Developing success in the era of SDV DRIVEN by Impact & Porsche Consulting has a deep automotive track record \| Across and beyond VW Group > 30 Years Source: Porsche Consulting 25 090 2_ADL\_ Porsche\_ Consul > ting_D ataArt\_ Sol uti onOffe ring.pptx 800 Projects 2 // DEVELOPING SUCCESS IN THE ERA OF SDV Introduction Placeholder (screenshot/diagram/picture etc.) Source: Porsche Consulting 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx This document outlines a set of actionable steps to help organizations advancing their SDV initiatives ­ we address OEMs, suppliers and other relevant players. It is designed as a representation of Porsche Consulting's Development & Technology practice service offering ­ encompassing all relevant areas and the frameworks we employ to support clients in the rapidly evolving SDV landscape. Within these pages, you will find 2 key-pillars addressing both the strategic and operational aspects of SDV transformation. A p.04 The Software-Defined Vehicle is much more than just a product or technology issue B p.25 Joint Offering \| Transforming business through strategic insights technological implementation SDV DRIVEN Service Offering Software Delivery Excellence with 3 // DEVELOPING SUCCESS IN THE ERA OF SDV Porsche Consulting SDV DRIVEN Source: Porsche Consulting 4 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx // DEVELOPING SUCCESS IN THE ERA OF SDV WHY SDV? Source: Porsche Consulting 5 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Current Challenges \| Traditional Automotive industry is too slow, too expensive & does not deliver ,,OLD HA BITS, NEW TEC HNOLOGY" RES ULTS GLOBA LLY INTO ... Excessive time-2-market Benchmarks shows the product creation by established OEMs to be 100% slower than the competition, moving SOPs has become the standard. Overflowing cost situation Exploding complexity drives our cost up to 2.5 times higher than the competition Lack of competitiveness Failing the market with critical portfolio gaps missing innovation Software features Source: Porsche Consulting 6 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx // W HA T DO WE MEAN BY SDV? The Software-Defined Vehicle is much more than just a product or technology issue SDV Software-Defined Vehicle Our conceptualization of SDV is grounded in four fundamental principles 01 \| A paradigmatic transition towards a software-first approach 02 \| The centrality of software in driving innovation 03 \| An agile and open-minded organizational culture 04 \| Empowering domain experts and streamlined decision-making processes Building the RIGHT product Product Software Defined Organization Software Factory Building the product RIGHT Source: Porsche Consulting 7 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx SDV means fighting complexity ... EXAMPLE: Complexity in OEM E/E-architectures has grown out of control GEN1 GEN2 GEN3 1990­1999 2000­2009 2010­2019 2020­TODAY GEN4 FROM 2026 Source: Porsche Consulting 8 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx ... and closing GAPs ... The gap between software complexity and organization maturity is growing every day SOFTWARE COMPLEXITY @OEMs ORG ANIZ ATI ON MATUR ITY in software THE GROWING GAP Gap between productivity and complexity does not close Time Source: Porsche Consulting 9 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx ... to safeguard the future! Source: Porsche Consulting 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx WHAT DO WE WANT? Enhance development scalability and flexibility Decrease time to market Increase product quality Enable continuous updatability and future-proof upgradability Enhance user personalization Reduce costs 10 The SDV market is significantly emerging until 2030 offering traditional OEMs big potentials Market Development SDV (2023-2030) in bn \$ Vehicle Platform Computer platform Vehicle Software Platform Data Platform Applications Smart mobility ecosystem 2023 in &bn 90-100 100-110 5-10 10-17 80-90 10-20 2030 in \$bn 160-170 130-140 10-15 40-45 230-240 80-90 2023 2030 Source: Porsche Consulting \| Worlds Economic Forum BCG 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Key-Message · SDV market holds significant potential for the near future · SDV is becoming increasingly important, especially in the terms of applications, platforms, and the smart ecosystem · To unlock these potentials especially traditional OEMs must transform towards SDV 11 Ranking of OEMs regarding adaption of digital transformation Digital Automaker Index Evaluates digital capabilities of OEMs on the eight criteria: Leadership, Talent, E/E Vehicle Architecture, Connectivity, Autonomous ´driving, Electrification, Tech knowledge, and Online presence Tesla1 Nio1 XPeng Rivian1 Lucid Geely BYD1 Ford GM BMW1 Mercedes Renault VW Changan Hyundai Kia Honda Stellantis 1 SAIC Nissan Toyota Mazda JLR (Tata Motors) 0 20 40 60 80 Gartner Digital Automaker Index (2024 score %) Change on year: Increase \| Decrease (darker dots 2024, lighter dots 2023) 1 Set for benchmarking references Source: Porsche Consulting \| Volkswagen und General Motors fallen im Wettbewerb weiter zurück \| Gartner Digital Automaker Index 2024: Alle Ergebnisse 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Key-Message · The index assesses how well these companies are adapting to the digital transformation trends in the automotive industry · Tesla, NIO, and Xpeng are at the forefront, indicating a greater differentiation in the market · It is noticeable that Chinese OEMs dominate the upper part of the market · BYD moving big steps forward with an increase of 30% compared to the previous year · Volkswagen losing big percentages from 2023 to 2024 12 // DEVELOPING SUCCESS IN THE ERA OF SDV HOW to achieve highest SDV maturity? Source: Porsche Consulting 13 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx SDV DRIVEN \| The Porsche Consulting service offering in six modules DISCOVER DIAGNOSE REALIGN INN OVATE IGNITE VALIDATE AC CELERATE EXCEL NEXT LEVEL SDV Maturity Diagnosis Stakeholder Realignment and Governance Benchmarking and Discovery Business Case and Investment Planning Software-Defined Strategy Technical Readiness and Feasibility Analysis Ignite Organizational Change Talent Building and Empowerment Adopt Continues Integration Processes Technology Deployment and Validation Vendor Collaboration and Ecosystem Expansion Global Delivery Optimization and Risk Management Excellence in Innovation Management Next-Level Technology Integration Exceptional CustomerCentric Solutions Expansion of Business Models Navigate Excellence & Performance through AI Notable Industry Influence and Responsibility Source: Porsche Consulting 14 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Our usual value proposition \| We bridging the gap towards SDV on all levels 01 Gear up your leadership to own the sdv narrative 02 Turn SDV BUZZ into an action plan 03 Execute SDV like the future depends on it ADVISORY FOR SENIOR LEADERSHIP Equip your leadership with insights and frameworks to make informed, high-impact decisions · Trend Interpretation · Leadership Enablement · Strategic Partnership Support STRATEGIC DEVELOPMENT Define strategic blueprints that position your organization as an indispensable partner in the evolving mobility & technology · Role Repositioning · Revenue Models · Industry-Specific Strategies OPERATIONAL EXCELLENCE Propose and implement ways of working that align with connected, software-driven operations · New Way-of-Working · Collaboration Models · Capability Building DEEP DIVE O N NEXT PAGE Source: Porsche Consulting 15 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx 03 \| An illustrative deep dive ­ Integrating a tech partner or acquired incubator SDV STRATEGIC PROGRAM EXECUTION Porsche Consultingx as "program lubricant" INCUBATOR Porsche Consulting proposes a structured engagement model, focused on governance, agile coordination, and cross-functional work packages, to ensure seamless integration between the SDV Fast-Track Development and Mainline Development. This will enable the smooth transfer of innovations, alignment of strategies, and effective collaboration between the OEM and its "Innovation Incubator". SDV Fast-Track Development Source: Porsche Consulting 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx CLIENT \[e.g. OEM\] Product Gen eration/Line Mainline-Development Product Generation/Line Product Gen eration/Line 16 03 \| Integrating a tech partner or acquired incubator ­ Work packages we delivered INCUBATOR SDV Fast-Track Development CLIENT \[e.g. OEM\] WORK PAC KAG E 01 WORK PAC KAG E 02 WORK PAC KAG E 03 WORK PAC KAG E 04 WORK PAC KAG E 05 SET THE COURSE Strategy & Governance ORCHESTRATE CHANGE Organizational & Stakeholder Engagement ENABLE THE TECH Technical Integration & Enablement TRANSFER INNOVATIONS From Prototype to Production ACCELERATE AGILITY Agile Support & Coaching Ensures SDV projects Oversees cultural shifts, Harmonizes SDV Moves breakthrough Implements iterative align with OEM's manages complex solutions with existing ideas out of their \`green- feedback loops, agile overarching business stakeholder dynamics, systems, mitigates field' phase into core coaching, and trans- goals, manage ROI and fosters a supportive technical debt, and operations, streamlining parent progress tracking effectively, and stay on a environment for SDV readies new concepts for knowledge exchange to keep SDV initiatives cohesive strategic track. initiatives. mainline deployment. and scaling R&D impact. on schedule and adaptable. Product Generation/Line Mainline-Development Product Generation/Line Product Generation/Line Source: Porsche Consulting 17 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx // DEVELOPING SUCCESS IN THE ERA OF SDV WHAT actions to take to DRIVE SDV holistically? Source: Porsche Consulting 18 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx DR I VEN Diagnose \| Where are we now? OUR APPROACH SDV MATURITY DIAGNOSIS BENCHMARKING AND DISCOVERY SOFTWARE DEFINED STRATEGY OBJECTIVE Evaluate the current SDV maturity across all dimensions and sub-dimensions to identify strengths, weaknesses, and areas for improvement Understand industry trends, competitor positioning, and best practices to inform strategic decision-making ACTIVITIES · Conduct comprehensive assessments using · Analyze global and regional SDV market the SDV Maturity Model trends · Utilize interviews, surveys, and workshops · Benchmark against industry leaders and to gather qualitative and quantitative data direct competitors · Analyze findings to determine maturity · Identify emerging technologies and levels in each sub-dimension innovations in SDV · Deliver a detailed report with insights, gaps, · Provide actionable insights to leverage and prioritized recommendations market opportunities Define a compelling SDV vision aligned with business objectives and market needs, establishing a strategic roadmap · Facilitate executive workshops to articulate the SDV vision · Align the vision with corporate strategy and customer expectations · Set strategic objectives and Key Performance Indicators (KPIs) · Develop a high-level roadmap outlining key initiatives and milestones Source: Porsche Consulting 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx KEY QUESTIONS TO ANSWER What is our current level of maturity across all SDV dimensions and subdimensions, and what specific gaps must we address to progress in our SoftwareDefined Vehicle capabilities? How do our SDV initiatives compare with industry trends and competitor strategies, and what best practices can we adopt to enhance our competitive position? What should our compelling SDV vision and strategic objectives be, and how can we align them with our overarching business goals and evolving customer expectations to create a clear roadmap for transformation? 19 DR I VEN Realign \| Where do we want to go? OUR APPROACH STAKEHOLDER REALIGNMENT AND GOVERNANCE BUSINESS CASE AND INVESTMENT PLANNING TECHNICAL READINESS AND FEASIBILITY ANALYSIS OBJECTIVE Ensure all stakeholders are aligned with the Build a robust business case to justify the SDV SDV vision and establish governance structures transformation, highlighting benefits, costs, for effective decision-making. and ROI. Assess technical readiness and identify the requirements for SDV implementation. ACTIVITIES · Identify and map internal and external stakeholders · Conduct alignment sessions to secure buy-in and address concerns · Define roles, responsibilities, and communication channels · Establish governance frameworks and steering committees · Quantify financial and strategic benefits (e.g., revenue growth, cost savings) · Estimate investment requirements (technology, talent, infrastructure) · Perform risk assessments and develop mitigation strategies · Prepare investment proposals and presentations for executive approval · Review existing technical infrastructure and capabilities · Identify technical gaps and challenges · Evaluate potential technology solutions and vendors · Develop technical requirements and migration plans Source: Porsche Consulting 205 209401 21_2A_DL0_3P_oSrDsVchDeR_ICVoEnNs uSletirnvgi c_eDOatffaeArri nt_gS.popl utxti on Offe rin g.pp tx KEY QUESTIONS TO ANSWER How can we realign all internal and external stakeholders around our SDV vision, and what governance structures are necessary to effectively guide and support our transformation efforts? What are the anticipated benefits, costs, and return on investment associated with our SDV initiatives, and how can we construct a compelling business case to secure the necessary funding and resources? What are the technical requirements and potential challenges for implementing SDV solutions, and how prepared are we to address them to ensure a successful transformation? 20 DR I VEN Ignite \| How do we spark change? OUR APPROACH IGNITE ORGANIZATIONAL CHANGE TALENT BUILDING AND EMPOWERMENT ADOPT CONTINUES INTEGRATION PROCESSES Restructure the organization to support SDV initiatives, fostering a culture of agility and innovation. OBJECTIVE Develop the necessary skills and competencies within the workforce to support SDV technologies. Redefine processes to enable agile development and delivery of SDV solutions. · Redesign/define organizational structures for cross-functional SDV collaboration · Define new roles, competencies, and career paths focused on SDV · Implement change management strategies to facilitate adoption toward SDV products · Provide leadership coaching and employee engagement programs ACTIVITIES · Conduct a skills gap analysis to identify training needs · Develop SDV training academies and development programs · Implement talent acquisition strategies for critical roles · Establish mentorship and knowledge-sharing initiatives · Map and analyze existing processes for SDV related inefficiencies/limitations · Introduce agile methodologies across teams. · Implement DevSecOps practices to streamline development and operations · Establish continuous integration and delivery CI/CD pipelines Source: Porsche Consulting 205 204901 2_1A2 \_DL0_3P_oSrDsVchDeR_ICVoEnNs uSletirnvgi c_eDOatfafeArri nt_gS.popl utxti on Offe rin g.pp tx KEY QUESTIONS TO ANSWER How do we ignite organizational transformation by reshaping our structures and culture to foster crossfunctional collaboration and agility essential for SDV success? What specific skills and competencies are required for our SDV journey, and how can we develop or acquire talent to empower our workforce and bridge any capability gaps? Which existing processes need to be redesigned or innovated, and how can we adopt agile methodologies and DevOps practices to enhance efficiency and responsiveness to change? 21 DR I VEN Vitalize \| How do we scale up effectively? OUR APPROACH TECHNOLOGY DEPLOYMENT AND VALIDATION VENDOR COLLABORATION AND ECOSYSTEM EXPANSION GLOBAL DELIVERY OPTIMIZATION AND RISK MANAGEMENT Implement the necessary technological enablers for SDV to scale. OBJECTIVE Build strategic partnerships with suppliers and ecosystem players to enhance and complement SDV capabilities. Enhance global delivery footprint to ensure effective SDV deployment across regions. · Establish cloud services and data management systems · Set up development environments (MiL, SiL, HiL, ViL) and DevSecOps tools ·... ACTIVITIES · Identify and engage with key suppliers and · Define a global delivery strategy aligned with technology partners SDV objectives · Develop collaborative models and joint · Optimize the global footprint by establishing development agreements regional hubs · Implement supplier evaluation and · Align operational models to market needs performance management systems and implement a global delivery framework · Foster open innovation through partnerships with standardized processes and alliances · Ensure compliance with industry standards and legal requirements Source: Porsche Consulting 250 024901 21_A2 \_DL0_3P_oSrDsVchDeR_ICVoEnNs uSletirnvgi c_eDOatfafeArri nt_gS.popl utxti on Offe rin g.pp tx KEY QUESTIONS TO ANSWER Which technological solutions are critical for our SDV initiatives, and how can we effectively deploy and validate these technologies to ensure they meet our needs and are scalable? How can we build strategic partnerships with suppliers and expand our ecosystem collaborations to enhance our SDV capabilities and drive innovation? What strategies can we implement to optimize our global delivery network for effective SDV deployment, and how do we manage risks and ensure compliance across diverse regions? 22 DR I VEN Excel \| How do we exceed expectations? OUR APPROACH EXCELLENCE IN INNOVATION MANAGEMENT EXCEPTIONAL CUSTOMER CENTRIC SOLUTIONS EXPANSION OF BUSINESS MODELS Foster an impactful & continuous bottom-up and technology-based innovation to maintain leadership in SDV. OBJECTIVE Deliver superior, personalized brand experiences that exceed customer expectations. Leverage SDV capabilities to craft beyond core business models and create new revenue streams. · Establish an innovation governance framework · Encourage MVP-driven experimentation and rapid prototyping · Integrate cutting-edge technologies and connect with external ecosystems · Use AL and ML analytics to drive insights and inform innovation strategies Source: Porsche Consulting 250 209410 2_1A2 \_DL0_3P_oSrDsVchDeR_ICVoEnNs uSletirnvgi c_eDOatfafeArri nt_gS.popl utxti on Offe rin g.pp tx ACTIVITIES · Use customer & vehicle data to drive product enhancements and connected journeys · Transform form product experience into a comprehensive brand experience · Implement features that allow for personalization and customization · Continuously monitor customer satisfaction and develop loyal brand ambassadors · Expand and enhance offerings beyond the core business based on customer life domains · Explore mobility-as-a-service (MaaS) offerings in partnership with adjacent players · Develop subscription-based services and software and hardware features · Monetize data through AI and ML analytics and insights · Partner with other industries to expand service offerings KEY QUESTIONS TO ANSWER How can we foster impactful & continuous innovation and manage it effectively to maintain leadership and drive excellence in the rapidly evolving SDV landscape? How can we leverage customer data and insights to deliver exceptional, personalized experiences that not only meet but exceed customer expectations using our SDV capabilities? What new business ideas beyond core and additional revenue streams can we develop by leveraging our SDV capabilities, and how can we successfully scale and monetize these opportunities? 23 DR I VEN Next Level \| How do we lead the industry? OUR APPROACH NEXT-LEVEL TECHNOLOGY INTEGRATION NAVIGATE EXCELLENCE & PERFORMANCE THROUGH AI Fully integrate vehicles into broader digital ecosystems. OBJECTIVE Achieve product and operations excellence through AI and Data to ensure efficiency, quality, agility and high performance. · Develop platforms for seamless interaction with connected homes and devices · Enable interoperability with other modes of transportation · Collaborate with municipalities and other players on smart city initiatives · Integrate vehicles with other systems such as energy grids for optimized consumption ACTIVITIES · Implement advanced analytics and AI to enhance product features and services · Automate / support decision-makings where feasible with AI from product data · Establish KPIs and dashboards for real-time decision-making · Become data-driven enterprise & scale AI successfully across the organization Source: Porsche Consulting 250 024901 21_A2 \_DL0_3P_oSrDsVchDeR_ICVoEnNs uSletirnvgi c_eDOatffaeArri nt_gS.popl utxti on Offe rin g.pp tx KEY QUESTIONS TO ANSWER How can we create seamless ecosystems integrating cutting-edge technologies such as AI, IoT, and V2X communication to elevate our SDV offerings? What strategies and best practices can we adopt to achieve product and operations excellence for maximum efficiency, quality, and agility? What is the highest aspired target performance for customers? 24 // DEVELOPING SUCCESS IN THE ERA OF SDV Porsche Consulting SOFTWARE DELIVERY EXCELLENCE with Source: Porsche Consulting 25 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx 2 Worlds Combined ... combines Porsche Consulting's deep OEM expertise, strategic planning, and ability to leverage cross-industry best practices ... ... with DataArt's cutting-edge technology solutions and implementation excellence. & In today's rapidly evolving software-defined environment, companies face complex challenges that require both strategic insight and technological execution. Porsche Consulting and DataArt have joined forces to offer a unique partnership that ... Source: Porsche Consulting 26 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Joint Offering \| Transforming business through strategic insights & technological implementation THE WHAT THE WHY INCREASING LEVEL OF DETAIL Strategic & Organizational Dimension Technology Software Factory Way of Working Solution Design HW & SW Arch. Data Ma...nagement Artefact Definitions Data Modeling & Analytics DevOps CI/CD QA &...Testing Test Management Integration Strategy Governance Collab. Model Lead...ership Decision-Making Process Product Discovery Porsche Consulting excels in transforming our clients in software-driven initiatives from strategy level down to detail levels across technology, process, methods & tools as well as organization & governance. DataArt excels in delivering state-of-the-art technology solutions: From advanced AI and machine learning applications to robust cloud infrastructure and seamless system integrations, we tackle the most challenging technical issues with precision and efficiency. By combining Porsche Consulting's strategic insights with DataArt's technological prowess, we jointly offer a comprehensive solution that addresses both high-level strategy and detailed technical execution, ensuring end-toend, tangible and long-lasting results in all dimensions. Source: Porsche Consulting 27 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx A case study \| From slideware to software: How we shipped OTA Situation A leading OEM set the goal to pursue their OTA update capabilities. OTA touches many units (R&D/Software, Connectivity/Car IT, Quality, Legal/Regulatory, Cybersecurity, Aftersales, Ops) that had not worked end-to-end together. No clear OTA process documentation, strategy or even business cases. Solution Set up cross-functional OTA governance and RACI with clear decision gates and escalation paths. Designed an end-to-end OTA process with compliance safeguards (pre/post-update checks, safety signoffs, auditability, rollback). Defined OTA strategy & business case: value drivers, use-case prioritization, KPIs, and "go/no-go" criteria. Specified target architecture & standards (update server, signing, campaign mgmt., CI/CD integration, vehicle-side client) plus DoR/DoD and work instructions. Provided hands-on delivery support: integration, test automation, E2E validation, pilot campaigns, on-call debugging and incident playbooks. Executed knowledge transfer and handover to internal teams. P REPARATI ON A NA LYSI S ST RATEG I C CONCEPT I M PL E M E N TAT IO N PLANNING I M PL E M E N TAT IO N Source: Porsche Consulting 28 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Contact Porsche Consulting GmbH Siemensstraße 6 70469 Stuttgart Germany +49 711 911-12001 Source: Porsche Consulting 25 090 2_ADL\_ Porsche\_ Consul ting_D ataArt\_ Sol uti onOffe ring.pptx Dr. Rodrigo Biurrun Partner Andrej Levitin Manager \| SDV & SW Delivery Dmitry Bagrov Managing Director rodrigo.biurrun@porsche-consulting.com andrej.levitin@porsche-consulting.com dmitry.Bagrov@dataart.com +49 170 911-5454 +49 162 993 4151 Oleksiy Chervinskyy VP Mobility and Manufacturing oleksiy.chervinskyy@dataart.com 29 STU TTGAR T \| HAMBU RG \| MUN ICH \| BER LIN \| FR ANKF URT \| MILAN \| PARI S \| SÃO PAULO \| ATLAN TA \| PALO ALTO \| SH AN GHAI \| BEIJI NG