Driving Autonomous Heavy Vehicles into the Future : A Business Model Perspective

Abstract: In light of the many environmental challenges that the world currently faces, new sustainable solutions are called for. The concept of autonomous heavy vehicles (AVs) is considered to be one of the next megatrends within transportation and this technology shift is predicted to improve safety and logistics as well as to cut driver costs and reduce CO2-emissions. However, from a company's perspective, technology shifts are not without risks as technical disruptions can cause core competencies to become obsolete and radical technology innovation can be fatal to a company that does not innovate its business models simultaneously. Due to the complexity and novelty of the AV technology, business model innovation within the field has been lagging behind and there is an area of uncertainty regarding how a future business model for AVs could be formulated. In order to investigate potential business models for AV applications, this study has been carried out as an exploratory case study of two industry specific applications for goods transports within confined areas at the heavy vehicle manufacturer Scania in Södertälje, Sweden. The Business Model Canvas tool  developed by Osterwalder and Pigneur (2010) has been used to map the business models of these two cases with the purpose of combining them into a general model. Furthermore, four important capabilities at the company have been identified and determined as to whether they qualify as core competencies based on the criteria presented by Prahalad and Hamel (1990) and then discussed in relation to how they can be leveraged in a future business model. The findings of this study help to formulate a business model perspective for future AV goods transport applications that consists of a service-based model characterised by a focus on collaboration and value co-creation, an adaptable level of integration with the customers' systems, transfer of ownership of products to the manufacturer and a value-driven source of differentiation. Lastly, the study concludes that Lean production and modularity are two existing core competencies of Scania that could be leveraged dynamically in a future business model connected to this technology shift.