not only to America but the rest of the globe.

The automobile technology is advancing rapidly, and presently most of the car systems are controlled using computerized systems. The automobile manufacturers are now focusing on more fuel-efficient and safer vehicles to meet the environmental concerns and increase customer satisfaction (Boeriu 5). The monitor camera system is a technology that enables the camera system to stream videos of traffic behind the car on a small display to replace the ordinary exterior mirrors thus enhancing the safety of the driver of BMW i8 using digital rear-view mirror (Murai 4). The system entails a system of three inconsequential looking cameras two of which are mounted in the aerodynamically optimized support and complimented by a third camera in the system is fixed on the upper periphery of the rear windscreen. All images captured by either of these cameras are combined and showed on a high-resolution screen positioned in place of the rearview mirror.

This new system is convenient for the driver because the cameras do not require any adjustment and also it gives a broader view of the traffic behind the car that the ordinary mirrors. The camera monitor displays 300 millimeters by 75 millimeters images and has a rounded casing at the sides to provide a natural panoramic view of the traffic behind (Murai 7). Also, the system assesses the camera images faster and relay a response instantly to any looming danger. If for example, a car is approaching faster from the rear and the driver alerts with an indicator the display shows a remarkable yellow caution sign that expands in size as the risk increases. Also, when the driver is negotiating a corner or turning at a traffic light, the camera system detects the sharp turning of the wheel or traffic light thus causing the image to twirl to the right and increase the region being displayed (Boeriu 7). Additionally, when there is a motorcycle approaching from behind a caution signal is shown on the screen.

Besides the clear rear view the small size of the mirrorless camera allows a more open view of the sides and from of the car. The driver can adjust the position of the display to suit the position of the light without affecting the viewing thus enabling them to avoid the direct glare of the light (Murai 9). Therefore, the system is crucial for the driver whether driving or parking. Furthermore, the passengers can use the camera to increase their safety when alighting from the care because they can view the rear of the car for an incoming traffic before opening the door and avoid getting into danger (Boeriu 7). The design and positioning of the cameras in wing-like holders gives the car a CW value, makes them generate low amount of wind noise and channels rainwater around the side windows.

The side cameras are made of a slender and vigorous Gorilla Glass Type 2 mainly used in screens for touch screen devices. These are high-quality glasses with high resistance to abrasions and braking strengths (Murai 7). The glass lens of the camera lens are coated with dirt repellent, heatable and require no servicing to enable it offer high-quality images under any traffic conditions and withstand severe weather conditions. The design of the lens allows water to go round them. Also, the general width of BMW i8 mirrorless is reduced due to the absence of the exterior mirror (Boeriu 8). So far the BMW Company has not disclosed details of the production technology and has thus left other automakers scuffling with the idea. This implies that the automotive manufacturers are heading towards the same direction, but for the BMW the market is open for them.

Why the Mirrorless Cars Started Outside the US

The mirrorless car does not exist in the United States because the National Safety Administration rules require every car to be fitted with rear-view mirrors (Murai 11).Although General Motors (GM) has a similar technology for new Cadillac CT6, it has a rear-view mirror with a camera mounted on it to provide a high-resolution video of the traffic behind the car. Several automobile companies are working towards the mirrorless car technology, and Tesla of the United States is among the pioneers of such technology. In 2015 Volkswagen introduced the camera system to their 271-mpgXLI cars although they are available in Australia and Germany market (Boeriu 9).Mercedes-Benz and Nissan are also using rear and front cameras to complement the traditional side mirrors. The technology has been in use for some time for other purposes including tracking the lines on the road to alert the driver when the vehicle starts glide from the traffic lane.

The federal regulators have announced that beginning may 1, 2018 all cars below the weight of 10,000 pounds must be fitted with backup camera systems. However, the highway safety rules 1968 sets a requirement that every car must have a mirror on the windshield and another one on the door to enhance the viewing of rear traffic for safety purposes (National Highway Traffic Safety Administration, NHTSA 118). With these requirements the American automakers continue to have a challenge with implementing the new technology because driving a car without a rear mirror is a criminal offense. Tesla and the Alliance of Automobile Manufacturers are negotiating with the feds to adjust the 2018 requirements, and also they are calling upon the National Highway Traffic Administration to amend to 1968 highway rules to accommodate the new technology (Murai 14). The American automakers require the NHTSA to replace the side mirrors with a digital camera in their highway safety regulations arguing that such a change will improve safety through the elimination of blind spots and increase fuel efficiency.

To what extent the absence of the US represents a business Opportunity

The American market offers a great opportunity for innovative automobile technology due to increasing in disposable income with increasing employment rates. Also, the low-interest rates and availability of cheap gasoline vehicles have to fast growth in the automobile industry with statistics demonstrating a more that 5.7% market growth for automobile sales in 2015. During this year all automobiles sold increased to 17.5 million cars and the market continues to grow (Murai 18). Furthermore, consumers are searching for new innovative products each day to have better satisfaction. Therefore, since the reduction of the bulk of side-view mirrors improves the gas mileage the BMW i8 mirrorless car has potential to capture the significant market in the United States.

Automobile manufacturers and consumers want fuel-efficient cars that can reduce the cost and comply with environmental requirements. The traditional side mirrors in the cars increase the width of the vehicle hence increasing aerodynamic drag to cause an increase in fuel consumption by up to 7%. However, with the new mirrorless cars that use thinner camera holder compared with the common side-mirror the vehicles will become more fuel-efficient. Additionally, safety is an issue of concern for the motorists as statistics by National Safety Council indicating a 14% increase in total road accidents in 2015 (National Safety Council 1).The NSC related the increases in a road accident with low global real gas prices that contributed about 3.4% increase in mileage. Therefore, if rules are adjusted to allow the use of mirrorless cars instead of the traditional side-mirrors the demand for these cars will increase significantly as many people engage safety measures against road accidents, thus providing sufficient market for mirrorless cars.

How to make money from the innovation

Consumers in the US and elsewhere have tastes for various automobiles. Once these rules are eased to allow consumers to explore the new technology in the US, many vehicle manufacturers will start replacing the interior and exterior mirrors with camera monitor in various cars to satisfy the needs of various consumers. Also, several cars with the latest technology will be imported into the US to meet the demand for fuel-efficient and safe motorcars. Therefore, automobile manufacturers and importers will benefit a great deal from this technology.

Conclusion

Technology will continue to advance every day leading to new products and services in the market. The growth of innovation is motivated by the desire of the people to live a better life such as driving a mirrorless car to enhance safety and increase fuel efficiency. The motorless car is fascinating innovation in the automobile industry because it saves lives and enhances fuel efficiency for the motorists. The existing traffic rules at present are the main limiting force, but in the future it apparent that most people in the US and across the globe will prefer these vehicles to the traditional cars relying on side-mirrors.