What if the smartest part of a product is not the product itself but the tiny subsystem quietly making decisions and talking back? Designing the future becomes an exercise in coordinating many small, purposeful minds rather than relying on one central core.
I learned to drive early, earlier than was probably legal, and I learned it from people who treated driving not just as a skill but as a discipline. One lesson, shared almost casually, has stayed with me far longer than any rule or technique.
“Whenever you are about to cross an oncoming vehicle, always, even for a brief microsecond, look into the eyes of the other driver. That glance tells you more than speed, distance, or indicators ever will.”
That fleeting moment is a micro-interaction… a fraction of a second that communicates awareness, confidence, hesitation, and intent. Two humans exchange far more information than any explicit signal could encode and then move on.
Now consider the vehicles we are designing today.
As vehicles become increasingly autonomous, the human on the other side slowly disappears. Which part of the vehicle should I or my autonomous vehicle look at? And how does my vehicle glance back?
It is not a philosophical question. It is a design, engineering, and systems question. And it applies to every product or part we will design for the future.
As intelligence moves away from centralised systems and into edge and zonal computing, i.e., into parts, sub-systems, and embedded electronics, machines are no longer just executing logic. They are making decisions at the edge. And when systems at the edge make decisions, they must also communicate intent, state, and confidence.
A fundamental shift is underway: human-machine interaction (HMI) is moving from the product level to the part level.
This point of view explores that shift and what it means for original equipment manufacturers (OEMs), for embedded systems design, and for the rise of a new Tier-0.5 model, where suppliers evolve from component providers into strategic partners shaping intelligence, interaction, and experience at the edge.
Executive summary
Electronics everywhere
Electronic components today may account for more than ~35% of the price of an automobile. By 2030, this could approach 50%, turning even simple products into smart devices. This surge in electronic content means even traditionally simple products are becoming ‘smart devices,’ blurring the line between mechanical parts and digital technology.
Edge computing and distributed intelligence
Instead of routing all data to a central brain (ECU) or the cloud, there is a shift towards edge computing at a local or ‘zonal’ level. In vehicles, this is seen in zonal architectures where each zone of the car has its own controller for local sensors/actuators. This distributed intelligence is powered by new microcontrollers and systems-on-chips (SoCs) that can run tiny machine learning (TinyML) locally, enabling AI within the small, low-powered part itself.
AI-integrated microcontrollers (MCUs)
Advances in silicon are allowing tiny ML models on MCUs to let devices interpret sensor data and adapt without needing cloud connectivity.
Embedded HMI and micro interactions
As intelligence decentralises, HMI is also moving to the edge. An intelligent subsystem or part now often needs its own means of communicating status or receiving input. These interfaces are not always traditional screens; they can be multisensory cues like indicator LEDs, tactile feedback, or audio alerts. In effect, micro interactions are emerging at the part level, where each smart component provides a window into its ‘thinking’ or state.
Suppliers as strategic partners (Tier-0.5)
As parts become smarter, we see OEMs rely on suppliers not just for hardware but for integrated solutions that include software, AI algorithms, and even user interface elements. This is driving a model where traditional Tier-1 suppliers evolve into ‘Tier-0.5’ partners—working long-term with OEMs on design and R&D, jointly developing subsystems that align with the OEM’s product vision. Such Tier-0.5 suppliers will increasingly deliver ready-made intelligent parts (or sub-systems) that OEMs can plug-and-play into their products, dramatically cutting time-to-market. This partnership model, already seen in the automotive industry with digital cockpit platforms and ADAS systems, blurs the line between OEM and supplier in terms of innovation ownership.
From white-label products to white-label parts
A supplier’s part can come pre-packaged with intelligence and user experience, effectively serving as a mini-product that the end-user might never see, but feels through its functionality. A clear example of design thinking going into part development is AmpliSky— glass roofs for vehicles that switch from opaque or tinted to transparent in a very elegant manner, modulating light ambience and increasing comfort.
Growing electronics in every product
Today’s products—from toys to automobiles —contain far more electronics and software than ever before. The increasing percentage of electronics in product design is a fundamental driver of the shifts we are discussing.
Electronics are no longer add-ons; they define core product functionality in many cases.
Crucially, as more of the product value shifts to electronics and embedded software, the expertise to create those elements often lies with specialised Tier-1 suppliers or design partners. An OEM of, say, home appliances may not be an expert in designing wireless modules or AI algorithms—they depend on an ecosystem of electronics providers. The supplier’s role becomes larger and more collaborative, since the innovation (and risk) tied up in that 35-50% electronic content must be managed in tandem with the OEM’s overall product development.
Modern vehicles are illustrative of this trend: packed with distributed electronics and software. In cars, what were once purely mechanical systems are now managed by dozens of electronic control units—a complexity driving new architectures to manage it all.
From central brains to edge intelligence
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