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Insights · Executive conversations · Perspective · 4 min

The threefold transformation of ZF Group: driving a data-driven future

How a global automotive powerhouse is navigating its evolution toward software-driven innovation

By Brandon M. LewisPublished 9 June 2025
Dr. René Deist
Software Excellence Network · Master class · March 2022
Dr. René Deist · SVP, ZF Group
“A Threefold Transformation Towards Data Company”
Softwareproduktion & Sustainability · Hasso Plattner Institute, Potsdam · Article published 9 June 2025
Event page →

From hardware giant to software powerhouse

ZF's roots as a traditional hardware manufacturer are undeniable—it has long been synonymous with gears, components, and mechanical systems. However, the landscape of the automotive industry has changed dramatically. Dr. Deist emphasized that ZF is no longer just about gears and hardware; it's about integrating software solutions at every level.

ZF's foray into autonomous systems, motion control, and electric mobility showcases its evolution. For instance, the company's operating systems for autonomous driving aren't merely software add-ons but are at the core of its product ecosystem. Dr. Deist likened this transformation to building a highly scalable and reliable computational backbone, comparable to how Microsoft designs cloud ecosystems.

Leveraging cloud strategies for scalable growth

One of the most critical enablers of ZF's transformation is its robust cloud strategy. Dr. Deist shared how ZF developed a versatile cloud infrastructure that supports multi-cloud environments, enabling seamless integration across different systems. This adaptability ensures that ZF can cater to the unique needs of diverse customers while maintaining operational efficiency.

ZF's cloud infrastructure serves as more than data storage—it enables real-time analysis driving predictive maintenance, optimized supply chains, and enhanced production workflows across its 183 global manufacturing facilities. This commitment supports sustainability through reduced waste and energy consumption.

Shaping the future of mobility

ZF's vision extends beyond traditional automotive applications to embrace broader mobility ecosystems. The company actively develops smart shuttles and autonomous transportation solutions addressing urban mobility challenges. Dr. Deist highlighted how ZF's solutions integrate with infrastructure like traffic lights and parking systems.

ZF's Autonomous Transport System combines software, hardware, and sensors for safe and efficient mobility. While these shuttles serve as testbeds rather than commercial products, they validate innovations reshaping commercial vehicle operations.

Transformation within: people, processes, and culture

Internally, ZF undergoes cultural and structural shifts aligning with digital ambitions. Dr. Deist noted the company embraces agile methodologies and over-the-air updates bringing flexibility and speed to operations.

ZF's Accelerate Excellence initiative exemplifies this transformation by bridging software development across divisions, creating an integrated ecosystem where innovation permeates the entire organization rather than occurring in isolated silos.

A new era of collaboration

Collaboration anchors ZF's strategy. Dr. Deist described partnerships like those with Microsoft accelerating innovation capabilities. Microsoft's cloud enables ZF to build centralized platforms for production monitoring and supply chain management, unlocking unprecedented efficiencies.

Partnerships extend to municipalities and urban planners as ZF develops systems connecting vehicles with smart city infrastructure, driving mobility-as-a-service evolution across industries.

Sustainability as a strategic priority

Dr. Deist underscored sustainability's importance in ZF's transformation. Cloud-enabled production systems minimize resource consumption while maximizing output. ZF's innovations in electric mobility and renewable energy applications demonstrate environmental commitment.

Sustainability guides every decision, from product design to supply chain management.

Building the future on a digital foundation

Dr. Deist's presentation depicted ZF as a forward-thinking, data-driven organization. By combining hardware expertise with cutting-edge software capabilities, ZF positions itself to lead automotive industry evolution into a future defined by smart mobility, sustainable solutions, and unprecedented innovation.

From the gathering · Softwareproduktion & Sustainability
▶ Recording
The talk
A Threefold Transformation Towards Data Company
Dr. René Deist · SVP, ZF Group

Deist outlines ZF Group’s transformation program and how becoming a data-driven company connects to broader sustainability objectives.

In the room · speakers and panelists
March 2022 · Hasso Plattner Institute, PotsdamSeven recordings and six slide decksParticipants from banking, insurance, industry and technology
Dr. Johannes Bohnet
Dr. Johannes Bohnet
Founder & CEO, Seerene
Dorothée Appel
Dorothée Appel
CIO Personal & Business Banking and Functions, ABN AMRO Bank N.V.
Prof. Dr. Jürgen Döllner
Prof. Dr. Jürgen Döllner
Professor of Computer Science, Hasso Plattner Institute
Prof. Dr. Hermann Sikora
Prof. Dr. Hermann Sikora
CEO, Raiffeisen Software GmbH
Oliver Viel
Oliver Viel
CMO, Seerene & German Deep Tech Group
Bernhard F. Kraft
Bernhard F. Kraft
Chief Architect, ERGO Group
Melanie Kehr
Melanie Kehr
Board Member, KfW Bankengruppe
Dr. Frank Melzer
Dr. Frank Melzer
CTO, Festo SE
Dr. René Deist
Dr. René Deist
SVP, ZF Group
Dr. Hans-Jürgen Plewan
Dr. Hans-Jürgen Plewan
DekaBank
Rainer Karcher
Rainer Karcher
Siemens
Prof. Dr. Bastian Halecker
Prof. Dr. Bastian Halecker
German Deep Tech Institute
Impressions

Documentation and photographs from the Network’s event page, shown with the consent of the people pictured. Full event page →

The threefold transformation of ZF Group: driving a data-driven future

Perspective · 4 min · Brandon M. Lewis · 2025-06-09

How a global automotive powerhouse is navigating its evolution toward software-driven innovation

From hardware giant to software powerhouse

ZF's roots as a traditional hardware manufacturer are undeniable—it has long been synonymous with gears, components, and mechanical systems. However, the landscape of the automotive industry has changed dramatically. Dr. Deist emphasized that ZF is no longer just about gears and hardware; it's about integrating software solutions at every level.

ZF's foray into autonomous systems, motion control, and electric mobility showcases its evolution. For instance, the company's operating systems for autonomous driving aren't merely software add-ons but are at the core of its product ecosystem. Dr. Deist likened this transformation to building a highly scalable and reliable computational backbone, comparable to how Microsoft designs cloud ecosystems.

Leveraging cloud strategies for scalable growth

One of the most critical enablers of ZF's transformation is its robust cloud strategy. Dr. Deist shared how ZF developed a versatile cloud infrastructure that supports multi-cloud environments, enabling seamless integration across different systems. This adaptability ensures that ZF can cater to the unique needs of diverse customers while maintaining operational efficiency.

ZF's cloud infrastructure serves as more than data storage—it enables real-time analysis driving predictive maintenance, optimized supply chains, and enhanced production workflows across its 183 global manufacturing facilities. This commitment supports sustainability through reduced waste and energy consumption.

Shaping the future of mobility

ZF's vision extends beyond traditional automotive applications to embrace broader mobility ecosystems. The company actively develops smart shuttles and autonomous transportation solutions addressing urban mobility challenges. Dr. Deist highlighted how ZF's solutions integrate with infrastructure like traffic lights and parking systems.

ZF's Autonomous Transport System combines software, hardware, and sensors for safe and efficient mobility. While these shuttles serve as testbeds rather than commercial products, they validate innovations reshaping commercial vehicle operations.

Transformation within: people, processes, and culture

Internally, ZF undergoes cultural and structural shifts aligning with digital ambitions. Dr. Deist noted the company embraces agile methodologies and over-the-air updates bringing flexibility and speed to operations.

ZF's Accelerate Excellence initiative exemplifies this transformation by bridging software development across divisions, creating an integrated ecosystem where innovation permeates the entire organization rather than occurring in isolated silos.

A new era of collaboration

Collaboration anchors ZF's strategy. Dr. Deist described partnerships like those with Microsoft accelerating innovation capabilities. Microsoft's cloud enables ZF to build centralized platforms for production monitoring and supply chain management, unlocking unprecedented efficiencies.

Partnerships extend to municipalities and urban planners as ZF develops systems connecting vehicles with smart city infrastructure, driving mobility-as-a-service evolution across industries.

Sustainability as a strategic priority

Dr. Deist underscored sustainability's importance in ZF's transformation. Cloud-enabled production systems minimize resource consumption while maximizing output. ZF's innovations in electric mobility and renewable energy applications demonstrate environmental commitment.

Sustainability guides every decision, from product design to supply chain management.

Building the future on a digital foundation

Dr. Deist's presentation depicted ZF as a forward-thinking, data-driven organization. By combining hardware expertise with cutting-edge software capabilities, ZF positions itself to lead automotive industry evolution into a future defined by smart mobility, sustainable solutions, and unprecedented innovation.

From the gathering

Softwareproduktion & Sustainability · March 2022 · Hasso Plattner Institute, Potsdam

Event page: Softwareproduktion & Sustainability

A Threefold Transformation Towards Data Company

Dr. René Deist · SVP, ZF Group

Deist outlines ZF Group’s transformation program and how becoming a data-driven company connects to broader sustainability objectives.

Recording on YouTube

Slides (PDF)

Speakers and panelists