BERYLLS STRATEGY ADVISORS

MODEL BASED SYSTEMS

ENGINEERING IN TRUCK R&D
September 2023
Agenda

AGENDA
3 Introduction
4 Truck Industry under Pressure to Innovate
5 Navigating Complexities: Impact on Time,
Cost, and Quality in Truck R&D
7 Shifting Paradigms: From Decentralized to

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Centralized Architectures
9 Faster and Ever More Integrative 2
Development Cycles
10 Model Based Systems Engineering:
A Must-Have in the R&D Tool Chain
14 Call to Action
15 Thinking Software End-to End.
Meet Berylls.
Introduction

INTRODUCTION
The trucking industry is currently grappling with significant pressure induced
by an ongoing transformation predicated on three fundamental changes to its
long-standing operations.

Electrification: A primary catalyst for change in the industry is the mounting

concern over environmental impacts, particularly greenhouse gas emissions. The
transition from diesel-powered to battery and fuel-cell electric vehicles necessi-
tates a new breed of software-based powertrain and energy management systems.

Connectivity: The advent of digital logistics ecosystems has given rise to increased
complexity and a rapid transformation of business models, customer require-
ments, and system interfaces. Trucks are becoming edge devices within a highly
interconnected and interdependent ‘internet of transport’, powered by cutting-
edge software.

Autonomous driving: Self-driving trucks have the potential to create a trans-

portation system with unprecedented productivity, efficiency, and safety. At the
same time, they require a new dimension of high-performance compute. Despite
current disillusionment with autonomous trucking, the pressing shortage of

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drivers may necessitate the adoption of this technology.

Truck manufacturers, component and system suppliers as well as engineering

service providers must keep pace with these advancements to remain relevant
in the market and defend their positions against new players. They face the chal- 3
lenge of rapidly integrating new technologies into their products while meeting
customer expectations and staying within budget. They must deliver fast and
cost-efficient solutions in a highly complex innovation environment.

These trends underscore the urgent need for a swift transition to software-defi-
ned vehicles. The increasing complexity of E/E architectures and vehicle function-
ality make this fundamental shift inevitable. Resource scarcity, notably in software
development, presents a growing challenge for the broader automotive industry,
and specifically for truck manufacturers.

Traditional development processes, once the mainstay of the trucking industry,

are ill-equipped to handle such a dynamic environment. Much time and effort
is consumed in aligning various stakeholders to deliver holistic solutions, often
leading to costly and time-consuming misunderstandings, and consequently,
quality issues in product development.

To effectively navigate these challenges, the truck industry must adopt strate-
gies such as agile development methodologies, leveraging digital technologies for
simulation and virtual prototyping, and enhance collaboration with external part-
ners. Model Based Systems Engineering (MBSE) is a systematic approach that
supports OEMs, suppliers, and engineering service providers in enforcing shorter
development cycles, more efficient use of resources and higher quality results.
Pressure to Innovate

TRUCK INDUSTRY UNDER PRESSURE

TO INNOVATE
Transport and logistics hold a signifi- The next generation of commercial ve-
cant position in the global economy of hicles will be governed by highly com-
the 21st century. Facilitating the move- plex software and needs a high degree
ment of goods around the world, this of connectivity, both in-vehicle and ex-
industry serves as the backbone of ternally. These vehicles are required to
both industrial production and priva- receive over-the-air software updates
te consumption. The rapid expansion throughout their life cycle, and autono-
of eCommerce in recent years under- mous driving systems will need to con-
scores the need for fast and reliable nect to real-time data on road condi-
land transport. In fact, in Europe, trucks tions and hazards.
constituted nearly 80% of the modal
split in 2021. By adapting their R&D organizations and
processes to address the complexity of
According to data from VDA and IHS future truck functionalities, OEMs can
approximately 3.4 million medium- and better align their personnel, processes,

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heavy-duty trucks were manufactured and technologies to meet the challenges
worldwide in 2021. The rate of produc- posed by connected and software-de-
tion for new models is predicted to accel- fined vehicles.
erate in the coming years, with a rising
number of vehicles anticipated to incor- 4
porate electric power, either through
battery-electric or fuel cell electric power-
trains. New players like Designwerk, Volta
Trucks or Nikola Motor put the incum-
bents under massive pressure to inno-
vate at fast pace.
Truck R&D Complexities

NAVIGATING COMPLEXITIES:
IMPACT ON TIME, COST, AND
QUALITY IN TRUCK R&D
Historically, the research and de-
velopment (R&D) departments of truck
Original Equipment Manufacturers
(OEMs) have prioritized individual com-
ponents within specific domains such
as powertrain, chassis, or infotainment
systems. However, the increasing com-
plexity of modern truck functionalities,
which often span multiple domains, has
posed challenges for these traditional
R&D structures.

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Significant effort and time have been
expended by OEMs in an attempt to
align personnel and processes across
these domains, with the objective of in- 5
tegrating elements of software systems Modern trucks often incorporate 120
post-production. With their current ap- or more ECUs to regulate hundreds
proach, truck manufacturers face time of functions, in part through inter-
wastage, increasing costs and quality communication. ECUs are designed
issues, particularly regarding software to process data from sensors located
development. throughout the vehicle and to make
decisions based on that data. ECUs
In the following, the essential changes use embedded software to control
in the E/E architecture of trucks will be the operation of these systems and
discussed. Current architectures are to process data from various sensors.
characterized by multiple Electronic Embedded software is developed
Control Units (ECUs) and the crucial from scratch to run exclusively on that
role of embedded software in control- hardware in that precise configuration.
ling various systems and processing Complex control algorithms deployed
sensor data. with the embedded software ensure
the proper timing of functions, needed
inputs and outputs, and data security.
The following illustration shows essen-
tial truck functions that are controlled
and provided by ECUs.
Truck R&D Complexities

FIGURE 1

VEHICLE FUNCTIONS CONTROLLED OR PROVIDED BY ECUS

Source: Berylls Strategy Advisors

Advanced driver-assistance systems roles, and cultures must be synchro-

(ADAS), connectivity, and the push to- nized within a dynamic flow that can be

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wards e-mobility boost the value con- aligned according to customer needs.
tribution of software in modern trucks.
This shift is mirrored in the overall inno- While ADAS functions are current-
vation and development process, which ly found in only one out of five trucks,
now requires a greater effort to inte- their penetration rate is expected to in- 6
grate novel functions with existing hard- crease rapidly in the coming years. Ve-
ware and software and successfully in- hicle safety remains a key criterion for
troduce them into the market. More truck customers, driving the demand
and more stakeholders, organizations, for ADAS features that enhance safety
and improve the driving experience.

For OEMs aiming to achieve autono-

mous driving capabilities, substantial
investments in ADAS will be crucial.
ADAS provides a fundamental ground-
work for the development of advanced
perception, decision-making, and moti-
on control systems, all vital components
of autonomous driving. The amount of
data handled by autonomous driving
systems will trigger a quantum leap in
high-performance compute as well as
E/E architecture.
Shifting Paradigms

SHIFTING PARADIGMS: FROM

DECENTRALIZED TO CENTRALIZED
ARCHITECTURES
To cope with the growing complexity We observe the following trends:
and communication needs, automo-
tive systems are moving towards more Significant R&D spending growth: Ve-
centralized E/E architectures. These hicle manufacturers are expected
architectures involve decoupling soft- to boost their spending on E/E tech-
ware and Electronic Control Unit (ECU) nologies by 64 percent over the next
hardware, allowing for more flexible decade. This substantial increase re-
and dynamic communication. Decou- flects the industry‘s recognition of the
pling allows enhanced scalability, easier pivotal role played by E/E systems in
software updates, and better adapta- modern vehicles.
tion to changing requirements throug-
hout the vehicle life cycle.

FIGURE 2

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TRANSFORMATION OF THE VEHICLE ARCHITECTURE

Source: S&P Global Mobility, Expert Interviews, Berylls Strategy Advisors

Shift to Centralized Architectures

Emphasis on software: Within the E/E The following schematic overview illus-
domain, software will account for a sig- trates that hardware abstraction based
nificant share of the increased spend- on the virtualization of functions leads
ing. According to Berylls research, soft- to increased scalability and adaptability
ware is projected to reach 56.2bn Euro in developing commercial vehicle sys-
automotive R&D spending by the end tems. Function virtualization will further
of the decade, indicating its critical role accelerate innovation cycles. We expect
in enabling advanced functionalities that vehicles‘ overall functionality and
and driving innovation in vehicles. performance will improve as a result.

The next evolutionary step from the The advancement of software defined
current E/E architecture is zonal. This vehicles requires all-new R&D pro-
architectural model enhances efficien- cesses that enable significantly shorter
cy while simultaneously facilitating the development cycles. Therefore, truck
integration of new technologies and manufacturers must urgently bring
functions. This approach is based on their competencies and cultures up to
more efficient management of E/E date to build sustainable competitive
systems and enables easier software advantages.
updates and customizations. The seg-
mentation into zones facilitates the or-

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ganization, communication, and control
of diverse components, modules, and
subsystems.

WITH SOFTWARE DEFINED COMMERCIAL

VEHICLES AND E/E-ARCHITECTURE,
IT HAS BECOME INDISPENSABLE TO
USE MBSE.
Product Owner – Tier 1 Radar Supplier
Integrative Development Cycles

FASTER AND EVER MORE

INTEGRATIVE
DEVELOPMENT CYCLES
Some manufacturers follow the aspira-
tion to independently develop their own
software solutions, thereby mitigating Due to the accelerated innovation cycles,
dependency on third-party suppliers. there is an increased demand for special-
Historically, such attempts have rarely ized know-how and outsourcing of en-
been successful. The failure of most ini- tire subsystems. Increasing outsourcing
tiatives can be ascribed to a lack of exper- of the development process drives the
tise, inadequate resources, fluctuating complexity of value creation and can lead
requirements, or scalability concerns. to quality issues or even failure.

FIGURE 3

EXEMPLARY VALUE CREATION IN SOFTWARE ENGINEERING & E/E SYSTEMS

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9

Source: Expert Interviews, Research, Berylls Strategy Advisors

Truck OEMs, therefore, need to follow This triggers the need for faster de-
an integrative approach on R&D value velopment processes. The accelera-
creation as illustrated above. They have tion is a burden for R&D departments
massive pressure on time to market and leads to higher costs as resources
both from regulatory requirements must be reallocated to speed up. Fas-
and competition by new players. For ter and more integrative development
example, the competitive landscape for cycles also require a state-of-the-art
buses has changed significantly in Euro- tool chain. An approach that offers sig-
pe with the emergence of battery elec- nificant benefits in that respect is the
tric vehicle concepts. Chinese brands so-called Model Based Systems Engi-
like Golden Dragon and Yutong now neering (MBSE).
hold significant market shares.
Solution

MODEL BASED SYSTEMS

ENGINEERING: A MUST-HAVE IN THE
R&D TOOL CHAIN
The need for speed in the develop- tem design, analysis and management.
ment cycle must be addressed by truck Challenges in developing complex sys-
manufacturers. Here, Model Based tems are overcome by providing a vis-
Systems Engineering (MBSE) offers it- ual and integrated representation of
self as a solution. MBSE can be under- the system and its requirements. In the
stood as a structured and systematic following, the differences in processes
approach to the development process, with and without MBSE are explained.
using models as a central tool for sys-

FIGURE 4

DEVELOPMENT PROCESS & SIMULATION WITHOUT MBSE

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10

1 HW: Hardware 2 SW: Software Source: Berylls Strategy Advisors

As the illustration above shows, it is Conversely, a system-oriented ap-

imperative to acknowledge that a com- proach defines the overall system archi-
ponent-oriented approach, in which tecture and the specific technology de-
hardware and software components tails, enabling each piece of hardware
are developed separately, can result in and software to optimize the overall
a fragmented and ineffective process. system rather than retrofitting it. In this
This is especially true for intricate dis- approach, workflows are agile, and the
tributed functions like advanced driver process flows logically from one stage
assistance systems (ADAS). to the next.
Solution

FIGURE 5

MBSE EXCEEDS THE V MODEL AND CLOSES THE LOOP

1 HW: Hardware 2 SW: Software Source: Expert Interviews, Berylls Strategy Advisors, Fraunhofer IPK

The successful implementation of the Agile and Integrated Development En-

system-oriented model across different vironment (IDE): MBSE enables agile
industries, including defense and avi- development methodologies and en-

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onics, along with its use by automotive ables iterative and flexible development
OEMs under the ASPICE & ISO 26262 processes, allowing for faster feedback,
framework for evaluating technology adaptation to changing requirements,
suppliers, holds promising implica- and efficient use of resources. By utili-
tions for truck manufacturers. The sys- zing MBSE, developers can benefit from 11
tem-oriented development approach IDE to enhance their productivity. IDE
simplifies responsibility and reduces minimizes setup time, accelerates de-
coordination efforts required at the velopment tasks, keeps developers up-
interfaces. This ensures effective co- to-date on the most recent best prac-
ordination and division of subsystems tices and potential threats, standardizes
and assigns all hardware and software the development process, and allows
components and functions to a system everyone to collaborate seamlessly.
that is overseen by a system project
manager with end-to-end responsibil- System Understanding and Descrip-
ity. The main objective is to streamline tion: MBSE enables a comprehensive
the processes and increase efficiency. understanding and description of the
Naturally, MBSE requires adaptations system under development. By using
to OEMs‘ organization, processes, and models, various aspects of the system
tools (OPT). can be captured and represented, in-
cluding requirements, behavior, struc-
The success recipes of MBSE encom- ture, and interfaces. This facilitates a
pass several key factors that contribute clear understanding of the system‘s
to its effectiveness and positive out- purpose, functionality, and interactions.
comes. These recipes include:
Solution

Reusability of Model Components: MBSE

emphasizes the systematic modeling
of the system, subsystems, assemblies,
and model components. This approach
enables the reusability of model com-
Basis for Faster Product Development ponents across different projects or
and Improved Product Performance: systems. By leveraging existing models

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By creating digital twins, which are vir- and components, development time
tual representations of physical sys- and costs can be reduced, and consist-
tems, MBSE allows advanced analysis, ency can be maintained.
testing, and optimization of the sys-
tem’s behavior in a virtual environment. Management of Redundancies: MBSE 12
Additionally, MBSE-based model fidelity enables the systematic and structured
can help reduce the total cost of own- modeling of the system, which helps
ership. By considering wear and deg- manage redundancies. Redundancies
radation models, MBSE can increase refer to duplicated or overlapping in-
fleet operational efficiency, prognostics formation or functionality within the
and health management (PHM), reduce system. By identifying and managing
downtime, and the reusability of worn redundancies through effective mode-
parts for second-life applications. ling practices, system complexity can
be reduced, and consistency can be
Interdisciplinary System Architecture: maintained throughout the develop-
MBSE promotes an interdisciplinary ap- ment process.
proach to system architecture. It invol-
ves the active participation of different Consistency and Completeness: MBSE
engineering disciplines and stakehol- supports the achievement of consis-
ders in the modeling and design pro- tency and completeness in the system
cess. This collaboration ensures that all description. The use of models helps
relevant aspects, such as mechanical, ensure that all relevant aspects of the
electrical, software, and control sys- system are captured, and depend-
tems, are considered and integrated encies between different components
effectively. are properly represented.
Solution

This leads to a more coherent and com- These success recipes highlight the ben-
prehensive system description, minimi- efits of adopting MBSE in systems en-
zing the risk of errors or omissions. gineering and development. By embra-
cing meaningful contributions, an open
Safety and Reliability: MBSE increases culture, and complementary business
the safety and reliability of the system. models, organizations can leverage
By utilizing MBSE, it is possible to ana- MBSE to enhance system understand-
lyze functional and operational safety ing, improve development efficiency,
aspects more accurately. This is benefi- promote interdisciplinary collaboration,
cial during functional hazard analyses and achieve higher levels of safety and
and helps to validate fault tree analyses reliability.
(FTA) and subsequent system safety
analyses (SSA). The model is designed
to focus on critical parts of the architec-
ture. With MBSE, it is possible to evalua-
te safety-related systems or functions
more efficiently and effectively.

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13

MBSE SIMPLIFIES SYSTEM MODELING BY

ENABLING ENGINEERS TO GENERATE, SCRUTINIZE,
AND AUTHENTICATE MODELS WITH VARIOUS
TOOLS. THIS PROCESS DETECTS FLAWS EARLY
ON AND FACILITATES EXPLORATION OF ALTERNATIVE
DESIGNS.
Systems Engineering Team Leader – Tier 1 Supplier

USING MBSE IMPROVES COMMUNICATION AND

COLLABORATION WITH STAKEHOLDERS.
IT SIMPLIFIES PROJECT REQUIREMENT TRACKING
AND MAINTENANCE, MAKING PROJECT MANAGEMENT
EASIER AND LEADING TO SUCCESSFUL OUTCOMES.
Chief Project Manager – Commercial Vehicle OEM
Conclusion

CALL TO ACTION
With vehicles increasingly defined and differentiated by their software, the
complexity of systems consisting of hardware and software is constantly
increasing. Traditional component-oriented approaches to R&D and project
management may struggle to effectively address this complexity, leading to
rising development costs that can impact the profitability of original equip-
ment manufacturers (OEMs). MBSE can increase efficiency, optimize system
performance, reduce development costs and improve the time to market.

We recommend three key actions in combination with MBSE to address these

challenges:

Combining Coherent Systems: The system-oriented approach involves integrating

and aligning various systems within the vehicle organization. Simultaneously, to by-
pass organizational overhead, a sound division of the overall system architecture in
meaningful organizational sub-domains plays a crucial role in the MBSE framework.
This requires establishing clear interfaces and communication channels between
different system components, such as hardware and software teams. Collaboration
and coordination among these teams are crucial to ensure that the systems work

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together seamlessly.

Strengthening System-Oriented Roles: System-oriented roles must be identified

and strengthened within the organization. System engineers, system architects and
system integrators are essential for defining the overall system architecture. For 14
example, these roles are responsible for coordinating development activities and
ensuring that all components contribute to the optimization of the system. Training
and supporting these roles can help increase their effectiveness.

Interrelated and Cascading System Processes: Implementing interrelated and cas-

cading system processes ensures that the development of subsystems and com-
ponents aligns with the overall system requirements and architecture. This involves
establishing a systematic approach for system releases, where the release of sub-
systems and components is synchronized to maintain consistency and compatibil-
ity. Such processes enable efficient integration and verification of the system.

It is crucial for commercial vehicle manufacturers to assess their capabilities, resources,

and long-term needs before deciding whether to pursue with MBSE. Thorough planning,
proper allocation of resources, and collaboration between MBSE experts and software
developers are essential to increase the chances of success.

Berylls Strategy Advisors is undoubtedly the best choice to provide your company with
outstanding support in implementing MBSE. With our exceptional knowledge of the com-
mercial vehicle industry and a successful track record in innovation management strategy
and implementation projects, we are well-equipped to meet all your needs. Berylls Strat-
egy Advisors is prepared to adapt and grow alongside the rapidly evolving commercial
vehicle innovation management landscape – but different, as are we.
Meet Berylls

THINKING SOFTWARE END-TO END.

MBSE STU DY
MEET BERYLLS.
15

We believe that for commercial vehicle A benchmark organization for software

and automotive enterprises to become integration is as important as capabil-
proficient software developers, an ite- ities to create software in-house, as is
rative mindset is requisite, spanning a culture that embraces software de-
from strategy definition to delivery, and velopment fundamentals like DevOps,
circling back to strategy revision. This is Agile and competitive collaboration.
what we denote as the Berylls Software
Loop. Software development tools and organi-
zational software operating models
The Berylls Software Loop consists of need to be tightly integrated into the
three major elements: strategy de- existing product development process
sign, delivery excellence and enter- to ensure that costs and production
prise transformation across the com- start dates are met by delivering excel-
plete value chain and vehicle life cycle. lence.

The Berylls Software Loop leverages

our full commercial vehicle and auto-
motive expertise and commitment to a
software-driven mobility future.
THE BERYLLS GROUP’S SERVICES ARE fully dedicated to the automo-
tive industry. Our experts in Germany, China, Great Britain, South Ko-
rea, North America and Switzerland understand the industry’s key
challenges and are developing ways to achieve sustainable success
in the automobility eco system. We use advanced digital strategies
and other innovative approaches. Our professionals are networking
across five specialised units to offer our clients end-to-end support,
from strategy development to the implementation. We call this net-
work our Berylls Quintet:
Berylls Strategy Advisors – The expertise of our top management consultants extends
across the entire automobility value chain – from long-term strategic planning to opera-
tional performance improvements. Based on Berylls’ automobility thought leadership, our
consulting teams stand out in view of their broad experience, their profound industry know-
ledge, their innovative problem-solving competence and their entrepreneurial thinking.
Berylls Digital Ventures – Our clients‘ strategic concepts requires the development and
operation of digital products or the implementation of new business models. The Berylls
Digital Ventures team works with our clients to take up this challenge – end-to-end. At the
same time, we also invest in promising start-ups and bring our own digital solutions to
market, providing these ready-to-use for our clients.
Berylls Mad Media – The radical digitalisation of the customer interface undermines the
boundaries in the automotive sales model. Our Berylls Mad Media experts develop and
operate tailored solutions, including data-driven marketing, integrated service designs,
and including the agile realisation of integrated process and IT architectures. We strengt-
hen customer loyalty, market exploitation, and profitability – taking vehicles and services
to market digitally.
Berylls Equity Partners – is a private investment company. Supported by strong anchor in-
vestors and pursuing an entrepreneurial approach, we acquire, operationally improve opera-
tionally, and furnish with a long-term strategic direction companies with value potential
in the mobility industry.
Berylls Green Mobility – We believe that sustainability will deliver competitive advantages
in the real world of the global automobility business. Whether in an advisory capacity to
external clients and other Berylls entities or through our electric vehicle charging service
Wall-E – the first free-to-the-user e-mobility infrastructure initiative which helps convert
drivers’ interest in e-mobility into a roadgoing reality – Berylls Green Mobility drives the
change toward making automotive sustainable.

The automotive industry is currently facing fundamental challenges. We have made it our
mission to support industry players in accomplishing an effective and future-proof change
process. The unique value we bring to the table is based on digitisation, technological inno-
vation, market insights and renowned partnerships. The Berylls Quintet is your high-perfor-
mance engine to succeed on this exciting road.
The future will happen, but different.
 Steffen Stumpp
Associate Partner

BERYLLS STRATEGY ADVISORS

[email protected]

Frederik Ruhm
Associate Partner
YOUR CONTACT PERSONS [email protected]

T +49-89-710 410 40-0 Steffan Lemke

Consultant
[email protected] [email protected]