Tomorrow’s automotive industry must prioritise software

Old and new players must already be well on their way to a software-first design mentality. By Jack Hunsley

All four automotive megatrends are enacting profound change across the industry, but all have one common trait: software is the cornerstone of all new proposed applications and services. Failure to transition away from a mechanically-dominated mindset to one led by software innovation will leave companies stranded in the past and potentially overtaken by emerging rivals.

Special report: Vehicle software innovation

Though this is well understood, exactly how players will make this transition is unclear. Many hurdles lie in front including a lack of inherent software expertise and talent, as well as the financial and supply crunch still rippling out from the pandemic, the chip shortage and the war in Ukraine. To understand how the automotive industry is beginning to grasp the nuances of vehicle software innovation, Automotive World sat down with Ondrej Burkacky, a Senior Partner at McKinsey.

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