Automation, Innovation and Inspiration

At last week’s Siemens Automation Summit in Orlando, Florida, Raj Batra, Vice President of Siemens Automation and Motion Division, put these three powerful words in perspective. You need automation to run your business and remain competitive. Siemens innovates products and solutions so you can innovate manufacturing. Customers and users inspire each other to implement best-in-class applications and business solutions. Siemens inspires customers to achieve more.

Dennis Sadlowski, the new Siemens President and CEO (effective July 1, 2007), identified the latest trend to be a combination of the digital world and real world. Siemens' integrated portfolio of Automation & Drives and the newly acquired UGS will enhance customer efficiency and success throughout the entire product lifecycle. Siemens’ combined portfolio addresses product design and factory design with Product Lifecycle Management (PLM) solutions, and automation design and production with Totally Integrated Automation (TIA) and Totally Integrated Power (TIP) solutions.

According to Batra, Siemens' portfolio can help users increase their competitiveness regardless of industry. “From process, to hybrid, to discrete automation, Siemens is on an epidemic mission to verticalize their products and solutions,” says Batra. Siemens also has a special focus on the following industry trends: Safety & Security, Industrial Networking, Modernization, Tracking & Tracing, and Energy & Environment.

In a one-on-one conversation, I asked Sadlowski who was the one competitor that keeps him awake at night. His reply was not so surprising. It turns out that there is no one supplier that “scares” him. He continued to explain that there are many strong competitors in the automation marketplace, but none of them alone can compete with Siemens' breadth of products and solutions. Sadlowski speculated that there is potentially room for only one more consolidation of two automation suppliers. And if that happens, he believes the resulting competitor would attempt to emulate what Siemens has done.

As Siemens' new leader, Sadlowski says his biggest challenge is to continue Siemens' growth rate. “We have a very strong U.S. team,” he says. “We are well-positioned in the market, and we will continue to set the pace by innovating on core products and solutions.” Sadlowski went on to thank their entire customer base and encourages users to continue to support Siemens rapid growth.

At the same time, Siemens acknowledges that they have a brand awareness problem in the U.S. and they are tackling that issue head-on. In October 2005, Siemens signed a 12-year marketing and technology agreement with Walt Disney Parks and Resorts USA to sponsor certain attractions at Walt Disney World Resort and Disneyland Resort. As part of the agreement, Disney will purchase at least $100 million in technologies and services from Siemens. Siemens believes this alliance will “Americanize” the Siemens brand, showcase Siemens technology, increase sales in the U.S., and align Siemens with other premier brands.

In 2008, Siemens will also launch a U.S. tour of their Exider Dome. Reminiscent of the Exider Train that came to the U.S. in 2004, a series of cargo trailers will display the full breadth and depth of Siemens' offering. This tour is sure to help engrave the Siemens' name in the minds of Americans. Stay tuned for more information on this upcoming tour.

The United States is Siemens’ single largest market and they are pulling out all the stops to increase their market share. Who knows, maybe the Siemens' name will eventually become as American as baseball and apple pie.

Enjoy the rest of this eNews!

Rick Zabel
Vice President, Publisher

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