Survey: Software Drives. Digital Capabilities for Automotive Innovators 2030

More than 40 expert interviews with decision-makers from the automotive, information and telecommunication sectors show the capacities providers need to successfully manage digital transformation of the automobile sector. Download now.

The digitalization of the automotive industry is in full swing. There are change initiatives at every level, from process optimization to digital key projects to service-dominated business models.

But nobody is asking a key question: What are the capabilities that a digital company needs? The change to service-driven business models challenges the entire organization - the success in the service business is subject to principles other than the product business.

Consequences of change towards service orientation:

  • Digital services are provided in real-time.
    Services must be kept up-to-date over the entire utilization period. Operations become a core function and contribute directly to the competitive differentiation.
  • Before the SOP is after the SOP is before the SOP.
    The orientation towards services dissolves boundaries between project-driven development and production. During the utilization cycle, functionalities have to be further developed or even newly developed.
  • Retail is Detail.
    Digital services are subject to their own business logic: on the one hand, a minimal margin and, on the other hand, functionalities tailored to the needs on the spot. This logic must be taken into account from business model to implementation.

The digital transformation of the car poses a new challenge to the industry. It not only changes the technology dimension, but at the same time affects the dimensions of business logic and models as well as the structure and process organization.

The report on the management survey Software Drives. Digital Capabilities for Automotive Innovators 2030 shows how manufacturers and suppliers have to reposition themselves in order to cope with digital transformation.

The first report of the management survey Software Drives. Automotive E/E Development 2030 was released in June 2015. The survey is based on 40 expert interviews with decision-makers from the automotive, information and telecommunication sectors as well as on an online survey. The report shows how intelligently networked software will change the automotive industry.

How is the industry changing?

The study puts a spotlight on new technologies, business models, cooperation models, the role of top management, life cycles, and keywords such as ‘speed’ and ‘cost-efficient development’.

Key developments.

Decision-makers, for example, see a clear competitive advantage in adopting service-oriented business models. In digital business models, payment streams relate more to the ongoing use of services than the purchase of products as the aftermarket becomes the mainmarket. In terms of technology, the connected layer provides an interface with providers of added value, and will become more important than the current division of vehicle manufacturing into chassis, electronics, gears and drive (“KEFA”). In addition, the continuous development of existing systems will replace the current orientation towards SOP, model maintenance and EOP.

The future of electrics/electronics development up to 2030.

Until now, the responsibility for automobile development has been carried by the manufacturers. Will this remain the case, or are we facing a shift in the traditional paradigms? In the future, customers will derive the most benefit from services. As a result, the traditional mobility demands will merge with internet-based services to form integrated solutions based on new business models. We have investigated the impact this transformation will have on E/E organisations.

Find out first-hand what the decision-makers and experts think here.

The study Software Drives. Automotive Development 2030 was conducted by the Stuttgart-based consultancy Kugler Maag Cie as part of the major European research project “Scalare”, in cooperation with BMW Car IT, Bosch, eclipse, Fraunhofer SIT and the University of St. Gallen. The study participants were from North America, Europe and Asia.

The management survey Software Drives. Digital Capabilities for Automotive Innovators 2030 was conducted in collaboration with our partner organisations: