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Four Crucial Development Areas Are Forcing OEMs out of Their Comfort Zone

The Automotive industry is facing radical change with the introduction of Connected, Autonomous, Shared, and Electric (C.A.S.E.) technologies. Automakers will need to adapt to these emerging trends and redesign their existing products and services, rethink their platform strategies, and recreate models of value creation. [1]

On the one side, there is a potential for the automotive industry to extend its value creation model beyond the product to instead cover the entire life cycle of the vehicle. On the other, this value creation model will be heavily data-centric and therefore require automakers to reprioritize investments. Currently, the industry is addressing these new challenges in individual efforts and use cases. To change this, the referenced article and its author is recommending a series of strategic steps and activities.    

The first step will be to identify and prioritize a roadmap for autonomous driving and connected services use cases. The second will be to transform the vehicle electronic architecture to enable features like over-the-air (OTA) updates. The third step will be to identify the ideal ecosystem partners that will enable the service delivery model for each use case. And, the final step will be to identify a data management strategy with centralization of customer data which will be pivotal for future business models.

 

Personal comments

Just having to face one of the four C.A.S.E. trends would probably be enough to keep the automotive industry quite busy. It is no longer enough to make incremental improvements on proven vehicle platforms, and this is resulting in the need for more daring strategic decisions as well as higher development costs. This is also the reason why we are seeing so many partnerships where even former rivals are willing to collaborate and split development costs. It is also more common for the automotive groups to create new dedicated companies (now more recently VW Autonomy and Volvo Autonomous Solutions) to better consolidate the development and start to offer solutions.    

 

Written by Victor Malmsten Lundgren, RISE Viktoria.

 

Sources

1. 2019-11-11. Connected & Autonomous Cars Have Arrived, And They Are Forcing Car Companies To Build New Vehicle Architectures