Siemens Presents New Corporate Strategy

Siemens presents a simplified and leaner corporate structure. The aim of the new group structure is greater entrepreneurial freedom for the individual businesses. For this purpose, the organizational level of the previous divisions will be deleted, the country organizations reorganized for even more customer orientation and the group headquarters will be leaner. CEO Joe Kaeser: “With the further development of our strategy, we are now building the next generation Siemens. Less control from the head office and more freedom for business make us stronger and more flexible."

The core of the "Vision 2020+" corporate strategy is to give the individual businesses significantly more entrepreneurial freedom under the strong Siemens brand, thereby sharpening the focus on the respective markets. It is also planned to strengthen the growth portfolio with investments in new growth areas, such as IoT services, decentralized energy management or infrastructural electromobility. The concentrated expansion of industrial digitization will also contribute to this. This is intended to increase the annual growth rate of sales and the profit margin of the industrial business by two percentage points in the medium term. Earnings per share are expected to grow faster than sales in the medium term.

Realignment should focus on customers

There will be three operating companies and three strategic companies below the group level. With the realignment, Siemens wants to focus more on its customers. "The days when we could control project business, product, software and service companies with their different requirements centrally and efficiently are over," says the Siemens CEO.

The new structure will come into effect in the new fiscal year on October 1, 2018. Implementation is gradual and should be completed by March 31, 2019. The divisions Building Technologies (BT), Energy Management (EM), Power and Gas (PG), large parts of Process Industries & Drives (PD) and Digital Factory (DF) are merged into the three new operating companies. The company's business units will also be reorganized and focused and allocated to the three operating companies.

New business unit on “IoT”

With the newly created business unit on the topic of “IoT Integration Services”, Siemens will provide its customers with comprehensive support for their digital transformation in the future. Based on many years of experience in various industries and leading technologies such as artificial intelligence and cyber security, Siemens plans to offer consulting, design, prototyping and implementation services. The global market for IoT integration services is expected to grow by 10-15 percent by 2025. Siemens plans to employ around 10,000 people in this business by 2025.