Capgemini-設(shè)計(jì)下一個(gè)-用于汽車(chē)、航空航天和國(guó)防（英）-2024

INTELLIGENTINDUSTRY

Engineering

forAutomotive,Aerospace&Defense

Howbusinessmodels,operations,andcultureshouldadapttoaconstrained,collaborative,connectedandintelligentworld.

EXECUTIVE

SUMMARY

Thethreatsofclimatechange,finitenaturalresources,andthreatsto

biodiversity,alongwithrapidlyemergingnewtechnologiesmeanthatlarge,

engineeredproducts-suchascars,

planes,andsatellites-needtobe

reconceivedtorunoncleanenergyandusesustainableorrecycledmaterials.

Indoingso,theyneedtoimprovetheuserexperience,orthese

sustainableinnovationswillnotbeaccepted.Thatmeansensuringsmooth,efficient,safe,andcost-effectivetransportation,with

increasingautomationandembeddedintelligence.

Engineeringisbeingcalledupontodrivetheneededinnovation

andscaleddeploymentofthekeytechnologiestoaddress

climatechange.Thosewhostepuptothechallengewillprovide

differentiatorsthatsecuretheirlegacy,sovereignty,andrevenuesforyearstocome.Buttogetthisright,theroleofengineeringwillneedtotransform.

ENGINEERINGMUSTADAPTTOARESOURCECONSTRAINED

WORLD,BOTHINTERMSOFMATERIALSANDSKILLED

RESOURCES.

Valueanddifferentiationwillmovefromphysicalattributestowardintelligenceandautonomy,whereproductsbecomedrivenby

software,dataandembeddedAI.Systemswillmakeautonomousdecisionsabouttrajectories,routes,howtorespondtothe

unexpected,andusercomfort.

AIandGenerativeAIwilltransformboththeproductfunctionalityitself,e.g.,thenatureofmachineinteraction,butalsobring

productivityopportunitiesalongtheentireproductdevelopmentlifecycle.

AIsystemsbringnewchangesandchallengesinthesafety-criticalindustryandaresubjecttoconcernsaboutethicsandtrust.

NewsustainabledesignswillbenefitfromAIandfoundation

modelsthroughpromptengineering,fine-tuning,modelinganddevelopingsimulatedtestscenariosforvalidation.

FUNDAMENTALTOTHISISTHEMOVEFROMASILOEDWORLDTOAWORLDOFCOLLABORATIVEDATAECOSYSTEMS.

ENGINEERINGCOMPANIESHAVETOACCESSANDINTEGRATENEWSKILLSANDDATA-DRIVENTECHNOLOGIES–FROM

ADVANCEDCOMPUTINGTONEWMATERIALS.THATMEANSCOLLABORATINGWITHAWIDERANGEOFSUPPLIERS,

PARTNERSANDSTART-UPSISAKEYPREREQUISITE.

Itmeansmulti-skilledengineeringteams-physicalanddigital,in-houseandoutsourced-willjoinforcesandworktogetheronincreasinglycomplexproducts.

Thenewenvironmentmeansclosecollaborationbetween

engineering,manufacturingandafter-salestocovertheproduct

andservicelifecyclesend-to-end.Thisdemandsneworganizationalstructuresanddigitalengineeringtechnologiestoenablesecure

collaboration,informationsharingandreal-timefeedback.Ontopofthat,majorityoftheboardroomshaveGenerativeAIontheir

agenda,becausetheybelievethatitisacceleratingproductdesignandcustomerexperience.

THISISNOTASINGLEHANDOVERFROMTHEOLDWORLDTOTHENEW.ITISATRANSFORMATIONJOURNEYYOUWILLNOTWININASPRINT,NORINAMARATHON–ITISMOREABOUT

ATRIATHLON.ITWILLREQUIREORGANIZATIONSTOCHANGETHEIRBUSINESSMODELSTODELIVERINTELLIGENCEAND

SUSTAINABILITY,ANDRESHAPETHEIROPERATIONALMODELTOBEAGILE,COLLABORATIVEANDRESPONSIVE.

Toachievethat,theywillneedtotransformskills,culture,

leadership,andtheuseofdata-driventechnologies.Itisajourneythatwilltaketime,commitment,andcreativity.Ifyouhaven’t

startedalready,youmuststarttodaytobeandstaycompetitive.

CONTENTS

Introduction

01

01.Preparingengineeringformultiplefutures

03

Cross-sectorchallenges

06

Automotivechallenges

07

Civilaerospacechallenges

08

SpaceandDefensechallenges

09

02.Reinventingengineeringbusinessand

11

operatingmodels:anurgentneed

NewBusinessModels:from‘product-centric’to‘customer-centric’andfrom‘build-to-last’to‘build-to-evolve’

12

NewOperatingModelsforresilient,modular,openand

serviceorientedengineering

15

03.Deployingtheenablersofchange:

skills,digital,leadershipandculture

19

Anewgenerationoftalentforthefutureofengineering

20

Digitalenablersofthenewengineeringspace

23

Thefutureengineeringleaders

25

04.Conclusion-Anexcitingfutureahead

27

ENGINEERINGTHENEXT

INTRODUCTION

Thispaperdrawson30interviewswith

engineeringleaderstounderstandthe

globaldriversreshapingengineering,andthetransformationsthatareneededto

ensurethatcompanieswithengineeringattheirheartcanprogressonthisjourney.

Paralleltothis,theentireengineeringindustryhasbeentakenbysurprisebytherecentadvancesinAI,andisnowrapidlyseekingtounderstanditsshortandlong-termimplications.

Everyday,Iseehowtheengineeringworldistransforming.Fromthepivottosustainableproductsandsupplychains,toputtingdigitalattheheart

ofphysicalproducts,toadjustingstrategiesforavolatileworld.

Theorganizationsthatwillbetomorrow’swinnersarerethinkingboththeirbusinessandoperatingmodelsandbuildingawholenewrangeofcapabilitiesandexpertisefromtheirteamsandpartners.

Keysuccessfactorstoensurethedisruptivetransformationoftheoriginallyhardware-drivenworldaresoftware,data-drivendecisionmakingandthesuccessfulintegrationofArtificialIntelligence.

RoshanGya

CapgeminiInvent,CEO

Istronglybelieve,thatafteryearsofoptimizations,industrial

organizationsmustnowfundamentallyrethinktheproductdevelopment

cycleinordertosuccessfullylaunchthenextgenerationofproductsinaverydifferentworldtotheonewehavealwaysknown.

Engineeringisinstrumentalinachievingsuchobjectives.Fromdesignconcept

andsourcingofmaterialstoproductlifecycleandrecycling,engineerswillneed

toreinventthemselvestodeliversustainableproductsinaworldoffiniteresources.

WilliamRozé

CapgeminiEngineering,CEO

Source:*CapgeminiResearchInstitute:

CREATIVEANDGENERATIVEAI

I

GENERATIVEAIINORGANIZATIONS

CUSTOMGENERATIVEAIFORENTERPRISE

I

GENERATIVEAIFORSOFTWAREENGINEERING

01

02

ENGINEERINGTHENEXT

Theyearis2040,andyouarelookingforwardtoa

well-earnedholiday,afteranotheryearofsuccessful

engineeringinatransformationalperiod.Youbookan

autonomouselectrictaxitopickyouupfromyourhouse.

Asyougetin,thecarrecognizesyouandautomaticallyadjuststheseating,temperature,lightingandplayingmusictoyourpreferencesandyourmood.Youliebackandenjoyasmoothtriptotheairport.

Asyouboardthehydrogen-poweredplane,youmarvelatthechangesindesignfromtheonesyouknew

formostofyourlife.Goneisthelongfuselageand

protrudingwings,replacedbyawiderbody,providingspaceforthehydrogentanks,andwings—madefromlightweightbio-basedcomposites—flowingoutfromtheback.

Asyoutakeoff,yousmileatthesmoothness,thinkingoftheAI-supportedfeatureyourcompanydesignedtomakemicrochangestowingtipstocounteract

turbulence,makingyourjourneybothsaferandmorecomfortable.

Youcan’tresistcheckingyourphone—perhapsthe

satellitesthatnowprovidelightning-fastinternet

wayabovetheoceanareamixedblessing.Butyour

personalizedAI-drivenassistantpushesyousome

goodnews:ThelatestIPCC[IntergovernmentalPanelonClimateChange]reportisout,andtheworldhas

hitits2050netzerotargets,withthereportlavishingparticularpraiseonthoseengineerswhospentthepastdecadesdecarbonizingtransport.

THISISJUSTONEPOSSIBLEFUTURESCENARIO,

ANDWEALLKNOWTHATPREDICTINGTHEFUTUREISARISKYBUSINESS.BUTITISCLEARTHATBIG

CHANGES,ANDCHALLENGES,ARECOMINGTO

ENGINEERING.

ENGINEERINGTHENEXT

PREPARINGENGINEERING

FORMULTIPLEFUTURES

03

ENGINEERINGTHENEXT

5MEGATRENDS

Thefutureofengineeredproducts

andorganizationsisbeingshapedby

globalmegatrends,whichplacenew

constraintsonsupplyanddemand,butalsonewopportunitiesfrominnovativetechnologies.Theseshapethe

productsandservicesthatbusinessesandconsumerswantorneed,whichdefineshowtheyshouldbemade.

Weseefivemegatrendsshapingthefutureofengineeredproductsandtheorganizationsthatdeliverthem,withimportantimpactswithinandacrossindustries.

1

THEENVIRONMENTAL

EMERGENCY

People,businessesandgovernmentsareincreasinglyconcernedabouttheimpactofhumanactivityontheclimate,biodiversity,andhealth.Companieswithengineeringattheirheartareunderconsumerandregulatorypressuretochangetolowandzero

environmentalimpactproducts.

INSTABILITY

2

GEOPOLITICAL

Afterdecadesofglobalization,thetrendisshiftingtowardlocalization.Geopoliticalinstabilityandprotectionismare

constraininginternationaltradeandredrawingsupplychains,butalsocreatingnewjobsandengineeringbusinessopportunities

inWesterncountries.Buildingontheethicsissuesaroundautonomousdrivingandmediamanipulations,the

disruptivedevelopmentsofAIareincreasingcallsfora

worldwideAIregulationframework.

3

THECONNECTED

CUSTOMER

Customersexpecteasy-to-use,secure,intelligentandautonomousexperiences-fromorderingfoodandtaxistobookingholidays.

66%ofconsumerswouldseekadvicefromAIonpersonal

interactionorrelationships.Businesses,too,wantrapiddata-drivendecisionsaboutassetsandcustomers.Thesedigitalservicesneedtobebuiltaroundeaseofuse,convenience,connectivity,privacy,andsecurity.

NEWCOMPETITION

4

NEWPLAYERS,

Newplayerswithnewmodelsarechallengingtheoldwayofdoingthings.CompaniessuchasTesla,SpaceXorVerticalAerospace,

arebuildingdigital-firstorganizationsthatallowrapidinnovation,simulation,andtestingondigitalplatforms,aswellasongoing

digitalrelationshipswiththeenduser.

5

THEAVALANCHEOF

TECHNOLOGYINNOVATION

Newproductsandideas—materials,sensors,GenerativeAI,andsoon—areemergingfromstart-ups,universitiesandcorporateR&Dalmostdaily.Manyofwhichcouldtransformengineeredproducts,withanopenandcollaborativeapproach.Nexttothetechgiants,thestart-upsandopen-sourcecommunitiesaredrivingthe

technologydevelopmentandpublishingnewtoolsandfeatureseveryday.

04

ENGINEERINGTHENEXT

WHILETHEREARENUANCESBETWEENINDUSTRIESANDCOMPANIES,THESE5TRENDSWILLHAVEABROADIMPACTACROSSENGINEERING.ITCREATES

THREEOVERLAPPINGFUTURES:

CONSTRAINED,INTELLIGENT,

AUTONOMOUS,ANDCOLLABORATIVE.

#1-Thefuturewillbeconstrainedbecause

sustainabilityrequirementsplacelimits(notably

emissionslimits)thatconstrainwhatcanbeproduced.Atthesametime,engineeringteamswillneedto

competeforfiniteresources(e.g.lithium)orfor

resourcesthatdonothaveanadequatepipelineintheshortterm(e.g.chipsandsoftwareengineers).Theprinciplesofcirculareconomywillneedtobeembeddedearlyinthedesignphase.

#2-Thefuturewillbeintelligentandautonomous

Firstly,inuse,becausecustomersincreasinglyplacea

premiumonphysicalproducts—includingcars,planes

andsatellites—thatareconnected,software-driven

devicesthatdeliversophisticateddigitalandautomatedservices.Secondly,theengineeringdesignactivityis

impactedbynewAI-enableddigitaltools.Thesetoolsbringinnovationandproductivityimprovementtobothphysicalandsoftwaredesigns.Suchtoolsenable

designs,whetheritbeanautonomousdrivingsoftwarefunctionoranentirehydrogenplaneengine,tobe

simulatedandvirtuallytestedacceleratinginnovationandproductcycles.

#3-Thefuturewillbecollaborativebecausetheonly

possiblewaytodeliverthisleveloftransformationis

tobringtogethermanynewtechnologies(e.g.AIand

biomaterials)andskills(e.g.softwareanddata).Itmeansbuildingecosystemsofnewsuppliers,processestoassessandonboardemergingtechnologies,andpartnerships

withstart-ups,universities,otherindustries,andevencompetitors.

Anditmeansdigitaltoolsandindustry-specific

platformsthatallowmultiskilleddistributedteamsto

collaborateonthesameprojectwillhavetobedeveloped.

05

ENGINEERINGTHENEXT

CROSS-SECTOR

Whileeachindustryfacesitsown

challenges,manychallengesare

cross-cutting.

SUSTAINABILITYANDPOWERTRAINTRANSFORMATION

Bothautomotiveandaerospacemustchangetheirpowertraintoaddresscustomerandregulationrequirements.ThemassiveshifttowardElectricPowertrainisunderminingtheinternalcombustionengines(ICEs),whicharelinkedwithbrandpositioning,trustand

userexperience,throwingthemarketfornewproductswideopen.AsmostOriginalEquipmentManufacturers(OEM)sourcebatterycellsfromthirdparties,automotivemustnegotiatetooutsource

anewproductfeaturethatisakeydifferentiator,whileaerospacemustmanagetheshifttobiofuel/hydrogenandinsomecases,

electric.

SHIFTINGRESPONSIBILITYFROMTHEDRIVERTOTHEENGINEERS

Theautomotive,aerospace,anddefenseindustriesarebeingreshapedbyembeddedintelligence,deliveringlevelsof

autonomousAInavigation,in-useoptimization,anduser/usageinsight.

Humandecisionsareprogressivelyshiftingtodevices,including

autonomous‘drivers’or‘pilots’.Assuch,therearenewlevelsof

responsibilityontheOEM,andtheneedtoruncountlessscenariosintheverificationandvalidationprocess.

Manymajordisruptionswillcomefromcomplementaryplayerswhowillfindcommonagreement.

RémiBastien

FISITA,CTO

NEWVALUECHAIN=NEWECOSYSTEM

Asthecomplexityofproductsincreases,thereisanevolutionof

thevaluechain.Theroleofsemiconductorcompaniesaswellas

hyperscalersaretakingstrategicrolesinengineeringindustries.

Thedevelopmentofproductsthatneedtocommunicatewiththeirsurroundingswillrequirenewecosystemstomanagetheinterfacesandcreatecommunicationprotocols.

GENERATIVEAIANDFOUNDATIONMODELS

AGenerativeAImarketpotentialof~20BNUSDin2024anda

compoundannualgrowthrateof+35%isexpectedandwillheatthewaroftechnologyandlimitedtalents.

Thus,GenerativeAIissettoradicallychangehowsoftwareandSystemsaredevelopedandthatimpactgoesfarbeyondcodingassistants.

06

07

ENGINEERINGTHENEXT

?Resilienceofthesupplychainasdemonstratedbytherecent

conflictsandstop-and-goofproductionafterlockdownperiods.

?ThetransformationofOEMsinto“mobilityproviders”asthefutureofmobilitybecomesmulti-modal.

?Theneedtobreakdownthesilosandfocusonanend-to-endcustomer-centricapproachtoensuretheinternalandexternaldata-drivendevelopmentandparticipationfromtheAIactors.

?Rapidreductionininnovationcyclesandintensecompetition

fromtechgiantsanddigitalstartups,forcingOEMstore-inventtheirengineeringstructures.

Automotivewillbecompletely

transformedbytwochanges:

electrification,drivenbytheneedfor

sustainability;andsoftwarization,underpressuresfromdrivingautomationandadvancinguserexperience.

Someofthechallengestheindustryfacesinclude:

?ContinuedfocusonoptimizingbatteriesandelectricpowertrainsforEVs.AsthemarketgrowsandICEbanscomein,globalEV

salesareduetorisefrom2millionin2020to73millionin2040,representing100%ofnewsalesinEuropeanmarkets.

?TheneedtomanagethisgrowthevenasconcernsriseaboutEVbatteries’rawmaterialscarcity.

?Progressionthroughlevelsofautonomytowardself-driving,andin-cardigitalservices,deliveredundernewconnected

‘a(chǎn)s-a-service’businessmodels,obligingtheindustrytoacceleratethesoftwarizationofthevehicle(infotainmentandconnectivityplatforms,high-performancechips,abilitytoupgrade)and

changethephysicalarchitecture(sensors,actuators,controlunits).

Assistedandautomatedvehicleswillbethe

mainproductdisruptionintheautomotiveIndustryinthecoming10years.

Dr.TinoFuhrmann

Volkswagen,SystemsEngineerSoS

AUTOMOTIVE

ENGINEERINGTHENEXT

CIVILAEROSPACE

Aerospacefacesthemassivechallengeofdecarbonizinganindustrythatisalmostentirelyreliantonfossilfuels,whilealsodevelopingwholenewmodesofair

transport.

Someofthechallengestheindustryfacesinclude:

?Managinganeweraofgrowth,fuelledbynewdemandandfleetretirements(AirbusandBoeingprojectadoublingofthenumberofaircraftinthenext20years).

?Theemergenceofnewaviationcompaniesindiverseapplications(electricverticaltake-offandlanding,EVTOL,commercialUAV)

willchallengethefutureoperationofthisindustrywithnewapproaches.

?Industrycommitmentstonetzerothatwillneednewlowand

zero-carbonpropulsion,includingsustainableaviationfuel(SAF),battery,fuelcell,orhydrogen.

?Aninevitabledisruption:Themarketforlargeplanesisnotyet

disruptedduetothechallengesofreplacingcombustionengines,longproductlifecycles,andstrictsafetyregulations.Butchangeiscoming.

?Demandforfuel/energyefficiencyrequiringimprovementindesignandmaterials,weightreduction,andtopology

optimization.

?Newengineeringapproachesarerequiredtoachievethisrapid

evolutionofproducts,harnessinggenerativedesignandAI

algorithmstoideateanddevelopnewconceptsandvalidatetheirperformance.

?Pressureonoperatorsandairtrafficmanagementservicestooptimizeflighttrajectorieswhileaccommodatingincreasingdemandinlimitedairspace.

?Certificationofnewaircraftandsystemstorigorous,establishedstandardswhilemeetingthespeedandcostconstraintsofagileengineeringprograms(usingdigitalengineering&certificationbyanalysis).

?Embracingdigitalservicesenabledbysoftware,generativeAIandaerospacefuture,forperformanceoptimization,andcustomer

experiences.78%ofindustryexecutivesbelievethatGenerativeAIwillmaketheirproductdesignandservicesmoreefficientand76%believeitwillhelpthemdesignmoreinclusive,accessible

productsandservices.

08

ENGINEERINGTHENEXT

SPACE&DEFENSE

Thespaceindustryisfacingarenaissance

aslow-costcommerciallaunchers

rapidlyopenupopportunitiesforanewspaceeconomy.Thedefenseindustryisexperiencingmajortechnologypushandinnovationneedsinthewakeofchanginggeo-politicalsituations.

Someofthechallengesthespaceindustryfacesinclude:

?Rapidincreaseinlaunches:from129in2011,to1,807in2021,andaforecastof11,746smallsatellitelaunchesby2030.

?Shiftfrompubliclyfundedspacemissionstotheprivate

entrepreneurialsphere,notablythedeploymentofgalaxiesofsmallcommunicationsatellites.

?Privatizationhasbroughtmanyinnovations,mostnotablythe

reusablelauncher,whichowesmuchtonewapproaches:agiletestandlearnsimulation,dataandsoftware.

?AtNASAgenerativeAIalreadybringsriskreductionresultsandnewdesignstheynowcall“evolvingstructures“.AsGenerativeAIbeginstoacceleratetheinnovationcapacityprovidingbothconceptimprovementandnewinitialdesigns,engineerswill

extendfromtraditionalideationandcreationtoreviewandrefinement.

?Hugeopportunitiesforspaceeconomy,includingon-orbit

manufacturing,asteroidmining,andspace-basedsolarpower,estimatedtoexceed$1trillionby2040.

?Strategicissuesofsovereignty,sustainabilityandregulationsareemerging.

?Newbusinessmodels,particularlyservice-basedones(for

terrestrialneedsaswellasforlaunchesandsatellitemaintenance)mustbeexplored.

?Thedefensesectorseeschallengesthatarebothtechnological

(JADC2,ConnectedBattlespace,..)andOperational(Newthreats,assymetricwarfare,..).

AddressingrenaissanceinAerospaceandDefense

?LeveragingAIbytrainingitwithdatafromdigitallyconnectedsystems,sensorsandorganizationalIPcouldhelpAerospaceandDefenseorganizationstoexplorenewbusinessmodelsbyenhancingE2Evisibilityanddataaccessacrossthevaluechain.

?Possibleusecasescouldbe:acceleratingdesignvalidations

andcertificationsforproductinnovation,increasingsafetyandsecuritybythreatdetectionincivilandmilitaryapplications,

adoptingnewtrainingapproaches,streamliningsupplychain,

assembly,operations,andMROprocesses,optimizingfleet

management(aircraft,spacecraft,satellite,rovers,etc.)throughpredictiveanalytics,simulatingspaceexplorations,facilitatingautonomousoperationsinflight,space,ground,seaandcyberdomains.

Asengineeringbusinesses,we

needtoevolvefromTechnical

ProductSpecificationtoServices/MissionSpecificationformobility

andlogisticsintheSpace

industry.

Jean-LucMaria

Exotrail,CEO

Duetothecomplexityofthe

‘system’andthe'unknowns',weneedtomakethebusinessmodelandtheoperatingmodelresilienttochange.

SimonWeeks

AerospaceTechnologyInstitute,CTO

09

10

ENGINEERINGTHENEXT

FORTHECOMPANYOFTHEFUTURE

TOSUCCEED,ITMUSTBEREADYTO

FACETHESETHREEOVERLAPPING

FUTURES.

TODOSO,ITMUSTMAKEDEEP

ANDPROFOUNDCHANGESTOITS

BUSINESSMODEL,ITSOPERATING

MODEL,ITSCULTURE,ANDITS

DIGITALENABLERS.

ENGINEERINGTHENEXT

REINVENTINGENGINEERING

BUSINESSANDOPERATING

MODELS:ANURGENTNEED

11

ENGINEERINGTHENEXT

NEWBUSINESS

M◎DELS

From‘product-centric’to

‘customer-centric’andfrom

‘build-for-now’to‘build-to-evolve’.

Customerswantintelligentandautonomousdigitalproductsthatareseamlesslyintegratedintotheireverydayeco-system.The

productsprovidesafeandvaluableservicesthatsavethemtimeorhelpthemintheirlives,fromassisteddriving/flyingandrouteoptimization,toentertainmentandremotemaintenance(whichwillnowincludeoperationsinspace).Forlongterminvestmentslikecars,planesorsatellites,theywanttoupgradeovertime,sotheirpurchasesarenotobsoleteintwoyears.

Manyalsowantnewwaystopay,suchassubscriptions,leases,

customizations,andadd-onservices,ratherthanaone-offfeeforacommodityproductthathasrolledoffanassemblyline.

Thesedigitallyenabledproductsneednewbusinessmodels.JustassmartphonesallowedentertainmenttomovefromsellingCDsandDVDs,toofferingpersonalizedsubscriptionservices,industrialcompaniesneedtomovefromsellingproductstoacontinuous

relationshipwiththecustomer.

Carmakersmaystillsellthebasicunit,butthensellarangeof

add-ons—fromdrivingassistancetoadvancedparkingsearch,

in-carentertainmentservices,orlocalguides—thatuserscanturnonandoffeachmonth,orleaseforshortperiods.Othersmay

moveentirelyto‘a(chǎn)s-a-service’leasingcarsasneeded,rentedandcustomizedviaanapp.

End-customerorientationiskeytoourstrategy,inthatthenotionof

servicesisjustasimportantastheengineeringofourproduct.Youcould

saythatwearenotworkingonalauncherbutonalaunchservice.

YohannLeroy

MaiaSpace,CEO

Formanyyears,theengineeringfunctionfocusedonproducts

designedforperformance(weight,speed,robustness,etc.),

withanemphasison‘DesigntoCost’.Thenewcontextrequires

designingproductsaroundthecustomers’needsandtheir

individualpreferences.

Italso,byimplication,meansanongoingrelationshipwith

customers,amovefrom‘buildandsell’,to‘continuouslyengage’;

from‘long-lasting’to‘permanently-evolving’.

ThecurrentdevelopmentsaroundAI,GenAIinparticular,will

providenewtoolstofurthertransformtherelationship

betweenproductsandtheend-customersbringingnewlevels

ofhuman-machineinteraction.

12

ENGINEERINGTHENEXT

ACROSSINDUSTRYLEARNINGS:

INNOVATIONBUSINESSMODELS

Planeenginemanufacturershave

beenusingjetenginesensordatato

deliverenginemanagementandpredictivemaintenanceasaserviceformanyyears.Connectivityenablesabusinessmodel

thatchargesbyflyinghoursratherthanmaintenancetime,incentivizingoptimaluptimeonbothsides.

Inthepast,acarwasdesignedin4to10yearswithagiven

configurationforatargetlifeof10years.Anaircraftwasdesignedin8to15yearsanditsoperationallifewas25–30years,witha

change/refreshofthecabinevery5–6years.

Nowthetargetistobeinapermanentpositiontolaunchnewintelligentfunctionalitiesthatcustomersexpectastechnologyevolves—fromassisteddriving/autopilottoin-flightVR—whichcanbeaddedovertheairoreasilyretrofitted.In2021,Stellantisshareditsconnectedservicesplansforputting26million

“monetizedconnectedcars”onroadsby2026.Earlythisyear,BMWsent4.7millionremoteiDrivesoftwareupdatesto30models,

whileaTeslaModelXreportedlygets27softwarechangesaday.Theseimprovements—oftensmall,contributetotheenthusiasmthatconnectedvehicleownersfeelfortheirdigitalcars.

Thisisnotalaunchandforget,butpartofacontinuousinnovationloop,withengineerscontinuouslycollectingsensordataonvehicle

performanceandenvironment,thenusingthattolearnabout

productuse,continuouslyimprovesoftwareandhardware,shortenvalidationandcertificationtimes,anditerativelyimprovethenextgenerationofphysicalanddigitalproducts.

Thisconceptof‘continuousproductimprovement’fundamentallychangespricingstrategies.Carshavealwaysdepreciatedfrom

themomenttheydriveofftheforecourt.Butconnectivityand

softwaremeansthattheymayimproveovertheirlifetimethroughnewservices.Ifcarmakerscanmonetizethecustomeroverthe

product’slifetime,thentheincentivesmoveawayfrommaximizingtheinitialrevenue,andtowardcustomeracquisition.Thatis

afundamentalchangeinthinkingforthecarindustrypricing

strategy.Thispricingstrategytargetmodelhasnotbeenfoundyetaslongasthehugeinfrastructureinvestmentsrequiredtoenableautonomousdriving,continuousandvisiblesoftwareservices

upgradeforendcustomerswon’tbecoveredbythecustomers’willingnesstopayforit.

Adeepculturalshiftisrequired:weneedtodevelopandpromotethe“Engineering

judgment”fromourengineers.Withthedigital,

simulationtools,ALMandgenerativeAI,our

engineerswillbeincreasinglyempoweredbynewcapabilities(even“assistants”)andtheirvaluewillthenrelyontheircapacitytousetheirjudgmenttochallengearequirement,adesign,aprocess.

OlivierFlous