Software-defined and AI-driven product ecosystems THEME 3 Evolutions of themes Transform products into adaptive, software-defined systems that continuously optimize performance and unlock “product-as-a-service” revenue models. Product lifecycle value Annual recurring revenue Software defined foundations — Software-defined architectures decouple hardware from software. — Over-the-air (OTA) updates enable feature upgrades and tuning post-delivery. — Embedded digital twins monitor performance across the product fleet.AI-enabled adaptive products — Integrated software-hardware platforms use AI-driven control and predictive analytics to refine performance continuously. — Edge-to-cloud learning enables adaptive updates.Autonomous product ecosystems — Autonomous, self-optimizing product ecosystems evolve in real time. — AI orchestrates feature evolution, maintenance and service delivery. — “Product-as-a-service” drives lifecycle value.NOW (0-2 years) NEAR (3-5 years) NEXT (5+ years) Objectives Digital platform + AI: next generation of battery cell developmentPRODUCT DEVELOPMENT | CASE STUDY Hithium and Electroder Challenge Solution Impact At Hithium, battery cells for energy storage must meet high performance and manufacturability standards, but trial and error R&D slows innovation and creates waste, driving the need for AI- enabled, simulation-driven battery development.Hithium leveraged Electroder’s AI- driven design automation platform combining advanced battery cell modelling, simulation-based virtual validation and a large language model enabled interface. The solution automatically generated relevant cell design options with essential targets for energy storage applications, validated performance digitally and enabled intuitive human-machine interaction to support faster, data- driven R&D decision-making. The initiative accelerated battery cell development, improved first-time design success, enhanced design reliability and reduced R&D iteration cycles. It enabled broader adoption of advanced digital tools across engineering teams. Impacts included: –2.5× faster battery cell development. –36% increase in first-time design hit rate. –30% rise in workforce adoption of advanced R&D tools. Through this collaboration, we are redefining battery cell development for energy storage. Combining Electroder’s AI simulation with Hithium’s cell engineering shows innovation can be faster, scalable and inclusive shifting R&D from trial-and-error to intelligence and empowering broader teams. Dean Xu, Chief AI Officer, Hithium and Luke Hu, Chief Executive Officer, ElectroderPRODUCT DEVELOPMENT Intelligent Industrial Operations Outlook 2026 35