In this blog post, we explore the thought-provoking complexities addressed in our recent episode of "Hiring in Tech" podcast, titled "Complexity in Automotive Companies Software.”
When we talk about automotive technology nowadays, software plays a pivotal role in delivering the sophisticated functionalities that drivers now expect. However, this rise in software complexity has introduced a host of challenges for automotive companies. According to McKinsey research, top-performing companies boast throughput and quality three to six times higher than their less capable counterparts.
In this comprehensive blog post, we delve into the thought-provoking complexities discussed in our recent "Hiring in Tech" podcast episode titled "Complexity in Automotive Companies Software," offering valuable insights, case studies, and innovative strategies to address these challenges head-on.
Automotive companies have encountered a fourfold increase in software complexity since 2010, while software development productivity has only increased by about 1 to 1.5 times, presenting a significant challenge demanding more resources for maintenance. McKinsey advises companies to tackle this issue by reducing architecture complexity, adopting user-centred design techniques, and adapting software-requirements management (use cases and enablers) to gain a deeper understanding of value-creating software.
Automotive software complexity is rising at both the functional and architectural levels, while development productivity is not keeping up at the same pace. To confront this challenge, automotive companies are taking bold actions to enhance performance. Some are planning to bolster their software capabilities by hiring thousands of software engineers in the coming years. Others are redefining their governance models, forming partnerships, and globally expanding centres of excellence.
To combat skyrocketing maintenance costs and declining productivity, automotive companies must wholeheartedly embrace the concept of reusing software components. Horizontal technology stacks will replace vertically integrated, embedded systems to reduce complexity, simplify update processes, and increase reuse of software components. Standardisation will also benefit the industry by increasing reuse and reducing the cost of adapting software applications for specific customers.
Drawing insights from successful companies like Amazon and Google, which have become experts in tracking software talent, we learn how automotive companies can adopt similar strategies to build an efficient software organisation. Consolidating software components and creating cross-platform systems helps simplify maintenance and prevent redundant efforts.
Attracting skilled individuals to legacy automakers is indeed a formidable challenge. According to Forbes, the shortage of software developers has operational implications that affect hiring budgets and timelines.
To address this challenge, automotive companies must rebrand themselves as exciting workplaces and invest in comprehensive training programs to bridge the skills gap and elevate the competence of existing employees and enticing top software talent to join their ranks.
Leveraging the right tools and strategies is an essential part of mitigating complexity. Implementing advanced software development methodologies such as agile and DevOps can streamline workflows and enhance productivity.
Furthermore, adopting a cross-functional approach by bringing together teams from different disciplines can foster collaboration and the exchange of ideas.
To thrive in the software-driven automotive world, consolidation and reimagining are essential. Consolidating software components from various suppliers and adopting a standardised approach enables smoother maintenance and upgrades. Making software cross-platform reduces the complexity of managing multiple systems across different car models.
The automotive industry finds itself at the forefront of a software revolution, grappling with escalating complexities both functionally and architecturally. Integrating and upgrading advanced features, such as high-end onboard assistants and driver-assistance systems, comes at an enormous cost. One of the most significant challenges lies in the isolated development of automotive software, putting automotive companies at a disadvantage compared to software market leaders.
As the demand for strategic software skills skyrockets within the industry, automotive companies face fierce competition for development talent with the software industry at large. The scarcity of specialised talent further exacerbates the challenges in building strong software organisations. However, our exploration of thought-provoking complexities and innovative strategies in our recent "Hiring in Tech" podcast episode, "Complexity in Automotive Companies Software," offers a glimmer of hope.
As the automotive industry continues its software-driven journey, proactive measures and strategic investments will enable companies to rise to the challenges and thrive in the dynamic tech landscape. By unleashing the power of data analytics and embracing international hiring practices, automotive companies can secure the talent they need to steer the future of automotive technology successfully. The road ahead may be challenging, but with the right approach, automotive companies can drive innovation and redefine the automotive software landscape.
