Oliver Bahns, SVP of Connected Mobility at T-Systems, delivered an insightful masterclass at the Learning Curves executive summit, sharing his expertise on the challenges and opportunities in the transition to software-defined vehicles (SDVs). His perspective sheds light on how software is redefining the automotive industry and outlines actionable strategies for companies navigating this shift. Below, we delve deeper into his key points and explore their broader implications for IT managers and executives.
Bahns compared the advent of the SDV to the revolutionary moment when Carl Benz first drove an automobile more than a century ago. The shift from hardware-centric vehicles to software-defined ones marks one of the most transformative changes in the industry. SDVs have the potential to redefine three critical pillars of the automotive business model:
For IT managers and executives, these transformations highlight the need to rethink the role of technology in product design, business strategy, and customer relationships.
Bahns identified four foundational initiatives that companies must pursue to successfully transition to SDVs:
Bahns highlighted four critical challenges that IT leaders must address to implement these initiatives effectively:
This shift also requires empowering product teams with end-to-end ownership and decision-making authority. For executives, this means creating an environment where product teams can operate autonomously while aligning with the organization’s strategic goals.
Bahns pointed to a widening gap between the complexity of in-car software and the productivity of development processes. IT managers must tackle this challenge by investing in platforms that enable efficient development, tracking, and continuous improvement.
Automation is key to achieving operational excellence. From deployment pipelines to fleet management systems, IT leaders must prioritize tools and processes that ensure scalability, reliability, and compliance.
Executives must evaluate their sourcing strategies based on scalability, cost-efficiency, and alignment with long-term goals. Standardizing non-differentiating functions while focusing internal resources on core competencies can strike the right balance.
Bahns also highlighted the importance of collaboration within the automotive ecosystem. Developing SDVs requires partnerships across OEMs, suppliers, and tech providers. However, ensuring alignment on product vision and integration across a heterogeneous group of stakeholders remains a challenge.
This calls for:
For IT executives, this ecosystem approach provides an opportunity to leverage external expertise while maintaining control over strategic priorities.
Bahns concluded by emphasizing the need to embrace existing standards and reusable components. Attempting to build every element from scratch is not only inefficient but also risks overburdening already stretched resources.
In the coming years, IT leaders must prioritize:
The journey to software-defined vehicles represents both a tremendous opportunity and a significant challenge for the automotive industry. Oliver Bahns' insights serve as a valuable roadmap for IT managers and executives navigating this transformation. By adopting a product-oriented mindset, focusing on productivity, embracing operational excellence, and forging strategic partnerships, companies can position themselves as leaders in this revolutionary era.
The road ahead may be complex, but with the right strategies and tools, the future of automotive software promises to be as exciting as its storied past.
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A Note to Our Readers
This article offers an overview of the key ideas presented by Oliver Bahns during his talk. While we’ve captured the main concepts and innovations he shared, the full scope of his insights and examples is best experienced by watching the entire session. To dive deeper and hear directly from the speaker, we invite you to view the complete presentation. For any questions or further information, feel free to reach out to us.
