Mercedes-Benz announced a new software strategy

According to virtual investor and analyst conference titled »Mercedes-Benz Strategy Update« on October 6, 2020, the German automobile giant announced a new key strategy about its software develop plan.

The company mentioned that “Mercedes-Benz will reshape its product portfolio, brand communications and its sales network to deliver a true luxury experience – a luxury experience that will be electric, software-driven and sustainable.”

“In the area of car software, Mercedes-Benz has announced its own proprietary MB.OS operating system. This will be developed in-house and is scheduled for launch in 2024. It will allow Mercedes-Benz to centralize the control of all the vehicles’ domains and also its consumer interfaces. Proprietary software development will allow greater speed and more frequent updates, and will be designed around scalable architectures that will control future development costs.”

Who is Mercedes-Benz?

According to the company’s Homepage, Mercedes-Benz is explained as follows.

Mercedes-Benz AG is responsible for the global business of Mercedes-Benz Cars and Mercedes-Benz Vans with over 173,000 employees worldwide. Ola Källenius is Chairman of the Board of Management of Mercedes-Benz AG.

The company focuses on the development, production and sales of passenger cars, vans and services. Furthermore, the company aspires to be leading in the fields of connectivity, automated driving and alternative drives with its forward-looking innovations. The product portfolio comprises the Mercedes-Benz brand with the sub-brands Mercedes-AMG, Mercedes-Maybach and Mercedes me – as well as the smart brand, and the EQ product and technology brand for electric mobility.

Mercedes-Benz AG is one of the largest manufacturers of premium passenger cars. In 2019 it sold nearly 2.4 million cars and more than 438,000 vans. In its two business divisions, Mercedes-Benz AG is continually expanding its worldwide production network with over 40 production sites on four continents, while aligning itself to meet the requirements of electric mobility. At the same time, the company is developing its global battery production network on three continents. Sustainable actions play a decisive role in both business divisions.

To the company, sustainability means creating value for all stakeholders on a lasting basis: customers, employees, investors, business partners and the society as a whole. The basis for this is the sustainable business strategy of Daimler in which the company takes responsibility for the economic, ecological and social effects of its business activities and looks at the entire value chain.

Automobile can be next our home?

The more autonomous and electric vehicles are transformed, the more automobiles will be new living spaces. If the inside of cars becomes our living spaces, what will be important in the next? That should be our experiences, like music, video game, TV and so on. Therefore, Mercedes-Benz wants to improve its software as well as hardware.  The Germany automobile giant will try to create luxury cars like 5 star hotels and will we be able to enjoy them?

Connectivity is one of the key concepts in automobile sector in next 10 years

After the arrival of the Internet, there are some buzzwords that are related to the connectivity such as the Internet of Things, the Internet of Everything, and Smart Home. Thanks to technological advancements, we can digitize our physical activities, which means that we can understand our way of life by checking THE data. For example, we can easily check how many steps we walk everyday by using smartphone app. After digitizing our physical activities, we can connect them to other data, and this concept based on the connectivity. When we use electric vehicles, it is also possible that our activities will be recorded in them. For instance, from where to where we moved, when we turned on and off them. This is another reason why we could say they are next smartphones so that EVs are probably the next important interface between machines and humans.

In addition to this, as we see the other article about Daimler’s decision, the company seeks electrification and autonomous driving separately. As a result, Mercedes-Benz will be able to focus on the development of EVs and their software. We might expect that the German luxury car surpass Tesla in terms of brand awareness of electric vehicle.