In-car technology has dominated a number of automotive and consumer technology shows this year, reflecting a growing trend, where traditional hardware manufacturers are focusing more on software development to compete in a marketplace increasingly driven by digital technology. But this shift is creating new product development obstacles for such companies, and the rise of the connected vehicle epitomises this challenge.
The integration of one of the largest forms of hardware, the automobile, with today’s software is enabling the operation of in-car technologies that define the connected vehicle, a concept which is driving the new vehicle market’s direction. Yet, while surging demand for such technologies is helping automotive manufacturers compete and grow, it also is increasing the complexity of producing them. Today, OEMs not only must merge their processes and tools to manage the interface between vehicle dashboards and new software, but keep pace with the latest software applications to enable smartphone capabilities that consumers want replicated in their cars. According to Accenture research, drivers are twice as likely to choose a vehicle based on in-car technology options as on its performance.
To address this challenge, OEMs will need to adopt a unified approach to integrating hardware and software product development using digital processes – processes that will become ever more critical to their future success, as well as that of hardware producers in other industries facing similar challenges.
A digital solution
Today, the process of differentiating products has been dramatically improved, as manufacturers now have the ability to customise a variety of products and capabilities through simple software changes. Product configuration changes can be made much faster without having to rely on costly and time-consuming hardware replacement components. Optimising this capability and effectively integrating it with the vehicle’s hardware will become increasingly critical to competing in the connected vehicle market as the pace of technological advances that can be combined with the vehicle continue to accelerate.
One strategy that can help OEMs keep pace with such demand is to pursue a robust, digital management approach. This would include unifying product lifecycle management (PLM) tools for hardware with application lifecycle management (ALM) tools for software under one, integrated system. Such a system would help ensure consistent communication across all hardware and software development functions, which is critical to overcoming today’s product development challenges. Moreover, it would enable OEMs to better manage and be more nimble in responding to frequent product configuration changes driven by unrelenting demand for the latest in-car technologies. Accenture recently launched a similar process called Unified Application Lifecycle Management-Product Lifecycle Management (ALM-PLM).
As part of using a digital approach, OEMs also should consider adopting a new product development system, namely Digital Product Lifecycle Management (PLM). Digital PLM creates an environment that further enhances communication and innovation in the product development process. The system serves as a central hub for product development, digitally disseminating the flow of frequent and varied information between all process functions, including engineering, product development, supply chain management, manufacturing, services, and marketing. Adopting it elevates standard PLM practices to higher levels of efficiency, productivity, and data intelligence compared to the traditional linear method. The linear approach communicates with functions sequentially, slowing the development process.
Conceptually, picture a square configuration with Digital PLM in the centre. Surrounding this central hub on all four sides are all of the processes previously used for linear product development, comprising the product concept stage through product retirement. Digital PLM results in a highly interactive network with many more inter-connections than a linear model. The key difference, and inherent advantage, is that information can flow back and forth between the central hub and all surrounding processes much more directly and efficiently, enabling faster and more varied back and forth data transmission, sharper insights, and better decision-making.
Not only can Digital PLM help OEMs overcome the difficulties of managing an unrelenting and rapid stream of in-car technology devices and services, but contribute to their ability to innovate in the connected vehicle segment. If ever there was a time for such an approach that can help accelerate product develop and speed-to-market, it is today as vehicle manufacturers pursue success in a highly promising, but volatile market.
Expand Digital PLM
As the car moves closer to resembling a smartphone, as well as being a mode of transportation, offering a range of infotainment and using an app-based approach, in-car technologies will increase in sophistication and demand for diverse technologies will grow. And this will make product development even more complex. To continue effectively managing the process while capitalising on market opportunities, OEMs also should consider optimising the use of Digital PLM by incorporating with it a range of digital technologies, including social media, analytics, Big Data, mobile, and the Cloud. Doing so can enhance their ability to establish a more agile, responsive and intelligent PLM network to continually capture the pulse of the segment.
By incorporating social media networks in the Digital PLM process, for example, OEMs can not only solicit their customers’ input for the next generation of in-car technology systems and services, but receive it much faster. Using this approach can also enable OEMs to receive critical feedback on product performance, which will become increasingly critical in this segment as industry observers and government agencies take a greater interest in
the functionality, quality and safety aspects of in-car technology.
The use of analytics and Big Data also is essential to understanding the connected vehicle market. These digital technologies can enable data capture, which can lead to sharper insights and better decision-making. Leading companies can see how consumers are using in-car technologies, as well as get a better idea of which capabilities are popular and which are not. OEMs can then use this information to help prioritise which new devices and services to focus on for the next generation of in-car technologies, as well as update existing technologies and applications on current vehicles.
Greater PLM connectivity is made possible through mobile technology. Customers, suppliers, employees and other stakeholders can communicate and participate in PLM processes more quickly and easily, reducing wait time and increasing speed-to-market.
Then there is the Cloud, which can enhance Digital PLM by contributing flexibility to an already faster product development process. With its pay-per-use commercial framework, swift implementation and flexibility, the Cloud allows OEMs to quickly and effectively scale up their computing needs during the various phases of product development and then scale back when needed. This alleviates the need to continually build new engineering infrastructure to support development, as well as the need to pay for such infrastructure in an environment as fluid as the connected vehicle market.
Be prepared
The connected vehicle, which is dominating car-buying preferences, has given auto manufacturers an opportunity to significantly strengthen their competitive position and increase growth in an intensely competitive market segment. But it also has created new product development complexities relative to managing the influx of software and hardware applications needed to enable the latest in-car technologies. Integrating PLM and ALM tools under a unified management system and adopting Digital PLM can help companies better oversee the intricacies of this process and respond faster to new opportunities in a market that seems poised to offer endless possibilities.
Eric Schaeffer
