Industrial product development is transforming: A product’s value is no longer determined by excellent mechanics and hardware alone. The critical value contribution and key differentiator is shifting decisively towards software. This opens up the opportunity for manufacturers to continuously evolve their products through updates, creating lasting value for their customers.
Speed is becoming the critical factor: In a world where products are increasingly software-defined, the demands on product management, development, and operations are rising. Markets expect updates, new features, and the highest level of security to be delivered fast and steadily. This high digital velocity is colliding with traditional, hardware-centric development processes that are quickly hitting their limits. Companies must learn to deliver features and bug fixes quickly, securely, and continuously throughout the entire product lifecycle.
Optimize development processes: One key lever is to apply the principles of lean production to software development, making speed and quality predictable. In this whitepaper, you will learn how to put this approach into practice by implementing a software factory.
Your take aways
- Strategic insight: why speed is the critical factor for product success.
- Concept explained: how the software factory helps to shorten time to market, increase quality, and foster continuous innovation in industrial product development.
- Guidance & first steps: how to analyze the value stream in your own development and successfully start the transformation.
The authors

Dr. Dennis Stapp, Expert for Strategy and Innovation, Business Area Industry
In his role as Head of the “Software-Defined Industrial Systems” Competence Center and as a specialist for strategy and innovation, Dr. Dennis Stapp is the expert for the digital transformation of industrial systems. He combines engineering expertise in turbomachinery with the entrepreneurial experience from founding a measurement technology spin-off. Today, he focuses on system and software development for smart products, measurement and automation technology, as well as AI and data strategies.

Dr. Tim Armbruster, Expert for Strategy and Digital Transformation
As co-founder and Head of ITK Consulting, Dr. Tim Armbruster is the expert for strategic digital transformation at ITK Engineering GmbH. His work incorporates more than 25 years of experience in software & hardware, technology, innovation, and management. Today, he supports a diverse range of customers in their digital transformation with his technical, strategic, and operational expertise. His focus areas include Smart Factory, Digital Engineering, and data strategy.
In a world where industrial products are increasingly software-defined, what matters is no longer what a product can do at launch, but how quickly it can evolve. The key is to create a holistic understanding of your own value creation, make the biggest bottlenecks visible, and question existing processes. Companies that start today are building the foundation to remain innovative and competitive for years to come.
![Expert develops software in a software factory with ai support. [AI-generated]](https://www.itk-engineering.de/wp-content/uploads/2026/06/itk-whitepaper-software-factory.jpg)
