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Increased Software Complexity Delays Auto Products

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Feb. 11. 2020—McKinsey & Company released a report that discovered the central reasons for automotive product-launch delays are the increased complexity of software and electronics and an approach to software development that fails to keep up with growing system-level complexity.

With the arrival of the digital car, the capability to manage the development of embedded software systems to deliver the right functionality on time and within budget becomes a differentiating asset. Launch delays will become increasingly important from a value standpoint, which can add up to hundreds of millions of dollars for an OEM.

One example of an issue includes required updates and enhancements to established internal-combustion-engine (ICE) platforms, including more stringent emission limits in the European Union, such as Euro 7.

According to the report, OEMs and suppliers must master challenges across four dimensions to achieve software-launch excellence:

  • Improved product readiness. Ensure full maturity and quality when integrating software-enabled functionality from different suppliers and when integrating the full system.
  • Enhanced supplier readinessFocus on timely availability and alignment with quality requirements for software features and establish key performance indicators (KPIs) along the entire software-development process, with a concentration on early indicators for launch risks. 
  • Robust software-development processes and project management. Guarantee the robustness of embedded and integrated product-development processes for both hardware and software across OEMs and suppliers. 
  • Focused production readiness. Ensure feature planning from a production-readiness perspective. 

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