A clear and measurable north star strategy that drives SDV transformation is key to long-term success

The transition from software to hardware doesn’t happen overnight, but is a marathon project for automakers and suppliers that takes years to complete. To avoid getting bogged down, companies need to both; develop a clear SDV strategy and keep track of the scope and effectiveness of SDV transition programs through an appropriate governance framework. To help achieve this, we have compiled five key actions:

Set clear, measurable targets for the SDV transition program, such as new software revenue, increased CLV, reduced complexity and increased ability to deliver – for today, tomorrow, and beyond

Right-size the SDV transformation program in terms of talent, organizational change, technology, intellectual property, partnerships and investment needs to fit the objectives

Prepare for the long-term hardware-software transition (10 years plus), but keep things manageable by establishing well-defined monitoring and governance frameworks

Ensure sufficient funding for the SDV transition to maintain pace and momentum, especially as risk factors often require rapid and unpredictable capital deployment

Stay on top of your talent sourcing and safeguarding, not only in technical areas, but also across the management function, as people are the heart of the SDV transition