A recent tour of the North American International Auto Show, led and narrated by a consultant from IHS Automotive, provided an excellent view into the pervasiveness of modular platforms. At each OEM booth, it was pointed out how every new vehicle had been built upon a pre-existing platform, and often the size and type of vehicles built on the same platform exhibited significant variance in size and appearance.
Although the use of platforms is nothing terribly new, the strategy really gained momentum in the early 2000s when platforms were standardized to develop a single common platform for different models within the same segment. The objective was to enable sharing of common components and systems among the models assembled on a single platform. In recent years, new modular platforms are now emerging. Based on a single scalable design, modular platforms allow for changes in structural dimensions. This makes it possible to assemble several models not only within a single-size segment, but also for several models within different segments.
According to IHS, the number of platforms used by major car OEMs worldwide in 2005 was 277. This figure was 236 in 2015 and is anticipated to drop to 195 in 2020. At the same time, new global vehicle launches are anticipated to increase to 76 in 2017 as compared to 49 in 2016. In North America alone, auto makers are expected to launch 193 new models between 2016-2019 according to the annual Car Wars study from Bank of America Merrill Lynch.
Modular strategies can provide significant advantages including simplification of engineering and design processes, mass customization, faster technological adoption of new products, faster speed in new product development and cost reduction.
However, as with most major changes, there are barriers to easy transition and adoption. And, this is a strategy that will only become more difficult to implement as vehicles continue to increase in complexity, requiring the ability to manage dependencies across multiple programs and platforms. Breaking each automotive structure down into its smallest common component is no easy task. And, it’s not just about geometry, but also about form, fit, function, performance and cost. For example, a seat frame component requires consideration of safety features such as crash-worthiness, occupant protection, human interface, etc. as well as cosmetic features – leather seats vs. cloth or seat warmers. There are dozens of attributes that have to be mapped across each component. These attributes have to be compiled from across various domains within the enterprise, which is time-consuming and very complex.
The IT Backbone
It is no surprise that companies with a wider range of vehicle models face bigger hurdles. Additionally, well-established companies with multiple legacy systems face larger issues. Years of incremental software investments have created patchworks of inflexible legacy systems and processes that can keep companies from quickly embracing change and achieving new efficiencies. In a typical scenario, there could be as many as 1100 data sources involved in producing a new vehicle and most of these are found within siloed structures incapable of seamlessly communicating with each other. Translations between software systems are constantly applied, but these take time and affect data integrity.
To speed the achievement of a modularity strategy requires an IT backbone that can integrate of all data objects that define the various component attributes into a single database. One source of the truth simplifies the complexity of a modular approach and provides the key enablers needed to manage the process for successful implementation.
In a perfect world, we’d be able to achieve this by starting with a brand new technical foundation that facilitates this totally integrated strategy. But, as valuable as a modularity strategy is thought to be – Fiat Chrysler Automobiles in 2015 said that by reducing its platforms to nine and sharing engineering and purchasing, the companies expect to save $2 billion by 2018 – the reality of business schedules and production requirements make this more than difficult.
Think of it this way — Imagine a new technology introduced to the market can transform your home and open up your personal life to incredible new capabilities and experiences. However, to achieve this would require a total re-wiring of your home, shutting you down from your electrical assets and communications for weeks. You discover there are work-arounds that you can implement. They provide the ability to stay connected while you adjust your infrastructure, but they also require time and investment. And, in the end, you won’t be able to fully leverage the new technology experience and its benefits.
That sums up today’s reality in transitioning to modularity. Unless you’re a start-up, you likely feel stuck living with what we’ve got. Few corporations have the ability to alter the entire infrastructure overnight. In Dassault Systemes’ experience, there are ways to start implementing the strategy in a methodical manner that doesn’t have to be totally disruptive, while allowing consistent efficiency gains.
One Step at a Time
Step one: Analyze all of your data sources and look for the low-hanging fruit. For example, close examination of your legacy databases may reveal that many of these can be replaced by just one of the existing systems. Secondly, identify the areas that are causing the most pain and then pinpoint those that are the least complex to fix whether through new investment or reconfiguration. By doing so, you can start to establish a realistic roadmap that will lead you to a better integrated IT infrastructure that is crucial to an effective modularity strategy.
Modularity is not something that will emerge overnight for automakers, especially those dependent upon long legacy software systems. It will be an evolution requiring a significant number of years, not a revolution. However, with the right plan and partners, it can be an evolution that provides quick ROI and continual efficiency improvements while building the underlying infrastructure required for a sustainable and seamless modular strategy.
