Automakers and the wider automotive ecosystem have been increasingly intrigued by the potential of software-defined vehicles (SDVs). However, realizing this potential requires more than mere enthusiasm. It necessitates addressing consumer preferences for vehicle software and developing accessible solutions that offer vast utility. Nonetheless, the landscape presents numerous growth opportunities, particularly as Original Equipment Manufacturers (OEMs) recognize the significance of integrating digital and traditional inputs for a balanced approach moving forward.
Frost & Sullivan’s recent Digital Mobility webinar delved into the fascinating topic – Balancing Digital & Non-Digital Inputs to Unlock Innovation in the Software-Defined Vehicle Era.
This engaging discussion saw esteemed industry experts converge to share pivotal strategic considerations, transformative megatrends, and growth pathways tailored for businesses of all sizes:
Jack Palmer
Growth Expert and Principal Consultant at Frost & Sullivan
Derek de Bono
Group Software-Defined Vehicle Product Vice President at Valeo
Robert Camm
Growth Expert and Principal Consultant at Frost & Sullivan
Note: Gain valuable perspectives from these industry experts by clicking here to access the recorded session of the Webinar.
During this discussion, our panelists identified key strategic imperatives for achieving success in the software-defined vehicle ecosystem:
Overcoming Challenges Hindering Digital Mobility: Despite the transformative potential of software in automobiles and the growing application of digital tools, apps, and automation across vehicle types, significant technical challenges persist. These include the need for centralized computing units and the consolidation of computing platforms. To address these, ecosystem players are endeavoring to balance delivering innovative software features with maintaining essential hardware capabilities.
Is your organization actively developing a robust growth pipeline to effectively tackle the key challenges within the vehicle software domain?
Embracing a Customer-First Approach: OEMs are recognizing the importance of aligning software features with consumer needs and applications to avoid unnecessary complexity. Differentiating features based on regional customer preferences and building separate teams to focus on software and hardware capabilities, are also proving crucial.
Are your teams implementing a customer-centric strategy that effectively addresses core consumer needs, positioning your organization as a leader in this dynamic industry?
Exploring Partnerships and Collaborations: Close collaborations between automakers and key suppliers are proving imperative for the successful realization of SDVs. This includes partnerships with tier-1 suppliers and technology providers. New entrants in this domain — for instance, technology giants Qualcomm and Nvidia — are enhancing computing capabilities in vehicles, while behemoths such as Google and Amazon are integrating their services into vehicles, offering infotainment, automated services, and app stores.
Is your team crafting a comprehensive growth strategy that harnesses strategic alliances with non-traditional ecosystem participants?
Leveraging Innovative Business Models: OEMs are considering lowering the initial price of software-defined vehicles to gain market share and generate revenue through ongoing software subscriptions. Adapting the business model to generate revenue throughout the vehicle’s lifecycle, rather than solely at the point of sale, is becoming critical.
What innovative business models is your organization employing to ensure sustained success in the SDV domain?
“We have reached peak hype for the software-defined vehicle. Just like ‘artificial intelligence’, the term ‘SDV’ can cause industry insiders to glaze over, if it is not explained in a clear and relatable manner. Therefore, in our recent webinar, we recapped the progress that has been achieved with software in the car so far and discussed the opportunities and challenges that exist for the road ahead.” – Jack Palmer, Growth Expert and Principal Consultant at Frost & Sullivan.
