How to create the cars of the future

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OEMs must become like technology companies to create the software-defined vehicles consumers want

The automotive industry is transforming dramatically. Consumers expect more from their cars, and what were previously seen as extras are becoming essential features. People increasingly interact with their cars in the same way as their smartphones, presenting new challenges to original equipment manufacturers (OEMs).

The increasing impact of digitization means manufacturers need to be technology companies as much as automotive producers if they are to respond with long-term solutions. The software-defined vehicle is the future, and only the OEMs that act more like software companies will create the cars consumers want in this evolving landscape.

Manufacturers, however, must first address the glaring issue of isolated systems. They can no longer be an island, with their own ecosystem and mode of operations, as that creates significant inefficiencies and difficulties in hiring and training the right talent. A migration to centralized cloud ecosystems is necessary and will also help OEMs hire more engineers and developers, rather than just line workers.

Organizations with the right people and proper infrastructure in place and which shift their mindsets to act more like technology companies will thrive. Failing to identify and act on this trend will be costly, and no major company can afford another significant disruption.


Read Become a technology company or hit a dead end to learn more.

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