Digital Transformation and the Self-Driving Car

Digital transformation can be defined as, “the acceleration of business activities, processes, competencies, and models to fully leverage the changes and opportunities of digital technologies and their impact in a strategic and prioritized way,” (Edmead, Mark, and IDG Contributor Network, 2016). Following the industrial revolution, digital transformation has taken shape as the current revolution and innovative process. When industry’s and businesses engage in digital transformation, they create disruption and pave the way for enhanced customer value, efficient operational processes, and innovative business models. The prospect of this thesis is to: (1) understand how digital transformation strategy helps to propel innovation for the self-driving car, (2) understand how this innovation will create value in the grand schema for digital transformation, (3) develop a GIS-based (location analytics) study to understand the market opportunity for such technology and innovation. We outline how digital transformation as a whole represents a modern form of creative destruction, that is rewarding to businesses who engage in transformation for efficiency and innovation, and addresses the implications of those that do not. We discuss how digital transformation has affected the auto industry to invest in innovating self-driving cars. Finally, we perform location analytics to develop an opportunity analysis in five big markets around the Phoenix Metropolitan area in the State of Arizona to identify the potential markets for self-driving cars. We conclude this study with a discussion on how technology strategy is transforming the world.