It was an impressive line-up standing in the spotlight last week when five prominent French automotive and defense industrial companies threw down the gauntlet for a comprehensive European technology initiative: Software République.

In a C-level event, Dassault's CEO Bernard Charlès, Renault Group's CEO Luca de Meo, Atos' CEO Elie Girard, STMicroelectronics' CEO Jean-Marc Chery and Thales' CEO Patrice Caine announced their intention to partner up for an initiative centered around a new ecosystem for innovation in intelligent mobility.

By gathering and integrating expertise and solutions from the different areas these companies represent—PLM from Dassault Systèmes, EV knowledge from Renault, cloud and cyber security from Atos, for example—the group plans to develop, tailor and market complete systems and software to provide digitally powerful and environmentally sustainable mobility offers for cities, regions, companies and citizens.

It is also expected that more companies than these five French founders will join this "new republic."

But what was presented on stage included ideas far beyond automotive and PLM.

“The vehicle is no longer the central point of the automotive value chain, as software, electronics and on-board intelligence increasingly determine both the value and use of the vehicle for new mobility needs and services. We want to work together with partners in the Software République to position ourselves as a pioneer in this new mobility value chain,” concluded Renault Group’s CEO, Luca de Meo.

The five initiators of "Software République": Atos’ Elie Girard, Dassault’s Bernard Charlès, Renault Group’s Luca de Meo, STMicroelectronics’ Jean-Marc Chery and Thales´ Patrice Caine. The plan is to create an open innovation ecosystem, founded by five leaders in the field of vehicles and technology. In the long run, however, the group claims that it will not limit itself to just these five companies, but will also welcome new members and develop open partnerships. Success with this type of broad partnership requires a great deal of resources and commitment from the parties involved to realize the great ambitions. Will this new “République” succeed? “There are some tough obstacles,” writes engineering.com’s European correspondent, Verdi Ogewell, adding that, “As it stands initially, this looks more like a French than European project. Another limiting point can be that the collaborative PLM platform for the project, according to Bernard Charles, appears to be set on Dassault’s 3DEXPERIENCE.”

These are wise words from de Meo, and it is interesting to note that the ideas presented by him and Bernard Charles during the event strongly reflect what potential customers in the above-defined target groups want: well-functioning comprehensive solutions based on cooperation between the parties required to develop broad-based solutions, functioning within a framework of “artificial intelligence, cyber security, online connections, embedded electronics/systems and digital twin technology,” as described in the press material around the initiative.

However, as mentioned above, this initiative is about more than designing new broad technological platforms and system solutions. It also contains an industry political aspect: according to the initiators, “European sovereignty and new value proposals are at stake” by the present global situation.

All together this is no small challenge to tackle. If it has been tough for larger companies to tear down internal silos between departments, then additional inter-company silos may prove even tougher to break down. But there are many other challenges. Bottom line: is the Software République a realistic European project, or is it more of a French industry vision?

I have taken a look at the initiative in this article and discuss both the possibilities and the obstacles.

Mobility Is Growing Explosively

First and foremost, what Dassault’s Bernard Charles and his colleagues are absolutely right about is that mobility solutions are growing explosively in importance, and broader collaborations will be required to coordinate and develop concrete solutions across company boundaries. It is also strategically wise, as Bernard and the others do, to assume that the rationale for the “République’s” move to tap into a mobility market that the partners say is changing and offering new opportunities is the correct course of action.

According to Boston Consulting Group, the global mobility market will grow 60 percent by 2035, and reach a staggering 11,000 billion euros.

This growth is mainly driven by the emergence of technological disruptions—such as electric vehicles, new components, new customer services and other value-added services—whose share is increasing from 5 percent to 45 percent of the global mobility market.

Part of the background analysis is also that large industrial players on other continents, often with state support, are already positioning themselves to develop many of these new technologies through improved integration strategies. Today, the founding members of Software République express urgency for “France and Europe to collectively build a sustainable ecosystem aimed at ensuring their sovereignty in this area.”

Let me stress the word “France” here. This choice of formulation reveals a somewhat “France first” dimension of the project, as does the choice to spell the word "République" in French instead of the internationally more common English spelling, "Republic."

Three Main Areas for Cooperation

So, what do the ideas behind what this group will develop look like in terms of structure and content? Primarily the Software République is supposed to become an “open innovation ecosystem.” Founded by five leaders in the fields of automotive, electronics, defense, cloud and PLM technologies, in the long run the group claims that it will not limit itself to just these five players, but will also welcome new members and develop open collaborations.

In order to jointly develop and market intelligent mobility systems that enable the implementation of a customized and flexible mobility offer, three main areas for cooperation have been identified:

Intelligent systems to facilitate secure connections between the vehicle and its digital and physical environment.
Simulation and data management systems to optimize flows for territories and companies.
Energy system to simplify the charging experience.

For example, the following topics are discussed by the Software République parties:

Plug and Charge

The development of new technology and services that make it possible to automatically recognize an electric car, connected to a compatible charging point, and to perform a charge without any action by the user.

Optimize Mobility Flows for Territories

The group also intends to facilitate access to and simulation of the exchange of mobility information, immediately and openly across cities and regions, to enable:

Consumers’ being able to choose the best way to move according to time, comfort or energy management.
Operators’ ability to enrich their services.
Public authorities’ ablity to simulate and implement mobility scenarios, such as emergency management, events, etc.
Urban planners to be better able to anticipate the planning of land use.

Creating an Investment Fund

To promote innovation, Software République will also seek to create an investment fund to fund the most promising start-ups and an incubator to host start-ups in smart mobility technology. Start-ups will have access to a shared virtual development and experimental environment, and mentorship through a value network. For the launch of the ecosystem for start-ups and universities, the partners in Software République plan to organize a computer challenge to contribute to the development of the technologies for tomorrow's mobility: electric, connected and autonomous.

To achieve the goals of the Software Republique project, “it will rely on the collaborative virtual environment provided by Dassault Systèmes’ 3DEXPERIENCE platform and on virtual twin experiences,” says Dassault’s CEO and vice president, Bernard Charles. “It will also benefit from the 3DEXPERIENCE Lab start-up accelerator.”

Beyond the Vehicle Sector

These are ambitious goals, and the declarations of these participating executives are surprising in several ways—mostly because they seem to refer to a highly integrated and deep collaboration. This is likely to take a long time to launch and translate into integrated flows across not just domains and company borders, but maybe also across national borders—that is, if the initiating companies get what they want.

This is how Dassault’s Bernard Charles, who is well known for his visionary thinking and was one of the first to formulate the concept around PLM, views the new network.

"Far beyond the automotive sector, it is a question of thinking in terms of use—mobility offering a work and leisure environment that is part of a sustainable economy,” Charles says. “This experience economy goes hand in hand with an industry renaissance worldwide: the new mobility economy will be organized into new, collaborative value networks based on digital platforms.”

Furthermore, he declared that, “The Software République is thus a multi-industry and multidisciplinary ecosystem that aims to accelerate innovation and grow the driving forces of tomorrow. To achieve this, it will rely on the collaborative virtual environment provided by Dassault Systèmes’ 3DEXPERIENCE platform (3DX) and on virtual twin experiences. It will also benefit from the 3DEXPERIENCE Lab start-up accelerator," making it very clear that Dassault’s platform will be the common product data and cPDm (collaborative Product Definition management) backbone in the project.

There is no doubt that this will make it harder for non-Dassault-driven developers and companies to participate in the “République.” Can Siemens Digital Industries or PTC participate? What about their respective Teamcenter and Windchill platforms? Or companies working in these environments?

Bernard Charles is always well-formulated, ambitious and visionary. At the theoretical level there are a number of gains that can be brought home by coordinating the development movements in the complex type of projects Software République is aiming at. However, these are not simple things, and sometimes this type of partnership has a tendency to fade away over time, if quick success can’t be brought home.

Take the example of the factory automation partnership between Dassault and ABB, a transnational and cross-company project that generally seems to have resulted in very few concrete program results.

This does not have to be the case with the Software République, but this initiative requires a great deal from the parties involved in the form of resources and commitment to realize their ambitions. But there are more concrete problems that may limit the project's potential to attract non-French or competing PLM companies—given that Dassault seems to be set on 3DEXPERIENCE, the company's PLM platform, being the common collaboration platform. The question becomes, how do you approach the use of, for example, Siemens Digital Industries’ PLM suite Teamcenter?

My Take: An Exciting Proposal, But There Are Big Challenges

In summary, the Software Republique sounds more like an initiative for French industry, rather than European. The idea behind the setup is driven by Renault Group and all the participating allies are French. There is nothing wrong with that, but by being presented as a European project, there should have been German, Spanish, Italian, Austrian or Swedish companies participating, just to mention a few options.

Furthermore, building the basic PLM setup around the initiative on Dassault’s 3DEXPERIENCE PLM platform may, as discussed above, limit the reach for the group. Notably, as of today the five founders are generally 3DEXPERIENCE users.

Other issues are likely to arise when dealing with members who have extensive operations on other continents and who may also be owners or co-owners of non-European origin. Could it be that, for example, China and Chinese technological successes are the worry?

Generally, and on a transnational level, the European Union has also lately shown difficulties in sticking together when self-interest is threatened. Brexit, COVID-19 distribution differences and migration policies have shown that self-interest can cause big collaboration problems. Are companies so much more generous?

Apart from this, the idea sounds magnificent, but we will probably have to wait for the full assessment until this seed sprouts and begins to grow. We simply need to know more.

“Embedded Intelligence Systems Are the New Driving Force”

Finally, let me quote some of the statements made by participating company CEOs:

Elie Girard, CEO of Atos:

“Atos is proud to be one of the founders of Software République. As a technology creator and integrator of complex solutions, we will offer this unique ecosystem our digital expertise in reducing the carbon footprint and our innovative technologies in key areas such as artificial intelligence, digital security, cloud, IoT or high-performance computing. By combining the strengths of five of the world's leading automotive and technology players, this initiative promises to accelerate the decolonization of mobility."

Luca de Meo, CEO of Renault Group:

“In the new value chain for mobility, embedded intelligence systems are the new driving force, where all research and investment is now concentrated. Faced with this technical challenge, we choose to play collectively and openly. There will be no emphasis but on the value of multiplying each person's opportunities with others. The combined expertise in cybersecurity, microelectronics, energy and data management enables us to develop unique, groundbreaking solutions for low-carbon, shared and responsible mobility, manufactured in Europe.”

Patrice Caine, CEO of Thales:

“Software République provides a common and disruptive momentum, which is essential for the mobility ecosystem. Based on proven experience in digital security in highly demanding markets such as transportation, banking, defense or aviation, Thales will share its expertise in artificial intelligence, cyber security and connectivity to strengthen the protection of vehicles, their data and those involved in mobility.”