1. Value chain analysis general overview Some reminders Software has a high development cost But production cost almost nil Automotive software specifics “software as a product” almost does not exist for automotive. –sale of software mostly associated to some hardware –Cost of software mostly based on estimates of development costs –Specific business model for software at the exploratory stage –The liability issue as an important factor Relatively small programs, with strong hardware expertise needed –500 000 lines of codes for the powertrain software compared to 6 millions for a Linux kernel. –A major exception : infotainment up to 7 million lines of code A key constraint: need to limit software development costs a.puissochet@wanadoo.fr APE 28 April 2010

2. Software development Who are the software developers ? OEM : specify and develop software considered as critical (may subcontract) Tier 1 : specify and develop application software (or more for low cost cars : AVL,…) Semi suppliers : hardware related software Tool and software suppliers : develop software (mostly subcontracts), but also modelisation, simulation and test APE 28 April 2010

3. Process, Quality and Supplier Management, Functional Safety Center E/E and Software Technologies Core Competencies Implementation Modeling and Analysis Requirements Engineering Integration and Testing E/E Basic Technologies Architecture and System Design

4. AUTOSAR: a major development A major step –No other industry has such level of standardization been accepted so widely –A major impact starting now AUTOSAR defines –Software architecture –Development methodology –Programming interfaces (API) A consortium –Following ITEA project East-Eaa (2001-2004) –AUTOSAR 4.0 available end 2009 Main benefits: competitive advantage –Allows for software re-use, software which is already proven: reduces development costs and decreases risk factor –Avoids multiple development for different ECUs (20% to 30% of powertrain software) –Facilitates for an OEM to have multiple providers, while keeping a common interface –Contributes to costs reduction APE 28 April 2010