Business Development in South Eastern Europe
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Business Development in South Eastern Europe The strategies and learnings of Siemens in CEE Maximilian Mairhofer Siemens AG Austria. Siemens in Central and Eastern Europe. 61 mio. Consumers 524 bill. EUR GDP (4,3% growth rate)

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Business Development in South Eastern Europe The strategies and learnings of Siemens in CEE

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Business development in south eastern europe the strategies and learnings of siemens in cee

Business Development in South Eastern Europe

The strategies and learnings of Siemens in CEE

Maximilian MairhoferSiemens AG Austria


Siemens in central and eastern europe

Siemens in Central and Eastern Europe

61 mio. Consumers

524 bill. EUR GDP (4,3% growth rate)

33 bill. EUR Siemens-market (5,6% growth rate)

8.996 mio. EUR order intake

7.516 mio. EUR sales (thereof 58% export)

30.254 employees

Source: Central Bureau of Statistics, Year 2006


Critical success factors in business development

Vision and

Strategy

Critical Success Factors in Business Development

1

Attractive Markets and Favorable Business Environments

to compete in

1

1

1

2

3

4

Innovative Products, Solutions and Services to succeed with

Leaders and Employees

to realize


Business development in south eastern europe the strategies and learnings of siemens in cee

Attractive Markets and Favorable Business EnvironmentInvestment and Growth need outside Stimulation

1

  • Investment Climate

    • Stable political and legal conditions

    • Liberalized markets and privatization as drivers for investment

    • Openness towards Foreign Investment

  • Technology

    • Demand for modern technology

    • Secure Energy Supply and Resources

  • Legislation and Funding

    • Short project decisions and approval processes

    • Stable conditions for long-term investments(taxation, tariffs etc.)


  • Critical success factors in business development1

    Vision and

    Strategy

    Critical Success Factors in Business Development

    1

    Attractive Markets and Favorable Business Environments

    to compete in

    1

    1

    1

    2

    3

    4

    Innovative Products, Solutions and Services to succeed with

    Leaders and Employees

    to realize


    Innovative products solutions and services to succeed

    6,5%

    Industry

    Energy

    Healthcare

    Innovative Products, Solutions and Services to succeed

    2

    Sector

    Divisions

    • Industry Automation

    • Motion Control

    • Building Technologies

    • Osram

    • Industry Solutions

    • Mobility

    • Fossil Power Generation

    • Renewable Energy

    • Oil & Gas

    • Service Rotating Equipment

    • Power Transmission

    • Power Distribution

    • Imaging & IT

    • Workflow & Solutions

    • Diagnostics


    Critical success factors in business development2

    Critical Success Factors in Business Development

    1

    Attractive Markets and Favorable Business Environments

    to compete in

    1

    1

    1

    2

    3

    4

    Innovative Products, Solutions and Services to succeed with

    Vision and

    Strategy

    Leaders and Employees

    to realize


    The vision development from siemens ag austria into a crossnational network siemens cee

    Slovakia

    1994

    Croatia

    2002

    1994

    1994

    Slovenia

    1996

    1999

    2004

    Bosnia & Herzegovina

    Serbia(incl. Montenegro)

    Romania

    Bulgaria

    Region CEE

    The Vision: Development from Siemens AG Austriainto a crossnational network – Siemens CEE

    3

    Total Investment of Siemens AG Austria in CEE: > 73’ million €

    Total Business Volume booked since 1995: > 7”7 billion €


    First step establish a local set up added value of a regional company

    230.480

    First step: establish a local set-upAdded Value of a regional company

    3

    3

    Cross-Group Projects

    Bundling of Group Portfolio & Sector Approach

    PROJ 1

    PROJ 2

    ......

    .......

    2

    Local Services and Solution Business

    Value Add in Cooperation with local Companies

    A&D

    I&S

    TS

    ......

    SIS

    .......

    A&D

    1

    Marketing and Sales

    Sales of Products and Solutions + Sales Channel Management

    I&S

    TS

    SIS


    Development of the local market

    Development of the local market

    3

    • Step 1: Large infrastructure projects as entry point to local presence

    • Step 2: Build-up of sales, project management, technical and service resources

    • Step 3: Commitment to local presence via R&D- and production-facilities

    • Step 4: Investment in exogeneous growth

    Subotica

    Belgrad

    Nis

    Podgorica

    Pristina


    Development of the country organisation through further investments

    Development of the Country-Organisation through further investments

    3

    • Step 1: Large infrastructure projects as entry point to local presence

    • Step 2: Build-up of sales, project management, technical and service resources

    • Step 3: Commitment to local presence via R&D- and production-facilities

    • Step 4: Investment in exogeneous growth

    • Regional Company

    • Branch Office

    • Software-Development

    • Production

    • 579 employees

    • 56 in SW-development

    • 334 in production

    • 189 in sales

    Subotica

    Belgrad

    Nis

    Podgorica

    Pristina


    An example public lighting a success story in business development

    An Example: Public LightingA Success Story in Business Development

    3

    • Modernisation, Reconstruction, Maintenance, Operation and Energy Management

    • Combination of technical and financial engineering

    • Savings potentials of up to 60% - modernisation paid out of existing budgets

    • Contracts ranging from 8 to 20 years

    • Close cooperation with local companies

    • Digital monitoring in local dispatching centers

      • Bratislava

      • Brno

      • Most

      • Zlin

      • Teplice

      • Sliven

      • Sibiu

      • Neusiedl


    Public investment priorities for the region cee

    Public investment priorities for the region CEE

    Transportation: transeuropean transport networks, airports and strategies for urban mass transit

    3

    Environment: waste management, water treatmentand air pollution control

    Healthcare: hospitals, medical technology, optimization of non-clinical processes

    Public Administration: border control, tax collection, land register, IT and telecommunication infrastructure

    Energy: transeuropean networks, power generation, (renewable energies) and energy efficiency


    Siemens in moldova

    Siemens in Moldova

    Highlights

    • Rehabilitation of Moldavian Regional Public Hospitals and Establishing of the New Private Medical Centers

    • Complete Multi-Step Modernisation of the Lighting System for the International Aiport „CHISINAU“

    Siemens s.r.l., Moldova

    Overview 2007

    New Orders (in million EUR)1,5

    Sales (in million EUR) 0,6

    Employees5

    Vladimir Voronin, President of Moldova and Professor Mirchea Sofroni, Head of Moldavian Ontological Institute in front of the Siemens CT delivered to Moldova via IAEA (International Atomic Energy Agency)


    Critical success factors in business development3

    Critical Success Factors in Business Development

    1

    Attractive Markets and Favorable Business Environments

    to compete in

    1

    1

    1

    2

    3

    4

    Innovative Products, Solutions and Services to succeed with

    Vision and

    Strategy

    Leaders and Employees

    to realize


    Business development in south eastern europe the strategies and learnings of siemens in cee

    THANK YOU FOR YOUR ATTENTION


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