Automotive IT leaders struggle to deliver modernisation

Rocket Software has published research showing that automotive IT leaders are struggling to turn modernisation plans into production. The survey found that integration work is often still not fully deployed.

Integrating mission-critical systems with modern platforms was the top priority for respondents, but only 43% of those pursuing that goal said the work was actively deployed or fully implemented. The study was based on a survey of 52 automotive IT leaders across original equipment manufacturers, suppliers, distributors and aftermarket organisations. Of those surveyed, 77% held C-suite, board-level or senior leadership roles.

The findings point to an execution gap in a sector where companies are updating systems tied to production, supply chains and inventory management. Respondents reported complex application environments, inconsistent data, operational risk and fragmented delivery as they tried to modernise critical systems.

Execution gap

A key issue is the lack of central coordination. Only 35% of respondents said they had a centralised, coordinated modernisation programme, even though projects often span production, supply chain, inventory, data, applications and infrastructure.

The survey also found a gap between confidence and operational outcomes. While 70% said they were at least moderately confident they could modernise without affecting production continuity, more than a third had already experienced unplanned downtime or instability, rollbacks, higher short-term costs or extended parallel runs.

That suggests many automotive businesses still find it difficult to turn strategy into live deployment without disrupting operations. For manufacturers and suppliers, any instability in core systems can affect plant output, inventory accuracy and logistics visibility.

Half of respondents said their preferred future architecture would combine core systems with cloud-native extensions. This suggests many automotive IT teams are not seeking full replacement of older platforms, but instead are trying to connect existing systems to newer tools and services.

Neil Fowler, Senior Vice President of Hybrid Cloud Engineering at Rocket Software, said the research showed the pace of change was creating pressure in environments where reliability remains critical.

"Automotive IT leaders are moving quickly to modernise, but this research shows that execution across critical systems remains a challenge," said Neil Fowler, Senior Vice President of Hybrid Cloud Engineering at Rocket Software.

"Speed alone can't be the measure of success when production and supply chains are on the line. The opportunity is to build on trusted systems while improving visibility, strengthening data integrity and adopting new capabilities in ways that keep the business running," Fowler said.

Data concerns

The research identified data integrity as a recurring problem in modernisation efforts. Data inconsistencies were ranked as the leading operational risk posed by mission-critical systems, while also contributing to friction in broader transformation work and concerns around the use of AI.

Better real-time visibility and decision-making ranked as the top desired outcome from modernisation. Yet supply chain visibility ranked lowest among the areas where respondents expected significant or transformational improvement over the next three years.

That suggests a disconnect between ambition and expected gains. Automotive businesses may be investing in more connected systems, but many leaders still appear unconvinced that those changes will deliver a marked improvement in visibility across supply networks.

AI scrutiny

The survey found that most respondents were already using or evaluating AI in parts of the modernisation process. Areas cited included test generation, process discovery, code conversion and documentation.

Even so, the findings indicate that trust remains a barrier to broader adoption. Respondents raised questions about preserving embedded business logic, explaining AI-generated outputs, validating results and meeting security and compliance requirements.

For automotive companies, those concerns are likely to be especially acute because software changes can affect manufacturing workflows, parts availability and compliance processes. The research suggests wider use of AI in modernisation will depend not just on technical adoption, but on whether companies can build governance and validation around the tools they use.

The results also underline the continued importance of hybrid IT models in large industrial organisations. Many automotive groups still rely on long-established systems to run core operations, and the preference for combining those environments with cloud-based extensions suggests a measured approach rather than wholesale replacement.

As manufacturers, suppliers and distributors face pressure to improve resilience and visibility, the survey points to a common problem: the challenge is no longer deciding to modernise, but carrying it through in live operational settings without undermining continuity.