The use of embedded software in products is rapidly growing, permeating nearly every industry, from the military to media and entertainment. It is changing how companies compete. To compete in the global economy, incent purchases in tough times and address rising customer expectations, products are expanding in scope to deliver more value and function. They are more instrumented, interconnected and intelligent. They are smarter. This paper offers ways that companies can establish a strategic advantage in managing change. It suggests a structured approach to managing change amid the complexity of smarter product development in which the rapid evolution of software plays a major part.