Clockspeed dilemma spurs varied responses as industry heeds warnings

The increased pace of innovation necessitates a change of strategy for vehicle manufacturers, with a focus on speed of innovation and flexibility. The product development cycle of automotive hardware moves at a very different clockspeed than that of ICT hardware components or ICT software. Some industry watchers have suggested that OEMs start behaving more like technology, software and consumer electronics companies in terms of faster product introductions and greater customisation in response to increased competition from new entrants. Dubbed ‘the clockspeed dilemma’ by KPMG, this need to innovate at various paces is playing out across the industry at a growing rate.