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embedded Linux architecture found that it
could develop new features six times faster.
A supplier of engine controls invested in a
fl exible, layered architecture and cut time to
market from four months to three weeks.
Understand the economics
Cost pressures can tempt suppliers and
automakers to try to save money by
selecting less expensive inputs, but this
approach often raises warranty costs down
the road. In hardware, cheaper components
may break or wear down faster. In
embedded systems, faults usually emanate
from poor design or insuffi cient testing.
When suppliers and OEMs undertake designto-
cost planning, they must learn to consider
a broader set of criteria, including the
lifetime costs of complex software and less
expensive hardware.
One automaker looking to reduce the cost
of its components had to analyze whether
it would make sense to use less expensive
hardware, since this option would require
additional software development and could
3 McKinsey’s maturity-assessment model assigns
grades from 1 (ad hoc, nonmanaged) to 4
(world class).
Getting better software into manufactured products
6 McKinsey on IT Spring 2006
lead to more defects. After factoring in
the higher warranty costs likely to result
from this added complexity, the company
calculated that it would break even only if it
produced more than 260,000 units. By using
more expensive hardware, it lowered its
breakeven point to 120,000 units.
Improve development processes
Many companies that use embedded
software—whether in the automotive, telecommunications-
equipment, or consumer
electronics industries—have a strong
engineering tradition. As a result, they often
take a hardware-driven approach focused
on physical components and tend to have
a mechanical view of how pieces should fi t
together. Such companies need to improve
their skills in developing and integrating
software systems.
Over the past 20 years, the software
industry has professionalized its
approach to development by adopting
global quality measures such as the
Capability Maturity Model or those
based on function points. But software
development in embedded systems has
lagged behind the industry. Fewer
software-development tools are available
for embedded systems, and those that
exist tend to focus on parts of the design
cycle rather than the whole. Because
embedded development requires expertise
in software and in hardware engineering
and physics, best practice includes the
use of cross-functional teams of experts
(feature-based development), development
methodologies that apply common
models and simulation tools, and “time
boxing” (giving developers specifi c
deadlines for deliverables). By instituting
cross-functional teams and time-boxed
development, one navigation systems
company boosted its productivity to
more than twice the industry average.
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