SHEKAPURAM HARIKA

121418672030
INTRODUCTION

Siemens AG (Aktiengesellschaft) (German pronunciation: [ˈziːməns] or [-mɛns]) is a

German multinational conglomerate company headquartered in Munich and the largest
industrial manufacturing company in Europe with branch offices abroad.

The principal divisions of the company are Industry, Energy, Healthcare (Siemens
Healthineers), and Infrastructure & Cities, which represent the main activities of the
company. The company is a prominent maker of medical diagnostics equipment and its
medical health-care division, which generates about 12 percent of the company's total sales,
is its second-most profitable unit, after the industrial automation division.[10] The company is
a component of the Euro Stoxx 50 stock market index.[11]Siemens and its subsidiaries employ
approximately 379,000 people worldwide and reported global revenue of around €83 billion
in 2018 according to its earnings release.

HISTORY

Siemens & Halske was founded by Werner von Siemensand Johann Georg Halske on 12
October 1847. Based on the telegraph, their invention used a needle to point to the sequence
of letters, instead of using Morse code. The company, then called Telegraphen-Bauanstalt
von Siemens & Halske, opened its first workshop on 12 October.[12]

In 1848, the company built the first long-distance telegraph line in Europe; 500 km from
Berlin to Frankfurt am Main.

In 1850, the founder's younger brother, Carl Wilhelm Siemens, later Sir William Siemens,
started to represent the company in London.

The London agency became a branch office in 1858.

In 1855, a company branch headed by another brother, Carl Heinrich von Siemens, opened
in St Petersburg, Russia.

In 1867, Siemens completed the monumental Indo-European telegraph line stretching over
11,000 km from London to Calcutta.[13]
In 1881, a Siemens AC Alternator driven by a watermillwas used to power the world's first
electric street lighting in the town of Godalming, United Kingdom. The company continued
to grow and diversified into electric trains and light bulbs

In 1887, it opened its first office in Japan.

n 1890, the founder retired and left the running of the company to his brother Carl and sons
Arnold and Wilhelm.

Siemens & Halske (S & H) was incorporated in 1897, and then merged parts of its activities
with Schuckert & Co.,

In 1907, Siemens (Siemens & Halske and Siemens-Schuckert) had 34,324 employees and
was the seventh-largest company in the German empire by number of employees

In 1919, S & H and two other companies jointly formed the Osram lightbulb company.

During the 1920s and 1930s, S & H started to manufacture radios, television sets,
and electron microscopes.

In the 1920s, Siemens constructed the ArdnacrushaHydro Power station on the River
Shannon in the then Irish Free State, and it was a world first for its design. The company is
remembered for its desire to raise the wages of its under-paid workers only to be overruled by
the Cumann nGaedheal government.

In 1932, Reiniger, Gebbert & Schall (Erlangen), Phönix AG (Rudolstadt) and Siemens-
Reiniger-Veifa mbH(Berlin) merged to form the Siemens-Reiniger-Werke AG(SRW), the
third of the so-called parent companies that merged in 1966 to form the present-day Siemens
AG

According to records, Siemens was operating almost 400 alternative or relocated

manufacturing plants at the end of 1944 and in early 1945.

In the 1950s, and from their new base in Bavaria, S&H started to
manufacture computers, semiconductor devices, washing machines, and pacemakers.

In 1966, Siemens & Halske (S&H, founded in 1847), Siemens-Schuckertwerke (SSW,

founded in 1903) and Siemens-Reiniger-Werke (SRW, founded in 1932) merged to form
Siemens AG.
In 1969, Siemens formed Kraftwerk Union with AEG by pooling their nuclear power
businesses.

In 1972, Siemens sued German satirist F.C. Delius for his satirical history of the
company, Unsere Siemenswelt, and it was determined much of the book contained false
claims although the trial itself publicized Siemens' history in Nazi Germany.

The company's first digital telephone exchange was produced in 1980. In 1988, Siemens
and GEC acquired the UK defence and technology company Plessey. Plessey's holdings were
split, and Siemens took over the avionics, radar and traffic control businesses—as Siemens
Plessey.

In 1985, Siemens bought Allis-Chalmers' interest in the partnership company Siemens-

Allis (formed 1978) which supplied electrical control equipment. It was incorporated into
Siemens' Energy and Automation division.

In 1987, Siemens reintegrated Kraftwerk Union, the unit overseeing nuclear power business.

In 1989, Siemens bought the solar photovoltaic business, including 3 solar module
manufacturing plants, from industry pioneer ARCO Solar, owned by oil firm ARCO

In 1991, Siemens acquired Nixdorf Computer AG and renamed it Siemens Nixdorf

Informationssysteme AG, in order to produce personal computers. Also In October 1991,
Siemens acquired the Industrial Systems Division of Texas Instruments, Inc, based
in Johnson City, Tennessee. This division was organized as Siemens Industrial Automation,
Inc.,[35] and was later absorbed by Siemens Energy and Automation, Inc. also In 1991,
Siemens acquired Nixdorf Computer AG and renamed it Siemens Nixdorf
Informationssysteme AG, in order to produce personal computers.

In 1992, Siemens bought out IBM's half of ROLM (Siemens had bought into ROLM five
years earlier), thus creating SiemensROLM Communications; eventually dropping ROLM
from the name later in the 1990s

In 1993-1994, Siemens C651 electric trains for Singapore's Mass Rapid Transit (MRT)
system were built in Austria

In 1997, Siemens agreed to sell the defence arm of Siemens Plessey to British
Aerospace(BAe) and a German aerospace company, DaimlerChrysler Aerospace. BAe and
DASA acquired the British and German divisions of the operation respectively. In October
1997, Siemens Financial Services (SFS) was founded to act as competence center for
financing issues and as a manager of financial risks within Siemens.

n 1998, Siemens acquired Westinghouse Power Generation for more than $1.5 billion from
the CBS Corporation and moving Siemens from third to second in the world power
generation market.

In 1999, Siemens' semiconductor operations were spun off into a new company
called Infineon Technologies. In the same year, Siemens Nixdorf Informationssysteme AG
became part of Fujitsu Siemens Computers AG, with its retail banking technology group
becoming Wincor Nixdorf.

In 2000, Shared Medical Systems Corporation[39] was acquired by the Siemens' Medical
Engineering Group,[40] eventually becoming part of Siemens Medical Solutions.

In 2001, Chemtech Group of Brazil was incorporated into the Siemens Group;[45] it provides
industrial process optimisation, consultancy and other engineering services. Also in 2001,
Siemens formed joint venture Framatome with Areva SA of France by merging much of the
companies' nuclear businesses

n 2002, Siemens sold some of its business activities to Kohlberg Kravis Roberts & Co. L.P.
(KKR), with its metering business included in the sale package. In 2002, Siemens abandoned
the solar photovoltaic industry by selling its participation in a joint-venture company,
established in 2001 with Shell and E.ON, to Shell.

In 2003, Siemens acquired the flow division of Danfoss and incorporated it into the
Automation and Drives division.[49] Also in 2003 Siemens acquired IndX software (realtime
data organisation and presentation).[50][51] The same year in an unrelated development
Siemens reopened its office in Kabul.[52] Also in 2003 agreed to buy Alstom Industrial
Turbines; a manufacturer of small, medium and industrial gas turbines for €1.1
billion.[53][54] On 11 February 2003, Siemens planned to shorten phones' shelf life by bringing
out annual Xelibri lines, with new devices launched as spring -summer and autumn-winter
collections.

In 2004, the wind energy company Bonus Energy in Brande, Denmark was
acquired,[59][60] forming Siemens Wind Power division.[61] Also in 2004 Siemens invested in
Dasan Networks (South Korea, broadband network equipment) acquiring ~40% of the
shares,[62] Nokia Siemens disinvested itself of the shares in 2008.[63] The same year Siemens
acquired Photo-Scan (UK, CCTV systems),[64] US Filter Corporation Hunstville Electronics
Corporation (automobile electronics, acquired from Chrysler),[66] and Chantry Networks
(WLAN equipment).

In 2005, Siemens sold the Siemens mobile manufacturing business to BenQ, forming
the BenQ-Siemens division. Also in 2005 Siemens acquired Flender Holding GmbH
(Bocholt, Germany, gears/industrial drives), Bewator AB (building security systems),
Wheelabrator Air Pollution Control, Inc. (Industrial and power station dust control
systems), AN Windenergie GmbH. (Wind energy), Power Technologies Inc. (Schenectady,
USA, energy industry software and training), CTI Molecular Imaging (Positron emission
tomography and molecular imaging systems), Myrio (IPTVsystems),[75] Shaw Power
Technologies International Ltd (UK/USA, electrical engineering consulting, acquired
from Shaw Group), and Transmitton (Ashby de la Zouch UK, rail and other industry control
and asset management).

In 2005 Germany opened investigations into Siemens business practices worldwide,

prompted by requests from prosecutors in Italy, Liechtenstein and Switzerland; US
investigators joined in 2006 and the US investigators addressed violations only since 2001,
when Siemens started selling shares in a US stock exchange.

In 2006, Siemens announced the purchase of Bayer Diagnostics, which was incorporated into
the Medical Solutions Diagnostics division on 1 January 2007,[98] also in 2006 Siemens
acquired Controlotron (New York) (ultrasonic flow meters)[99][100] Also in 2006 Siemens
acquired Diagnostic Products Corp., Kadon Electro Mechanical Services Ltd. (now
TurboCare Canada Ltd.), Kühnle, Kopp, & Kausch AG, Opto Control, and VistaScape
Security Systems.

Fines were anticipated to be as high as $5 billion as the investigation unfolded.[81]Settlement

negotiations took place through most of 2008 and when they were announced in December
they were far less, driven in part by Siemens' cooperation, in part by the imminent change in
US administrations (the Obama administration was about to take over from the Bush
administration), and in part by the dependence of the US military on Siemens as a contractor.

In May 2007 a German court convicted two former executives of paying about €6 million in
bribes from 1999 to 2002 to help Siemens win natural gas turbine supply contracts with Enel,
an Italian energy company. The contracts were valued at about €450 million. Siemens was
fined €38 million.
In July 2009, Siemens settled allegations of fraud by a Russian affiliate in a World Bank-
funded mass transit project in Moscow by agreeing to not bid on World Bank projects for two
years, not allowing the Russian affiliate to do any World Bank funded work for four years,
and setting up a $100 million fund at the World Bank to fund anti-corruption activities over
15 years, over which the World Bank had veto and audit rights; this fund became the
"“Siemens Integrity Initiative”.[86][87] The first payments were made out of the funds in 2010
in a tranche of $40 million.[88] A second set of projects was funded in 2014 totaling $30
million.

Siemens paid N7 billion to the Nigerian government in 2010.

In December 2010, Siemens agreed to sell its IT Solutions and Services subsidiary for €850
million to Atos. As part of the deal, Siemens agreed to take a 15% stake in the enlarged Atos,
to be held for a minimum of five years.

In March 2011, it was decided to list Osram on the stock market in the autumn, but CEO
Peter Löscher said Siemens intended to retain a long-term interest in the company, which was
already independent from the technological and managerial viewpoints.

In 2012, the Greek government settled the Greek bribery scandal for 330 million euros.[91]The
trial of the persons accused of involvement in the scandal began on 24 February 2017. In
November 2012, Siemens acquired the Rail division of Invensys for £1.7 billion. In the same
month, Siemens made the announcement of acquiring a privately held company, LMS
International NV.

n August 2013, Nokia acquired 100% of the company Nokia Siemens Networks, with a buy-
out of Siemens AG, ending Siemens role in telecommunication.

In 2014 a former Siemens executive Andres Truppel pleaded guilty to funneling nearly $100
million in bribes to Argentine government officials to win the ID card project for Siemens. In
May 2014, Rolls-Royce agreed to sell its gas turbine and compressor energy business to
Siemens for £1 billion

In 2015, Siemens acquired U.S. oilfield equipment maker Dresser-Rand Group Inc for $7.6
billion.[125][126]

In November 2016, Siemens announced the acquisition of EDA company Mentor

Graphicsfor $4.5 billion.
In November 2017, the U.S. Department of Justice charged three Chinese employees of
Guangzhou Bo Yu Information Technology Company Limited with hacking into corporate
entities, including Siemens AG. Also In December 2017, Siemens announced the acquisition
of medical technology company Fast Track Diagnostics for an undisclosed amount.[129]

In August 2018, Siemens announced the acquisition of rapid application

developmentcompany Mendix for €0.6 billion in cash.

PRODUCTS AND SERVICES:

 Manufacturing IT

 Industrial

 PCs

 Telecommunication

 Transportation/rail

 Control systems

 Healthcare

computed tomography

magnetic resonance

mammography

molecular imaging

radiation oncology

software

ultrasound

x-ray

 Energy

Power generation

Power transmission
  Infrastructure

Low and medium voltage

Building automation

 Fire safety

MILESTONES AND ACHIEVEMENTS

1843
Shortly before his twentieth birthday, William Siemens arrived in the UK with only a few
pounds in his pocket. He soon struck his first business deal by selling a patent for a unique
electroplating process.
1847
Werner Siemens improved the Pointer telegraph and founded his company in Germany with
his brother, William, as the company's agent in the UK.
1851
The water meter was first presented to the public at the Great Exhibition of 1851 and patented
by Siemens in 1852, to enable more efficient and less wasteful water distribution to the UK's
ever-growing towns.
1858
Siemens’ UK subsidiary was set up under the leadership of William Siemens.
1863
Siemens opened its first UK factory in Woolwich, south London, to produce submarine
cables.
1866
Siemens patented the electric dynamo, the starting point for electrical engineering that later
enabled major developments in the UK.
1869
An early player in telecommunications, Siemens laid the Indo-European telegraph link.
Running for nearly 7,000 miles, the London to Calcutta line cut the time required for a
message to travel between the two cities from many days to just 28 minutes.
1870
Using ‘Faraday’, the ship specially designed by William Siemens, the company laid their first
telegraphic cable from Ireland to the USA, enabling transatlantic telecommunications.
1881
Siemens provided the first electric lighting in a British theatre – London’s Savoy Theatre.
Siemens dynamo machines powered the internal lights.
1882
Sir William Siemens, one of the first environmentalists, was greatly concerned about waste
and pollution. In this year he gave a lecture in which he declared: “The point at which science
and arts should be directed chiefly is the prevention of waste. In doing so we should vastly
increase not only our national resources but our individual well-being.”
1883
To help local businesses transport heavy machinery between sites, Siemens completed a six-
and-a-half mile single-track line from Portrush to Bush Mills in Ireland. Probably the first
electric train contract in the world, its power originated from a waterfall that drove a Siemens
dynamo.
1901
The building of a new factory began in Stafford. The new site, which started operating two
years later, produced dynamos.
1908
After the successful introduction of the tantalum lamp in Germany, a factory opened in
Dalston, London, to product and market the bulb in the UK.
1926
Siemens built the world’s first set of traffic lights at Berlin’s Potsdamer Platz. Today,
Siemens manufactures and maintains more of the UK’s traffic infrastructure than any other
company.
1952
The Siemens Electronic Switching Laboratory began, in co-operation with, the Post Office
and others, to design and build a model electronic telephone exchange.
1973
Having been involved in medical engineering since before World War II, Siemens
consolidated its position in the UK with the acquisition of its agent, Sierex Ltd.
1988
Siemens was behind the first 1MB memory chip to go into production. All major UK
computer manufacturers quickly adopted the new chip.
1997
Siemens was behind the first GSM mobile phone with colour display.
1999
Siemens and Fujitsu joined forces with a goal to establish Fujitsu Siemens Computers, a joint
venture company that has since become one of the world’s leading computer suppliers.
2000
Siemens developed Hawk-Eye, innovative image-processing technology, bringing major
benefits to sports such as Cricket and Tennis.
2001
Siemens won its biggest ever contract in the UK – a £1 billion order to provide its new Desiro
electric trains to Stagecoach Group and Angel Trains for the South West Trains network.
2005
In the biggest modernisation programme in the UK, Siemens won an order for the periodic
delivery of medical systems for both the Barts and Royal London hospitals.
2008
In London, Siemens and McKinsey published an influential study on sustainable urban
infrastructure.
2009
Siemens opened it's UK Wind Power Research Centre at the University of Sheffield.
 2011
Siemens was selected as preferred bidder for Thameslink Rolling Stock.
2012
Continuing its focus on sustainability, a £30 million centre in East London – called the
Crystal - was opened in September 2012. As part of the Green Enterprise District, the Crystal
is a sustainable cities initiative by Siemens that explores how to create a better future for our
cities. The centre, which is one of the world’s most sustainable buildings, is home to the
world’s largest exhibition focused on urban sustainability, bringing together city decision-
makers and the public.

GOVERNANCE
We want to lead Siemens in such a way that we focus on our customers at all times and
further expand our market penetration while maintaining lean and flexible structures. That’s
why we’ve selected a market-integrative setup that combines a common regional
organization with a coordinated vertical approach. Against this backdrop, we’ve tailored the
structures and responsibilities of our businesses, our Regions and our corporate governance
functions. Concretely, this means:

 Our 30 Lead Countries, which generate more than 85% of our business, report directly to our
Managing Board.
 We’ve organized our business activities into nine Divisions and one separately managed unit,
Healthcare. This is ensuring customer proximity and fast decision-making.
 In addition, we’ve made governance stringent across all levels of our organization. Our
Managing Board leads the Company and maintains the balance between our businesses and
Regions. It’s supported by strong, efficient corporate governance functions, our Corporate
Core. This Corporate Core ensures fast, unbureaucratic decision-making across key company
functions.
Stringent governance also means making sure that our proven methodologies for
continuously improving performance are rigorously applied company-wide in our businesses
and projects. We’re also managing our compliance system and company-wide compliance
organization directly from company headquarters to ensure that our activities always fully
comply with applicable laws and with our own internal principles and regulations.

JOINT VENTURES

 Siemens Traction Equipment Ltd. (STEZ), Zhuzhou China, is a joint venture between
Siemens, Zhuzhou CSR Times Electric Co., Ltd. (TEC) and CSR Zhuzhou Electric
Locomotive Co., Ltd. (ZELC), which produces AC drive electric locomotives and AC
locomotive traction components.[138]
 Silcar was a joint venture between Siemens Ltd and Thiess Services Pty Ltd until 2013.
Silcar is a 3,000 person Australian organisation providing productivity and reliability for
large scale and technically complex plant assets. Services include asset management,
design, construction, operations and maintenance. Silcar operates across a range of
industries and essential services including power generation, electrical distribution,
manufacturing, mining and telecommunications. In July 2013, Thiess took full
control.[139][140][141]
 Primetals Technologies a joint venture between Siemens VAI Metals
Technologies and Mitsubishi Hitachi Metals Machinery formed in 2015.
 OMNETRIC Group, A Siemens & Accenture company formed in 2014.

HRM POLICIES

Demand and supply forecasting

Selection and recruitment

 Apply online

 Telephone interview

 Face to face interview

 Aptitude test
  References and background check

 Office and acceptance

Training and development

 On the job: shadowing, mentoring, coaching, job rotation

 Off the job: apprenticeships, siemens commercial academy, siemens graduate

program

Performance appraisal

Compensation and benefits

How Siemens get SMART by focusing on simplicity

For decades, the German conglomerate Siemens has developed and commercialized
technologically sophisticated products in two core market segments:

• M1, which consists of high value–added solutions such as high-speed trains, wind turbines,
and CT scanners for the premium market; and

• M2, which consists of mass-produced solutions such as smoke detectors and industrial
sensor systems for the middle market.

Siemens has traditionally positioned both M1 and M2 products as advanced offerings,

marketing them at top prices, and selling them primarily in developed economies.

As Siemens began its entry into emerging markets such as Brazil, China, and India in the
1980s, it first tried to import and sell M1 products made abroad and then attempted to locally
develop M2 products. Both attempts yielded poor results. Chinese and Indian clients deemed
the M1 products too expensive, and the M2 products didn’t address their particular needs.
Meanwhile, in the 1990s, Chinese firms began to climb the value chain by producing
innovative solutions of good-enough quality that were affordable and dependable. In doing
so, they created a whole new market segment—M3—that they rapidly cornered.
This was a wake-up call for Siemens. Its top management realized that to win in emerging
economies like China—and to successfully serve the growing M3 segment—the company
had to create a new range of solutions that were simple, reliable, of good quality, and
reasonably priced. Thus, Siemens’s SMART product strategy was created to deliver more
value at less cost.

SMART stands for simple, maintenance-friendly, affordable, reliable, and timely-to-market.

Siemens’s SMART products are aimed at customers in the M3 market segment who are
highly price-sensitive and yet quality-conscious. SMART products are entirely designed and
built in emerging markets by Siemens’s local R&D and manufacturing teams, in
collaboration with German colleagues. For instance, the Chinese R&D group has developed
affordable X-ray machines that are easier to operate and maintain in small Chinese towns
where skilled service labor is hard to find. Likewise, Siemens’s R&D engineers in India have
developed micro power grids that can use multiple energy sources—from coconut shells to
the sun—to provide electricity to Indian villages with 50 to 100 households. SMART
solutions typically cost 40 to 60 percent less than products designed in the West.
A distinguishing feature of SMART products is their simplicity. Siemens learned the hard
way that the technological complexity of its M1 and M2 products could act against its own
commercial interests in emerging markets. In China, for example, Siemens initially attempted
to sell high-end power converters imported from Germany. But these premium products
surprisingly broke down frequently, creating a serious image problem among Chinese clients
as being of poor quality. After investigating the problem, Siemens’s engineers discovered that
microparticles from China’s high level of dust pollution—caused by numerous construction
projects—infiltrated the electronic circuits of power converters and caused them to
malfunction. This realization led Siemens to develop a simpler converter with less
functionality but greater reliability that the company adapted to Chinese conditions, and this
locally developed product became a commercial success.

These are not second-rate products. Christophe de Maistre, the current CEO of Siemens in
France and southwest Europe who helped conceptualize the SMART strategy when he
headed Siemens’s China unit, is keen to point out that SMART products do not represent his
company’s “low-end” product line but rather its “entry-level” offering. In other words, the
products may be mass-produced but they meet the company’s high-quality standards. And
Siemens’ Chief Strategy Officer Peter Herweck tells us that although SMART is a separate
product line, it will still be marketed under the Siemens corporate brand. This is critical for
promoting the right external and internal perception of SMART products. “SMART products
are not second-class citizens in the House of Siemens,” he says. “Rather, they are new
additions, bearing different names than their older siblings, to the Siemens family. We love
equally all our children.”

De Maistre also points out that simplicity and progress go hand-in-hand. He believes that, in
a globalized economy, multinationals must redefine the notion of quality not in terms of
technological sophistication but in terms of value as perceived by a client in a local context.
In emerging markets such as China and India, clients want decent quality products that are
simple to install, use, and maintain. De Maistre emphasizes that, contrary to popular belief,
building a simpler product sometimes requires more innovation than creating a complex
one—especially in terms of reliability and energy efficiency. Hence, Siemens’s M3 products
demand as much innovation as its M1 and M2 products do, though of a different nature.

Thanks in part to SMART products, Siemens doubled its revenues from emerging markets
between FY05 and FY10. But Siemens believes the reach of its SMART M3 products could
also extend to frugal clients in European countries reeling under a prolonged economic
recession. That is why Siemens estimates that there is a huge global market for SMART
products.

We want to hear from you. What opportunities and challenges do you expect to emerge from
Siemens’ SMART strategy? Is there a market in the West for its M3 products? Tell us about
your own efforts in simplifying your products to make them more affordable and accessible
to more customers.

Navi Radjou and Jaideep Prabhu are the co-authors, with Simone Ahuja, of the
bestseller Jugaad Innovation: Think Frugal, Be Flexible, Generate Breakthrough Growth
(Jossey-Bass, 2012), which the Economist called “the most comprehensive book” on the
subject of frugal innovation.