Original equipment manufacturers (OEMs) used to differentiate their products based on mechanical features. Today, however, consumers are increasingly looking for features defined by software, such as driver assistance, connectivity, and comfort-convenience services. The convergence of technologies including electrification, autonomous driving, shared mobility, and connectivity is causing OEMs to migrate from the traditional hardpoint-defined architecture to a software-oriented architecture. Meanwhile, these developments are reshaping customer expectations and forcing OEMs to address them in new generation vehicles, thereby turning vehicles into software on wheels.
• Similar to the mobile phone industry, the automotive industry is experiencing a sort of rebirth. The traditional business models of generating revenue cyclically are being challenged by continuous cash flow generation throughout the vehicle life cycle.
• Beyond unlocking new safety, comfort, and convenience features, software-defined vehicle (SDVs) have several advantages compared to their hardware-defined counterpart.
• SDVs allow customers over-the-air (OTA) updates that cover firmware patches; infotainment to receive improvements; monitoring and tuning of core functional capabilities, such as powertrain and vehicle dynamics; and feature-on-demand comfort-convenience services.
Sign up for a complimentary Growth Pipeline Dialog™
A Growth Pipeline Dialog is a structured open discussion with our growth experts providing unparalleled industry intelligence, technology advancements, and proven implementation best practices. This discussion will spark innovative thinking and help generate a pipeline of growth opportunities you can leverage to maximize your company’s future growth potential.
