The Journey from hardware-centric to function-centric car development

Today’s discerning consumer sees tremendous value in connectivity. A car is no longer just a means of traveling from Point A to B. It must also provide an intelligent and immersive in-vehicle experience which is an extension of their digital life outside the car. A McKinsey consumer survey (2020) says that 37% of respondents are willing to switch car brands for a better-connected driving experience.

Connected Cars also provide cost and revenue benefits to OEMs, suppliers, and other stakeholders in the ecosystem. To derive value from this change in consumer demand, OEMs are making the shift from a purely hardware-driven approach for cars to focusing on software-driven value enhancers.

This change requires OEMs to implement end-to-end digital transformations across their organization to build the needed skills, culture, and processes to enable faster innovation cycles.

In this playbook titled 'Journey from hardware-centric to function-centric cars', we’ve leveraged our experience of working with leading automotive companies to help OEMs successfully take the leap toward the future of smart mobility with connected cars. 

Read the playbook to know : 

• Differences between on-board and off-board centric organizations  
• How product architecture enables the shift towards connected services
• Challenges in developing  connected car services and how to address them