Nand Kochhar, VP of automotive and transportation, Siemens Digital Industries Software, discusses the digital transformation of mobility
The automotive and transportation industries are in the midst of a period of turbulence, transformation and opportunity. New technologies, consumer demands, environmental pressures and a changing workforce are pushing companies to reinvent fundamental aspects of the business. This includes developing more advanced and capable vehicles, new revenue sources, better customer experiences and changing the ways in which features and functionality are built into vehicles.
The software-defined vehicle
Electrification is part of a larger progressive shift in the automotive and transportation industries from the physical (or mechanical) to the digital. Consumer appetite for advanced vehicle features is higher than ever and buying decisions today are increasingly based on the innovative electronic and software features available in the vehicle.
The popularity of these features and functions represents the arrival of a new paradigm in the automotive industry, built on the capabilities of software and electronics systems. As these features become more desirable, the mechanical specifications and capabilities of the vehicle become less important in the buying decisions of vehicle shoppers.
Highly aware of this trend, auto makers are shifting their program time, budget and resources increasingly toward the development of vehicle software and bespoke electronics. In concert, the availability of powerful and ever affordable integrated circuit devices and faster in-vehicle data networks has enabled OEMs to evolve in-vehicle software. What used to be low-level embedded applications are rapidly developing into sophisticated vehicle-level operating systems or software platforms upon which various higher-level functions can be built. This is what has come to be known as the software-defined vehicle (SDV).
Moving forward, the software-defined vehicle is the bridge in vehicle evolution between EVs and autonomous vehicles of the future. Particularly for self-driving systems, the SDV provides a foundation for several critical technologies, including integrated ADAS and control systems, faster in-vehicle data networks and the ability to update vehicle software remotely (over-the-air updates).
The role of digitalization in the transition to the future of mobility
The SDV is the first step in a major transformation, laying the groundwork for further innovation in the future, notably in the form of vehicle automation and true Transportation as a Service business models. While great opportunity exists, it is impeded by growing vehicle complexity, labor shortages in engineering and manufacturing roles, and a persisting unease around the resiliency of global supply chains.
It is our belief that innovation will enable the industry to overcome these challenges and usher in a more efficient and exciting mobility for future customers. Digital transformation is key to accelerating innovation across departments and functions to address pressures in the immediate future and beyond.
In discussions with my colleagues at Siemens Digital Industries Software, we have begun to formalize five major stages of digitalization: configuration, connection, automation, generative design and closed-loop optimization.
Most automotive companies in digital transformation today are generally entrenched in the first two stages. These stages are configuration, or the switch from a document-based to a model-based data framework, and connection, which focuses on breaking down siloes that isolate model-based data. These two stages vastly improve the traceability and accessibility of data throughout the organization, helping to increase process efficiency, improve engineering flexibility and enhance results even on aggressive project timelines.
These preliminary stages lay the foundation for connected engineering of multiple vehicle domains, robust traceability and design management through software and systems engineering (SSE) methods, and the cross-domain verification and validation of vehicle systems. These capabilities will enable engineering teams to co-develop hardware, software and mechanical systems, ensuring that the increasingly important software systems are well integrated with the rest of the vehicle, particularly in safety-critical scenarios.
However, realizing the full potential of the SDV and continuing progress toward even more advanced transportation modes will demand that manufacturers pursue the three higher levels of digitalization – automation, generative design and closed-loop optimization.
Stage three begins with the automation of mundane tasks that deliver incremental value to the products or company at large. Over time, more complex tasks will be completed automatically, eventually leading to the generation of multitudes of complete vehicle designs. This is stage four, generative design, and it is based on AI systems creating new designs using company data. Ultimately, generative AI design will be implemented in a closed-loop process of generation, evaluation, iteration and selection of an optimized design.
An exciting future for mobility
As software-defined vehicles become the norm in the automotive industry, those companies that succeed will be the ones that embrace digitalization. To be clear, the five stages of digital maturity are a framework to help auto makers determine their path as they look to the future of vehicle development, manufacturing and support. Details will change from company-to-company, and the steps taken to overcome acute pressures will vary. Yet we are confident that automotive and transportation companies that embrace a holistic and long-term digitalization journey will overcome the roadblocks on the immediate horizon and establish a strong foundation for future endeavors in smart, connected and automated vehicles.
