2. Business Restructuring
2017-2024
(1) Strengthening Software Development Capabilities
- 2019
- In the era of CASE (Connected, Autonomous, Shared, and Electric), the importance of software in automotive competitiveness has significantly increased. Recognizing this shift, we have prioritized “Software Reform” as a critical management issue, initiating new movements in development methodologies and talent cultivation.
Since the 2010s, the significance of in-vehicle software in the automotive industry has rapidly grown. Major shifts such as connectivity, autonomous driving, sharing, and electric (CASE) have occurred, largely driven by cutting-edge software.
For many years, our company has been committed to developing high-quality, reliable products in the automotive industry. Facing a new business environment, we have broadened our perspective towards “mobility.” The fundamental idea behind this shift is to leverage our strengths in networking within the global automotive industry. Our role is to act as a “Connector,” contributing to the creation of a mobility society that is environmentally friendly and safe. In this context, the importance of software as a value-creating source has significantly increased.
- Deep DiveThe Role of “Connecting”
- The role of “connecting,” as our company envisions it, can be broadly divided into three main areas.
1. Connecting Different Technological Domains within the Car:
2. Connecting Cars to Each Other and to Society:
This means linking cars with IT and the cloud through software.
3. Connecting the Entire Mobility Society:
This can be described as connecting different car manufacturers. In the new mobility society, many car manufacturers' vehicles are connected to a digital twin platform. Here, DENSO acts as a bridge, using technology to connect numerous cars to the digital twin platform.
To enhance our software development capabilities, we identified the adoption of “advanced development methodologies” as crucial. We focused on the “Agile Development” methodology. Our company has decided to extensively utilize Agile Development, particularly in fields requiring large-scale systems such as connected and autonomous driving technologies, by building a company-wide information and communication technology (ICT) foundation.
- Deep DiveAgile Development
- Agile development is a methodology based on the premise that changes in specifications and design during the development process are inevitable. Instead of defining strict specifications from the start, it begins with approximate specifications and initiates detailed iterative development. This approach involves repeated cycles of small-scale implementation and testing, gradually advancing the development process.
Given the rapid and diverse changes in end-user needs, it is more suitable to adopt agile development in collaboration with car manufacturers. This allows for the expansion of functionalities based on continuous feedback from end users, rather than waiting for final specifications to be determined before starting development.
The productivity of software development largely depends on individual capabilities. Therefore, expanding the recruitment of talented software engineers and developing their skills are extremely important. To attract top software talent in a competitive hiring environment, a “location strategy”-situating operations in areas with a high concentration of skilled professionals—was essential. Based in Aichi Prefecture, we recognized our weakness in this regard.
In 2016, we opened a new Tokyo branch, followed by the establishment of the “Global R&D Tokyo” center in Shinagawa in 2018. These moves aimed to enhance our footprint in the Tokyo region and rapidly develop environments conducive to software talent.
For talent development, we introduced a “Software Engineer Qualification System” to visualize the knowledge, skills, and work experience of our software engineers. This system allows us to provide tailored education based on individual levels, enabling efficient skill development across the company and optimal deployment of personnel. By doing so, we aim to ensure the effective growth of software engineering capabilities and make informed decisions for talent placement.
- Deep DiveCultivating Software Talent
- Traditionally, software development for automobiles has been conducted in collaboration with car manufacturers within specific business areas such as engines and cockpits. However, the development of mobility software has become more large-scale and complex, increasing its difficulty. Consequently, it became necessary to enhance the skills of software engineers while leveraging existing skills and know-how.
Our company's initiative to support the career development of engineers is the “Career Innovation Program (CIP).” This program comprises four key components:
1. Sommelier Certification System:
This system helps engineers understand their own capabilities.
2. Recurrent Program:
This program allows engineers to acquire the necessary knowledge.
3. Assignment Process:
This process provides optimal opportunities for engineers to utilize their skills.
4. Buddy System:
In this system, higher-certified engineers mentor and guide others on-site, helping them acquire practical skills through hands-on experience.