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Siemens was founded by Werner von Siemens on 12 October, 1847.

In the 1850s, the company was involved in building long distance telegraph networks in Russia

Russia. In 1867, Siemens completed the monumental Indo-European (Calcutta to London) telegraph line.

In 1881, a Siemens AC Alternator driven by a watermill was used to power the world's first electric street lighting in the town of Godalming, United Kingdom

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

vGerman-based 150-year-old diversified and global manufacturer. vWith 484,000 employees, vSiemens does business in 190 countries
v It has 600 manufacturing and R & D (research and development) facilities in over 50 countries. v For over 150 years, Siemens has stood for technical achievements, innovation, quality, reliability and internationality. v In fiscal 2008, Siemens had revenue of $110.82 billion

Our values – highest performance with highest ethics



Achieving high performance and excellent results

Motors and drives  Automation  Building technologies  Mobility  Lightning  Market specific solutions  Financial solutions  IT solutions and service  Communication networks

Power generation  Power transmission and distribution  Solutions for the oil and gas industry  Market specific solutions  Financial solutions  IT solutions and services


Health care
Diagnostic Imaging and therapy  Laboratory diagnostics  Hearing instruments  Market specific solutions  Financial solutions  IT solutions and services

Consumer products
Computers  Cordless phones, broadband and home media  Electrical installation systems  Hearing instruments  Home appliances  Home security  Lightning


Problems encountered
• The coordination between the internal units of the company. • The collaboration with so many suppliers and customers. • Its supply chain—the flow of materials from suppliers through manufacturing, distribution, and sales—is very complex.

So many suppliers & vendors

Supplie rs & vendor s

In effective supply chain model

Siemens in India
• In Siemens India having 18 manufacturing units • Suppliers 25 • more than 500 distribution partners • Imagine totally 190 countries!!


100 %


• e-business—that is, a company that performs various business functions electronically. • Introducing Web-based systems and electronic commerce applications in all of its operations. • Need to solve the problems caused by multiple supply chain operations.

§ Embarking on a four-year plan, the company started the transformation in 1999. § Siemens had decided on a dual approach that it would use its own inhouse information systems capabilities where it made sense to do so, but it would also go out-of-house to purchase some systems from major vendors.

Siemens strategic goals were to:
• Improve its readiness for extended electronic commerce by standardizing hundreds of business process into minimum number of operations by application of electronic commerce (For example, the company went from over 300 different process applications to 29.) • Redesign the information technology infrastructure (software components that best fit the company’s needs, each from a different vendor), integrated into an enterprise wide platform.

• Using SAP systems , along with software from i2 Technology and IBM, the company built functional systems that link the enterprise, ensure support functions, and connect with the company’s supply chain partners.

SAP & i2 supply chain solutions

 SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the world's largest inter-enterprise software company and the world's fourth-largest independent software supplier, overall.  The original name for SAP was German: Systeme, Anwendungen, Produkte, German for "Systems Applications and Products." The original SAP idea was to provide customers with the ability to interact with a common corporate database for a comprehensive range of applications.


I2 supply chain solutions:
 i2 solutions integrate with data, processes, and systems belonging to suppliers, customers, distributors, carriers, partners, and contract manufacturers.  i2 was founded in 1988 by Sanjiv Sidhu and Ken Sharma, two visionaries in what would eventually be known as the supply chain management industry. Sanjiv and Ken were passionate about applying technology and best practices to eliminate inefficiencies in business.

• KMS refers to the set of business processes developed in an organization to create, store, transfer and apply knowledge.

It increases the ability of the organization to learn from its environment and to incorporate knowledge into its business processes The idea of a KM system is to enable employees to have ready access to the organization's documented base of facts, sources of information, and solutions.

1)Knowledge 2)Knowledge 3)Knowledge 4)Knowledge Benefits acquisition. storage. dissemination. applications.

Sharing of valuable organizational information. May reduce training time for new employees

Types of KMS
Enterpris e wide KMS
Knowledge work system

Intelligen t techniqu es.

Taking customer orders, Online procuring of materials and components that go into the manufacturing process, Collaborating with business partners in developing products, Transporting finished products were integrated across the company, using the Internet as much as possible.

To provide better customer service to Siemens's business customers.


vIn its 2000 fiscal yearonline sales and its electronic procurement transactions reach 10 percent of its total sales and purchases, respectively. online sales increased by 25 percent, and e-procurement grew 60 percent over its 2000 level. most employees are networked throughout the company.

vIn 2002 –

vIn 2004-

CNTD… They have direct access to the Internet, and .
a portal through which employees can access corporate information is in use. Helps in cutting cost.


Live Examples Before the e-business





Learning From This Case Study

Procurement Officer




Growers association