Automotive Becomes Software – Leadership Becomes the Key

by Widukind Baier, Managing Partner and Global Head of the Practice Group Automotive & Mobility at InterSearch worldwide

The latest insights from McKinsey make it clear: while the traditional vehicle market is only growing moderately, the importance of software and electronics is exploding, with significant double‑digit billion‑dollar potential. SDVs, zonal architectures, OTA updates, and AI integration are no longer future visions — they already define the required competency profiles for key roles within OEMs, Tier 1s, and tech partners. AI‑enabled functions further increase complexity, making data‑driven competency profiles even more critical.

As someone who has supported leaders and experts along the global automotive value chain for many years, I see three central developments:

Leadership at the intersection of software, electronics, and product strategy

The next generation of vehicle architectures requires leaders who can orchestrate complex, software‑centric development environments. What’s needed are individuals who can interlink hardware and software roadmaps, consistently manage priorities, and align cross‑functional teams toward shared objectives — far beyond traditional functional responsibilities.

Leadership in ecosystems rather than value chains

The role of the “classic” OEM is evolving: collaborations with tech companies, semiconductor manufacturers, cloud providers, and start‑ups are becoming decisive success factors. This requires leaders who can strategically develop partnerships, manage dependencies, and navigate confidently within open, global networks. Especially in the context of AI‑based services, the need for exchange and interdependence is rising — leadership becomes active platform shaping.

Scalability and speed as a leadership mandate

Modern E/E architectures and Software‑Defined Vehicles demand continuous updates, faster releases, and iterative improvements. Leaders must be able to build agile organizational structures, maintain scalable architectures, and enable teams to deliver in shorter cycles — without compromising quality or safety.

My conclusion:

The competition of the future will not be decided between companies, but between their ability to attract, develop, and retain the right people.

The transformation is profound — but for those who make bold HR and organizational decisions today, it presents a tremendous opportunity. Do you have the right leaders on board for the technological shift?