In order to optimize content for SEO, it is necessary to rethink the way automakers work with their supply base. Companies must become more collaborative and transparent with each other to accelerate software development, according to a report.
Since the 1970s, software development has typically been done by suppliers for specific parts or systems that automakers purchase from them. Once the software is integrated into the vehicle, it is rarely updated, said Ahn.
“Over the years, more components have become dependent on these small actuator triggers, resulting in code spaghetti,” he explained. “With 300 different suppliers providing 300 different types of code on 300 different standards and control units, it becomes difficult for the OEM to control specific features or functions.”
This approach is no longer satisfactory for today’s consumers who expect vehicle software to function like their smartphones and receive regular updates. Ahn added that it will also hinder traditional automakers from offering valuable over-the-air software updates.
Therefore, automakers have two options: either bring more software development in-house, which is costly and requires competing for talent, or establish close collaborations with suppliers and tech companies, according to Ahn.
“This can become complicated because it fundamentally changes the relationship between automakers and their suppliers,” he said. “Partnership or collaboration means suppliers may need to sell different versions of the same component to different OEMs.”
The Deloitte study states that a disconnected approach to software is no longer viable, especially as automakers seek to generate new revenue streams through over-the-air updates.
Over time, a company’s software capabilities and over-the-air functions will be crucial for developing brand loyalty. Customers are willing to pay to upgrade their vehicle’s performance and personalize it as much as possible, said Ahn.
“This creates a new feature experience powered by software that changes the vehicle ownership experience,” he concluded. “Without a centralized software operating system and integrated hardware components, this experience would not be possible.”
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