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Unformatted text preview: Sebastian Wedeniwski The Mobility Revolution in the Automotive Industry How not to miss the digital turnpike The Mobility Revolution in the Automotive Industry Sebastian Wedeniwski The Mobility Revolution in the Automotive Industry How not to miss the digital turnpike 123 Dr. Sebastian Wedeniwski IBM Tokyo, Japan Translation from the German language edition “Mobilitätsrevolution in der Automobilindustrie”, c Springer-Verlag 2015  ISBN 978-3-662-47787-8 DOI 10.1007/978-3-662-47788-5 ISBN 978-3-662-47788-5 (eBook) Library of Congress Control Number: 2015955616 Springer Heidelberg New York Dordrecht London © Springer-Verlag Berlin Heidelberg 2015 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. Printed on acid-free paper Springer-Verlag GmbH ( ) Berlin Heidelberg is part of Springer Science+Business Media Foreword In 1886, Carl Benz and Gottlieb Daimler both invented the automobile – not together, but each on their own. How profound were the consequences of this invention? It changed the way how people work, how they travel, and how they interact with each other. About 130 years ago, Europeans traveled an average distance of about 20 km per year. Today they travel more than 20 km every day. And most of that travel is done by car. Commercial vehicles are an indispensable part of our lives, logistic supply chains are dependent on vans and trucks, and buses are commonly used around the globe for passenger transport. I think the automobile was one of the most important inventions of the last 130 years. But what is the future of the automotive industry? Today, when we talk about new technologies that are transforming our lives from scratch, it’s about Digitalization and Information Technology. More than 2 billion people use a smartphone. But next year, devices connected by the “Internet of Things” will outnumber the people living on this planet. And of course Digitalization and Information Technology has a growing – and changing! – importance for the automotive industry. The automotive industry has used Information Technology to develop, build, sell, and service vehicles for more than 40 years. The digital designing and digital modeling of vehicles started in the early 1980s. Vehicles are ordered with fully ITsupported processes, which results in a just-in-time supply chain for production. The worldwide sales and service of vehicles is supported by IT systems, and without IT these processes couldn’t be managed any more. Most of these processes are supported by systems running in their second or third generation. Java is substituting traditional COBOL for large-scale enterprise systems, packaged software plays a major role beside individual implemented IT systems, and IT Enterprise Architecture is governing thousands of IT systems to move the IT landscape to more agility and business flexibility. Nowadays, IT inside a vehicle plays an important role for functionality and safety. In a modern car or truck, there are hundreds of processors with more than 100 million lines of code. Backend telematics systems deliver functionality to modern cars such as “lock the doors” and “identify the parking location”, and fleet management platforms are supporting thousands of truck drivers for logistic companies. v vi Foreword Young people growing up today have more interest in sharing vehicles than owning them. To meet this trend, Daimler has started mobility services like car2go. Park2gether and myTaxi extend these Mobility Services; IT platforms using SMAC (Social networks, Mobility, Analytics, Cloud) are at the heart of these new services. This year, Daimler got the driver license for the first autonomous driving truck in the US, and we expect that autonomous driving in cars and trucks will have a major impact on new business models in the future. Let’s look a little bit into the future where Digital Transformation (DT) is on the agenda of many industries. DT is organizational change through the use of digital technologies to materially improve performance. The use of digital technologies and SMACs, together with upcoming innovative trends like Internet of Things, cognitive computing, smart machines (smart robots, autonomous driving), and smart production (3D printing, smart factory, Industry 4.0) will enable major business improvements such as enhancing customer experience, streamlining operations, or creating new business models. The automotive industry is already in the middle of a “digital revolution” that will change the way in which Original Equipment Manufacturers (OEMs) and customers interact with automotive companies. Digital technologies enable the current and future mobility of people which designs for new metropolitan areas will need to consider. Connected cars connect the vehicle, the driver, and the environment to create new opportunities for all market players. I’ve worked with many IT companies in the past 35 years of my business life. The IT industry has many outstanding people to support companies in designing business processes and developing large enterprise systems. But I never met someone like Sebastian from IBM, who has this deep profound knowledge across many technologies. Over the last 15 years, I have worked with him in many different roles. He helped Daimler as IBM’s Chief Architect to develop the Java Enterprise platforms, which is the foundation of nearly all Java development in the company. As IBM’s Client Enterprise Architect, he was the Daimler advocate at IBM to maximize the long-term customer value for Daimler’s IT Architecture. I have really enjoyed working with Sebastian all these years. His practical approach to enterprise and business architecture is unique, and he represents the new kind of skilled person the automotive industry needs in future to solve the challenges of Digital Transformation. Stuttgart, Germany August 2015 Wilfried Reimann Head of IT Enterprise Architecture & Innovation Daimler AG Foreword The automotive industry is one of the most complex and technologically advanced industries. The creation of a new vehicle involves multiple phases, including design, engineering, pricing, manufacturing, distribution, selling, and servicing. Each phase consists of numerous complex processes and technologies that must be fully integrated into one seamless system; ensuring success at enterprise level is no small task. Over the past few decades, the auto industry has gone through major technological transformations, yet many of its core automotive systems are three or more decades old. These systems will be modernized over the next decade, but these types of projects can drag on for much longer. The success of this modernization will greatly depend on the maturity level of an organization’s enterprise architecture. Organizations with outdated building blocks, database models, software development, and integration patterns will see their projects take much longer than estimated, or perhaps even fail. Organizations with mature enterprise architecture systems that are agile and better able to adjust to changes will be able to quickly take advantage of today’s rapidly changing technology. The automotive industry is also seeing a shift in its customers’ expectations. Today’s customers are more informed than ever, and with information comes empowerment – customers are in the driver seat. Because of the consumerization of technology, internal customers are also expecting an enterprise system experience as seamless and enjoyable as consumer facing systems. If IT organizations allow rapid ideation and creation of efficient, user-friendly systems and applications, both internal and external customers will be happy, which will ultimately improve productivity, product development, quality, sales, and customer satisfaction. These changes will only happen when the enterprise architecture framework provides the kind of agility modern enterprises require. Mobile technology and social media defined the past decade, and many industries struggled with how best to support and exploit the mobile and social revolution. How many people are still using navigation systems in their cars vs their favorite navigation maps on their mobile phones? There may be a few left out there, but not many. Yet auto companies still pump tons of money into outdated head unit systems. The focus needs to be on the technological advances of the next decade where everything will be connected: the car, the house, the work, wearables, and on vii viii Foreword and on. The Internet of Things (IoT) is here. Connectives will explode and define the next decade, and organizations that position themselves properly to support and exploit the next stage of digital revolution will benefit greatly. Cars are amazing devices. Much more sophisticated than my smartphone. Yet smartphones have overwhelmingly captured consumer mindshare, with companies like Apple and Google creating fun, connected environments that have become the digital center of our lives. The connected car has the potential to become as integral to our lives as our smartphones are now. Future “smart cars” will offer not only a more enjoyable user experience, they will include advanced safety and productivity features. The modern head unit system will play a central role in connected cars. One day, I will be able to leave my house in the morning without worrying if I’ve locked the door or left the stove turned on – my connected car will alert me and I can adjust everything from inside my car. And as I head to the office, my car will know which route to take and how fast to drive and will remind me of my dinner reservations that evening. That’s one scenario of many that will be made possible by organizations with mature enterprise architecture in place; they will be prepared to meet the core challenges of the future: improved integration, security, identity, and customer experience. The IT industry is filled with brilliant people but seldom does one meet a person who not only understands the broad technological challenges that large automotive enterprises face and who has a depth of knowledge across many technologies but who also has the ability to translate that knowledge into a definable business value. I was encouraged to meet Sebastian by Martin Jetter, who was at that time the General Manager, IBM Japan. He assured me I would be meeting a fellow forward thinker. Ever since that first meeting, I have greatly enjoyed collaborating with Sebastian. His practical approach to enterprise and business architecture is refreshing; it represents the new kind of engagement and value IT can bring to the automotive industry. Torrance, CA, USA June 2015 Ned Curic Chief Technology Officer and Vice President at Toyota Motor Sales Foreword This is a significant book in many perspectives. It clearly marks the turning point where we are facing challenges regarding our experience with the automobile and with life as we’ve known it. We have been fascinated with automobiles, seeing them as a success symbol, and our lives have evolved around them. Who hasn’t looked at the automobile with anticipation believing that the car of their dreams would change their lives just by owning it? For generations now, automobile ownership has stood at the center of the building blocks of life. Automobile manufacturers have designed their products around this premise while also taking business and technology elements into consideration. The industry had its golden years during the 1950s and 1960s and then faced the 1970s’ reality check with the “oil crisis”; the 1980s and 1990s then brought about a different focus leading all the way to the twenty-first century with major paradigmatic changes. From legacy OEMs EV trial products to Tesla Motors, things were shifting. The automobile as we knew it was getting better and better. This was clear. The connected car has is now a reality, and mobile devices with content digitalization have brought about a new wave of progress and reset consumer expectations. The economic shake-up in 2008 coupled Elon Musk assuming the leadership of Tesla Motors established the company as a “respected EV” player and changed the automotive industry forever. This was coupled with the advent of Uber followed by speculations of Google Car and Apple Car. Mobility as we knew it had been transformed, and a new era had begun in the automotive industry – an era in which the relationship between humans and the automobile has changed. Sebastian takes this a step forward and plays with the word “automobile” to describe the age of mobility. He depicts the shift showing the change of emphasis from “AUTOmobile” to “autoMOBILE” and captures the essence brilliantly. Sebastian has been clearly positioned in his career to see this paradigm shift, and he has also played an important role in the automotive domain to make this happen. His experience in the automotive domain has enabled him to capture the elements of this paradigm shift accurately. One can safely say that the automobile has shifted from being an object that one aspired for to being part of the service industry today. Terms such as “autonomous vehicle,” “car share,” and “multimodal transportation” are creeping into our daily conversations, and economics are driving this shift. ix x Foreword Sebastian captures this development and importantly maps this shift into automotive industry legacy institutional organizations and clearly defines the challenges the automotive industry faces. The shift in the organizational mindset of the automotive industry will unleash new possibilities, and this will drive innovation in mobility to meet consumer demands. This book clearly defines this path. Clearly today, we have very few capital and technology barriers to innovate and meet diverse challenges, with mobility being one of the principal ones. We are on the verge of redefining mobility and its impact on our lives. Sebastian’s book will definitely be one of the building blocks of the future, redefining mobility and the automobile. Cupertino, CA, USA September 2015 Hakan Kostepen Executive Director Product Planning Strategy & Innovation Panasonic Automotive Systems Company of America – Silicon Valley Center Acknowledgments It was a fun challenge fitting in the creation of this book into my day job demands. My day has 24 hours, as does everyone else’s. (Though I’m sometimes not so sure, due to all the time zone changes.) Before I receive all the “Ahhs” and “Ohhs” now, I want to direct the attention to some people who supported me during the process of working on the book. And they supported me a lot. First of all, there are Stephen Perun, John Cohn, and Hakan Kostepen – they reviewed and commented on the script. Then my best friend Tilman Rau – he provided guidance as expert writer. And of course all that wouldn’t have been possible without the support and the patience of my family – especially my wife Lakkhana Wedeniwski who had to cope with this crazy guy Sebastian doing all the things at the same time. Thanks to all of you. And now you can “Ahh” and “Ohh” – and of course read the book. xi Contents 1 Introduction .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.1 Significance of Digitalisation .. . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.2 Structure of the Book . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.3 What Does the Framework of the Automotive Industry Include? . . . . 1.4 Tomorrow’s Mobility Industry . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5 Who Should Read This Book? . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5.1 Those Responsible for New Business Models and Innovations .. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5.2 Chief Information Officer . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5.3 Chief Technology Officer . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5.4 Chief Analytics Officer/Chief Data Officer . . . . . . . . . . . . . . . . . . 1.5.5 Vehicle Development Manager . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5.6 Vehicle Production Manager .. . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.5.7 Managers in Distribution, Sales and Customer Services . . . . 1.6 Information Sources and Newsletters . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1.7 Enterprise Architecture . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2 Enterprise Architectures: Surrounded by Historical Structures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.1 Transformation in the Transport Sector .. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.2 Product Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.3 Vehicle Architectures Are Established During the Industrial Era .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.3.1 Vehicle Bill of Materials . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.3.2 Network Architecture . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.3.3 Product Documentation . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.4 Digital Methods in Product Development . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.5 Development of New Vehicle Architectures .. . . . . .. . . . . . . . . . . . . . . . . . . . 2.5.1 Modular Vehicle Architecture . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.5.2 Telematics is the Latest Addition to Vehicle Architecture.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 2.6 Changing Enterprise Architecture .. . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 1 3 5 8 12 15 17 17 17 18 18 19 19 19 21 26 29 31 35 36 39 53 59 63 66 67 68 71 72 xiii xiv Contents 3 Strategy, Business Model and Architecture in Today’s Automotive Industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . 3.1 Strategy .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....
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