160 years of Siemens

Introduction: History
Werner von Siemens lays the foundation of todays Siemens AG 12 October 1847. He was born in 1816 in Germany. He joined the Prussian army in 1835, where he spent three years studying Mathematics, Physics, Chemistry and ballistics at the artillery and engineering academy in Berlin, as an extraordinary inventor, mechanical engineer and
entrepreneur, he made the world's first pointer telegraph and electric dynamo; inventions that helped put the spin in the industrial revolution. He was the man behind one of the most fascinating success stories of all time - by turning a humble little workshop into one of the world's largest enterprises. As Werner had envisioned, the company he started grew from strength to strength in every field of electrical engineering. Siemens and halske presents the worlds 1st electrical railway with external power supply. In following Months Company start drawing attention over and over again with ground breaking product developments, Siemens is responsible for building much of the modern world's infrastructure. Siemens is today a technology giant in more than 190 countries, employing some 440,000 people worldwide. Its work in the fields of energy, industry communications, information, transportation, healthcare, components and lighting has become essential parts of everyday life.

Vision and Mission statement:

Vision:

Siemens - the pioneer in energy efficiency industrial productivity affordable and personalized healthcare intelligent infrastructure solutions

Mission:
On the basis of our forward-looking technology and solutions we respond to the most challenging questions of our time in the Industry, Energy and Healthcare sectors, with support from IT Solutions and Services. Our wide range of products and solutions are designed with the environment in mind and engage with the subject of climate change.

Corporate governance
A clearly structured and fully implemented corporate governance system is our highest priority. Corporate Governance is the basis for all our decision-making and control processes and comprises:

responsible, value-based management and monitoring focused on long-term success goal-oriented and efficient cooperation between the Managing and Supervisory Boards respect for the interests of our shareholders and employees and other stakeholders transparency and responsibility in all our entrepreneurial decisions and An appropriate risk management system.

With our corporate governance system, were creating lasting value for our shareholders and customers while providing answers to the toughest questions of our time.

Management & Control Structure As a German stock corporation with registered offices in Berlin and Munich, Siemens is subject to German corporate law. Consequently, the Company has a two-tier management and oversight structure consisting of a Managing Board and a Supervisory Board (two-tier board structure). The Managing Board: The Managing Board, as the Companys top management body, is committed to serving the interests of the Company and achieving sustainable growth in Company value. The Supervisory Board The Supervisory Board oversees and advises the Managing Board in its management of the Companys business. The German Codetermination Act requires that the Companys shareholders and its employees each select one-half of the Supervisory Boards members.

Shareholder relations Four times a year, Siemens AG reports to its shareholders regarding its business development, financial position and earnings. An ordinary Annual Shareholders Meeting normally takes place within the first four months of each fiscal year.

Product line of Siemens:

Some of the major products of different sectors of Siemens are listed here:

Industrial
In industrial sector it produces, Industrial Instrumentation (Sensors and communication), SENTRON Low voltage switchgear, SIRIUS Controls, SINAMICS & Perfect Harmony drives, Electric motors, SIMATIC Programmable Logic Controller (PLC)

Telecommunications

OpenScape Voice (HiPath 8000) OpenScape Contact Center (formerly HiPath ProCenter) OpenStage IP and TDM phones Telecommunication Service Platform, the TSP 7000 Hicom Trading E Hicom 300 HiPath HiQ 8000 Softswitch HiE 9200 Softswitch EWSD telephone exchanges

Transportation

Combino, ULF, and Avanto trams Siemens-Duwag U2 LRV Edmonton Transit System and Calgary Transit Alberta, Canada Siemens SD-160 Edmonton Transit System and Calgary Transit Alberta, Canada ER20 diesel locomotive MTR, Hong Kong LHB/Siemens M1/M2/M3 Metro (Pair) Prague Metro Czech Republic

Control Systems

SIMATIC PCS 7 Process Automation System for Process and Hybrid industries

Siemens SPPA-T2000 Control System (formerly Teleperm XP) Siemens SPPA-T3000 Control System (For Electrical Power Generation Control)

Healthcare

Acuson Antares Ultrasound Acuson Cypress Ultrasound Acuson S2000 Ultrasound ARTISTE Linear Accelerator AXIOM Aristos AXIOM Artis AXIOM Iconos Mobilett ONCOR Linear Accelerator syngo Imaging syngo Workflow

Energy
Power Generation

Renewable: o Siemens Wind Power (previously Bonus Energy in Brande, Denmark) : Wind turbines, 2.3 MW, gearless 3 MW, 3.6 MW; onshore and offshore

Power Transmission

Transformers HVDC Circuit Breaker Disconnector Instrument Transform

Other

SiPass Security SiVeillance Command & Control DESIGO Building Automation APOGEE Building Automation active FRIEND Advia(R) hematology systems[

Environment of Siemens Company

The SWOT Matrix helps visualize the analysis of the environment of the Company. When executing this analysis it is important to understand how these elements works together. When an organization matches internal strengths to external opportunities, it creates core competencies in meeting the needs of its customers. In addition, an organization should act to convert internal weaknesses into strengths and external threats into opportunities.

Strength
Abundant financial resources well-known brand name Economies of scale Superior management talent Better marketing skills Superior product quality Good distributions Lower costs(raw materials )

weakness
narrow product line Weak market image Internal political problem Alliances with weak firms Under-trained employees Internal operating problems Lack of strategic direction Weak spending on R&D

Opportunities

threats

Rapid market growth Opening for foreign market Sales decline in substitute product Demographic shifts Other firms seek alliances New distribution methods New uses for product discovered

Entry of new competitors new substitute products Product life cycle in decline Rival firm adopt new strategies Increased government regulation Economic down turn Foreign trade barriers

Innovative technology

Changing customer needs/tastes

Micro environment:
These are internal factors close to the Siemens Company that have a direct impact on the organizations strategy. These factors include:

Costumers:
Siemens align their businesses with the needs and expectations of the customers. To consistently deliver products, solutions and services that satisfies their requirements. Customer care The value of direct contact Call centers: An open ear for customers Continuous improvement of the products

Services
Superior service creates value for customers.

Employees
The Siemens all-trained, highly motivated employees are critical to the goal of meeting and exceeding the customers expectations.

Labor and social policy:

Siemens are bound by local statutory labor and social regulations in all of the countries in which Siemens do businesses and Siemens align the policies with key international standards. The globally binding Business Conduct Guidelines reflect this.

Legal compliance and equal opportunities:

The Business Conduct Guidelines obligate employees at every level within the organization to abide by laws and statutory regulations and to embrace the principles of mutual respect, honesty and integrity.

Suppliers:
With a purchasing volume corresponding to around half of the companys revenue, Siemens is one of the largest purchasers worldwide.

Media:
Siemens is the best-placed transformation partner in the media sector.

Competitor:
Top Siemens Corporation Competitors Companies Emerson Electric Co. Location St. Louis, MO

General Electric Company Fairfield, CT

Industries Where Siemens Corporation Competes

Industrial Automation & Industrial Control Products Manufacturing Computer Hardware Computer Services Information Technology Services Construction and design services

Macro environment:
Economics trends:
Business and Financial condition:
Siemens reported total profit till July 2010 was 21647million. Revenue of 75978 million.

Demographic trends: Demographic change and healthcare. With the worlds population life expectancies increasing, demographers are predicting that the earth will be home to eight billion people by 2025. Siemens will benefit from the increasing demand for infrastructure, healthcare, and energy stemming from the growing population.

Political trends:
Munich, Germany - Siemens AG intends to reward its employees for their outstanding performance during the financial and economic crisis with a one-time special payment. 'The company came through

the crisis with flying colors. Our approximately 400,000 employees can be very proud of their achievement.

Legal trends: Siemens AG, trying to move beyond a bribery and corruption scandal, created a new executiveboard position overseeing legal and compliance matters, and increased the compliance role of chief financial officer Joe Kaeser. Social trends: Changes in social trend can impact on the demands of the product firm and increasing firms urbanization changes .these mega trends are exerting an ever great impact on the world in current times .availability and willingness of individual to work. Increasing urbanization changes are exerting an ever greater impact on the company in current times .more people are moving to urban areas in search for better jobs better education and better life. Thus emphasizes on the value of money. Costumer inspired solutions to design breakthrough products. Preference for energy efficient vehicles with low running cost.

Up coming projects and challenges of Siemens

In case of Pakistan Siemens as inhabitant of Karachi City are well aware of the acute shortage of fresh water and major shortfall of electricity. DCL Co-generation Project is an exemplary project. The idea of a Power and Desalination Project was conceived and developed by Siemens Pakistan for DHA Cogen Limited. This project is currently under execution and is moving at a very fast pace nearing completion. The Combined Cycle Power Plant (CCPP) will provide 94 MW of power and its desalination plant has the capacity of 3 MIGD (Million Imperial Gallons per Day). Such innovative projects are what this ever expanding Mega City of Karachi requires. Oil, gas and petrochemical companies across the globe are looking for timely solutions to help them address the current challenges of a global economic downturn. Siemens Oil & Gas Consulting, formerly known as Berwanger, offers innovative engineering solutions that provide unique answers to these challenges in areas of upstream and process safety management consulting. Siemens offers solutions for the upcoming energy challenges based on three steps. First: Siemens provides technology to optimize the energy mix towards greener energy generation.

For example, Siemens supply wind turbines with a combined capacity of 227 megawatts (MW) for a wind farm located in Oklahoma, North America. in Canada: The Company recently has signed a framework agreement with Samsung C&T (construction and trading) Corporation for the supply of wind turbines for various projects. Siemens has also announced that it intends to invest in setting up a new rotor blade manufacturing facility in Canada. Another example for optimization of the energy mix towards greener energy generation is highly efficient gas turbines: Siemens will supply two gas turbine packages for a coal-fired integrated gasification combined-cycle (IGCC) power plant in Liberty, Mississippi, USA. Approximately 65 percent of CO2 emissions from this power plant are expected to be captured a reduction of three million tons of carbon dioxide per annum. In a second step, Siemens is optimizing efficiency along the whole energy chain: From power plants with an outstanding efficiency factor, low-loss high voltage direct current transmission systems (HVDC) to bridge large distances to more efficient methods of electric power distribution in cities and highly sophisticated energy management systems for buildings.

As a third step towards a sustainable power supply, Siemens is able to optimize entire energy systems and to build the power grid for the future the smart grid. This is an intelligent electrical grid which provides a continuous, bidirectional flow of information between suppliers and consumers. The information is used to create a better balance between supply and demand, leading to reduced costs as well as increased reliability. With a rising proportion of energy being produced by fluctuating renewable energy sources like wind and solar power, it becomes more and more important to balance electrical grids with innovative ideas.

Current issue:
Siemens innovative or non innovative:Siemens can be both innovative and non innovative, depending on the division. Our divisions are IT solutions and services. It is generally non innovative in it. It is tightly structured and following established policies versus seeking creative ways to meet new problems, relying on managers and executives to make all the decision based on endless reports and meetings, without involving the people on the ground. It is focusing on squeezing the bottom line rather than doing everything possible to ensure the overall satisfaction of the customer. Other divisions, however exemplify the innovative thinking and more horizontal structuring the company overall views innovation as the key entrepreneurial success by providing a rigorous innovation management and invest more than $6 billion in research and development. Each day Siemens located in the U.S dedicates nearly 8,000 employees to research and development.

Examples of innovation in Siemens can be seen in leadership role in it. Responsibility and excellence, some time ago at Siemens, it set it selves the challenge of being number one or two in the market sectors in which it operates. This only can be achieved through innovation, which it experience on a daily basis as a fundamental part of its strategy. We cannot predict the future, but we can invent it. This is a sentence that was spoken by its founder Werner von Siemens, and is a still a guiding light for its strategy today. Its sources of innovation go beyond Siemens itself. Its model includes collaboration with universities, research centers, other companies, start-ups, think-tanks, governments and, above all, customers who we constantly help overcome their challenges. In 1881 when company was not 35 years old and 2500 employees Siemens brothers built the world built first public sector power plant in godalming in the south of England. Company also began making steam turbines in 1920. Today power generation is one of companys largest income generators and continues to advance Werner von Siemens vision; just recently it built the world most efficient gas turbine. This all is done by the innovations. In addition, as the most international company in the world, it has great opportunities for making use of the best practices and diversity of more than 190 countries. It affords us a great competitive edge over other companies. It always encourages and reward innovation. Questions & Answers: 1) What should be concept of innovation for IT dept of Siemens? 2) What is your opinion about the decision making approach of Siemens? 3) If you have a chance to join Siemens what kind of change you will bring in the company to improve its performance?
References :
Barras, R. (1984). "Towards a theory of innovation in services". Research Policy 15: 161-73. Davila, Tony; Marc J. Epstein and Robert Shelton (2006). Making Innovation Work: How to Manage It, Measure It, and Profit from It. Upper Saddle River: Wharton School Publishing. ISBN 0-13-149786-3. OECD The Measurement of Scientific and Technological Activities. Proposed Guidelines for Collecting and Interpreting Technological Innovation Data. Oslo Manual. 2nd edition, DSTI, OECD / European Commission Eurostat, Paris 31 Dec 1995.