This was partly presenting 3rd financial quarter results but more on their future course with a Vision 2020+ and its respected parts being the design that is going to take the business out further by exploiting the parts within this vision.
There was a lot to take in on limited information and understanding. View the post “A feast of opportunities for Siemens?” for my first reactions on this.
The whole expansive story around Siemens new structure announced at this event offered some of the opening details, yet it is still to be “fleshed out” later in the year, by their management.
I specifically zoomed in on the new Digital Industries (DI) structure and where it is seemingly heading. Presently this new operating group will have 78,000 employees and a business revenue of around Euro 14 billion, that contributed a profit margin of around 16% in their fiscal 2017.
The expansion of the digitalization business has a very exciting acquisition announced the day before, with the Mendix acquisition, a leader, and pioneer in the area of low-code application development platforms, where you can potentially program and deploy apps up to ten times faster. This has been one of several “pain points” for Mindsphere, the Siemens digital platform, on providing a menu of apps to support client problems, so we should see some significant improvement on this point.
This purchase of Mendix can make a significant difference and propel the platform into a new value proposition, a 2nd generation digital platform where “smart” becomes central. I will be coming back to this once I have undertaken a little more research and assumption undertaking, in the next few days, as it has some compelling value positioning for Siemens, I believe.
It was the other part of the digitalization expansion that stopped me a little. This is what I want to discuss here. Let me work it through.