Car industry needs to change and collaborate more to keep up with rapid speed of change

07/03/2018
Blog_Carindustry

Recent studies published by PwC and McKinsey put focus on the new challenges in the automotive industry. Over the last couple of years, we have seen big changes in the way automotive companies collaborate and seek new ways to make business more profitable.

Technical content in cars has increased dramatically over the last 5 to 10 years. Today’s automotive OEMs must master not only safety, fuel economy, attractive vehicle design and speed to market but also the explosion of new software, sensors and systems. A car today is not only a mean of transportation; it is also a communication and entertainment platform. Time to market and volume is of essence. Not to mention quality, safety and environmental regulations.

All of the above calls for new ways to innovate and collaborate around engineering data.
So, what are the key trends, and how can automotive companies prepare to meet these challenges?

According to the report from PwC – 2017 Automotive Trends * three important actions to take are:
1. Share platforms and Manufacturing
2. Offload more development work to technology suppliers
3. Redesign distribution models

The first two actions pose new challenges in the form of sharing of engineering information across company boarders. Should the exact same IT systems be used in the whole network? Is that even possible and does it make sense from a cost viewpoint?

Can the OEM have suppliers inside their internal systems and what are the security issues? Who owns the intellectual property? What about training in SW tools and processes?

McKinsey point out similar trends in their report ** The road to 2020 and beyond – What’s driving the global automotive industry? They have also identified sharing and cooperation as important trends in the coming years.

  • Complexity and cost pressure. There will be more platform sharing and more modular systems. At the same time, regulatory pressures will tighten, and prices in established markets are likely to be flat.
  • Suppliers will add more value in alternative powertrain technologies and in innovative solutions for active safety and infotainment.
  • How can we expand by cooperating with other OEMs or local players?

We see these driving forces for cooperation and collaboration throughout the automotive industry. Platform sharing is growing and we can see successful examples with companies like Geely and their platform development company CEVT. CEVT’s recent development of the CMA and SPA platforms is now delivering the first derivatives for both Volvo Cars and Lynk & Co.

In the Groupe Renault Alliance, Nissan, Daimler and Mitsubishi has agreed to share both vehicle design platforms and manufacturing sites. This will call for strong collaboration tools and processes to keep up speed and security in a heterogeneous application environment.

All the above is great for us and we have all reasons to believe we can help out. At Eurostep, we have developed the standards based software ShareAspace InReach to meet and address the specific needs of collaboration for the automotive and other industries.

The key features to successfully address the challenges above are:
A collaboration software that acts like a Hub to make sure:
1. You only share the information needed for the collaboration
2. Projects can start and stop quickly – partners join and leave as needed
3. All partners continue to use their in-house software and processes
4. Security can be added to the project for trust and IP protection

A software based on an open and rich information model to:
1. Ensure that you are not locked into one the format of a software vendor
2. Make sure your collaboration information can be mapped to your needs
3. Allow sharing of any engineering data, not just CAD

A software that empower the collaboration and:
1. Is process and task driven
2. Has effective messaging boards and reporting tools
3. Has strong notification capabilities
4. Scales with project needs
5. Easily connects to existing information sources like Systems Engineering, CAD, PLM, ERP, CM and Aftermarket systems

Sources:
* PwC – 2017 Automotive Trends
** McKinsey – The road to 2020 and beyond – What’s driving the global automotive industry?

Share this:

Latest from Eurostep

Junior Developer – Eurostep UK
We are looking for a UK-based Junior Developer to join Eurostep’s Industry Vertical for Defence. We are looking for a Junior Developer to aid in the delivery of our ShareAspace ...
ShareAspace Forum 2022
Welcome to ShareAspace Forum 2022!
Interoperability and collaboration across engineering value chains Collaboration is key to improving business processes, inside enterprises and across the value chains. Industry 4.0, BIM level 3, circular economy, integrated digital ...
The role of glueware and gap-filling technologies in your PLM strategy
Are you in a situation where you officially and openly announce that you have a clear PLM strategy? The vendor is selected, maybe many years back, and this is your ...
Standards for the process industry
Information standards to enable the digital transformation of the process industry
Part 1. Characteristics of the selected information standards Part 2. ISO 10303 - 239 Product Lifecycle Support Part 3. ISO/IEC 81346 in interoperability
Structured data files and documents on laptop
Live webinar: Highly sensitive information – How can you collaborate with supply chain and manage data subject to Export Control?
Register now: About the webinar Do you need to collaborate with industry? Are you currently limited by data regulations? Sharing highly sensitive information subject to export control regulations, such as ITAR, ...
Transitioning towards a sustainable product design with ResCoM
What can baby strollers, steering gears, washing machines and TVs have in common?   You probably are wondering how they are related as these products are so different from each ...
digital open lock
Live webinar: Digital Twins – How to avoid vendor lock-in throughout an asset or product lifecycle?
How do you keep digital twins up-to-date and avoid vendor lock-in throughout an asset or product lifecycle? In recent years capabilities and platforms to implement digital twins have been increasing ...
3 steps to solve the problem of data silos in your supply chain
What is a data silo? A data silo occurs when a set of information is only accessible by a specific team or organisation. Manufacturing a product from the early design ...
Additive Manufacturing
Strengthening Sweden’s Competitive Edge in Additive Manufacturing
How can I deliver products and spare parts to my clients around the world in an agile way? In one of our previous blogs, we talked about the need to ...
Junior Developer – Eurostep UK
We are looking for a UK-based Junior Developer to join Eurostep’s Industry Vertical for Defence. We are looking for a Junior Developer to aid in the delivery of our ShareAspace ...
ShareAspace Forum 2022
Welcome to ShareAspace Forum 2022!
Interoperability and collaboration across engineering value chains Collaboration is key to improving business processes, inside enterprises and across the value chains. Industry 4.0, BIM level 3, circular economy, integrated digital ...
The role of glueware and gap-filling technologies in your PLM strategy
Are you in a situation where you officially and openly announce that you have a clear PLM strategy? The vendor is selected, maybe many years back, and this is your ...
Standards for the process industry
Information standards to enable the digital transformation of the process industry
Part 1. Characteristics of the selected information standards Part 2. ISO 10303 - 239 Product Lifecycle Support Part 3. ISO/IEC 81346 in interoperability
Structured data files and documents on laptop
Live webinar: Highly sensitive information – How can you collaborate with supply chain and manage data subject to Export Control?
Register now: About the webinar Do you need to collaborate with industry? Are you currently limited by data regulations? Sharing highly sensitive information subject to export control regulations, such as ITAR, ...
Transitioning towards a sustainable product design with ResCoM
What can baby strollers, steering gears, washing machines and TVs have in common?   You probably are wondering how they are related as these products are so different from each ...
digital open lock
Live webinar: Digital Twins – How to avoid vendor lock-in throughout an asset or product lifecycle?
How do you keep digital twins up-to-date and avoid vendor lock-in throughout an asset or product lifecycle? In recent years capabilities and platforms to implement digital twins have been increasing ...
3 steps to solve the problem of data silos in your supply chain
What is a data silo? A data silo occurs when a set of information is only accessible by a specific team or organisation. Manufacturing a product from the early design ...
Additive Manufacturing
Strengthening Sweden’s Competitive Edge in Additive Manufacturing
How can I deliver products and spare parts to my clients around the world in an agile way? In one of our previous blogs, we talked about the need to ...