Embedded systems and vehicle innovation

SAE100 Future look: Innovation is a continual process, and embedded systems represent a huge part of innovation in technology today.

Embedded systems are found virtually everywhere-in everything from flight-control guidance systems, automobile engines, and braking systems to mundane home appliances such as washing machines. The shift from mechanical to primarily software-and-electronics-based vehicle innovations has the potential to transform the entire industry. And although most vehicle models have raced through this transition, many automakers' innovation models, methods, and processes have not. How effectively manufacturers and suppliers adjust their products, business processes, and core competencies to adapt to this change will determine future success.

The adoption of embedded systems in the automotive industry has increased exponentially in the past 10 years and now represents about 25% of the value in a modern vehicle. This metamorphosis from being mechanically controlled to software-driven represents a fundamental industry shift in all processes from innovation to service. As a result, embedded systems account for a significant amount of complexity and a marked increase in quality issues. A recent study conducted by the IBM Institute for Business Value suggests there are five key drivers within the automotive industry that are leading to an increase in the use of electronics and software in the vehicle:

Competition-Auto manufacturers are competing intensely for the consumer wallet, and the consumer has definite ideas about what they want.

Product differentiation-Companies are working to differentiate their products from their competitors'. By 2010, it is projected that 90% of the innovation and 35% of the vehicle value will be electronics-related.

Legislation-Safety and environmental issues are promoting the use of sensing technologies in vehicles. Features like smart safety systems, pedestrian sensors, and new emissions standards create greater demand for embedded systems.

Customer expectations-The desire to have a more personalized driving experience is encouraging the use of embedded systems.

Technology innovations-New technology innovations such as electronic navigation systems, online monitoring, and alternative fuel sources are developing quickly, with the capabilities supported by the growth of electronics and embedded systems.