Roadmap to the future: How software-defined vehicles are redefining the automotive industry
Software-defined vehicles are shaking the foundations of the automotive industry. The focus on software not only changes the significance within development, but also has the potential to transform the automotive industry’s entire business model. More than ever, mobility is viewed as an ecosystem in which the physical vehicle becomes the carrier of the software. This software is the basis for platforms and new business models.
The automotive industry is currently undergoing a fundamental transformation driven by battery electric vehicles (BEV), advanced driver assistance systems (ADAS), connected functions, mobility solutions, extensive personalization, and an increasing amount of embedded software. These developments are changing the way cars are seen and used and are opening up new possibilities that go beyond changes in drive technology.
Software-defined vehicles (SDV) and the associated "softwareization" of the entire automotive value chain – suppliers, manufacturers, and dealers – represent the true mega-disruption for the automotive industry!
Speed: Development is picking up pace
The transformation towards SDV poses numerous challenges, particularly for traditional car manufacturers. One of the biggest hurdles is modernizing existing software architectures for new models while also developing fundamentally new development and product approaches.
This requires considerable investment in software development and new architectures as well as a high degree of flexibility in order to be able to react quickly to market changes. The growing complexity of the project portfolio also requires an even closer, more flexible form of cooperation both between the functions involved and with external partners.
The networking of vehicles will continue to progress rapidly. Continuous further development and optimization via over-the-air updates and strong networking with external systems will further improve integration. Modern IT infrastructures, including the appropriate security architectures, contribute to increased future security.
In the future, the vehicle will be part of an intelligent mobility ecosystem that includes functions such as autonomous driving, intelligent charging, and data-based management as well as targeted mining of vehicle data. These developments promise new business potential and an improved user experience through personalized, dynamic functions.
A head start through innovation: The top 3 market trends
New OEMs such as Tesla, NIO, BYD, and Rivian have taken on a pioneering role with their vehicles and software strategies. These three developments are emerging:
1. Technology pioneers are rapidly penetrating the automotive market. These companies not only bring innovative technologies and a high speed of implementation, but also considerable investments.
2. New OEMs act more freely. They hardly have to take existing structures and vehicles into consideration. They think of their products and vehicles as part of a software-dominated business model right from the start. They see themselves as tech companies.
3. Established OEMs must find an individual way to digitalize their existing product range more and, at the same time, integrate disruptive, software-driven business model ideas into their core processes.
Looking ahead: Mastering the software-driven transformation
Companies should now focus on building up new technologies and software development skills. The aim is to optimize the entire supply chain in order to efficiently support the increasing integration of software.
In addition, agile methods, new organizational structures, and DevOps practices should be introduced to simplify and accelerate software development and the deployment process.
Flexible development and production processes are also crucial in order to be able to react to changing software configurations and requirements.
Finally, customer service must be strengthened to effectively address software-related requests, updates, and bug fixes (such as OTA updates and cybersecurity) to continuously improve the user experience (UX).
These measures make it possible to fully exploit the opportunities of the digital transformation and establish oneself as a leading innovator in the market.
We would be happy to support you in mastering these challenges and strengthening your position as a pioneer in software-based transformation. With our expertise in digitalization, process optimization, and business transformation, we help you to achieve your goals efficiently and sustainably.
