Three pitfalls in software-driven transformation

How to tackle the growing challenges
Dr. Rodrigo Biurrun | Matthias Brandt | Ines Burkhardtsmayer | Stuart Church
Jun 2023 | Strategy Paper | English

Three pitfalls in software-driven transformation

How to tackle the growing challenges

The automotive sector is experiencing a rapid digital transformation, driven by market-push and market-pull factors such as electrification, digitalization, and automated driving. As a result, product complexity is increasing disproportionately. This is accompanied by a faster pace of change, challenging traditional vehicle manufacturers. To remain competitive, traditional manufacturers must embrace digitalization and focus on software-driven solutions

This whitepaper reveals how collaboration, decoupling of hardware and software processes, and efficient software development can be used as key levers to successfully manage the transformation.


of vehicle recalls can be attributed to the increased complexity of the products, carryover parts strategies and the speed of development.


increase in software development costs are expected by the year 2030.


organizational levels must be involved to implement a software-driven transformation.

Management Summary
  • Horizontal collaborations enable flexible acquisitions of software-related capabilities. An integration management office can thereby manage barriers that arise and coordinate process integration for both collaboration partners in addition to change management-relevant aspects.
  • Significantly increasing the deployment flexibility and pace of change for a product requires a dedicated decoupling of rapidly changeable product components.
  • The process architecture, for example in development and application processes, follows the product architecture in order to make the flexibility operationally usable.
  • Complexity in software product creation is growing due to a multitude of factors.
  • A focus on converging requirements to form realistic and achievable specifications as well as a platform strategy and interface management can restrict the complexity early.

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