Abstract

The case discusses the innovative efforts of Germany-based automobile manufacturer Volkswagen AG (VW) to utilize quantum computing (QC) to gain a competitive advantage in the automotive industry. VW was the world’s first automaker to recognize the potential of QC to transform business processes, enhance the development of vehicles, and amplify the driving experience for customers. The case documents VW’s various QC projects, including its first one that resulted in the development of a smart mobility program that used a quantum computer to optimize traffic flow and predict traffic volumes. Through collaborations with companies like D-Wave Quantum Systems, Google LLC, and Xanadu Quantum Technologies, VW was conducting research into developing several practical applications of QC in the automotive industry. The case mentions the company’s future plans that involved utilizing QC to create novel materials, optimize the locations of EV charging stations, and improve battery performance for EVs. Can VW’s QC focus help it trump other players in the future in the highly competitive global automotive industry?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Recognize the importance of constant innovation in technology-based industries.
• Analyze the role of strategic alliances in bringing about technological innovations.
• Examine the competitive advantage gained through technological breakthroughs.
• Assess the potential applications of quantum computing in the automotive industry.
• Understand the potential of quantum computing for solving complex challenges in the automotive industry.

Keywords

Technology Adoption; Innovation and Technology; Product Design; Operations Strategy; Strategic Alliances and Collaboration; Data-Driven Decision Making; Competitive Advantage; Quantum Computing; Strategic Planning; Differentiation; Mature Industry New Product Development; Emerging Technologies; Research &Development; and Quantum Computers