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Software is eating the world - The Automotive Industry

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The automotive industry can be used as a great proxy to explain the impact of software on established markets, and how the same will increasingly impact other markets. Essentially, as software is becoming increasingly important in how companies differentiate their products, some maverick vendors decide to extensively play on the software card in order to disrupt the entrenched vendors.

In the automotive industry, that maverick is called Tesla.

Published in: Software

Software is eating the world - The Automotive Industry

  1. 1. ©2016 CloudBees, Inc. All Rights Reserved 1©2016 CloudBees, Inc. All Rights Reserved The Road Ahead CloudBees Automotive Industry Event Böblingen, April 2016 @Sacha Labourey, CEO
  2. 2. ©2016 CloudBees, Inc. All Rights Reserved 2 Automation is the Key Photo courtesy of Steve Jurvetson via Flickr
  3. 3. From 12.5 hours… Time to Assemble a Model-T …to 93 minutes!
  4. 4. Ford built 300’000 cars with 13’000 employees Efficiency! More than his 300 competitors with … 65’000 employees!
  5. 5. MARKET DISRUPTION
  6. 6. ©2016 CloudBees, Inc. All Rights Reserved 6 “Software is eating the world.” “Every business is in the software business.” “It’s an application economy.”
  7. 7. ©2016 CloudBees, Inc. All Rights Reserved 7 Photo courtesy of Naddsy via Flickr
  8. 8. “An Airbus 320 takes off or lands every 2.5 seconds somewhere in the world. Every 30 minutes they generate 1TB of information – that’s a lot of terabytes” Simon Bradley, Airbus Group
  9. 9. ©2016 CloudBees, Inc. All Rights Reserved 9 http://www.thelocal.de/20160119/software-malfunction-means-luftwaffe-can-only-fly-in-the-day
  10. 10. ©2016 CloudBees, Inc. All Rights Reserved 10 Photo courtesy of Steve Jurvetson via Flickr
  11. 11. ©2016 CloudBees, Inc. All Rights Reserved 11 Photo courtesy of Steve Jurvetson via Flickr
  12. 12. If, 10 years ago, you had told engineers at leading car vendors their that cars should be updatable “over the air”, to fix them but also to add features, they’d have told you you’re not being serious. In 2016, this is the new baseline to reach.
  13. 13. MARKET DISRUPTION
  14. 14. This is the first time in the history of the car industry that a car can INCREASE its competitive value AFTER it was bought!
  15. 15. ©2016 CloudBees, Inc. All Rights Reserved 17 Tomorrow is around the corner…
  16. 16. What car will you buy to your grand kids? 250 deaths 2 deaths Self-driving car software – casualties in the last 12 months: ?
  17. 17. ©2016 CloudBees, Inc. All Rights Reserved 19 Time v1.0 Release v2.0 Release Time Continuous Releases Risk/ Cost Risk/ Cost Versioned Software Continuous Delivery – “As a Service” Reduce risk, reduce experimentation cost, fail-fast
  18. 18. ©2016 CloudBees, Inc. All Rights Reserved 20 Speed + Friction ? FRICTION + SPEED = HEAT!
  19. 19. ©2016 CloudBees, Inc. All Rights Reserved 21 Continuous Delivery and Automation are Key Development Production Commit Build Test Stage Deploy Feedback Loop $ The Business
  20. 20. ©2016 CloudBees, Inc. All Rights Reserved 22 Jenkins – the #1 Automation Platform for CI/CD Complex Delivery Pipelines Delivery of App and Config Robust and Highly Available Results Report SOURCE CODE CONTROL SYSTEM Code Commit </> Development Production Continuous Integration/Delivery Commit Build Test Stage Deploy    Deliver Better Software Faster with CloudBees Jenkins Platform
  21. 21. ©2016 CloudBees, Inc. All Rights Reserved 23 Jenkins is the Hub of the CD/DevOps Ecosystem Over 1000 Jenkins Plugins Integration with over 100 DevOps Tools Orchestration of the DevOps Toolchain End-to-End CD Pipeline Management Code & Commit Build & Config Scan & Test Release Deploy
  22. 22. ©2016 CloudBees, Inc. All Rights Reserved 24 Automation is the Key Photo courtesy of Steve Jurvetson via Flickr Good News: We already had to solve « pipeline » issues with automation
  23. 23. Because it can’t be done alone But building cars is particularly hard…
  24. 24. Car maker Tier-1 suppliersTier-2 suppliersTier-3 suppliers software software software software software software software software software software software software software software software software software software software Every company in the supply chain is using its own CD pipeline, isolated from each other
  25. 25. Car maker Tier-1 suppliersTier-2 suppliersTier-3 suppliers software software software software software software software software software software software software software software software software software software software The real software pipeline is the industry-shared pipeline
  26. 26. But a matter of WHEN It is not a matter of IF REALITY CHECK
  27. 27. CONCLUSION • The software revolution in automotive is en route – nothing can stop it • Some new titans will emerge (Google), some old titans will disappear (Kodak) – THIS REPRESENTS A HUGE OPPORTUNITY! • Possibility of de-intermediation of vendors – Margin goes to software, not “hardware” • The race has already started, GO GO GO!

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