Structure follows Strategy Effective implementation of the new Siemens strategy

Transcription

1 Siegfried Gerlach, CEO Siemens Switzerland Ltd. Structure follows Strategy Effective implementation of the new Siemens strategy ZFU,

2 Telecommunication and high voltage engineering: the historical roots of Siemens Invention of the pointer telegraph Founding of Siemens & Halske Construction of Europe's first longdistance telegraph: Berlin-Frankfurt Discovery of the dynamo-electric principle Cable steamship "Faraday" lays transatlantic telegraph cable First electric train shown at the Berlin trade fair First electronic elevator in Mannheim First subway in Budapest First automatic telephone exchange for large city opened in Munich Page 2

3 Siemens Ltd. was active in six sectors up to 2005 Page 3

4 After our successful transformation, One Siemens is our framework for sustainable value creation Page 4

5 Strategic visioning process Pictures of the Future Today s business 'Picture of the Future Influence factors and trends Society Extrapolation (Roadmaps) Retropolation (Szenarios) Politics Economy Environment Technology Customers Today Competitors Suppliers Today Short-term Medium-term Long-term Page 5

6 Climate change 2012: highest CO2 concentration in the atmosphere in 350,000 years 2001 to 2010: warmest decade on record Max Planck Institute for Meteorology: Only immediate, drastic reduction of CO2 emissions will keep global warming below 2 C until Page 6

7 Urbanization Growth of cities 2009: For the first time in history, more than 50% of mankind lives in cities 2050: 70% of mankind will live in cities Megacities worldwide 1975: 3 megacities with more than 10 million inhabitants 2025: 27 megacities with more than 10 million inhabitants; about one person out of ten lives in a megacity. Page 7

8 Demographic change World population 2011: 7 billion people 2050: 9.3 billion people Worldwide life expectancy 2011: 69 years 2050: 76 years; share of people over age 65 more than twice what it is today Page 8

9 Our strategy is the base for our success Siemens strategy at a glance Competition from the West IT players Capital goods Markets & customers Global Megatrends Demographic Change Urbanization 1 Strategic Directions Focus on innovationdriven growth markets Framework for sustainable value creation One Siemens Financial target system Vision Siemens the pioneer Climate Change 2 Get closer to our customers Siemens Revenue Growth Capital Efficiency Capital Structure Globalization + Economic environment 3 Use the power of Siemens Competitors from emerging countries Sectors EBITDA Continuous improvement responsible excellent innovative Values Competition from the East Page 9

10 We provide answers to the most urgent questions of our time The Pioneer in Vision Intelligent infrastructure solutions Industrial productivity Organization Infrastructure & Cities Sector Industry Sector Industry Energy Healthcare Infrastructure & Cities Fossil Imaging Rail Industry Systems Power & Automation Therapy Mobility Generation Systems Drive Technology and Logistics Oil Clinical Customer Smart & Gas Grid Products Services Renewable Diagnostics Low and Medium Energy Energy Customer Voltage Service Solutions Power Building Transmission Technologies Energy efficiency Energy Sector Affordable and personalized healthcare Healthcare Sector Page 10

11 Portfolio adjustment - Divestments Divestments in Com area (new orders 2006: 13 billion euro) Joint-venture Nokia Siemens Networks Sale of majority share in Siemens Enterprise Communications Sale of Siemens Home and Office Communication Devices Sale of share in Fujitsu Siemens Computers Sale of Siemens VDO to Continental (new orders 2006: 10 billion euro) Sale of SIS to Atos Origin (3.7 billion euros / 28,500 employees) Spin-off of Osram (4.7 billion euros / 39,000 employees) Planned divestments: Solar energy business (700 employees) Water Technologies (4,500 employees) Logistics and Airport Solutions (3,600 employees) Page 11

12 Portfolio adjustment - Acquisitions Purchase of VA Tech (3 billion euros, 13,000 employees) Purchase of diagnostics sector from Bayer (1.4 billion euros, 5000 employees) Purchase of Diagnostic Products Corporation California (481 million dollars, 2,500 employees) Purchase of Dade Behring (1.7 billion dollars, 6,400 employees) Purchase of UGS (1.22 billion dollars, 7,300 employees) Purchase of Invensys Rail (3,200 employees) Purchase of LMS International (1,200 employees) Page 12

13 The Siemens Environmental Portfolio our contribution to sustainability Environmental Portfolio revenue (in billions of ) 1) 1 Energy efficiency Renewable energies Customers CO2 abatement (in millions of metric tons) 1) roughly equal to 1% of global CO2- emissions in Environmental technologies ) Continuing operations only (without OSRAM and Solar business) Page 13

14 Siemens AG Facts and Figures Sales of more than 78 billion euros and profit of 4.6 billion euros (after taxes) R&D expenditure of 4.2 billion euros in FY 2011/12 Siemens achieves 75% of its business with products and solutions that have been developed within the last five years. 370,000 employees in 190 countries across the globe Page 14

15 Comparison of new orders for Siemens Switzerland Ltd. Values in millions of CHF Fiscal year Fiscal year Total: Energy Medicine Industry Industry (Transportation) Information & Communication Components Household Appliances Energy Healthcare Infrastructure & Cities (Building Technologies) Infrastructure & Cities (Mobility and Logistics/Rail Systems) Infrastructure & Cities (Smart Grid/Low and Medium Voltage) Industry Other Page 15

16 CD ST defines the corporate strategy Type of Strategy Corporate Strategy Typical activities Identifies and defines the businesses the company is in and sets priorities for capital allocation Sets targets & measures/controls performance Defines horizontal strategies and the level of interaction/corporate involvement Scope Broad environment Long term / indefinite scope Top level management Where to compete Level in Siemens Siemens Sectors Business Strategy Identifies risk and opportunities in the market Defines sales and customer strategies Examines the behavior of competitors Defines its competitive advantages regarding strengths and competences Specific market/business Medium-to-long term Business leader Divisions Business Units Functional Strategies R&D Marketing HR Sourcing Production Translates business strategy into functional strategy Defines the core competences within functions Implements and executes the strategy Specific function Short-to medium term Functional leader How to compete To be successful each strategy level needs to be properly aligned and closely linked to each other Functions Page 16

17 Siemens Switzerland Regional Strategy Implementation Process Page 17

18 Siemens Switzerland Implementation Process (SIP) Overview of Phases 1. Corporate & Business strategy (Global) Global Siemens Strategy Review (SSP) ST Department 2. Regional (Market) Strategy (Countries) Define Action Fields Analyze External Environment Analyze Internal Strengths and Weaknesses Develop Strategy Implement Strategy Control Strategy Strategy Review Meetings Targets/ Budgets BRM 3. Regional Functional Strategies (e.g. IT, HR, SCM) Functional Strategies (SCM, HR, IT, AC,..) Nov Dec Jan Feb Mar Apr-Oct Page 18

19 Siemens Switzerland Strategy Implementation Process (SIP) Siemens Toolbox Define Action Fields Analyze External Environment Analyze Internal Strengths and Weaknesses Develop Strategy Implement Strategy Control Strategy Business Field Definition Trends Competitor Benchmarking SWOT Stakeholder Mapping Discount / Business Value L P E E T S S W O T t Strategic USP Market Attractiveness Core Competences Competitive Strategy Alignment Targets / Budgets Portfolio Market Analysis Innovation Market Strategy Roadmap (Moves, Initiatives) Scorecard Performance (Baseline, BSC) Key Success Factors Synergies Resource Strategy Sales / Profit Calculation Risk Management KSF Page 19

20 Nine focus areas operationalize our strategic directions Strategic directions Focus areas 1 Focus on innovation-driven growth markets Be a pioneer in technology-driven markets Strengthen our portfolio Provide a leading environmental portfolio 2 Get closer to our customers Grow in emerging markets Expand our service business Intensify our customer focus 3 Use the power of Siemens Encourage lifelong learning and development Empower our diverse and engaged people worldwide Stand for integrity Our values Innovative Excellent Responsible Page 20

21 Siemens Generation 21 Pre-school We want to stir interest in science and technology at an early age. School / Vocational Training We want to prepare young talent to meet the challenges of the future. University We want to encourage and reward outstanding scientific achievements. This is why we give away free experiment kits to Swiss nursery schools. This is why we are training more than 300 apprentices. This is why we cooperate closely with Swiss universities and have established a professorship for «Sustainable Building Technologies» at the ETHZ. Page 21

22 Impact and experiences - Structure follows Strategy - Operative successes confirm the correctness of the strategy - Carve-out of IT and telecommunications resulted in drop in business volume - Earlier acquisitions (Industrieteil Elektrowatt, Integra Signum) now form the backbone of Swiss business - Restructuring requires the highest level of management attention - Constant changes lead to insecurity among employees - Change processes are ongoing - Communication is a central factor: employees need to know and support the strategy - It s all about people Page 22