Intelligent systems research

Automotive

The automotive industry is undergoing its most significant revolution in 100 years. Complete intelligent systems sit at the heart of a vision for a 30% growth in revenue opportunities, along with increased automotive security and efficiency.

The infrastructure characteristics that automakers implement in the first three years will account for 70% of the total impact of intelligent systems on the industry.

Intelligent systems research

Automotive

The automotive industry is undergoing its most significant revolution in 100 years. Complete intelligent systems sit at the heart of a vision for a 30% growth in revenue opportunities, along with increased automotive security and efficiency.

The infrastructure characteristics that automakers implement in the first three years will account for 70% of the total impact of intelligent systems on the industry.

The Need to Act

Getting the sequence right and focusing on building the right sets of intelligent systems characteristics are both key to success. McKinsey believes that these new business models could expand automotive revenue pools by about 30%, adding up to an additional $1.5 trillion to the industry. In a sector currently seeing single-digit revenue growth, this is a light at the end of the tunnel, promoting innovation and change.

McKinsey’s recent roundup of the auto industry of 2030 states: “Today’s economies are dramatically changing, triggered by development in emerging markets, the accelerated rise of new technologies, sustainability policies, and changing consumer preferences around ownership. Digitization and new business models have revolutionized other industries, and automotive will be no exception. In the the automotive sector, these forces are giving rise to four disruptive technology-driven trends: diverse mobility, autonomous driving, electrification, and connectivity.”1

Real Time

There is one intelligent system characteristic that is needed yet might not have a lot of overall impact: building a collaborative workflow platform. However, in an increasingly diverse world of revenue opportunities for customers, partners, and automotive industry ecosystem partners, this is a key first step.

All three of the key (first-tier impact) intelligent system characteristics need to be built for success in the next three to five years: the ability to have true compute on the far edge, the ability to predict stresses and failures and resolve them, and the ability to customize device experience in the cloud. Telecommunications is the only other industry with a focus on investment in these three pillars of intelligent systems success. They will be the pillars for a range of capabilities that will help automotive vendors more readily tap into future opportunities, such as consumer personalization and near-latency-free service performance.

51% of these companies are still in the experimental stage (meaning they believe "somewhat" in the value of intelligent systems). But only 16% of these organizations and their leaders are thriving across 15 key metrics. The importance of the far edge is clear for most: 80% say half or more of their embedded products and services will be designed to be used on the far edge cloud. The most important criteria for success, according to 56%, is the ability to build, develop, and operate using simulations or emulations to increase productivity and/or reduce time-to-market. The power of a collaborative workflow platform will become more valuable over time as intelligent capabilities are increasingly infused into products and services.

56%

The automotive industry is in the midst of its largest revolution in more than 100 years.

In five years’ time, key intelligent systems can become a wider reality. Detection of events and the ability to resolve them, AL and ML functionality, and near-real-time integration of ecosystems of applications are level-two intelligent system characteristics that will matter. Leaders and executives in this industry have clear patterns for investing for success that start with the way their people work together in building automotive companies into new, software-led enterprises.

The automotive industry has unique drivers for success. The most important characteristic of intelligent systems for success of organizations is that they can be built, developed, and operated using simulations or emulations to increase productivity and reduce time-to-market, according to 56% of the sector’s leaders. The two next most important are that they can become mission critical to protect data and guard against cyberattacks (46%) and that they will be able to sense and react based on goal-based algorithms (44%).

What Really Matters to Executives Building Intelligent Systems?

While there are 13 key characteristics of intelligent systems, not all characteristics deliver the same positive impact. Your peers across all sectors told us the far edge is vital for success, especially when 65%+ rely on embedded devices for business success.

These stacks represent the magnitude of impact each intelligent system characteristic has on such systems. The larger the block, the greater the impact. You can view this data for companies grouped by momentum and success, or by specific industry.

EXPLORE MAGNITUDE STACKS

Forbes logo

Source: Characteristics of an Intelligent Systems Future, Forbes, 2021

Total Committed and performing Nascent & successful Experimenting & Low Yield Experimenting & delivering Committed & Suboptimal Nascent & Unsure
Industrial Manufacturing Aerospace and defense Automotive Energy Medical Telecom

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Three Facts About Intelligent Systems in the Automotive Industry

70%

The characteristics that need to be created in the first three years account for 70% of the total impact.

39%

Cybersecurity and security in products and services are critical building blocks for all business success, according to 39% of leaders.

38%

38% of leaders believe embedded devices are mission critical for the future of the company.

Characteristics of Intelligent Systems Success in the Automotive Industry

Knowing when to invest in each characteristic requires a blueprint for building critical infrastructure, delivering core foundational needs, and much more.

Automotive Priority Wheel
Report

Start Plotting Your Intelligent Systems Journey

Download “Plotting Your intelligent Systems Journey,” a free 30-page report developed in partnership by Wind River and Forbes.

Our research is based on more than 200 points of comparison across companies building and deploying intelligent systems.

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This report shows:

  • How your peers are thinking about the barriers to and drivers for adoption of intelligent systems
  • What factors would accelerate the adoption of intelligent systems in your sector
  • The relative importance of all intelligent systems characteristics, to help you prioritize your investments
  • How your peers see the roles and importance of 5G, AI, ML, and cybersecurity in their decision-making
  • The key components for the mission-critical success of intelligent systems
  • What the future of embedded devices and solutions looks like in an intelligent systems world
  • Where digital feedback loops are crucial for success
  • What the key metrics for success are
  • Where your peers see extensive value for intelligent systems in addressing wider societal issues