Finding a unique value proposition in the software-led evolution of mobility is the first step in positioning the company for future success Assessing the company’s maturity level, including the current state of technology and core architecture, along with identifying key transformation challenges should be a priority for setting realistic targets. 

Modularity, scalability, and flexibility need to be considered to accommodate future advancements and enable seamless integration of new features and updates in the shortest possible time. Traditional OEMs, who need to transition away from legacy software platforms, can focus on the development of a core architecture blueprint to provide a more efficient framework to scale vehicle software updates.

Traditionally, OEMs have struggled with the concept of collaborative partnerships in an ecosystem environment. However, establishing mutually beneficial strategic alliances and partnerships will be essential for success in an SDV future. In fact, these ecosystems can capitalize on the complementary strengths and resources of individual participants to accelerate the development of SDVs. Strong alliances can also generate a broad user base to achieve scale, while the inclusion of diverse stakeholders, such as legal entities and research facilities, can enable SDV ecosystems to navigate a complex and rapidly evolving regulatory landscape.

Building on the development of an architecture core blueprint, companies should design a comprehensive change management plan to align cross-functional transformations throughout the organization. High-performance teams should also be set up with a focus on dedicating resource capacity to innovative future topics.

To succeed in the SDV market, it is crucial to transition into a software-led organization that emphasizes data-driven decision-making in an environment grounded in cross-functional collaboration and knowledge sharing. Companies can shift their organizational focus toward software development by investing in software engineering talent, training, and tools. Companies should also adopt agile development methodologies to enable rapid iterations and continuous integration of software over a whole vehicle lifecycle. Lastly, software security and safety measures need to be taken to ensure reliable and compliant operations. 

Breaking down traditional “Tayloristic” structures will result in simpler, faster development cycles, reducing complexity while increasing the potential for reusability. The implementation of new core architectures, AI, agile transformation, partnerships, and process restructuring will also help to realize significant efficiency gains. Moreover, portfolio decisions need to be streamlined to focus on business cases that help to secure future viability. 

New SDV-enabled revenue streams are emerging as large amounts of data are generated from increasing vehicle and fleet connectivity. These involve one-time purchases or recurring subscriptions for entertainment or personalization services, security, mobility as a service, and smart infrastructure solutions.