Slide 1: DENSO Corporation Software Strategy Briefing
DENSO Corporation Software Strategy Briefing July 12, 2024 Atsushi Hayashida Executive Officer, CSwO DENSO Corporation © DENSO CORPORATION All Rights Reserved.
Slide 2: Agenda
Agenda 1. External environment 2. DENSO’s basic strategy for software 3. Integration capabilities : Leveraging Comprehensive Automotive Expertise to Apply to Product Development 4. Human resources capabilities : Strengthening the Global Development Structure 5. Deployment capabilities : Contribution
Slide 3: External environment
1 External environment 3/30 DENSO Software strategy Briefing / July 12, 2024 © DENSO CORPORATION All Rights Reserved.
Slide 4: Environment surrounding vehicles
Environment surrounding vehicles Traffic accidents and congestion Environmental problems → Social significance of improving → Energy management to improve the safety of vehicles fuel efficiency and electric mileage Diverse needs Problems in logistics → Product appeal to quickly meet needs → Social s
Slide 5: Changes in partnership
Changes in partnership To date Future Consumers Consumers Society development Service Provider / Cloud system Tier0 car manufactures Mobility society Approach Services IT and Tier1 suppliers Application Car sharing Mobility from related telecommunications (general components manufacturers, etc.) Car
Slide 6: Changes in the business structure due to the shift to SDVs
Changes in the business structure due to the shift to SDVs Global market for integrated ECUs* Changes in source lines of code (SLOC) Projection of car manufacture’s revenue from hardware and software The global market for integrated ECUs The SLOC for realizing composite Car manufacture’s revenue fro
Slide 7: DENSO's basic strategy for software
2 DENSO’s basic strategy for software 7/30 DENSO Software strategy Briefing / July 12, 2024 © DENSO CORPORATION All Rights Reserved.
Slide 8: The future that DENSO aims to achieve
The future that DENSO aims to achieve Contributing to people’s happiness by expanding technologies cultivated in mobility to a wide range of industries and society Software supports Software spreads safe transportation contribution to the environment Operation control Heat and energy Advanced safety
Slide 9: DENSO's basic strategy for software
DENSO’s basic strategy for software Create businesses from the value of software, and lead initiatives for the evolution of vehicles and a mobility society in the future Improve the cross-domain value High-quality global development Foster a collaborative ecosystem and create solution businesses wit
Slide 10: Integration capabilities
3 Integration capabilities Leveraging Comprehensive Automotive Expertise to Apply to Product Development 10/30 DENSO Software strategy Briefing / July 12, 2024 © DENSO CORPORATION All Rights Reserved.
Slide 11: History of DENSO's in-vehicle software and various types of software
History of DENSO’s in-vehicle software and various types of software Proven experience at all car manufacturers History of in-vehicle software An extensive library of in-vehicle software ‘80 ‘90 ‘00 ‘10 ‘20 ●Reducing exhaust emissions and improving fuel efficiency Powertrain Body control Information
Slide 12: DENSO's competitive advantage in integrated ECU
DENSO’s competitive advantage in integrated ECU To date Future In-Car single domain In/Out-Car cross domain (mobility society) Software cost as a Up to 10% 50% or more Update Cloud percentage of the vehicle Energy management G/W* Approaching alarm Body Clearance sonar Large scale Cross-domain ECU Ve
Slide 13: Key core competencies for integrated ECU software
Key core competencies for integrated ECU software ・Software in the IT domain Areas to leave to your partners ・Cloud-native technology Out-Car Non-mobility related software/services/public/infrastructure etc. Ｗide the range Evolution by co-creating with Areas to co-create with partners Partnerships w
Slide 14: Ex. Full use of semiconductors in the software strategy
Ex. Full use of semiconductors in the software strategy Optimize and automate software integration within the hardware restrictions to meet the needs of various customers Capacity shortages Analysis of To date Software coding customers’ Hardware design Programming requirements hardware resource Limi
Slide 15: Human resources capabilities
4 Human resources capabilities Strengthening Global Development Structure 15/30 DENSO Software strategy Briefing / July 12, 2024 © DENSO CORPORATION All Rights Reserved.
Slide 16: Trend of software engineers in the automotive industry
Trend of software engineers in the automotive industry With vehicles rapidly becoming more The competition to recruit software engineers has intelligent, the industry faces difficulties in become more intense in the automotive industry. recruiting and cultivating software engineers. Shortages of sof
Slide 17: Strengthening of improvement
Initiatives to increase the development efficiency and strengthen human resources 800 Strengthening human resources Scale of the 200 billion 4 times billion for upstream processes/advanced development human resources Strengthening of software business yen yen Project managers/software architects:
Slide 18: Enhance the cultivation of project managers and software architects
Enhance the cultivation of project managers and software architects Strategic Quantity: number of software engineers Quality: project managers*1 partnership 1 million 50,000 160,000 3,000 IT vs. Automotive IT vs. Automotive The IT industry is overwhelming in Source: *Graph created by DENSO using dat
Slide 19: Strengthening global software development capabilities
Strengthening global software development capabilities Local business Japan (GHQ) Strengths Local business China Local business Global strategy • Global development Europe IT Technology In-vehicle standards • Electronic payment DENSO development Local business centers originating in Europe • Image a
Slide 20: Domestic software development bases
Domestic software development bases Shimbashi Muromachi, Nihonbashi, Tokyo Haneda J-QuAD DYNAMICS Advanced Safety Software Development Company Global R&D Tokyo, Haneda 羽田 DENSO, DENSO IT Laboratory Fukuoka Kobe Aichi prefecture Nagoya city and others DENSO TECHNO新橋DENSO, DENSO TEN DENSO, DENSO TECHN
Slide 21: Partnership Strategies
Partnership Strategies DENSO Group Other industries・DENSO Group Other industries・Investment alliances Powertrain Safe driving Information Common Consumers Body control Communication fundamental DENSO J-QuAD NTT DATA DENSO Society development Service Provider/ TECHNO DYNAMICS MSE CREATE Cloud System
Slide 22: Initiatives to increase the efficiency of software development
Initiatives to increase the efficiency of software development Improvement of development tools -Actively using AI- Process automation Use of AI Converting know-how (Optimize workforce efficiency) (Improve development quality) cultivated through ・Digitalization of design information • Digitalization
Slide 23: Deployment capabilities
5 Deployment capabilities Contribution to the Industry Through Software Talent Development Programs and Standardization of Technology 23/30 DENSO Software strategy Briefing / July 12, 2024 © DENSO CORPORATION All Rights Reserved.
Slide 24: Software in the SDV Era: DENSO's contribution to the industry
Software in the SDV Era: DENSO’s contribution to the industry As the volume of software development for cars increase with SDV, we are to build an industry-wide collaborative system through both talent and technology standpoint. So that Japan’s mobility industry can thrive globally. HR development S
Slide 25: Career innovation program・SOMRIE
Examples of initiatives toward standardization of human resource development Expanding career innovation programs to external parties towards becoming the industry standard in the mobility sector. Define and publicize the capabilities required of software engineers in the mobility industry, and thei
Slide 26: Initiatives toward standardization of software
Initiatives toward standardization of software JASPAR (a general incorporated association) (Japan Automotive Software Platform and Architecture) Established in September 2004, JASPAR aims to improve development efficiency and ensure high reliability through the standardization and common use of soft
Slide 27: Wrap-up
6 Wrap-up 27/30 DENSO Software strategy Briefing / July 12, 2024 © DENSO CORPORATION All Rights Reserved.
Slide 28: DENSO's basic strategy for software [Repeat]
DENSO’s basic strategy for software [Repeat] Create businesses from the value of software, and lead initiatives for the evolution of vehicles and a mobility society in the future Improve the cross-domain value High-quality global development Foster a collaborative ecosystem and create solution busin
Slide 29: Without DENSO's software, we will not be able to create the future
"Without DENSO's software, we will not be able to create the future of the mobility society." Aiming for such an existence, We, DENSO will enhance our software development and value delivery capabilities in a wide range of fields as an integrated system manufacturer, contributing to the environment
Slide 30: DENSO
DENSO Crafting the Core