How to Maximise the Potential of Software-Defined Vehicles

Everyone seems to be talking about the technology behind Software-Defined Vehicles (SDV), the flashy items, that's what grabs everyones attention, but I don't think enough people are focusing on the real challenge: organisational change. The tech is just one part of the SDV story; the big challenge is about how companies need to fundamentally restructure to embrace a software-first approach.

I also want to take you through the key aspects of SDV technology and, more importantly, the crucial role that managing digital assets plays in ensuring success. Whether you're in manufacturing, product development, or even marketing, the shift toward SDV will affect how you do business.

The Shift to Software: Organisational, Not Just Technical!

It’s easy to get lost in the excitement of shiny new tech around software-defined vehicles. People constantly talk about the in-car technology, from connected apps to infotainment systems, but that’s is not the whole story. As I mentioned, the real complexity lies in the organisational changes required to support SDV.

The truth is, automakers aren't just building cars anymore; they're building software ecosystems. This shift means they need to stop thinking like traditional manufacturers and start thinking like software companies. This is quite easy to say, but doing it is a whole other thing.

Take consumer electronics, for example. Companies like Apple and Google have mastered the art of creating seamless user experiences, but they don’t have to deal with the same level of complexity that automotive manufacturers do. With vehicles, there are countless Electronic Control Units (ECUs), safety protocols, and an entirely different production environment to consider.

The reality is, OEMs are finding it difficult to adapt because it requires a complete overhaul of how their organisations are structured. It’s not enough to have great software engineers; companies need to change how they think about product development, lifecycle management, and even customer service.

Digital Asset Lifecycle Management: The Secret to Long-Term Success

This is where things get really interesting for me—and where a lot of OEMs are failing. It is not good enough to just build the software; we need to think how we can manage it across the entire lifecycle of the vehicle.

For example, when BMW Group started tracking how customers use in-car features like climate control. They discovered that the majority of users were heavily using the heating system, which led them to make changes in their software updates to improve efficiency. This is a perfect example of digital asset management done right.

That is just a quick example to highlight a possibility, but imagine being able to trace a digital asset—from the development stage, through testing, all the way to end-of-life. This kind of traceability is essential for understanding how products perform in the real world and for continuously improving them.

This is where digital twins become a very powerful tool. By creating a digital replica of each component and system in a vehicle, OEMs can track everything—from design and manufacturing to real-time performance data once the car is on the road. This provides immense visibility, enabling manufacturers to anticipate issues, improve performance, and even monetise certain features long after the car has left the factory.

Aftermarket Opportunities: More Than Just Parts

The aftermarket has always been a cash cow for automotive companies, but SDV is opening up new avenues for revenue which is more than just the traditional parts and service.

Have a think about this: most suppliers don’t make a lot of money during the research, development, or even manufacturing stages. The real money comes in once the vehicle is sold and on the road. Think warranties, software upgrades, and feature enhancements—these are all part of what I like to call the digital aftermarket.

This may seem obvious but why are so many companies are still failing here? Because they’re not effectively monitoring or managing their products post-production. By failing to track how customers are using their vehicles, they’re literally leaving bags of cash on the table. The potential to sell additional services, extend warranties, or even offer subscription-based upgrades is enormous. But to do this, companies need to rethink how they approach the aftermarket and start viewing software as a long-term revenue generator.

The Role of Cloud Infrastructure in SDV Implementation

Something else that is also often overlooked: cloud infrastructure. Most automakers are still relying on outdated, storage-driven cloud architectures. They store massive amounts of data but don’t have the tools to make it work for them.

To really unlock the potential of SDV, companies need to shift to event-driven architectures. This allows for real-time data processing and decision-making, rather than just dumping data into a cloud storage solution. Amazon Web Services (AWS) has been a leader in offering hybrid cloud solutions that combine on-premise servers with cloud-based systems. This hybrid approach is exactly what the automotive industry needs to scale its digital capabilities efficiently.

Why does this matter? Because SDVs generate massive amounts of data—from driving behaviour and performance metrics to customer usage patterns. Without the right cloud infrastructure, that data is useless. Event-driven architectures allow automakers to act on that data in real-time, providing better services and more personalised customer experiences.

The Future of Automotive in a Software-Defined World

The new world of automotive is right here in front of us, one that’s driven by software rather than hardware. But the companies that will succeed aren’t the ones with the best tech—they’re the ones that can adapt their organisations to manage the complexity of software-first vehicles.

SDVs have a very bright future, but without doubt there are many challenges. To truly make the most of this technology, OEMs need to rethink how they manage digital assets, capitalise on the aftermarket, and modernise their cloud infrastructure.

Remember, SDV is about more than just software—it’s about creating an ecosystem that supports the entire lifecycle of the vehicle, from development to end-of-life. The companies that get this right will be the ones winning in the next generation of automotive innovation.