Automotive Executive Guide

Rethinking Automotive Development: Virtualization for the Software-Defined Era

The High-Stakes Shift from Mechatronics to Software-Defined Vehicles — and Why Virtualization Is Key to Staying Competitive

The automotive industry is undergoing a major transformation as vehicles become increasingly software-driven. This shift is disrupting traditional business models and development processes, especially for established OEMs.

The rise of CASE (Connected, Autonomous, Shared, Electric) vehicles brings new technical and economic challenges. Competition is intensifying, with Chinese OEMs and software-focused companies demonstrating faster, more agile, and modular approaches.

OEMs face numerous challenges, including legacy structures versus new paradigms, R&D inefficiency, integration delays, cultural and organizational shifts, and mounting competitive pressure.

This Executive Guide provides a strategic roadmap for navigating these high-stakes challenges.

This is not a technical how-to or product pitch. Instead, it offers insights on:

• Why “cost at SOP” is no longer a sufficient success metric
• How the economics of software are redefining R&D priorities
• What drives the urgency behind faster, modular development cycles
• Why legacy organizational structures struggle
• How early virtualization and system-level automation can unlock cost savings and reduce SOP delays

This guide is ideal for:

• Automotive executives seeking a competitive edge
• R&D leaders aiming to accelerate innovation
• Software, integration, and validation managers
• IT and digital transformation professionals
• Anyone working on CASE-driven automotive projects

About the Authors

Hanno Wolff is Executive Director of Automotive Product Management at Synopsys. Dr. Burkhard Göeschel is a former BMW Board Member and a global automotive leader. Their combined experience delivers valuable insights and proven strategies.