Zipcar® has become a popular method of rental car transportation in a number of cities in the world
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Zipcar has become a popular method of rental car transportation in a number of cities in the world

Google Self-driving Rental Car Service

Zipcar® has become a popular method of rental car transportation in a number of cities in the world. Zipcar® provides a transportation service that allows city dwellers to use cars without owning them: its product is a service.  The customer gets the service, in this case transportation, without the headaches that come with having to purchase, maintain and insure the hardware: i.e., the car. Zipcar® rents vehicles by the hour. Customers pick up the cars at specific parking locations and return them to the same or other parking locations. Customers typically pay an hourly fee for each use. [Visit www.zipcar.com to better understand the service and see where it is available.]
Google and other companies are developing driverless cars. These automobiles have already been safely driven hundreds of thousands of miles. The cars are able to determine the speed limit based on data stored by Google Maps and to acquire data on other cars and road objects with a series of onboard sensors. These specially outfitted vehicles avoid other traffic using a system of radar sensors and video cameras, and they use artificial intelligence algorithms to steer. Currently, the cars operate with a safety observer on board to step on a brake or turn the wheel if necessary. Recently state legislatures in Nevada and California approved the operation of driverless cars on public roads. [To see more current news about the cars, search online for Google car or Google driverless car.]
Google announced that its primary goals for developing driverless car technology are to improve driving safety, use fuel more efficiently, and enable more productive commutes. To help launch this new technology, imagine Google is considering bringing out a self-driving car rental service comparable to Zipcars’. The key benefit would be that, rather than having to go to the car to pick it up, the customer would be able to place an order and have the car drive itself to wherever he or she is.  
Using the scenario provided above, complete the following tasks: 
1. Create a work system snapshot depicting Zipcar leasing model described above. Assume that the customer is already a member of Zipcar so you do not need to include steps for for creating a Zipcar account.  Thus the customer will already have provided Zipcar with all required contact and payment information.  The process we will analyze begins with a customer recognizing that he or she wants to rent a car (this will be the start event)  The process when the car is returned to a designated point; the end event occurs when the car is returned and billing information (for the particular rental) has been received by Zipcar and the customer.  For the purpose of this assignment concentrate on modeling the tasks associated with reserving, picking up, and returning the vehicle assuming everything goes as planned.  You do not need to include a step to inspect the car for damage nor the processing of the payment.
2. Using the WSS created in diagram 1, create a business process model documenting the activities associated with this business process using Visio.  It is critical that you process model aligns with the activities described in the WSS.
3. Relying on the description provided above, create a second WSS depicting the car rental process envisoned by the Google driverless car rental scheme. To do this, copy the first WSS and start from there.  When you have finished your revised WSS, highlight the important changes in yellow.  Hint, think about the various components of technology likely to be required to make such a system work.  If you are unsure what this might be, you can do a little personal research.
4. Using the WSS you created for item 3, diagram the work activities for the process of using Google driverless cars as a pooled transportation system.  Again, to do this, copy the first diagram and start from there.  When you have finished your revised model, highlight the important changes (new activities or swim lanes added) in yellow.
5. All of this analysis is conducted in support of business decision-making. The decision in this case is whether Google should go into the business. So the final task is to consider the information produced by your analysis and additional information provided below and then answer this question:  Do you think there would be sufficient demand for this service to justify Google introducing this service in the DFW metro area? If not, why not? If so, why do you think it would be beneficial to Google? Look at this from a consumer value and cost perspective; do not try to address total return on investment calculations. Your response may be brief (about 75 to 150 words) but must be well written.
Below is additional information to be used to to formulate your response to task 5.
· Assume that adding a self-driving capability to a rental car will increase the cost of the car by $10,000. Maintenance of the self-driving capability and additional insurance costs will add $12,000 a year to the operationing costs.
· Google will be competing with Zipcar whose rate associated with renting comparable cars is: $10 a month for Zipcar membership and $12 an hour while the car is in the customer’s possession. This rate include free insurance and gas up to 180 miles per day.
· Due to these additional costs, Google believes it will need to charge a $20 dollar monthly membership fee and $15 per hour.  But Google will sweeten the deal by including gasoline and insurance for up to 250 miles per day.
Combine your responses into a single, professionally formatted document and upload to eLearning by the designated date.

Hints


Hint
Work system - employees and machines perform tasks to satisfy customers by using technology, information among other resources provided.Work system snapshot should include instructions on product production, raw materials, delivering product, financial statements.For this case, ecommerce is used when customer finds information about rental cars online.Consumer values and pricing of the service det...

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