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The new automotive industry fast lane is software‐defined

November 1, 2022 5-MINUTE READ

In brief

Stepping on the transformation gas

New business models also need the right technology stack

The trillion dollar question is, where to play?

We have identified four approaches that OEMs can take:

Full-stack control

Building and owning the complete product and services experience and everything that delivers it—from hardware to the cloud back-end. This approach offers the highest potential revenues but also carries the greatest risk and is the most complex solution.

In-vehicle services control

An open-source approach to creating and delivering all the software and services needed to enrich vehicle hardware. However, there are considerable trade-offs between complete control and the costs and capabilities required to develop and operate a specific layer.

Domain stacks

Targets engineering efforts toward developing highly specialized services that can operate with hardware (HW) and near-HW software from a third-party manufacturer. This offers ownership of the customer experience—enabling access to valuable end-consumer data—but it may limit control over HW quality and the experience that it provides.

White-label platforms

Providing a platform—hardware, software or a combination of the two—for others to build on. The success of this approach depends on managing the complexities of architecture alignment, process governance and providing extensive maintenance and support to third-parties.

The 360° OEM transformation requirement

Meet the team

Christof Horn

Managing Director – Automotive Europe Lead, Industry X

Juergen Reers

Senior Managing Director – Global Industry Sector Lead, Automotive

Hans Loes

Principal Director – Global Strategy and Growth Mobility X Lead

Stefan Hattula

Senior Principal – Global Automotive Research Lead