{"id":7610,"date":"2019-05-21T09:37:09","date_gmt":"2019-05-21T16:37:09","guid":{"rendered":"https:\/\/blog-prod.qad.com\/blog\/?p=7610"},"modified":"2019-06-04T09:38:21","modified_gmt":"2019-06-04T16:38:21","slug":"its-silicon-valley-and-detroit-not-silicon-valley-vs-detroit-pt1","status":"publish","type":"post","link":"https:\/\/www.qad.com\/blog\/2019\/05\/its-silicon-valley-and-detroit-not-silicon-valley-vs-detroit-pt1","title":{"rendered":"It\u2019s Silicon Valley and Detroit, not Silicon Valley vs Detroit (Pt. I)"},"content":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;7611&#8243; img_size=&#8221;full&#8221;][vc_column_text]<span style=\"font-weight: 400;\">Anyone paying attention knows change is looming for global automakers grappling with new technologies, stricter emissions standards and apps that have turned car buyers into renters or simply just riders. Automobiles are increasingly becoming connected, electrified, <a href=\"https:\/\/www.qad.com\/blog\/2016\/11\/autonomous-cars-change-supply-chains\/\">autonomous-driven<\/a> super computers on wheels; because of this, the industry\u2019s focus is turning more to passenger experience and mobility services rather than vehicles\u2019 mechanical systems. This shift represents an incredible opportunity for new, disruptive business models, but generally, it has been framed as a point of conflict between the tech giants of Silicon Valley and auto giants of Detroit. However, I believe that true innovation and success can only be found if OEMs and tech can come together and collaborate, using their respective strengths to dominate the future of the industry.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">A Clash of Two Cultures<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">With two completely different cultures in play, there\u2019s so much room for companies on both sides to push boundaries and innovate. The Valley, for example, has a much higher tolerance for risk and failure than the traditional OEMs, what with their workforce and technology generally skewing much younger. Detroit automakers, on the other hand, have the benefit of 100 years of industry and manufacturing expertise under their belts, including an exceptionally disciplined approach to safety, reliability and risk mitigation. These strengths represent not only market domination, but weakness \u2014 the other side of the coin for both Silicon Valley and Detroit is, of course, that they lack the very things their \u201ccompetitors\u201d can provide.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Traditional automakers and suppliers, for example, can\u2019t come close to the software prowess and entrepreneurial spirit embodied by Silicon Valley. The combination of state-of-the-art technologies\u2014sensors, big data, <a href=\"https:\/\/www.qad.com\/blog\/2018\/10\/assistance-with-planning-machine-learning\/\">machine learning<\/a> algorithms and more\u2014required for the future <\/span><span style=\"font-weight: 400;\">automotive<\/span><span style=\"font-weight: 400;\"> business models is beyond the in-house capacity of most legacy auto manufacturers. Meanwhile, Silicon Valley start-ups and their peers have neither the discipline nor the know-how to establish the safe and sustainable manufacturing processes necessary to make things like self-driving cars a reality. In other words, Silicon Valley\u2019s \u201cmove fast and break things\u201d culture is perhaps ill-suited to the laborious process of designing, manufacturing and selling vehicles\u2014Tesla notwithstanding.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The media-driven competition is already inspiring traditional manufacturers and suppliers to prepare for a battle for market share, but such a battle would ultimately do more damage than it would create success for either side. In trying to figure out how to beat the tech giants at their own game, they will need to not only completely shift the trajectories of their businesses but also amass an incalculable amount of new talent, skills and resources that are not available in the market as it stands. There are not nearly enough software engineers in the world, for example, to turn even the biggest OEMs in the industry into worthy competitors in spaces dominated by the likes of Google. <\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Collaboration at the Highest Level<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">The rationale for collaboration between carmakers and technology companies is pretty straightforward. Carmakers contribute automotive design, testing, manufacturing, assembly, sales, service expertise and infrastructure. This includes dealership networks\u200a\u2014\u200aall of which are out-of-reach for a technology company to deliver, absent a major acquisition. Technology companies, on their part, are positioned to develop and contribute self-driving software, GPS mapping systems, telematics, data science, network security and related functions. Further, technology companies are insulated from the automotive industry\u2019s short-term product development cycle, customer influence and labor politics, which affords them the space necessary to experiment with and gradually invent self-driving software over a long-term time horizon. Collaboration is not only important for business, it\u2019s also vital for accelerating the future of the <\/span><a href=\"https:\/\/www.qad.com\/industries\/automotive\"><span style=\"font-weight: 400;\">automotive<\/span><\/a><span style=\"font-weight: 400;\"> industry.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Up Next: Learn about some of the ways automotive players collaborate for the purpose of innovation, in \u201c<a href=\"https:\/\/www.qad.com\/blog\/2019\/06\/its-silicon-valley-and-detroit-not-silicon-valley-vs-detroit-pt2\/\">It\u2019s Silicon Valley and Detroit, not Silicon Valley vs Detroit (Pt. II)<\/a>.\u201d<\/span><\/i>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_single_image image=&#8221;7611&#8243; img_size=&#8221;full&#8221;][vc_column_text]Anyone paying attention knows change is looming for global automakers grappling with new technologies, stricter emissions standards and apps that have turned car buyers into renters or simply just riders. Automobiles are increasingly becoming connected, electrified, autonomous-driven super computers on wheels; because of this, the industry\u2019s focus is turning more to passenger experience [&hellip;]<\/p>\n","protected":false},"author":60,"featured_media":7611,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[182,199],"tags":[545,6,7,581,237,337,229,697,495,245,480,238,784,80],"class_list":["post-7610","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-featured","category-manufacturing-trends","tag-artificial-intelligence","tag-automation","tag-automotive","tag-automotive-erp","tag-autonomous-vehicles","tag-big-data","tag-detroit","tag-disruption","tag-electrification","tag-innovation","tag-robotics","tag-self-driving-vehicles","tag-silicon-valley","tag-technology"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>It\u2019s Silicon Valley and Detroit, not Silicon Valley vs Detroit (Pt. 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I) | QAD Blog\" \/>\n<meta property=\"og:description\" content=\"With two completely different cultures in play, there\u2019s so much room for companies on both sides to push boundaries and innovate.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.qad.com\/blog\/2019\/05\/its-silicon-valley-and-detroit-not-silicon-valley-vs-detroit-pt1\" \/>\n<meta property=\"og:site_name\" content=\"QAD Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/QADerp\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-21T16:37:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-06-04T16:38:21+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.qad.com\/blog\/wp-content\/uploads\/2019\/05\/05.21.2019-min.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"450\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul Eichenberg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@QAD_Community\" \/>\n<meta name=\"twitter:site\" content=\"@QAD_Community\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul Eichenberg\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2019\\\/05\\\/its-silicon-valley-and-detroit-not-silicon-valley-vs-detroit-pt1#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/2019\\\/05\\\/its-silicon-valley-and-detroit-not-silicon-valley-vs-detroit-pt1\"},\"author\":{\"name\":\"Paul Eichenberg\",\"@id\":\"https:\\\/\\\/www.qad.com\\\/blog\\\/#\\\/schema\\\/person\\\/7dfb86e83e992dc0c1ce4cb6ac565c11\"},\"headline\":\"It\u2019s Silicon Valley and Detroit, not Silicon Valley vs Detroit (Pt. 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