SIEMES DIGITAL TRANSFORMATION CASE STUDY TOWARDS ORGANIZATIONAL SCALE AND SUCCESS IN ELECTRICAL ENGINEERING INDUSTRY”
Abstract
This study investigates a range of scaling strategies for electrical engineering firms, with a focus on various crucial aspects such as internal innovation, strategic regional expansion, geographical proximity, and collaborative partnerships. Internal innovation is highlighted as a key driver of growth, as it allows firms to develop new technologies and processes that can differentiate them from competitors. Strategic regional expansion is discussed as a means to tap into new markets and leverage local opportunities, while geographical proximity is examined for its impact on operational efficiency and customer relationships. Collaborative partnerships are also emphasized for their role in enhancing capabilities and driving mutual benefits. The case study of Siemens AG serves as a prominent example, showcasing how digital technologies like the Internet of Things (IoT), artificial intelligence (AI), and cloud computing have significantly transformed their approach to scaling. Siemens AG's experience underscores how these technologies can support internal innovation, streamline regional expansion efforts, overcome geographical barriers, and foster effective collaborations. The article proposes a detailed framework in which digital transformation is central to driving these strategies. It argues that digital technologies are not just enablers but essential components that fuel innovation across various domains. Additionally, digital transformation is posited as a critical factor in facilitating smoother and more effective expansion into new regions, bridging geographical gaps that can otherwise impede growth, and enhancing collaborative efforts both within and outside the organization. By integrating these elements, businesses can achieve sustainable growth and maintain a competitive edge in an ever-evolving and challenging market landscape.is considered near the evaluation of efficiency of management an enterprise. Evaluation technology is realized on the basis of comparison of financial indexes, in particular to the analysis of indexes of profitability and analysis of business activity
References
Grand View Research (2023). Electrical Steel Market Size, Share & Trends Analysis Report By Product (Grain Oriented Electrical Steel, Non-grain Oriented Electrical Steel), By Application (Transformer, Motor, Inductor), By Region (North America, Europe), And Segment Forecasts, 2024 – 2030. Available at: https://www.grandviewresearch.com/industry-analysis/electrical-steel-market
Bilro, Ricardo & Loureiro, Sandra & Souto, Pedro. (2023). A systematic review of customer behavior in business-to-business markets and agenda for future research. Journal of Business & Industrial Marketing, vol. 38, pp. 122-142. DOI: https://doi.org/10.1108/JBIM-07-2022-0313.
Al-Haddad, Hadeel & Galib, Mohammad & Herzallah, Fadi. (2024). Consumer Intention Toward Participation in Proximity Marketing. International Journal of E-Services and Mobile Applications, vol. 16, pp. 1-18. DOI: https://doi.org/10.4018/IJESMA.344455
Bain & Company (2018). Telcos' $400 Billion As-a-Service Enterprise Gold Mine. Available at: https://www.bain.com/contentassets/afbad250d0cd41f6a613b2b69da6ace1/bain_brief_telcos_$400_billion_as_a_service_enterprise_gold_mine.pdf
Gartner (2022). Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023. Available at: https://www.gartner.com/en/newsroom/press-releases/2022-10-31-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-reach-nearly-600-billion-in-2023
Mckinsey (2021). Insights on the Internet of Things. Available at: https://www.mckinsey.com/featured-insights/internet-of-things/our-insights
Mckinsey (2022). The 2022 Mckinsey Global Payments Report. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/the%202022%20mckinsey%20global%20payments%20report/the-2022-mckinsey-global-payments-report.pdf
PwC, 2023. Available at: https://www.pwc.com/cl/es/publicaciones/assets/navigating-the-cloud-final-3-24.pdf
Siemens (2023). Earnings Release and Financial Results Q4 FY 2023. Available at: https://press.siemens.com/global/en/pressrelease/earnings-release-and-financial-results-q4-fy-2023
Nippon Electric Corporation (2022). Available at: https://www.nec.com/en/global/ir/pdf/annual/2022/ar2022-e_two.pdf
Chang, M. H. (2023). Cascading innovation: R&D team design and performance implications of mobility. Strategic Management Journal, vol. 44(5), pp. 1218–1253. DOI: https://doi.org/10.1002/smj.3473
Mckinsey (2022). The 2022 Mckinsey Global Payments Report. Available at: https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/the%202022%20mckinsey%20global%20payments%20report/the-2022-mckinsey-global-payments-report.pdf
Agrawal (2022). Annual report 2022-3. Available at: https://www.nrail.com/pdf/annual_reports/Annual%20Report-2022-23.pdf
Cantwell, John. (2014). Revisiting international business theory: A capabilities-based theory of the MNE. Journal of International Business Studies, vol. 45. DOI: https://doi.org/10.1057/jibs.2013.61.
Presutti, M., Boari, C., Majocchi, A., & Molina‐morales, X. (2019). Distance to Customers, Absorptive Capacity, and Innovation in High‐Tech Firms: The Dark Face of Geographical Proximity. Journal of Small Business Management, vol. 57(2), pp. 343–361. DOI: https://doi.org/10.1111/jsbm.12323
Grewal, Jody & Serafeim, George. (2020). Research on Corporate Sustainability: Review and Directions for Future Research. Foundations and Trends® in Accounting, vol. 14, pp. 73-127. DOI: https://doi.org/10.1561/1400000061.
Simply. Market research firm IDC reveals 2021 worldwide digital transformation predictions. Available at: https://simply-communicate.com/blog/idc_reveals_2021_digital_transformation_trends
Gartner (2023). Generative AI Surveys. Available at: https://www.gartner.com/imagesrv/peer-insights/gpc-genai-ocsummaryv2-content.pdf
Kargar, Roozbeh & Nabavi, Seyed Mohammad. (2013). Electronic Marketing Management in Power Systems. International Journal of Computer Applications, vol. 64, pp. 1-4. DOI: https://doi.org/10.5120/10627-5354
Accenture (2020) The power of change. Available at: https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-138/accenture-fiscal-2020-annual-report.pdf
Hagedoorn, John. (2002). Inter-Firm R&D Partnerships: An Overview of Major Trends and Patterns Since 1960. Research Policy. 31. 477-492. DOI: https://doi.org/10.1016/S0048-7333(01)00120-2
Fosfuri, Andrea. (2006). The Licensing Dilemma: Understanding the Determinants of the Rate of Technology Licensing. Strategic Management Journal. 27. 1141 - 1158. DOI: https://doi.org/10.1002/smj.562.
Mexico now (2024). Siemens Increases its Footprint in Juarez. Available at: https://mexico-now.com/siemens-increases-its-footprint-in-juarez/
Mexcentrix (2021). Siemens to invest US$14 million in Mexico. Available at: https://mexcentrix.com/siemens-to-invest-us14-million-in-mexico/
Powerprogess (2021). Siemens building largest LNG-to-power complex in Latin America. Available at: https://www.powerprogress.com/news/siemens-building-largest-lng-to-power-complex-in-latin-america/8016447.article
Mexico now (2024). Siemens Increases its Footprint in Juarez. Available at: https://mexico-now.com/siemens-increases-its-footprint-in-juarez/
Mexcentrix (2021). Siemens to invest US$14 million in Mexico. Available at: https://mexcentrix.com/siemens-to-invest-us14-million-in-mexico/
Powerprogess (2021). Siemens building largest LNG-to-power complex in Latin America. Available at: https://www.powerprogress.com/news/siemens-building-largest-lng-to-power-complex-in-latin-america/8016447.article
Siemens (2023). Earnings Release and Financial Results Q4 FY 2023. Available at: https://press.siemens.com/global/en/pressrelease/earnings-release-and-financial-results-q4-fy-2023
Reuters (2013). Siemens seeks growth in Latin America, to keep investment pace. Available at: https://www.reuters.com/article/idUSL1N0AV0EE
Mexico Business (2023). Nearshoring accelerates industrial sector transformation, growth. Available at: https://mexicobusiness.news/tech/news/nearshoring-accelerates-industrial-sector-transformation-growth
Siemens (2022). Volkswagen and Siemens invest in Electrify America’s ambitious growth plan. Available at: https://press.siemens.com/global/en/pressrelease/volkswagen-and-siemens-invest-electrify-americas-ambitious-growth-plan
Siemens. Siemens y HEINEKEN trabajarán por la descarbonización en planta. Available at: https://www.siemens.com/mx/es/compania/comunicados-de-prensa/2024/siemens-ha-sido-seleccionada-para-el-programa-multifase-de-descarbonizacion-de-las-plantas-de-produccion-de-heineken.html
Siemens. (n.d.). Digital transformation at scale across industries. Siemens. Available at: https://www.siemens.com/global/en/company/insights/digital-transformation-at-scale-across-industries.html
Siemens. (n.d.). IoT energy management for energy system operations [E-book]. Siemens. Available at: https://resources.sw.siemens.com/en-US/e-book-iot-energy-management-for-energy-system-operations
Siemens. (2022, June 29). Siemens launches Siemens Xcelerator – an open digital business platform to accelerate digital transformation. Siemens Global Press. Available at: https://press.siemens.com/global/en/pressrelease/siemens-launches-siemens-xcelerator-open-digital-business-platform-accelerate-digital
Siemens. (2022, June 20). Siemens leads industry to next level of digital transformation. Siemens Global Press. Available at: https://press.siemens.com/global/en/pressrelease/siemens-leads-industry-next-level-digital-transformation
Siemens. (2022, March 21). Digital transformation in the energy and utilities industry. Siemens. Available at: https://blogs.sw.siemens.com/energy-utilities/2022/03/21/digital-transformation-in-the-energy-and-utilities-industry/
International Data Corporation (2024). IDC MarketScape: Worldwide Consulting and Digital Services Providers for the Upstream Oil and Gas Industry 2024 Vendor Assessment.Available at: https://www.idc.com/getdoc.jsp?containerId=US51004123&pageType=PRINTFRIENDLY
Forbes Insight (2015). Betting on Big Data. Available at: https://images.forbes.com/forbesinsights/StudyPDFs/Teradata-BettingOnBigData-REPORT.pdf
SalesForce (2022). Customer Centricity: What Is It and How to Achieve It?. Available at: https://www.salesforce.com/eu/blog/customer-centricity-how-to-achieve/
Accenture (2020). Accenture Innovation Labs Report. Available at: https://www.accenture.com/content/dam/accenture/final/a-com-migration/pdf/pdf-124/accenture-labs-innovation-report-2020.pdf
McAfee and Brynjolfsson. Available at: https://hbr.org/2012/10/big-data-the-management-revolution
Gartner. Available at: https://www.dga.or.th/wp-content/uploads/2015/08/file_fbcd2e42d3fa2274baa5ebbcc612ee2a.pdf
Gartner (2022). Gartner Forecasts Worldwide Public Cloud End-User Spending to Reach Nearly $600 Billion in 2023. Available at: https://www.gartner.com/en/newsroom/press-releases/2022-10-31-gartner-forecasts-worldwide-public-cloud-end-user-spending-to-reach-nearly-600-billion-in-2023
Bain & Company (2018). Telcos' $400 Billion As-a-Service Enterprise Gold Mine. Available at: https://www.bain.com/contentassets/afbad250d0cd41f6a613b2b69da6ace1/bain_brief_telcos_$400_billion_as_a_service_enterprise_gold_mine.pdf
Mckinsey (2011). Big data: The next frontier for innovation, competition and productivity. Available at: https://www.mckinsey.com/~/media/McKinsey/Business%20Functions/McKinsey%20Digital/Our%20Insights/Big%20data%20The%20next%20frontier%20for%20innovation/MGI_big_data_exec_summary.c
Forrester (2023). Executive Guide: Customer Relationship Management (CRM). Available at: https://www.forrester.com/report/executive-guide-2022-customer-relationship-management-crm/RES177121
World Economic Forum (2019). Supply Chain Collaboration through Advanced Manufacturing Technologies. Available at: https://www3.weforum.org/docs/WEF_Supply_Chain_Collaboration_through_Advanced_Manufacturing_Technologies_Report.pdf
