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    DGIS Siemens

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    Juhee Pritanjali
    The senior management at Siemens recognized the threat from competitors leveraging digital technologies and made digitization, electrification, and automation the core of their strategy. Rather than impose a central analytics platform, Siemens opted for a "push and pull" approach where business units helped build the Mindsphere platform based on their domain knowledge. This encouraged adoption. Siemens also defined areas of cooperation and competition. Going forward, Siemens aims to accelerate digitization, attract young talent, and establish thought leadership in software and IT.

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    DGIS Siemens

    Uploaded by

    Juhee Pritanjali
    162 views3 pages
    The senior management at Siemens recognized the threat from competitors leveraging digital technologies and made digitization, electrification, and automation the core of their strategy. Rather than impose a central analytics platform, Siemens opted for a "push and pull" approach where business units helped build the Mindsphere platform based on their domain knowledge. This encouraged adoption. Siemens also defined areas of cooperation and competition. Going forward, Siemens aims to accelerate digitization, attract young talent, and establish thought leadership in software and IT.

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    Siemens Case

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    The senior management at Siemens recognized the threat from competitors leveraging digital technologies and made digitization, electrification, and automation the core of their strategy. Rather than impose a central analytics platform, Siemens opted for a "push and pull" approach where business units helped build the Mindsphere platform based on their domain knowledge. This encouraged adoption. Siemens also defined areas of cooperation and competition. Going forward, Siemens aims to accelerate digitization, attract young talent, and establish thought leadership in software and IT.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    162 views3 pages

    DGIS Siemens

    Uploaded by

    Juhee Pritanjali
    The senior management at Siemens recognized the threat from competitors leveraging digital technologies and made digitization, electrification, and automation the core of their strategy. Rather than impose a central analytics platform, Siemens opted for a "push and pull" approach where business units helped build the Mindsphere platform based on their domain knowledge. This encouraged adoption. Siemens also defined areas of cooperation and competition. Going forward, Siemens aims to accelerate digitization, attract young talent, and establish thought leadership in software and IT.

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 3

    Digitization at Siemens

    The impact of competition from rival companies involved in “coopetition”: first cooperate and

    learn how Siemens works and then compete against it while leveraging digital technologies on all

    Siemens’s business units prompted the senior management of Siemens to put Digitization,

    Electrification and Automation at the core of their strategy. The challenge for Siemens was that its

    business units has specific offerings and hence were different from each other and were used to

    functioning independently. So, to support digitalization, Siemens opted for an approach wherein

    these business units could pitch in their knowledge of the domain while building the central

    analytics platform: Mindsphere instead of independently making the platform and imposing it

    upon the business units like GE did.

    In my opinion, this was a good strategy as the business units would be more than happy to adopt

    this platform made with a push and pull approach in which corporate encourages and enables

    business units to build their own ideas as they understand the industry and the customers better,

    rather than issuing top-down mandates. Another thing Siemens did right was defining “no-fly-

    zones” and other zones to identify areas where cooperation and where competition would be

    necessary. Another right decision was selling off SIS in 2011 and forming the joint investment

    fund with Atos which turned out to be a fruitful partnership. Another thing done right was the

    business review done every three to six months.

    What Siemens did wrong was to force digitization on the divisions that were reluctant and could

    lose money because of it and asking them to leave Siemens if they thought digitalization was not

    for them. This led to digitalization in Siemens not being uniform which made many business units

    felt neglected and aloof.


    Going forward, Siemens had 3 objectives in mind:

    1. More digitalization of internal processes and attract younger employees.

    2. Increase the speed of digitalization to match the increase in data generation and analytics.

    3. Getting more thought leadership in market to establish Siemens as a leader in Software and IT.

    If I were the consultant to Siemens, I would advice them to match the speed of digitization with

    the exponential speed of development observed in data generation and analytics. This is because

    the major competitors like Microsoft, Amazon, IBM, Oracle are already pacing equally well in

    the game and at this point if Siemens decides to pay heed to digitalizing internal processes, the

    competitors may overtake them and Siemens will be unable to leverage their understanding of

    industrial machines in this race. If however, it doubles up its speed of digitalization, they will

    only go north as they already have the required capabilities of 17500 software engineers and 220

    data scientists to back them up. This will help in establishing Siemens as a powerhouse of

    digitization and software and as Zimmermann believes, marketing is half the job done in

    Software and IT.

    If I were advising a competitor, I would suggest them to partner with companies in the industrial

    machines in order to target that market since one can influence the system better if they have a

    clear customer base understanding. My advice to GE would be to not push down the platform

    predict into different business units since they would not happily adapt it as they wre only

    marginally involved in its creation. This will lead to more people leaving them and joining

    competitors like Siemens. They should instead make use of a push and pull approach like

    Siemens and force digitization on their business units.

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