In the recent update announcement of its Vision 2020+ strategic plan, Siemens is setting the course for long-term value creation through accelerated growth and stronger profitability with a simplified and leaner company structure. The company stated that the main aim of the Vision 2020+ company strategy is to give Siemens’ individual businesses significantly more entrepreneurial freedom under the strong Siemens brand in order to sharpen their focus on their respective markets.
Plans also call for strengthening the company’s growth portfolio through investments in new growth fields such as IoT integration services, distributed energy management and infrastructure solutions for electric mobility. The concentrated expansion of industrial digitalization will make a further contribution, according to the plan. As a result, both the annual revenue growth rate and the profit margin of the company’s Industrial Business are expected to increase by two percent over the medium term. Basic earnings per share are expected to grow faster than revenue over the medium term.
The Vision 2020 strategy program, which Siemens launched in 2014, has been largely completed – faster and more successfully than planned. “We’ve worked very hard over the past four years. Today, nearly all our businesses are significantly more profitable, customer satisfaction is at a record high, and our Digital Factory is the market leader in industrial digitalization,” said Joe Kaeser, President and CEO, Siemens AG.
“The Supervisory Board supports the company’s further strategic development and is convinced that Vision 2020+ is an outstanding plan for accelerating the transformation and strengthening Siemens for the next decade from a position of strength,” said Jim Hagemann Snabe, Supervisory Board Chairman, Siemens.
For Kaeser, digitalization, often called the Fourth Industrial Revolution, is the largest transformation in the history of industry.
“It won’t be the biggest companies that survive, but the most adaptable. That’s why we’ll further deepen the understanding of our Ownership Culture and give our businesses considerably more entrepreneurial responsibility than before. This also includes the direct assignment of business-related functions,” he said. “We’ll be even faster and more expert in supporting and advising our customers in achieving their goals – and not just in digitalization. For our employees, the Siemens of the next generation means greater personal and creative freedom and more opportunities to take responsibility. Our investors will also profit because we’ll give our businesses all the tools they need to be the best in their particular market environments. And an even stronger Siemens will be in a better position to meet its social responsibilities.”
Ken Briodagh is a writer and editor with more than a decade of experience under his belt. He is in love with technology and if he had his druthers would beta test everything from shoe phones to flying cars.Edited by
Ken Briodagh
