White Paper
ALM for Innovation: Making Smart Products Smarter No matter what business you think you’re in, you’re in the software business. The truth of that statement is now decidedly evident for manufacturers. In 2011, Marc Andreessen declared that “software is eating the world.” Today, application-laden “smart” products are on the rise in every industry. An automobile’s infotainment system alone consists of over 100 million lines of code. A Boeing 787 Dreamliner requires 6.5 million lines just for avionics and onboard support systems. A pacemaker keeps a heart beating—and communication with doctors instantaneous—thanks to 80,000 lines of code. Even the software-driven smart appliance market is expected to grow at CAGR of 15.4 percent growth through 2020. This pairing of applications with physical products is impacting all makers of complex products as buyers look for a steady roll out of innovative, groundbreaking features. Software makes possible cars that parallel park themselves, security systems that can
be controlled from a smartphone, and farming machinery that optimizes fertilization, irrigation and pest control. Smart manufacturers are more closely aligning application lifecycle management (ALM) with product lifecycle management (PLM) to reduce the cost of code complexity— both literal resource expenditures of time and high-cost skills and the erosive competitive cost of lagging in innovation. These leaders are flipping application development and management from a burdensome challenge separately managed from the physical product to part of a new, holistic product development and management path that makes first-to-market product differentiation easier.
80%
of product innovation and differentiation is now electrical, electronic and software. Not mechanics. - Siegmar Haasis CIO of R&D at Daimler
The flip begins with changing how products are developed.
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