Michael_A._Hitt,_R._Duane_Ireland,_Robert_E._Hosk

Case 15: Siemens: Management Innovation at the Corporate Level C-199

platforms for remote services; a uniform controls architec-
ture for applications ranging from power plants and railway
systems to industrial controls and communications networks;
and systematic best practice sharing of the kind that has long
characterized our software initiative. By moving toward tech-
nological leadership in all our businesses, we are also strength-
ening our customer focus and global competitiveness.”^10

Second, customer focus was comprised of the

custom er acquisition and the cross-selling initiative.

Third, global competitiveness encompassed the software

initiative, project management, a global production con-

cept, shared services, and asset management. In addi-

tion to the initiatives relating exclusively to one of the

sub-programs, the service and the quality initiative

Exhibit 5 Elements of Fit 42010

People Excellence

Operational Excellence

High-performance culture

Global diverse talents

Leadership culture & development

Expert Careers

Best-in-class for all businesses

and functions through

Open innovations

Global supply chain

management

to+

Portfolio

Corporate Responsibility

Focus on three Sectors – Industry,

Energy and Healthcare

Stringent resource allocation

Focus on organic growth and

leveraging past acquisitions

Corporate governance

Compliance

Climate protection

Corporate citizenship

Benchmark in transparency

and compliance

Ou

r (^) va
lues
: (^) Resp
onsible – Excellen
t^ –^ In
nov
ativ
e
 ROCE of 14-16%
 Optimized capital structure
 Cach conversion rate
“1– growth rate”
 >2 x GDP growth
 Best-in-class margin ranges
 SG&A reduction of 10%
Customer^ excellence
Lever
age^ Siemens brand
Le
ade
rship
(^) and governance^ s
truc
tur
e
Fit 4 2010
Performance
Source: Siemens Annual Report 2008.
Exhibit 6 Sub-Programs and Initiatives of Siemens top+
Firm-wide top+ programs Innovation
Initiatives
Customer Focus Global Competitiveness
Software Initiative
Project Management
Global Production Concept
Shared Services
Asset Management
Quality and Process Initiative
Service Initiative
Technology Platforms
Trendsetting Technologies
Customer Acquisition
Cross-Selling Initiative
Quality and Process Initiative
Service Initiative
Source: Feldmayer 2006.