Siemens Automation Summit - Part 1/3 - Re-organization around Industries

by Muthuraman Ramasamy 30 Jun 2014
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The automation summit by Siemens was a well attended event with many end-users cutting across process and discrete industries. Due to our schedules, we were not able to attend the key note by Anton Huber, President and CEO - Siemens Industry Automation. However, we attended many of the break-out sessions. Following is my 1/3 posting on its re-organization:

Siemens is re-organizing:

The organization, under the helm of new leadership, is streamlining. Shown below is the before and after organization structures. (All pictures are sourced from investor relations presentation materials)

We have been briefed by Raj Batra, President Industry Automation (US Markets) that, this is the way forward. These are my key take-aways:

1. The organization has removed the 'four-sector' layer and brought it down to divisional level. This could mean that, Siemens is optimizing and streamlining internal and external decision making. This re-organized structure would mean more customer-centric appeal and closedness with end-users globally. 

2. If you notice carefully, Siemens has re-structured around industries as the center of excellence. Also, another delicate change is the split focus on discrete industries and process industries. Earlier, oil and gas used to be a part of the energy sector. However, it is part of process industries segment as part of the new structure. This could mean better tailwinds for the company, as they drive product and industry synergies in a collaborative manner. Also, with this structure - Siemens has a better shot in striking solution synergies and alignment with major accounts of each focus areas. 

3. The third and biggest move is Siemens push towards business analytics and data-driven services. The managed services dvision cuts across all the divisions and is an immense play by the multi-national. Driven by strong industry tail-winds such as ageing workforce, skill gaps, talent inadequacy, Siemens has set itself for future success with its managed service offerings. I will detail further about this division in a separate posting. 

The new organization structure of Siemens will come into effect of October 1, 2014. Until then, it is business as-usual. 


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