One plus one equals three

'One Plus One Equals Three' is the title of a 1927 German silent film as well as a book by Dave Trott on creative thinking and creative writing. 'One Plus One Equals Three' is also a phrase that illustrates what is happening within the automotive ecosystem.

Over the last few years and moving forward, automotive companies are partnering with businesses outside of the automotive industry to deliver offerings that bring two disparate technologies together to create a third solution that reinvents business models, generates additional revenue streams and cuts costs.

According to BearingPoint/Beyond, a European, independent management and technology consultancy:

If automotive and transport companies want to thrive in a digital, mobility-enamored world, partner ecosystems must become a vital component of their reinvented business models. This will allow them to put a greater emphasis on customer relationships as the motor for innovation to create compelling new digital services formed through partner ecosystems which not only meet customer needs but drive them forward - while also being harder for competitors to simply copy.

Unexpected partnerships are bringing the automotive industry together with insurance, entertainment and hospitality companies, just to name few. For example:

  • Ford has a deal with Liberty Mutual Insurance offering insurance discounts to customers who drive a Ford connected vehicle. On a consumer opt-in basis, Liberty Mutual is able to access data from Ford's connected cars to assess driving habits and decrease auto insurance premiums based on good driving.
  • At CES this year, the electric vehicle manufacturer, BYTON, announced a wide range of partnerships bringing fresh content to an in-vehicle 48-inch display. ViacomCBS and Accuweather are two entertainment/information content companies working with BYTON to deliver an offering that enhances the driving experience.
  • Uber has a deal with Hilton Worldwide enabling guests to set ride reminders, request vehicles to and from nearby locations as well as explore local scenes via a digital guide powered by Uber within the HHonors loyalty app.

Credit: Center for Automotive Research

For more than 100 years the auto industry was based on one company building a vehicle, one person buying it and one person driving it. Those days are over. One, single company cannot provide the new types of services and solutions desired by today's consumer.

While collaboration is key to the successful disruption of the industry, it is not without challenges. Once companies agree to partner, the complexities to success range from go-to-market strategies, branding, revenue splits, and team coordination. Core to the success of the partnership is its fluidity through planning and execution as well as ensuring a common lexicon, common measures, and common processes to help companies from vastly different industries integrate, communicate and prosper.

The majority of these services and joint mobility offerings require integration of software components into complex, multi-supplier systems. The mindset of fluidity, dynamic environments and consistent measurement and processes is also true for software integration and the dependencies and compatibility challenges that arise with software integration.

From a pure business perspective, the stronger the dependency between colleagues, supply channels, and infrastructure the higher the probability change will cause challenges to the integrated service. Having insight into how these elements interact will help predict and prepare for change assuring a successful launch of the unified offering.

Similarly, the stronger the dependency between functional components and software lines-of-code, the higher the probability change in one component will have a carry-on effect on other functional components in the system. Having insight into how these elements interact will help predict and prepare for change, again, assuring a successful launch of the unified solution.

Aurora Labs is the company leading this new dimension of providing transparency into the relationships and behavior between functional components in complex and dynamic automotive systems. The actionable data created enable the automotive ecosystem to predict, fix and validate software behavior, the foundation of all new mobility systems and services.

Who is liable?

Smart Summon is a new feature Tesla has installed with an over-the-air (OTA) update as part of its version 10.0 software. Smart Summon enables the car owner to summon his or her car from a parking space within 200 feet. A few days after the update was delivered, a video surfaced of a Tesla Model 3 being summoned from a public parking lot, driving through a stop sign and getting pulled over by the police.

The Tesla owner said to the police officer "I wasn't driving it. The car ran the stop sign. So, no ticket. "The police officer was understandably perplexed. Who should he issue the ticket to? The owner wasn't driving the car when it made the traffic offence? The car? Maybe Elon Musk himself?

In this instance, no harm came to any pedestrians or other cars, however, the question of liability remains. Earlier this year, executives from Ford and Bosch came together with executives from AllState and Nationwide as the two industries - automotive and insurance - work through how to insure connected and autonomous cars and figure out who is liable for what.

While in many cases the hardware and sensors may be to blame for a vehicle malfunction, according to a report from Stout, in 2018, nearly 8 million vehicles in the US were affected by software-based defects. This is a higher total than the previous five years combined and three times more than any previous year. Both the insurance and the automotive industries - which haven't had major changes or new business models in decades - are being disrupted with the ushering in of connected cars, autonomous cars and mobility services. Who is responsible when an autonomous car crashes? The 'driver' in the car? The owner of the vehicle? The vehicle manufacturer? The supplier of the autonomous driving technology?

Too often the question of liability is framed as a 'blame game' by either the regulators or the insurers, to find the entity that can be shouldered with the cost after the fact. However, the focus of liability should not be on pinning the blame but rather on taking proactive responsibility so that crashes do not occur in the first place.

Understanding of automotive software is going to be the difference between those automotive manufacturers that maneuver through and succeed in this liability storm. Software is entering the car from several entities - the automotive manufacturer's software; suppliers' software and software created from the open-source community. The goal of the vehicle manufacturer should be to ensure that there are technologies and solutions in place to enable transparency into which software is actually running in the car and how the software functions are behaving, to be able to understand the behavior of the software, to be able to detect software malfunctions and to be able to fix them before they affect the driving experience leading to a liability situation.

Connected cars, mobility services and self-driving vehicles are driving a dramatic rise in the amount of software in the car and promise a shift in vehicle control away from the driver and toward the vehicle. The same shift may occur in liability for harm caused by vehicle crashes and related events. Automotive manufacturers need to adopt new in-vehicle software management technologies and develop new business models to be prepared to take on the liability responsibility.

It’s an obligation, not a promise

Everyone knows someone with a disability, especially a driving disability that makes it unsafe to get behind the wheel. It may be an elderly parent, a friend with special needs, or a family member that has experienced a serious injury.

For years, the automotive industry has promised that connected and autonomous vehicles, as well as new mobility services, can provide more efficient transportation to those without a disability. But in the wake of the increasing adoption of these technologies, the industry also an obligation: To make transport more accessible and realize more independence and chances for the disabled with better access to basic services like healthcare and better access to employment.

The disabled market also is substantial. In the United States, for example, around 53 million adults have a disability, which is around 22 percent of the adult population. About 13 percent of adults have mobility problems and 4.6 percent have vision impairments.

In Germany alone, 7.8 million people live with a severe disability - many of them unable to drive a car. At the same time, 7.5 billion Euros have been spent on patient transport services - more than ever. Safe and secure autonomous vehicles in the form of configurable pods are a chance to enable those 7.8 million people better access to mobility and at the same time reduce the costs for patient transport.

However, there still remains one problem: The new autonomous technology needs to be safeguarded by a secure back-up plan in case the technology fails. Normally, this security back-up would be the driver, who can intervene and take over controls. But people with disability might not be capable of maneuvering the vehicle themselves.

Self-Healing, In-Vehicle Software Management capabilities of connected and autonomous cars that enable the vehicle to self-correct when a system malfunctions are crucial for all passengers - both those with disabilities and those without. Only if the vehicle is able to automatically detect problems and "heal" them, can everyone benefit from the new world of mobility. This is still a few years off however it is our obligation to build systems that are inclusive, and only then will consumers gain the level of trust for this changing world of transportation to become a reality.

Why the key to autonomous driving is trust

With all the excitement around autonomous vehicles lately, you would expect that consumers are ready to buckle up and embrace full autonomy. On the contrary, there is a surprising amount of caution amongst drivers when it comes to self-driving cars.

According to a study conducted by AAA last year, 73 percent of American drivers report that they would be too afraid to ride in a fully autonomous vehicle - and that number is up from 63 percent in 2017. Furthermore, that same study found that 63 percent of U.S. adults reported that they would feel less safe sharing the road with an autonomous vehicle while walking or riding a bicycle.

How can we expect the entire world to adopt autonomous vehicle technology if there are high levels of distrust within the U.S. alone? Trust is a crucial component - and the first step - when it comes to the widespread use of autonomous vehicles. Autonomous driving will only become mainstream if drivers and pedestrians feel that they can fully trust the vehicle to function correctly.

What we can learn from the past - Trust and Technology

It is interesting to look at how elevators transformed the way people get from the first floor to the penthouse and how autonomous vehicles will transform how people get from point A to point B on the highways and back roads.

There are similar "trust" factors regarding both elevator and autonomous vehicle adoption. The elevator technology itself was not the deciding factor for people to adopt elevator usage. The first elevators were installed in England in the 1830s. However, early elevators used rope- and belt-driven systems that would often snap resulting in injury and death.

It wasn't until 1854 - 24 years after the technology was introduced - when Elisha G. Otis introduced a safety brake using a spring action system. At the 1854 World's Fair in New York City's Crystal Palace, Otis rode the elevator intentionally severing the cable. The safety brake stopped the elevator. The brake is considered the key in gaining public confidence in elevators.

We are in a similar situation today with autonomous vehicles. The major automotive manufacturers, major technology companies and hundreds of start-ups are working on technology to make autonomous vehicles a reality. Key to the adoption of the autonomous vehicle will be the technology that keeps the software safe and guarantees a driving experience that people trust.

Self-Healing Software Delivers Trust

This trust in autonomous vehicles starts with drivers understanding and believing that the software in the car works correctly, is secure, and is safe from cyber-attacks. Only then will the masses adopt self-driving vehicles. That means that the software must be functioning to the best of its ability.

The well-documented growth in the amount of automotive software eliminates any question about the importance of automotive software management. Using new technology, including artificial intelligence and machine learning, is required to deliver a Self-Healing Software solution that can detect a software problem, automatically roll-back to a safe software version and efficiently update the software.

Technology changes and advances - the safety mechanisms required for people to adopt technology - are timeless. Learning lessons from 1854, we know that trust is a key element for technology adoption and Self-Healing Software is to the vehicle what the brake was to the elevator.