Innovations in Transport

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Innovation shaping the

automotive industry
Proco Global speaks with Gentherm’s CTO Matt Fisch

procoglobal.com
AUTOMOTIVE INNOVATION

In these articles we discover

How innovation and change


are shaping the Technology
industry and Gentherm
page 04

Looking under the bonnet


of automotive innovation
at Gentherm
page 08

What’s driving the future of


Proco Global has partnered with Matt Fisch,
CTO at Gentherm – a company at the heart of
the automotive industry
page 12
industrial change – for a series of articles exploring
his experiences within the industry, how Gentherm 
are thinking differently and Matt’s insights into
what the future holders for the sector.

Matt is responsible for leading Gentherm’s technology


strategy, advanced product engineering, longer term R&D
and the Company’s partnership ecosystem to continue
Matt Fisch Gentherm’s heritage of introducing innovation in Climate and
Chief Technology Officer Comfort, Battery Thermal Management (BTM), Electronics,
Gentherm and patient thermal management products and solutions.

02 03
AUTOMOTIVE INNOVATION

How innovation and change


are shaping the Technology
industry and Gentherm

The Automotive industry has arguably experienced more change and disruption As the automotive industry transitions to EVs, the growing maturity of autonomous driving
will force automakers and suppliers to completely reimagine the in-cabin experience. 
than any other sector in recent years, underpinning the continued thirst for new
technology borne from consumer trends and increased expectation.

Firstly, can you tell us a bit about Gentherm? Interesting, and what about your role there? What inspired your interest in the sector? With an industry developing at such pace, what
keeps you interested and how do you remain ahead
Gentherm develops a broad range of heating and I joined Gentherm eight months ago to bring a system I’ve always been motivated by making the world a of the curve?
cooling and temperature control applications in the perspective and digital element to our technology better place through technology – and it also helps
Automotive and Medical industries. Our Automotive strategy and product pipeline. Our footprint in the cabin that I am a total automobile enthusiast! Coming from the world of software, there is a wealth
products include variable temperature Climate of an automobile allows us to be uniquely positioned of technical “brain food” in climate, comfort and the
Control Seats, heated automotive interior systems to create a system that provides a game-changing It’s an exciting time as we find the fine line between in-cabin experience to absorb. We have a Machine
(including heated seats, steering wheels, armrests and experience for the passenger.  For example, imagine developing breakthroughs in energy management Learning team at Gentherm that has spent years
other components), battery thermal management a future where you needn’t  worry about setting the that improve, not decrease, the EV driving range that developing an algorithm that predicts responses of the
systems, cable systems and other electronic devices. temperature or HVAC “mode” in your car. The car consumers have come to expect. human body to the (thermal) environment. I find this
Our Medical products include patient temperature should recognize who you are, how you are feeling, and and any AI to be a fascinating topic!
management systems. treat you accordingly from a comfort perspective. Additionally, as the automotive industry transitions 
to EVs, the growing maturity of autonomous driving Adding to this, what I find most noteworthy  is the
As a technology provider, when we look to the future of will force automakers and suppliers to completely team’s openness to exploring new ideas and ways
Our mission is to create and deliver the automotive industry, Gentherm is at the eye of the reimagine the in-cabin experience. It’s an exciting of working. We transitioned our Global Product
perfect storm for addressing key CO2 footprint issues time as we find the fine line between developing documentation and compliance management
extraordinary solutions that make and, improving energy efficiency in the growing Electric breakthroughs in energy management that improve, system from a traditional PLM approach to Atlassian
meaningful differences in everyday life, Vehicle (EV) market, while having the key elements not decrease, the EV driving range that consumers Confluence and JIRA in only four months. This is
necessary to transform the cabin experience that will have come to expect. simply remarkable for a manufacturing-driven
by improving health, wellness, comfort be required to meet  the demands of autonomous company that is at the tip of the iceberg of
and energy efficiency. driving (e.g. flexibility and automation). a digital transformation. In my experience, such a
transition can take over a year for even the most
seasoned SaaS companies. The team’s hunger to
collaborate and figure out new ways of solving
problems is simply inspiring and enables us to serve
our customers in unmatched fashion!

04 05
AUTOMOTIVE INNOVATION

Focus first on building


the right team, no
matter how difficult
the circumstances. 

What do you believe the key contributors to your It’s clearly an approach you are passionate about, What are some of the most surprising lessons What’s the best advice you’ve ever received?
personal success are? how has this helped you at Gentherm? you’ve learned along the way? Or given?

Never giving up. In my first eight months on the job, it became very


apparent that Gentherm’s ability to mobilize and innovate
As an Engineer, I’m wired to deliver results and have
a natural tendency to view the world through a lens
My advice: Focus first on building the right team, no
matter how difficult the circumstances. There will
Listening. quickly, while delivering, has fostered some very strategic
relationships with our global automaker customers.
of GSD (Getting Stuff Done). As a leader, it becomes
far more important to “GSD” through others and
always be massive pressure, deadlines, and customer
needs that create inertia to maintain the status
Building great teams! winning hearts and minds is key to that. Learning to quo. Having a diverse set of perspectives and
For example, during the early days of the COVID-19 putting the human element (empathy) first and taking personalities is a must, yet the leaders must be capable
I think it’s incredibly important to practice thought pandemic, we were selected by Ford to provide a key the time to understand others world views becomes of rowing in the same direction (rapid alignment). 
leadership and think boldly, while carefully balancing system element of an emergency project; The Powered incredibly powerful in driving transformation – whether With leadership, alignment comes multipliers in
intellectual curiosity by listening intently to my Air-Purifying Respirator (PAPR) – we took that from it be within your own team, a customer, or the industry. output because it empowers the team to operate with
customers, teammates, and industry co-travellers.  concept to product in less than 6 weeks! That came maximum creativity without bumping into guardrails
I ask what business challenges are keeping them awake from persistence, listening to our customer, and At Gentherm, we weave “outside-in” thinking on a daily basis.
at night and how we can solve them together, through having a great team in place to innovate. I should also to our innovation and new product development
this I often find that some of my most significant point out, that this year we are a recipient of General approach. Thought leadership is key to forging The best advice I have received is: Don’t try to change
breakthrough successes are achieved in between Motors’ prestigious Supplier of the Year Award. strategic relationships with our customers, but people – instead, take the time to understand your
business meetings, rather than in them. we must strongly complement that with deeply leaders’ talents and passion and align with the right
understanding our customers’ key challenges and opportunity. This is especially important when working
opportunities. From that, powerful ideas are borne. with peers – build a plan and execution in cooperation
with their swim lane and goals and not trying to
re-write it through your own lens.

06 07
AUTOMOTIVE INNOVATION

Looking under the bonnet Cultivating a culture of success

of automotive innovation
According to Gentherm CTO Matt Fisch, creating
the right culture is essential for innovation to thrive.
That’s why Fisch believes that innovation can’t be an

at Gentherm afterthought – it must be “woven into a company’s DNA”.

“When this is achieved, the output is greatly multiplied


versus a more traditional think tank approach,” says
Fisch. So, how do you embed a culture of innovation
into a company? At Gentherm, crowdsourcing is key to
In 1913 Henry Ford installed the first moving assembly line for automobiles. harnessing diverse ideas among its workforce.
It turbocharged the Ford Motor Company’s productivity, reducing the time
This is encapsulated by its invent! challenge. Launched
to build the Model T from 12 hours to an hour and 33 minutes. last year, the event revolves around a social networking
platform that gives hundreds of Gentherm employees
the chance to connect and share ideas. Or, as Fisch
The history of the automobile industry is bursting with Gentherm’s unique combination of expertise of sees it, it’s an opportunity for employees to flex their
such paradigm-changing innovations. From advances medical and automotive applications gives it the “innovation muscles”.
in safety to the rise of internet-connected vehicles, ability to create game-changing comfort, health and
a rich tapestry of pioneering companies have pushed wellness products. At the same time, it is addressing a This cross-pollination of thoughts resulted in 180 new
automotive technology to new frontiers. key requirement of the rapidly growing electric vehicle product ideas and was so successful that Gentherm is
(EV) market – energy efficiency. Gentherm’s extensive now integrating the platform into its daily operations
One such company is Gentherm. In 1996, it introduced research in thermophysiology – the interaction of the to foster its growing creative culture movement. This
the first heated and cooled car seat based on its human body with the environment – has seen it develop underscores how a culture of innovation is more than
revolutionary thermal electric technology. Gentherm a solution that provides significant energy savings and great ideas – it’s about creating the right professional
not only disrupted the industry – it created one. a range boost for EVs. process and treating it as a discipline that constantly
requires refinement and feedback.
Some 86 years after Ford’s first production line, the Ford It does this all while improving passenger comfort
Motor Company became the first to adopt Gentherm’s with its ClimateSense™️ technology, which combines “I’m a big fan of a crowdsourcing,” says Fisch. “It is the
Climate Control Seat system. Today, Gentherm’s heated smart electronics, thermal effectors and an most powerful way to capture diversity of thought, and
and cooled car seat can be found in more than 50 AI-based software control system. But what are the in my experience, companies that build in diversity with
vehicles made by a plethora of carmakers. key ingredients for success that make up an innovative their ideation process are far more successful.”
automotive company like Gentherm?
But true innovators do not stand still – they are always While crowdsourcing can create concerns around
looking for the next market to disrupt. maintaining secrecy in a highly competitive industry,
Fisch believes the risk is “greatly outweighed by the
multiplier effect of a community driven thought
process”. Besides, idea generation is just the first
step on the journey to delivering a great product.
And their success is essentially governed by one
metric – customer uptake.

08 09
AUTOMOTIVE INNOVATION

The future of the automotive industry

The automotive industry has changed dramatically in


the 108 years since Henry Ford’s first production line.
One fact has remained constant throughout this: new
problems create fresh opportunities for innovators to
create positive solutions.

Gentherm believes it is essential to be ready to


adapt to change. Only with this agile approach can
companies create paradigms that positively impact
lives. The ongoing Covid-19 pandemic is a prime
example of sudden, industry shaking disruption.
Lockdown restrictions have dramatically reshaped the
way people work, travel and interact.

Outside-in thinking: Putting customers first People power “This means that our priorities continue to shift, and we
must remain curious and agile to delight our customers,”
It all starts with an innovative idea, but to truly disrupt In the same way that a building is only as sturdy as its says Fisch. “At the heart of this is innovation.”
an industry requires a laser focus on solving customer foundations, a successful company is only as strong
problems. This ‘outside-in’ thinking is what drives some of as its people. Gentherm believes teamwork is essential But what does the future of the automotive industry
the most successful technology companies on the planet. for fostering innovation and that it’s particularly hold? In the third and final post in this series, we’ll look
important when creating complex products. Much at the technology and trends that are driving change
Amazon founder and CEO Jeff Bezos is a key like Henry Ford’s production line, specialisation allows in the automotive industry – from connected cars to
practitioner of outside-in thinking, having said: “the teams to focus their efforts on ensuring each part of autonomous vehicles – and how Gentherm is remaining
most important single thing is to focus obsessively on the product reaches the highest standards. at the forefront of a rapidly evolving industry.
the customer”.
Gentherm also encourages assertive thought
This same ethos underpins Gentherm’s approach to leadership to help ensure the best outcome for its
innovation. Instead of a solution looking for a problem, customers. “We take risks by sharing our vision for
true innovators identify a problem and concentrate helping our customers to win and differentiate – rather
their efforts on solving it. This requires an open and than simply reacting to request for quotations (RFQs),”
ongoing dialogue with customers, ensuring that their says Fisch. This approach requires employees to be
feedback is driving the direction of the product. “possibility thinkers”.
“As engineers, we naturally obsess over technology – but
we must first put ourselves in the customer’s or target “This means having the courage to ask, ‘why not?’
audience’s shoes,” says Fisch. “Then we think about the and ‘what if?’ and resisting the tendency to obsess over We take risks by sharing our
vision for helping our customers
technology that’s required to solve that problem.” the reasons why an idea may not work,” says Fisch.
Combining these characteristics with outside-in
It is this approach that leads to long-lasting relationships
with OEMs and it’s why Gentherm is focused on anticipating
thinking and data-driven decision making creates
the optimal conditions for a culture of innovation.
to win and differentiate – rather
the rapidly changing needs of the EV market. “It is this type of thinking that is part of the reason than simply reacting to request
we are continuing to disrupt the industry we helped
create more than 25 years ago,” adds Fisch. for quotations (RFQs).
10 11
AUTOMOTIVE INNOVATION

What’s driving the future


of the automotive industry

For more than a century the automobile industry has been a magnet for Overcoming roadblocks

innovation. But as with many sectors, the pace of technological progress An automobile is the sum of its parts, and those parts
has shifted up a gear in recent years. are made by an ever-growing number of suppliers.
While such specialisation results in a better final
product, the sheer number of “loosely coupled” sub-
systems in a vehicle make it increasingly challenging to
Electrification, connectivity, autonomous driving and The Michigan, US-headquartered company is
ensure all the parts work in harmony. Or, as Fisch puts
shared mobility are the main trends that Matt Fisch, developing system solutions and software that cater
it, automobile OEMs “must provide massive amounts
believes will shape the industry over the next decade. to the changing needs associated with the EV market.
of development and ‘human glue’ to allow the systems
Each of these trends will have knock-on consequences. It’s not hypothetical – all its solutions are based on
of hundreds of suppliers to work together to deliver the
For example, the increasing range and performance technology that already exists today. For example,
desired experience, safety, and performance”.
of electric vehicles (EVs) will disrupt the idea of its ClimateSenseTM solution provides personalised
centralised heating and cooling in vehicle, says Fisch. thermal comfort in one intelligent, energy efficient and
The challenge is made more difficult by the growing
And as software becomes more integrated into integrated system.
complexity of automobile sub-systems. One way to
the design and development of automobiles,
overcome this, says Fisch, is to think like application
intelligent vehicles will be able to tailor preferences Staying with EVs, Gentherm is turning to tech to
developers for consumer devices, providing “software
to passengers automatically. address another concern – range anxiety. One current
libraries” in the same way as a smart phone or tablet.
barrier to EV adoption is the time it takes to recharge,
Gentherm is already preparing for this by building APIs
This will also bring with it a demand for increased which can range from as little as 30 minutes to 12
– a software interface – for its climate management
comfort and convenience, as well as a focus on health hours and beyond – a far cry from the minutes spent at
solutions that will bring consistency across multiple
and wellness. For Gentherm, which created the first a petrol pump.
vehicle lines.
thermoelectrically heated and cooled seat system for the
automotive industry, these advances spell opportunity. Matching this speed requires a massive energy transfer
“This will greatly reduce the amount of integration
in a very short period of time. This in turn generates
effort and cost that must be performed by our
“Just as many of our children today don’t need to know a large amount of heat, says Fisch. To counter this,
customers,” says Fisch.
how to operate a rotary dial telephone from the 1980s, Gentherm has created a range of battery performance
automobile occupants will no longer have to fumble solutions that are designed to help maintain consistent
with temperature and fan settings to be comfortable.” performance and maximise charging capacity.

12 13
AUTOMOTIVE INNOVATION

Top technical talent likes to Reflecting on 2020 – and looking beyond 2021

be part of a winning team For Fisch, the past year has underscored the importance
of the little things in life, such as spending more time
with a compelling vision with the family. He believes that technology can help
us have more of these moments, with crowdsourced
services such as Instacart just one example.

Beyond the rapid transformation in the automobile


industry, Fisch believes that augmented reality and
ecommerce are the biggest technologies to watch
out for. And often, these new technologies end up
changing the little things as much as the big things.

Widening the talent pool “We have a busy ice cream stand right up the street
that broke a 30-plus year revenue record in 2020
Overcoming challenges requires the brightest talent. Gentherm’s work in the field of EV energy saving has thanks in part to the adoption of mobile payment
But as the automobile sector has increasingly helped make it an attractive place for top talent and technology that I helped to create a few years back,”
overlapped with other digital industries, competition for leadership. The company also has an AGILE deployment says Fisch.
skilled workers has become fiercer. According to Fisch, execution process, which draws from the various
the talent pool needs to grow from “non-traditional specialities of employees who are “hungry to learn new “Being part of Gentherm has me completely jazzed
sources”. This includes OEMs and suppliers being open things”. The Covid-19 pandemic has meant reapproaching about the influential role we will play in the broader
to hiring talent without prior automotive experience. the way employees carry out their work. Over the past adoption of EVs in the coming decade!”
year Gentherm’s manufacturing and office locations
“This is an especially significant challenge for companies have adopted its Safe Work Playbook, while non-
that haven’t traditionally played in the areas of digital manufacturing teams have adopted remote working.
technology,” explains Fisch. “Top technical talent likes
to be part of a winning team with a compelling vision – “I have been impressed with our rapid transition
that is poised to contribute something profound to the to remote work and the laser focus of meeting our
industry, society and the environment.” customer’s needs,” says Fisch. “We are learning new
ways to collaborate, and I believe this has helped
us maintain a competitive advantage in delivering
solutions to our customers.” Fisch believes that the
tragic impact of Covid-19 and the disruption it has
caused means it won’t be business as usual for the
automobile sector and beyond. “This leads to profound
changes in our daily needs and behaviours, which in
turn creates opportunities for technology to improve
our everyday lives,” he says.

We’d like to thank Matt for providing valuable


insight into his evolving mandate at Gentherm,
it’s clear that innovation and transformational
change are at the core of his role.

Discover more at procoglobal.com/insights

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