The Path Towards a Software-Enabled Company

Software-enabled Company

Continuous Digitalization of Products, Services and Value Creation

Technological and social change will revolutionize product development over the next five years. In order for companies to maintain their competitive edge, they must continuously adapt their development processes and development organizations to fit new trends and customer needs. This enables new opportunities in the automotive industry such as:

Autonomous driving functions
Networking for traffic optimization
Vehicle drive performance and energy efficiency
Viable, digital business models

Status Quo: Digital Transformation in Automotive-OEMs as an example

Systemic understanding of value creation for Software-Enabled Companies

Consulting Services for your path to becoming a Software-Enabled Company

Value Creation

The paradigm shift in Product Development

Key Challenges & Opportunities

The existing development system of incremental further development has been successful for decades
A fundamental paradigm shift, disruptions and new development due to digitalization demand greater flexibility:
- Switch to e-mobility
- Networked systems
- Centralization of software (Product.OS)
- Supply chain disruptions

Current consequences:

Month-long task forces using the resources of hundreds of engineers
Postponed market launches
Unscheduled development efforts

Systems Engineering

Circular Economy

The paradigm shift in Value Creation

Key Challenges & Opportunities

smart licensing management
New KPIs - Number of merges / releases / updates
Standardized hardware interfaces
Parallel and decentralized hardware development following the example of software development
Centralization of hardware and hardware-related software (firmware)
End-to-end automation - Shift left approach & automated testing
Interaction of different development speeds - New integration challenges
Software lifecycles are longer - Smart architecture reduces maintenance effort

Smart Factory

Strategy

The paradigm shift in Strategy

Key Challenges & Opportunities

New business models require new ways of thinking about product, value creation and customer relationships
Extension strategy and consideration of software-defined products and services
Partnership support without product business and new tactics
Urge to transform the supply chain: Overall value creation becomes more resilient

Business Models

Governance

Target Operating Model

Organization, Governance und IT

The paradigm shift in Organization & Governance

Key Challenges & Opportunities

Flatter organizational structures and organizational renewal
End-to-end responsibility, autonomy & simpler processes
Mixing and adapting management structures/ cultures: e.g. specialist teams, agile leadership
Instead of a line organization: Control through capabilities & technologies and interdisciplinary project staff
Rethinking skills management – which hard and soft skills aare the required in the context of a software-enabled company?

The paradigm shift in IT

Key Challenges & Opportunities

Transition from operational IT to product IT with a direct customer connection
Increased focus on IT competencies in development and implementation
Strengthening proximity to the business (internal customer)
DevOps and agile mindset in IT
IT follows strategy: Speed through partnering & sourcing

Future IT

Business Alignment

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