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Created 24e Nov 2020

5 insights from Tech Leaders

Here are 5 insights from studying future trends and discussing the Future of Software development with tech leaders.

1. Software is changing the traditional OEM’s business models.

20 years ago, the HW/SW value-to-effort ratio in developing electronic products were often around 80% hardware vs. 20% software. Today this is continuously changing towards a 10% hardware vs. 90% software split. What makes it difficult is that developing hardware has not become less complex!

2. People expect their purchased products to evolve with their needs.

Some OEM’s are developing subscription models/services that are not limited to sold products. For automotive OEM’s to stay competitive it’s essential for leaders to understand that digitally savvy kids will grow up and change everything. Think of software services that the customers are going to demand without limiting the product and services at the point of sell.

Automotive companies need to reboot their business models and offerings, which starts in strategy, product management and sales. In order to do this the leadership must take bold decisions and start thinking about new strategies. Should we be a mobility or a software company? How can we continuously sell services after the products have been shipped and sold?

3. Agile development will challenge traditional development.

There are many technology drivers in the automotive industry, AI, Sensors, Connectivity, Electrification, Big Data, Cloud Computing etc, that have led to an UNSUSTAINABLE GAP between software complexity and productivity levels. FEATURES sold with a product should not be treated as a fixed offer, at the point of sell, instead the product should be developed and sold with upgradable services with FEATURES treated as variables.

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