Executive Summary

WHY now is the time to act

The rise of software-defined vehicles (SDVs) is reshaping the economics of the automotive industry. Software has become the primary driver of differentiation and profit, while digital-native OEMs, particularly from China, set the benchmark with weekly OTA releases, vertically integrated organizations, and cost structures that are up to 40% lower than those of their legacy peers. An example of this can be seen in the quadrupling of the market share of Chinese OEMs in Europe since 2020. Without a fundamental redesign of their R&D operating model, incumbents risk not only falling behind but also becoming irrelevant.

WHAT it takes is a dual transformation of the operating model

Winning in the SDV era depends on two essential shifts: First, a strategic transformation that aligns the operating model with SDV-driven product strategy, and second, an operational transformation that delivers speed and efficiency by simplifying structures, accelerating workflows, and optimizing workforce setup. The SDV.OM (Operating Model) Framework, developed by Berylls by AlixPartners and the Institute of Technology Management at the University of St. Gallen, builds on insights from leading industry executives and provides practical guidance for assessing and transforming R&D operating models. Structured around six key dimensions and corresponding 18 action fields, it focuses on the KPIs that truly matter. This enables fact-based performance baselining and direct benchmarking against SDV front-runners.

HOW to turn strategy into measurable performance

The SDV.OM Framework provides a clear path to steer the dual transformation of R&D organizations. The process begins with preparation, involving the alignment of key decision-makers and the establishment of a validated fact base across the six operating model dimensions. It continues with analysis, benchmarking against SDV front-runners to expose the execution gaps that matter most. Finally, it drives transformation by closing these gaps with targeted measures, clear ownership, and continuous steering via the SDV.OM Framework. Applied with discipline, the playbook enables CTOs to turn strategy into measurable R&D performance.