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Digitalization At Siemens

Solution Id Length Case Author Case Publisher
2013 1099 Words (5 Pages) David J. Collis, Tonia Junker Harvard Business School : 717-428
This solution includes: A Word File A Word File

The challenge that Siemens was facing concerned with the digitization of its technologies. The corporate strategy set focused on digitization, electrification, and automation. Hence, Siemens was faced with a situation to align its strategy across its separate business units that worked independently and had a specific set of offerings for the clients. To involve its business units, it was reluctant to apply a centralized approach as done by its competitor, General Electronics, and instead considered making use of a push and pull approach to develop its analytics platform aimed at bringing about business efficiency. However, the management team members were still unsure about which approach would speed up the digitization change in the industry, given the growing developments in the field of data analytics.

Following questions are answered in this case study solution:

  1. Problem Statement

  2. Case Analysis 

  3. Technological Analysis

  4. Recommendations

Case Study Questions Answers

Furthermore, Siemens also needs to evaluate the impact of the digitization elements, including the internet of things and IT would have on the business competitiveness, operations and management to better able to assess the sustainability of the business after it has successfully incorporated the digital technology.

2. Case Analysis 

Business Analysis and Approach for Integration of Technology

So firstly, talking about the two options Siemens has to drive its corporate strategy, adopting a centralized approach might be inconsistent with the current business structure of Siemens as it would require a top-down approach in which a standardized technological mandate will be shared with all the business units. However, as Siemens has a diversified portfolio, centralization would cause it to lose its influence over its units as then the focus would be on standardization and covering all the possible business needs rather than offering customizations.

Making use of a push and pull approach would, however, give the analytics team a higher degree of authority in designing the analytics platform in line with the needs of the specific business units. Hence, there would be a higher level of customization, giving Siemens a stronger competitive edge in the market as it would be able to differentiate its product offerings from those of its major competitors. Furthermore, given the fact that Siemens is planning to expand its product portfolio in the global oil and gas sector and reduce its focus from B2C offerings, there would be a greater need to be quickly able to adapt and automate functions for bringing about process efficiency.  

Furthermore, even considering the internet of things in this regard, a push and pull approach would be ideal in increasing business competitiveness and improving operational and management efficiency. The internet of things would particularly be useful as it allows for connecting a large number of laptops and other devices with each other, hence allowing for greater control over the process and smooth implementation of machine learning techniques as combining the devices with cloud and mobile technologies would help in developing smart appliances providing the customers with a greater degree of digital control and hence improving their satisfaction levels and the net promoter score. In the case of industrial context, this would be even beneficial as it would provide control on the machinery, and the application of artificial intelligence would allow for the creation of autonomous systems that would provide real-time data. However, security issues would have to be dealt with, given the sensitive nature of the information being flowing across the systems.

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