Siemens said it wants to expand its industrial software business and hopes a reorganization will help it do so.
"Software for industrial processes, in-depth vertical expertise and technology based service are crucial to increasing our customers' productivity," said Siegfried Russwurm, CEO of Siemens' Industry Sector. "We will continue to put all our efforts into developing our industrial activities in these areas so we can expand our market share," he added in a speech at the Hanover Industrial Fair.
Russwurm noted that product development times are decreasing even though products are becoming more complex and data volumes generated during the development process are increasing.
The Siemens executive said that's an important reason the company is moving to a more vertically integrated structure. Siemens' software and automation technology should help cut product development time, while costs can be reduced, he said.
From Oct 1, Siemens plans to integrate all previous vertical market responsiblities and associated Industry Solutions operations with the product and solutions business of the group's Industry Automation and Drive Technology divisions. Executives responsible for vertical markets will get enhanced responsibilities.
In addition, the service activities of the group's industry business will be merged into a separate Customer Service Division, which will have 14,000 employees worldwide.
The Siemens Industry Sector supplies environmentally friendly production, transportation, building and lighting technologies. With integrated automation technologies and comprehensive industry-specific solutions, Siemens aims to boost productivity, efficiency and flexibility of its customers in the fields of industry and infrastructure. The Sector, which employs 204,000 people and has annual sales in excess of 30 billion dlrs,currently consists of six divisions: Building Technologies, Drive Technologies, Industry Automation, Industry Solutions, Mobility and Osram.