THE AUTOMOTIVE PARADIGM SHIFT & THE RISE OF THE CYBERTECH TIER

Changing consumer behaviors, macro-economic trends, and technology innovation trends are pushing OEMs and Tier 1 suppliers to quickly embrace the mobility paradigm shift and reevaluate the way they do business.

Due to the complexity and limits of today’s vehicles and to support increasingly advanced features, OEMs are expected to:

  • Completely rethink the E/E architecture of next-generation vehicles
  • Integrate existing or legacy ECUs with next-gen ECUs and components
  • Completely revolutionize the in-vehicle driving experience

The Cybertech Tier, a new type of industry supplier on the automotive supply chain, offers the technological expertise and experience by enabling the consolidation of components and applications into integrated products to deliver top-notch cost-effective performance and customizable designs to the global automotive industry.

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PARADIGM SHIFT EXECUTIVE SUMMARY

By: Moshe Shlisel and Jillian Goldberg

THE AUTOMOTIVE PARADIGM SHIFT

A paradigm shift is a profound change in a generally accepted perception or way of doing things. The concept was defined by the American physicist and philosopher Thomas Kuhn in 1962 within the context of the natural sciences, but today it’s used in many contexts including business, medicine, technology, and more. Paradigm shifts bring sweeping change, remaking industries, creating and eliminating millions of jobs, and may cost companies and investors billions of dollars. “When a paradigm shifts, everyone goes back to zero.” (Joel Barker)

Today the automotive industry is in the midst of a paradigm shift as most of the world is living in urban areas for the first time in history, demographics are changing, and consumer tastes are driven by data consumption, video, and instant gratification. Consumers no longer buy cars for the same reasons as their parents or grandparents. Vehicles are no longer used for distant travel or for driving in open spaces but are mostly used for several hours a day for commuting to work and running errands after hours.

Drivers and other mobility users seek to transform the wasted hours of congested commutes into something more enjoyable or at least productive. As everything becomes “iPhonized” and becomes instantly available at our fingertips, consumers that own cyber space identities and profiles have become data and knowledge-driven, utilizing their smartphones to fulfill more and more of their immediate needs, from weather reports to online banking to entertainment. Consumers’ hunger for knowledge, instant gratification and profound curiosity are bringing the entire automotive industry to a decision point in which it needs to either evolve or die!

It’s a vicious circle: smartphones have made people more data-driven, leading to new habits and new desires. Consumers are no longer satisfied with just smartphones. They now expect more and more of their devices to be smart, including their watches, TVs, and even their vehicles—all personalized using app stores and delivering a seamless experience across all devices.

OEMS AND TIER 1 SUPPLIERS RESPOND

Resisting a paradigm shift is futile in any industry. Think Motorola losing the mobile handset market to Nokia with the switch to digital technology, and then Nokia losing the market to Apple when they reimagined digital phones as touchscreen-driven connectivity devices. It’s for good reason that “innovate or die” has become a mantra for just about every industry and business.

Leading OEMs and Tier 1 suppliers are responding to the paradigm shift in mobility by transforming their vehicles from hardware-centric to software-centric smartphones on wheels—complete with app stores—a.k.a. the software-defined vehicle.

Software enables instantaneous personalization of the driving experience, from seat height, to temperature, and even car performance. Today over-the-air (OTA) software updates are mostly used for reducing trips to the garage for maintenance and recalls, but in the future automotive app stores will enable drivers and passengers to continuously customize and change a car's innumerable features, from engine performance to dashboard design to just about anything.

As developers of software-defined vehicles with innovative E/E architectures, OEMs and Tier 1s recognize that the overall look and system approach is the one that will prevail. The challenge OEMs are facing is that a complete change in vehicle architecture costs tens of billions of dollars. Their dilemma is how to continue to innovate and make sweeping technological changes in a cost-effective and efficient manner.

THE RISE OF THE CYBERTECH TIER

Changing consumer behavior is pushing OEMs and Tier 1 suppliers to quickly embrace the mobility paradigm shift and change the way they do business. Consumers' desire for instant gratification and innovation will not tolerate incremental improvements by OEMs and Tier 1s like those of Nokia and the early mobile handset vendors in the early 2000s. Instead, they are expected to innovate with big, sweeping changes like Apple did when it moved the physical keyboard to a large touchscreen.

The challenge to create revolutionary changes after the COVID-19 pandemic is even greater. How can OEMs and Tier 1s perform these changes with evolutionary budgets--or worse? And how can they do this on the heels of a global economic crisis that severely impacted the automotive market?

Due to the complexity of today’s vehicles and the limits of in-vehicle networks to support increasingly advanced features, OEMs are expected to completely rethink the E/E architecture of next-generation vehicles and make huge investments that don’t even directly impact the customer experience.

Most of the large OEMs have already started to modify their organizational structures to prepare for the requirements of tomorrow’s software-defined vehicles, but acquiring new and different technical skill sets takes time. How can OEMs and Tier 1s move fast enough to respond to the mobility paradigm shift in such a challenging environment?

THE ANSWER IS THAT THEY DON'T HAVE TO DO IT ALONE.

Enter the Cybertech Tier, a new type of automotive industry sector that specializes in automotive cyberspace. They offer the technological expertise in online communications and the software and hardware solutions that OEMs and the various tiers of the automotive supply chain need to create and support the global connected car network.

Most of the companies in the Cybertech Tier come from outside the automotive industry and bring new and innovative technologies, methodologies, and lessons learned from dealing with revolutionary changes and paradigm shifts in network computing, aviation, cybersecurity, and other industries.

Cybertech Tier companies can help automotive players, from the Tier 1 all the way to the aftermarket, to rapidly develop the cybertech infrastructure of the software-defined vehicle of tomorrow by providing:

  • High-speed computing expertise
  • Application-oriented hardware platforms
  • Multi-functional platform design
  • Security by design software and hardware development
  • Advanced communication and Ethernet know-how
  • Consolidated hardware components and virtualized systems
  • Fast software updating capabilities for upgrading and customizing software

CYBERTECH TIER

Role within the Automotive Supply Chain

  • Tier 2 Suppliers
  • Tier 1 Suppliers
  • OEMs
  • After- Market
  • Consumers

Cybertech Tier

  • Advanced ECUs and SW
  • Pre-Development Projects
  • Products and services
  • C

    Consolidation

    of Hardware Components & Virtualization Systems

  • A

    Application

    Oriented Platforms

  • S

    Secure

    by Design

  • A

    Advanced

    Communication and Ethernet Capabilities

  • H

    High Speed

    Computing Capabilities

  • U

    Updates

    Ability for Fast Upgrade and SW Customizations

  • M

    Multiple

    Functionalities in Platform Design

THE PATH FORWARD

Propelled by urbanization, changing demographics and new technologies, the automotive industry was rapidly changing even before the outbreak of the coronavirus. The COVID-19 pandemic has increased consumer reliance on instant access to information and knowledge, and accelerated the mobility paradigm shift. In addition, there is renewed interest in passenger vehicles as an alternative to high-occupancy mass transportation where social distancing is extremely problematic.

Cybertech Tier companies are uniquely positioned to assist OEMs, Tier 1 suppliers, and the aftermarket to rapidly develop and deploy the next-generation communications and networking solutions needed to support the continued development of connected vehicles. Innovative OEMs and Tier 1s that partner with Cybertech Tier companies will benefit from accelerated time to market with new innovative solutions that meet the mobility needs, of today and tomorrow’s users.

HOW GUARDKNOX GIVES YOU THE FREEDOM TO EVOLVE

GuardKnox is the automotive industry’s first Cybertech Tier supplier that gives OEMs, Tier 1 suppliers, and the aftermarket the freedom to evolve. GuardKnox empowers the various tiers of the automotive industry with the know-how, technologies, and solutions that allow them to rapidly deliver revolutionary vehicle functionality on an affordable evolutionary budget.

Getting its start in the aviation industry, the GuardKnox team has already experienced the challenge of integrating full connectivity into advanced moving platforms by providing new and ultra-fast communication networks, fast data-based systems with a patented service-oriented architecture (SOA), and high-performance computing—all with secure by design software and hardware development.

For the automotive industry, GuardKnox offers cost-effective solutions based on customer needs and functionalities, including:

 

  • An intelligent and high-performance network backbone for fast-moving platforms
  • A patented service-oriented architecture (SOA)
  • High-performance communication processing with secured by a patented communication lockdown
  • A flexible and modular software stack
  • A consolidated E/E architecture design that supports legacy, present, and future components and architectures
  • Scalable and flexible solutions including real-time OTA software and firmware updates

GuardKnox’s patented hardware and software solutions form secure, high-speed vehicle networks that empower the next generation of smart vehicles to meet the changing needs of mobility users, without sacrificing safety or security. GuardKnox works closely with OEMs and the various tiers as they develop their automotive-specific technological innovations and supplies the underlying E/E networking technology, like zonal architectures, so they can provide the functionality that drivers seek.

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ADDITIONAL RESOURCES

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What Is the
CyberTech Tier?

Learn more about the Cybertech Tier within the traditional automotive supply chain 

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Patented Service-Oriented Architecture (SOA)

An in-depth look at GuardKnox's patented SOA with access control and service level partitioning

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Zonal Architecture and Ethernet Backbone Demo

GuardKnox enables decoupling of functionality from physical HW to optimize the network layout

FREEDOM TO EVOLVE