Thought Leadership

Understanding how to define software and electronics in modern vehicles

When the engineering going into a new vehicle more closely resembles a smartphone than the Ford Model T, it is time for a new workflow. Today’s software-defined vehicles (SDVs) are redefining the entire automotive and transportation industry. Not only do more customers see these software features as the differentiator in their purchases, but software defined features also streamline some of the complexity for OEMs. A software patch is much less costly than conducting physical product recalls. But this only scratches the surface of what software means to the automotive supply chain or what it will mean in the coming years.

To cover what is happening today and what is on the horizon, the sixth episode of Siemens’ Automotive Podcast – On the Move – brings together three experts with different insights on the situation. Our automotive expert, and host, Nand Kochhar is joined by Michael Munsey (VP of Electronics and Semiconductor) and David Fritz (VP of Virtual and Hybrid Systems), with Mike Severson moderating the discussion. You can listen to the first part below or keep reading to get some of the key points these experts talked about for the future of automotive development and the software-defined vehicle.

The focus of software and electronics as the business driver for automotive companies turns everything upside down. Rather than the traditional process of providing a specification to a supplier where they conduct the semiconductor design as they see fit and eventual software developers will get their hands on the capabilities of the hardware, these systems need to start from an integrated point. For many OEMs, that means working with common compute platforms to then build from and support the software layers from a very early stage. While this is very similar to the needs of consumer electronics the safety implications of a vehicle heighten the validation requirements and underline the need to integrate systems earlier to uncover any problems.

Tracking development across hardware and software development in the Digital Twin enables manufacturer’s integration processes for some of the most complex consumer products. Software needs to recognize the needs and limitations of hardware while retaining some independence to compensate for hardware changes that come up. A laptop or server has a fairly simple architecture compared to even a basic vehicle today. Electronic control units (ECUs) often work in highly distributed systems and certain communication needs to take priority. For example, playing a warning sound for advanced driver assistance systems (ADAS) needs to take immediate control of the media system to alert the driver of any hazard.

Perhaps the largest change to vehicle development is the required shift in mindset and understanding of the workflow. Yes, software and electronics are being added to the engineering domains needed to automobiles, but many of these systems are so critical that they need to be brought closer to the OEM than understood previously. Instead of relying on tier one suppliers for critical components, OEMs are opting to create new departments to focus on the software and electronics of their vehicles. And for systems that are still commissioned with the supplier network, OEMs need to standardize and streamline the communication of system requirements. Doing so in the Digital Twin enables both transparency and an avenue for rapid design iteration.

Capturing value from the shift to software-defined vehicles is critical for the future of automotive companies large and small. By starting with requirements in the Digital Twin and continuously iterating in a shared environment, businesses can create a multi-fidelity understanding of their products. A mechanical designer can understand the physical constrains of electronic systems without needing to understand a separate domain and do so within their own tools. A software developer can design a system with room to grow when they understand the performance of the hardware. 

These ideas are only a fraction of what our experts talked about in this episode of On the Move. I would recommend listening to the conversation if the SDV is a driving factor in your business. Or you can subscribe on your favorite podcast platform to be notified of future episodes and topics.


Siemens Digital Industries Software helps organizations of all sizes digitally transform using software, hardware and services from the Siemens Xcelerator business platform. Siemens’ software and the comprehensive digital twin enable companies to optimize their design, engineering and manufacturing processes to turn today’s ideas into the sustainable products of the future. From chips to entire systems, from product to process, across all industries. Siemens Digital Industries Software – Accelerating transformation.

Nicholas Finberg

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This article first appeared on the Siemens Digital Industries Software blog at https://blogs.sw.siemens.com/thought-leadership/understanding-how-to-define-software-and-electronics-in-modern-vehicles/