Three pitfalls in software-driven transformation

How to tackle the growing challenges
Dr. Rodrigo Biurrun | Matthias Brandt | Ines Burkhardtsmayer | Stuart Church
Jun 2023 | Strategy Paper | Inglese

Three pitfalls in software-driven transformation

How to tackle the growing challenges

The automotive sector is experiencing a rapid digital transformation, driven by market-push and market-pull factors such as electrification, digitalization, and automated driving. As a result, product complexity is increasing disproportionately. This is accompanied by a faster pace of change, challenging traditional vehicle manufacturers. To remain competitive, traditional manufacturers must embrace digitalization and focus on software-driven solutions. 

This whitepaper reveals how collaboration, decoupling of hardware and software processes, and efficient software development can be used as key levers to successfully manage the transformation.

60%

of vehicle recalls can be attributed to the increased complexity of the products, carryover parts strategies and the speed of development.

40%

increase in software development costs are expected by the year 2030.

3

organizational levels must be involved to implement a software-driven transformation.

Management Summary
  • Horizontal collaborations enable flexible acquisitions of software-related capabilities. An integration management office can thereby manage barriers that arise and coordinate process integration for both collaboration partners in addition to change management-relevant aspects.
  • Significantly increasing the deployment flexibility and pace of change for a product requires a dedicated decoupling of rapidly changeable product components.
  • The process architecture, for example in development and application processes, follows the product architecture in order to make the flexibility operationally usable.
  • Complexity in software product creation is growing due to a multitude of factors.
  • A focus on converging requirements to form realistic and achievable specifications as well as a platform strategy and interface management can restrict the complexity early.

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