Digitalization AT Siemens PDF

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DIGITALIZATION AT SIEMENS Impact of digital technologies on all of Siemens’ business units had encouraged the CEO, Joe Kaeser, and his team to put digitalization at the core of the new corporate strategy, alongside electrification and automation (EAD). The challenge was to balance this corporate initiative with the many business units within Siemens. Siemens had opted for a push and pull approach to involve business units in its creation, rather than conceptualizing the platform centrally and imposing it on the business units afterwards. It was yet to be decided if this approach would drive digitalization within Siemens fast enough, given developments in data generation and analytics. They did not go with Central analytics platform because Simons strategy was based on specific offerings of different business units and by implementing a central platform would lose the influence. Sharing value – The core strength of Siemens laid in its vertical IT approach with expertise in specific domains. Siemens decided to sell SIS to get capital. The take-over of SIS was done by Atos becoming a part of Siemens served as a 15 percent strategic share of stakeholders with a commitment of € 5.5 billion to a contract of seven year for future IT services. To raise awareness in the company about its IT developments, Siemens introduced CEO summit where ideas were exchanged about digital agenda. Sharing value with customer - In long run Siemens wanted to create value for customers by combining its economic knowledge with data science. IDA – the focus was to remain in tactic with all the business units. It served as a competitive advantage. Mindsphere – enables customers to use data for their own purposes. It ensured its sustainability through the industrial verticals and acceptance by the divisions involved and from their customers. GE had a centralized approach towards digitalization. The digital transformation delivered shorter manufacturer cycles, higher productivity and reduced downtime of machine at GE. GE on the basis of the deep technology, experience and industry expertise helped customers in accelerating their journey of digital transformation with GE digital predix portfolio. We believe that Siemens performance is very good in the industry and its operations have been improving since the transition from electrification to digitalization. Currently they need to focus on this speed of driving its digitalization forward. The following steps can be taken:    

They should attract younger employees They need to brush up with influencer marketing They should use GAP analysis to bring improvement in their internal processes They should retain the criteria of half yearly meetings which will help them to evaluate the issues faced by every division and also exchange ideas about digital

agenda. This will also result in effective management of operations within the organization....