170 Years Of Siemens: How To Build One Of The Largest Technology Companies In The World

Explorer vc.ru studied the history of Siemens, which was established in 1847 by Werner von Siemens, has passed a way from the construction of Telegraph lines to a diversified conglomerate operating in 190 countries around the world, survived two world wars, various crises and a major corruption scandal. This year Siemens will celebrate 170 years. During its existence, Siemens gave the world many things, ranging from trams and trolleybuses to modern developments in the field of energy, communications and medicine. The founder of the company, Werner von Siemens is usually put on the same level with Gottlieb Daimler, Karl Benz and other German and worlds greatest inventors.

The Siemens headquarters in Munich. Werner von Siemens was born in 1816 in Prussia in the town near Hanover. His father was engaged in agriculture and, according to most sources, without much success. The future entrepreneur was educated at home, then graduated with honors from gymnasium in lübeck.

During training, Siemens has devoted much time to the exact Sciences. After that, went to Berlin, where he tried to join the Royal guards artillery. There he refused to accept, but was advised to join the artillery brigade in Magdeburg. There he was able to find a job and was immediately sent to study in the engineering and artillery school.

After graduation, Siemens received the rank of Lieutenant. By a strange coincidence, in 1839 and in 1840 his parents died. Werner was the eldest child in the family, and taking care of ten brothers and sisters fell on his shoulders. Siemens understood that the salary of the Lieutenant insufficient to provide for the family.

Part of the brothers and sisters he distributed to relatives. However, he sought to support them financially. Being a talented engineer, he decided that his skills can be a source of additional profit. Already in 1842 he patented the first discovery of — way galvanic gilding and silvering.

Brother of Werner — Wilhelm — patented it yet, and Britain, and then found the buyer and earned £ 1,500. This discovery has allowed Siemens to strengthen its financial position. There is information that some of the experiments he had to do in prison. Siemens were there due to the fact that he participated in a duel as a second.

Werner von Siemens. In 1847 was presented another invention of the Siemens — switches Telegraph. Development won in the state contest and were recognized as suitable for use in the Telegraph. Telegraph Siemens was interested in not only the government and military and engineer Johann Georg Halske that would eventually become the business partner of Werner. Together they engaged in research in the future success of Siemens in Galske played a significant role.

By the way, Siemens successfully promoted its development to the military and was even included in the Commission dealing with the transition to electroculogram. There is evidence that at that time Siemens, in a letter to his brother Wilhelm reported that intends to engage in the Telegraph on the matter, will he / she have to do it in the army. In 1847 Siemens and Halske have established a joint company Telegraphen-Bauanstalt Siemens & Halske. Its main purpose was electroterapia.

However, gradually the range of works the company has expanded greatly to other sectors — including the mechanics and optics. There is also produced electroindustry and elektrosignalnaya. Simmons, despite the fact that he became a partner and co-founder, officially in the company have not worked, and continued military service. In fact, he lived near the Studio and worked hard in his spare time.

Start-up capital the company secured a cousin of Werner — he put 6842 thalers and received about 20% of the income of the enterprise. The first global achievement Telegraphen-Bauanstalt Siemens & Halske was the establishment of a Telegraph line between Berlin and Frankfurt. This is a significant event has occurred in 1849. In the same year, Siemens had left the military service, having been on it 15 years.

The reason for leaving was the company where it every day was all needed. In 1850, Siemens & Halske started to have problems. Laid deep under the ground and not isolated Telegraph lines proved to be unreliable. Siemens is predicted and to tackle this problem, knowing that success will allow him to beat the competition.

But right ideas Siemens not found response in government of Prussia. In the early 50-ies in this country Telegraph network was actually built. There were also telegraphic Agency, the head of which was Friedrich Nottebohm. He had experience in the technical industry and he did not object to the elimination of emerging problems in underground Telegraph lines.

Siemens turned to him with his report on the situation and their causes. A former military engineer and scientist, it seems, grew too straightforward that in dealing with officials is not always the best strategy. In fact, Siemens was accused of all problems savings when laying the lines.

Nottebom this idea was not supported and made the report their conclusions. To Siemens, he began to experience extremely hostile feelings, and therefore used his influence to deprive the Siemens & Halske government orders. The head of the Telegraph office it was extremely easy. So the company Siemens was in a difficult situation and some time was on the brink of ruin.

In order to survive, had to expand to other sectors and start of global integration. The firm has started to produce and supply rail signal electrical. Another development steel turbine meters the amount of water consumed. They ordered the UK.

A large part of the sources agree that Siemens & Halske survived thanks to the Russian contracts. In 1851, the company has delivered 75 Telegraph. At that time the country was only one Telegraph line between St. Petersburg and Moscow. The market seemed promising, Siemens, and he went to Russia, managing to get there orders. He then appointed his brother Charles sales representative in Russia.

Since 1853, the company began construction of a huge Telegraph network throughout the Russian Empire. Its length was 10 thousand kilometers. Everything was done at a high level — Siemens in the deal promised that if in 6-12 years will be a problem that is not mentioned in the contract, the company will be to update whole sections of the line.

It sounded at least expensive, and Siemens he was nervous about this item. But at that time the entrepreneur has learned from some of the early projects, and the company has worked in Russia carefully. High quality work in the end defended the Siemens & Halske against unexpected problems and led to the Russian Telegraph network the best in Europe. Only the Russian Empire, Siemens did not stop and willingly carried out orders of other countries, in particular Sweden. Success abroad has allowed Siemens & Halske successfully survive the European crisis 1857-1858 years.

Werner Siemens continued inventiveness. Within 50 years of its invention necessary to carry a special device, fixing the fault lines and to the extent possible, not allowing it to spread further. They also developed a method for multiple use of the wire.

In the early 60-ies of the Siemens participated in the laying of submarine Telegraph cables in the open sea. The first attempt undertaken in the late 1850s, was successful and the company managed to combine in this way and Cagliari Bon. In 1864, Siemens & Halske received a contract for laying a submarine Telegraph cable between Cartagena and Oran. This time the entrepreneur has changed the luck, and three attempts ended in failure.

By the way, the part of sources confirm that in the end, Siemens gained his end, and the other — on the contrary. In any case, the company had run up against great difficulties that negatively affected her reputation. In 1867, left the company in Galske. There were several reasons he didnt like the risk suffered by the Siemens & Halske in the process of laying a Telegraph line between Oran and Cartagena, and in General, he did not support the policy of Siemens on the further development of the company.

In the same period, Siemens was busy developing one of its most important inventions, Dynamo, which was presented in 1867. Development took the owner 12 years, but in fact it was the first electric generator, and its influence on technological progress is difficult to overestimate. In particular, it has given the opportunity to make mine fans, bumper electromode and more. Siemens himself found the development of many unusual applications.

In 1868 was begun one of the largest projects of the early history of the company — building of the Indo-European Telegraph line. Sometimes this line is called the London-Calcutta. At the time it was needed, but the reality of the project seemed doubtful. Siemens did not bound various limitations and concerns — he proposed to build a line length of 11 thousand kilometers, were going to implement a completely new system and have developed a special Telegraph.

There are indications that this idea was advanced by the efforts of the Siemens brothers, who for several years have been negotiating in the countries through which he had to pass the line, starting with the Russian Empire and Persia ending. In 1868 in England, was was the Indo-European Telegraph company. Its authorized capital amounted to 450 thousand pounds. Siemens had to pay 90 thousand pounds as a guarantee payment.

Huge amount it, thanks to a wide network of acquaintances, managed to gather a few days without taking out a Bank loan. The construction took two years, and the line passed including Germany, the Russian Empire and Persia. Transmission of messages along this line between London and Calcutta took just 28 minutes. Then it looked fantastic.

Indo-European Telegraph was in operation until 1931. Thus 1871, he was for some time incapacitated — because of the earthquake on the coast of the Black sea cable was damaged. In 1871 Siemens suggested re-engage in the laying of submarine cables. It was one of the largest German bankers, who dreamed of a transatlantic Telegraph line.

Siemens was ready to take on a project, but had concerns about the success of the mission. He still remembered about the failures of the laying of the cable between Oran and Cartagena. Of the proposed project, nothing came of it, and into the implementation phase it never came. Siemens brothers, however, were ready to implement it and decided to act in this industry actively.

They tried to find a reliable customer for a transatlantic Telegraph line. Progress is difficult because of the abundance of competitors, are not considered with the means. Sometimes things came to slander and sabotage. As a result, in 1873, Siemens received the contract for laying Telegraph lines between Ireland and the United States.

In 1874 was launched ship-cable layer CS Faradey. Its owner was Siemens, as part of the innovative technologies developed personally by the Werner Siemens. CS Faradey. The laying of a cable between Ireland and the United States was begun to test its quality.

Despite all efforts, he still broke in the Atlantic. Faradey on CS at that time was attended by Carl Siemens, who understood that the company is a step away from the fiasco. In these circumstances, he decided not to give up, and within seven hours the team was looking for a cable with the help of the search anchors. The attempt was a success. In the future Siemens will be able to create the perfect cable for Telegraph lines between Europe and the United States.

Competitors continued to act against Siemens in the same manner. So, in 1874, through the press, was spread the news that CS Faradey collided with an iceberg and sank. For the Werner Siemens it was the hardest test. He was the day he spoke publicly in honor of its introduction to the Academy of Sciences.

Some rivals even caught Siemens Siemens laid the cables and cut them. But the company coped with all the difficulties and eventually paved a minimum of five transatlantic lines. In 1877, before Germany came one of the famous American invention — multifunction Telegraph bell or easier — one of the first phones. Siemens on the instructions of the post office established at their production.

Werner Siemens had treated them a little with irony, until I realized that it is not only popular toys, but also the future of the whole industry. Then the inventor has made several developments in this area and began to sell them. In the late 70s and during the 80-ies Siemens has received an absolute recognition both at home and around the world. In that time he has implemented governmental lighting projects mines.

Especially memorable was the Berlin exhibition in 1879. It Siemens presented the first electric railway. In fact it was elektrolokomotiva with several cars that the owner intended to use under ground. Ride it want a huge number of people. In 1880 he introduced the first electric lift.

After a year, Siemens launched the first tram in Berlin. Werner Siemens, meanwhile, undertook an ambitious project — the first attempt to create a Berlin subway. In 1882 was running a trial line that used the trial version of the trolley. Despite the successes of Siemens and a willingness to use the new methods of underground structures, the project will be implemented much later and already the son of Werner Wilhelm.

By the way, in 80-ies the company has completed another major project — the system of illumination of the Winter Palace. Sam Werner Siemens was so satisfied with it that was called the worlds most advanced. In 1880-ies Siemens gradually retreated from the company. In that time he managed to conclude an agreement with DEG, a global aim of which was the introduction of electric lighting in the whole of Germany.

Based on the agreement, DEG was granted the right to manufacture patent of Siemens, and in return purchased equipment and materials only from the company Siemens. DEG also were not allowed to build their own power plants. It is believed that Siemens did this to his company was not working on the market of electrical goods directly. However, the head DEG celebration has breached the agreement and have found suppliers on the side.

Siemens terminated the agreement, but the beginning of competition has already been laid. DEG, meanwhile, have turned to AEG. So Siemens was not the only one on the energy market company in Germany, and the number of competitors began to grow. At that time the company still had an outdated form of organization.

Werner Siemens did not make the Siemens joint stock company with limited liability and is not particularly sought, which prevented the development of the company. Turning to Siemens & Halske occur later and without the participation of Werner von Siemens. In 1888 Siemens was granted nobility, and he received a prefix to the name “background”. In 1889 Siemens left the leadership of his own firm.

Came to power, his sons Wilhelm and Arnold. The Director considered his brother Carl, who lived in Saint-Petersburg. At the time of the departure of Werner von Siemens, his company had more toe thousand workers and three subsidiaries in Russia, Austria and England. In those industries, where he worked for the Siemens & Halske, it certainly was one of the leaders. Werner von Siemens died in 1892, having to publish their own memoirs.

At the time of the case in the Siemens really was bad. In addition to the AEG in the number of competitors there were a few large companies. For example, the Nuremberg company Shukert&Co during the 90-ies built more Central stations than Siemens and AEG combined. In Russia, one of the favorite markets of Siemens, the situation was not better than German rivals, they acted more successfully.

Siemens could not get a contract for almost 15 years. Were strong competitors in the telecommunications industry — including AT&T and Western Electric, has successfully sold the phones. There is information that came to the leadership of Carl Siemens was ready to merge with AEG, but it seems only in St. Petersburg, hoping to work together on the Russian market. It really is not over.

Sent to check the status of Siemens, Felix Deutsche found in the company of a lot of problems — antiquated and expensive products, suspicious accounting, poor organization of warehouses and more. No deals happened, and it was then that Carl took over the reorganization case. In the 1890s Carl Siemens was, as it seems to spend more time on leadership. In particular, during this period he transformed the company into a joint stock company with limited liability.

Finally, the reorganization was completed in 1897. The authorized capital of Siemens & Halske was 28 million stamps. Carl much earlier appreciated the benefits of new forms of organization of the company and started to take an example from AEG. Thats because Siemens, previously took loans in banks first began to raise capital from the.

In 1892 they took a little more than 10 million Deutsche marks Deutsche Bank. This was done for a reason. The company needed an infusion in order to continue to develop their products. In addition, the market was dominated by competition. AEG, not grusauskas loans, was one of the main opponents of Siemens & Halske and due to banks in no way inferior to the company of Siemens despite the fact that appeared much later.

With desire to keep and regain its absolute leadership is associated the major part of the changes, Siemens & Halske in the late 19th century. There is another version, according to which the authorized capital amounted to 35 million marks. It is believed that the company financially helped the son of Karl — Werner who became a Director of Deutsche Bank. Then began the construction of the town Siemens Siemensstadt in Berlin suburb.

In fact, the company built not only factories and offices but also homes and schools and clinics. In General, all to simplify life work. In 1903 was created with AEG joint venture, called Telefunken Gesellschaft für drahtlose Telegraphie. The reason for the creation of companies began joint development of the former AEG and Siemens — they could not divide them.

The first could not stand the German Emperor Wilhelm II — not wanting to continue the argument, he forced them to establish a joint company. So there was Telefunken, which is considered an almost legendary manufacturer of radio and TV technician. In the same year Siemens acquired one of its competitors Shukert&Co. Apparently, she became part of Siemens & Halske and acted almost independently, although most of it belonged to Siemens.

This subsidiary company was named Siemens-Schuckertwerke in the future will be known by the release of various equipment, electronics and equipment. In 1908, it added more and automaker Protos Automobile. But the success of this trend usually are priced quite low. This is not surprising in Germany in the automotive market was a huge competition, and to win Daimler or Benz was a little difficult.

In 20-ies the company will leave this market. Subsequently, the brand Protos will become much better known as a manufacturer of electronics and home appliances as well as ovens, refrigerators, vacuum cleaners and much more. In 1911 appeared the airship Siemens-Shukert-I. Until then, the company tried to develop the plane, but without much success.

In 1911, the work turned for a very simple reason — the military decided that the airplanes will not be used in the war. In 1914 the situation changed. While German generals believed that the airplanes are no longer French, they were enough. After receiving disturbing information from intelligence, the German command decided to create the air force.

Siemens-Shukert also received contracts from the military. To work was a branch of this company in Nuremberg. The first model, called SSW E. I made the first flight in 1915, and then a few were sent to the front. Then SSW E.

I have received a number of modifications. During the war, the Siemens-Shukert successfully produced aircraft. Among them stands out released in 1918 Siemens-Schuckert R. VIII, which was ordered in 1916.

Its main feature was that it was the largest aircraft built during the First world war, and the largest in the world at the time of creation. Siemens-Schuckert R. VIII. In 1906 he died, Carl von Siemens, and the leadership was finally handed over to the sons of Werner von Siemens.

It will be the Siemens through the First World war. Information about the Affairs of the company in the period before the war, not so much. It is precisely known that she continued to work actively in the field of communication and lighting. In 1909 including was submitted to auto switch. It is able to serve 2500 lines.

In addition, the company continued to work in the industry of locomotive and, for example, has put Sweden in 1913, two Express, and thirteen locomotives. During the war, Siemens & Halske were forced to leave a familiar industry due to falling demand in such products. The company switched to the production of paddles, communication devices, explosives and aircraft engines. One of the main achievements of Siemens & Halske was the creation of fire extinguishing systems for German cruisers.

She did well and became a demonstration of innovativeness of the company. If judged globally, the First world war was difficult for the company period. In 1917, the Bolsheviks confiscated the property of the company in Russia. Its total cost amounted to 50 million rubles.

Were also lost the English branch of the company, which the British government sold at their discretion. After the war its Siemens not returned. In 1918, died in Arnold von Siemens. William outlived his brother by a year.

In this regard, new head of the company was Carl Friedrich von Siemens (son of Charles). His aim was the rehabilitation of the company, including international markets. Some sources call it has taken action “building a House of Siemens”. In fact, Siemens began to create from the remnants of the family Empire diversified conglomerate. Based on the available information, it separated the great divisions in the subsidiary company. while maintaining full control over them.

Carl Friedrich von Siemens. In the early 1920-ies the company has successfully entered the market of radio receivers and vacuum cleaners. Another important innovation was the introduction of the Assembly line, significantly increasing the speed of production.

In 1923 the company began to market Japan. Working quickly, as Japan was very interested in General Electric and it was necessary not to lag. Soon in Tokyo there was a branch of the Fusi Denk, a joint company of Furukawa Denki Kōgyō. She was engaged in manufacture of electrical equipment.

Siemens was still working in different directions. Including invested in the construction of Railways in the suburbs of Berlin and created with AEG joint venture for the production of incandescent lamps. It was not the only time when companies acted together. They launched the company Klangfilm involved in the development of sound cinema.

In 1925 Siemens has entered the market of medical equipment. Along with Reiniger, Gebbert &Schall, she created a major manufacturer in the industry — Siemens-Reiniger. One of the main areas was the x-ray equipment, increasingly gaining popularity. In addition, the company has released a system of traffic control, the first of which was established in Berlin in 1926.

Siemens was also involved in the construction of hydroelectric power plants, for example, on the river Shannon in Ireland. In 20 years despite the previously described complexities Siemens began work in the USSR and was engaged in the electrification of the country, received a large government contracts. In addition, Siemens tried to get the contract for the construction of the station, but success is not achieved. The setback did not stop her to sell the equipment for this plant, but also to be a supplier in the process of construction of the Moscow metro.

Despite the problems and the difficult state of German economy after the war, Siemens in the period of 20 years to feel confident. However, with the beginning of 30 years of optimism among the leadership diminished. The great depression and the German economy was in a serious condition, are the reason that Siemens & Halske, instead of new technologies focused on the reduction of production and personnel.

The situation changed with the coming to power of the Nazis, which provided the company with military contracts. Carl von Siemens was skeptical of their ideology and the General view that ideas are not supported. With Hitler he didnt get along. However, publicly against the new government that the entrepreneur has performed and fulfilled military contracts. He did it specifically — not wanting to compromise major military production, created for this subsidiary.

In addition, Carl was only producing Electromechanical products and did not agree to change the approach, even before the threat of execution. The coming to power of the Nazis led to other problems, such as withdrawal from the market of the USSR. While work continued in the communications industry. So, in 1936, the company was able to transmit a signal 200 phone calls and television stations with a single cable.

In General, the period although he was productive, but was taken to Carl von Siemens had fun. The owner liked to work for peaceful purposes, and he tried to focus on this direction. In 1940 he resigned and the new head of the company was Hermann von Siemens, the son of Arnold. He, incidentally, was also the head of Deutsche Bank.

During the war the company continued to work in a large part for military purposes. German workers went to the front and replace them with a government found in concentration camp inmates and prisoners of war. In 1944, Siemens worked about 50 thousand of such workers. The company owned factory in Bobrek concentration camp belonging to Auschwitz.

Despite the notoriety of the latter, workers in Siemens were kept in relatively good conditions — had the day off, they beat and on-site there were no gas chambers. If to speak about products, supplied by German troops, among them stands out the innovative system of detection of aircraft having a maximum range of 150-300 kilometers. There is also rockets V-1 and V-2.

Despite the assistance of the state and the presence of large contracts, the Second world war, is not the best stage in the history of the company in terms of business and financial performance. At the end of the war, Siemens was badly damaged by bombing and fighting. A significant portion of the assets of the company were also in the Soviet occupation zone — equipment and best practices are successfully exported to the USSR as reparations. Work remaining plants and the headquarters for some time was stopped.

Hermann von Siemens was arrested. He, like many other German businessmen were charged with collaborating with the Nazis and use of slave labor. The guilt of the entrepreneur not prove. The investigation shows that the working conditions in factories were much better than the other.

Despite the positive completion of the investigation and agreement by Siemens to pay compensation to the force employed at their enterprises during the war, or their relatives, this case is not over. In 1947, three Directors of the company have accused that they have contributed to the increase in the import of workers from German-occupied countries. Then came the information that Siemens was the supplier of the equipment for the gas chambers. Despite the unproven such speculations, they are extremely popular till today.

In 1948, the leadership returned Hermann von Siemens. Family Empire again was in a dire state — most of its equipment was removed, the right to patent is lost, the factories in ruins and skilled workers is not enough. Herman, hand in restoring the family business, in fact, founded a new company, so severe was her condition. But by the early 50-ies the company started in the industry, where before it was strong — lighting, electronics, medical equipment, communication.

Among the memorable developments of the decade, it is worth mentioning the worlds first implantable pacemaker Siemens-Elema. In addition, the company began to operate in the market of computers and nuclear energy. Overall, the U.S. market for Siemens in the 50-ies were of particular interest. With the aim to gain a foothold there was established a subsidiary in new York.

Soon the U.S. market was released by an electron microscope by Siemens. Restoring the position of the family business, Hermann von Siemens did not stay his head. Already in 1956, he transferred to his son Carl von Siemens — Ernst. About the first years of Ernest at the head of Siemens it is a bit much.

The company was quite successful, having established a technology exchange with Westinghouse in nuclear energetici. There were also extraordinary developments. So, the medical division of the company in 1965 introduced the Vidoson, the worlds first device for ultrasound scanning in real-time. Another important achievement of the company happened in the space industry.

So, Siemens developed the triode was used in the transmitter of Mariner IV. The American spacecraft was the first in the history who took the photos of another planet from close range. He was filming Mars. The company supplied high-speed trains on order from Germany and was engaged in the construction of nuclear power plants.

One of them was raised in Argentina and is known as the nuclear power plant Atucha. She was the first in the country and was built in several stages. The first unit was built from 1968 to 1974. Then began construction of a second, but due to financial difficulties it lasted until 2011.

In addition, Siemens was engaged in the construction of nuclear power plants in Germany. We are talking about the Obrigheim NPP, located on the river Neckar in Baden-württemberg and launched in 1969. In addition, the group has already built several nuclear power plants in different countries of the world. The main success of the Ernst von Siemens at the head of the company is usually called a reorganization.

Until it is, as mentioned previously, had its own form of organization — the “House of Siemens”. Company like the company, but had some unusual features for it. Key among them was the presence of three Central companies, Siemens & Halske AG, Siemens-Schukertwerke AG and Siemens AG Reinigerwerke. In former times this system did well, but that all changed. Siemens needed a more centralized structure and a single corporate policy.

It is because the three main companies were merged into one — Siemens AG. It was only the first stage of the reorganization. In 1969, the assets of the company were divided into six areas — production components, telecommunications, medical technology, data processing, power engineering and electrical equipment. In 1969, the groups sales amounted to DM 10 billion.

In 1971 Ernst von Siemens resigned as CEO, handing it to his cousin Peter. Usually 70-ies called an extremely successful period for Siemens, because financial indicators have grown, and Siemens have expanded their activities in different markets. They used the old method group joint venture.

So, thanks to the Alliance with the Allis Chalmers company was established, Siemens Allis. Its main purpose was to market turbine generators USA. Also in conjunction with AEG and Brown, Boveri & Cie was built high-voltage line of DC Kabor-bass. She ran from the hydroelectric power station in Mozambique to South Africa, had a length of 1400 kilometres and was the first of its kind, where in the scheme are used thyristors, which are located outdoors and not in the hall. With these partners, then, Siemens has made some developments.

In addition, Siemens has successfully worked in all sectors, where it was. For example, she managed to capture 21% of the computer market in Germany. This fact greatly strained IBM, which felt the loss of the share. Siemens also successfully worked in the field of telecommunications and supplied, for example, equipment in 1972 Munich Olympics.

But the company during this period there have been setbacks. These are usually ranked as the development of the modern chips. Despite all attempts, the work in this area, specific failed. Prior to 1987, Siemens forced to buy from Toshiba.

In the 70-ies the company started to actively conduct research in the field of alternative energy, including solar energy. Just that Siemens did not stop and paid attention to thermal power plants. There research was aimed at improving the efficiency and environmental performance.

The success of Siemens in the power industry for 70 years has been highly acclaimed, including the American editions. There is evidence that Fortune called Siemens main competitor General Electrics in almost all industries, starting with the generators and ending with motors. Of course, Siemens emerging from a restructuring, this feature was extremely flattering, but to slow down the pace nobody was going. In the 80-ies the activities of the company became particularly known for the early production of cell phones.

Siemens Mobile was launched in 1985. In the same year appeared the first phone, the Siemens Mobiltelefon C1. He weighed almost nine pounds and was designed for installation in motor vehicles. In 1987 was released another model — the Siemens Mobiltelefon C2. This phone weighed nearly seven pounds and was an improved version of the previous model.

Siemens Mobiltelefon C1. In addition to the market cellular phone Siemens in the early 80-ies were waiting for changes in leadership. Peter Siemens resigned his post, and his first time in the history of the company changed not a relative and employee of the company Bernard plotner. At that time it was already 67 years old, but despite age, he worked hard, and knew the features of the company, which has spent several decades.

There is evidence that experience was the reason why Peter von Siemens chose plotner of his 44-year-old son. Plotner has held the post of Chairman and CEO was Karlheinz Helmet. Despite the departure of the family of Siemens from the company, they still remain the largest shareholders of the company, controlling about 14.5% of the shares.

Together they decided to make Siemens a world leader in the sphere of high technologies. For this was launched a versatile and very expensive program of research and acquisitions. Thus, in the period from 1983 to 1988, spent $24 billion on development, exploration and acquisition of companies. Among purchased was quite large and well known companies.

One of them was a Rolm System, formerly part of IBM, and cost $844 million. But it is possible to increase market share of switching equipment in the United States. The success of this program is considered to be the fact that the company has successfully developed its microchips in 1988. In total, the efficiency, and most importantly — cost programs was surprising not only in a fairly conservative business circles of Germany, but also in the United States.

Overall, actions taken have helped globalisation, but he was clearly not very profitable economically. During the 80-ies the company has not only researched and purchased, but it is successfully implemented various projects. So, in 1980, introduced the technology of digital switching EWSD, developed by Siemens. The first ATS that use it, was in Hamburg.

Another important area of work for Siemens in 80-e years was the entry into the consortium, who set himself the goal of developing and manufacturing high-speed trains. Work was started in 1985, and it has resulted in an experimental InterCityExperimental train. The consortium had a certain time to negotiate with the German government about the size and other design considerations.

Friction also arose regarding the amount the country needs trains. The outcome of the negotiations in 1988, order 41 train ICE-1. In the future their number will be increased to 60. Information about participation in the project Siemens a little, it is known that the company supplied components for ICE. In addition, it is commonly called the head of the development of the model ICE-3.

Speaking about these trains is worth to mention that their concept of two elektrolokomotiva and non — motorised carriages had drawbacks. In particular, ICE-1 had difficulties with gradients on some sections of the railway. In the early 90-ies, Siemens, once again waiting for changes in leadership.

So, new Director. This position was occupied by Heinrich von Pirer. The reason for the reshuffle was the crisis in Europe and the attractiveness of the American and Asian markets. From Perera expected steps in the direction of globalization and commercialization Siemens. The new CEO immediately offered its own course of development concern.

There were three key trends — the company should focus 85% of the business in global markets or with the potential of up to this level, production is much improved by reducing its intensity, but also a key business factor. Changed the corporate culture of Siemens. The company was known for the dominance of the engineers and focus on innovation.

Purer in fact not declined, but slightly corrected. He hoped to turn a concern as a competitor to Japanese companies, and for this it was necessary to change some of the established canons. Thanks to Piero Siemens is better targeted to the market. The company has concentrated on innovation and service.

Managers in local markets have much greater freedom, including relatively lower prices. The company has continued to innovate also working in collaboration with other. Continued the creation of ICE trains. So, in 1997, a model ICE-2, which was like a predecessor, but had a few differences in design.

Ending theme of trains, it is worth mentioning ICE-3, introduced in 2000. Despite the similarity, this design was abandoned locomotives, replacing it with a motor-car. ICE-3 also received several design features that allow the train to better climbing. The model later received a few modifications.

After the model ICE-3 trains are called Velaro Siemens, which is considered a continuation of the famous line. Train is known for the fact that the company sells them in Europe and in other regions of the world. One of the buyers was Russia, having ordered eight of the trains in 2006 and eight more in 2011. They go under the name of Velaro RUS “Sapsan”. Supplied with the Russian version has some differences from the models in other countries.

Siemens Velaro. Apart from trains in the 90-ies of the continued development of the company phones. One of the key features was the compactness and innovative engineering solutions. Started in 80-ies of the ruler continued in the 1990 model C-3, weighed 2.5 kgs.

Then there was the model-4 is the first to support the GSM standard. In 1993, appeared S-1, known primarily for the duration of work without recharging, in standby mode it held for about a day and 2.5 hours in conversation. S-4, which appeared a year later, stood for about 70 hours. It is also worth mentioning released 1997 S-10 — first cell phone with color screen.

If desired, the list of models for Siemens to expand. But the main thing remains the fact that the company felt well in this market and sold unusual products. Siemens S-10. The second half of 90s the company is the European market was in recession.

This problem has been added and the Asian crisis, which started in 1996. A natural result was the decline in net profit Siemens in the period from 1996 to 1998, two-thirds. In 1998, Perer was forced to agree with the view that Siemens worked in too many areas. His next step was a global plan that includes substantial reduction of the companys assets and the abandonment of a certain number of divisions like the manufacture of semiconductors, considered one of the most unprofitable in the company.

After that, Siemens has focused on four areas. Electricity, industry, railway system, communication and information. In order to consolidate its position in the electricity market, has been acquired by one of the daughters Westinghouse working in this direction. So, was formed a subsidiary of Siemens Westinghouse Power Corporation.

The next step was the gradual displacement of production outside of Germany. Perera also had to reform the railway company. In particular, he appointed in his leadership of the new management team. They received the task to strengthen the position of the direction with the expectation of its sales in the coming years.

In the area of information and communication included Internet technologies, telecommunications direction, as well as computers and mobile phones. Peter was going to develop it with other companies. By the end of the decade it was made a few purchases of American companies to consolidate. In General, the measures taken by Perera have been effective, and the companys net income in 2000 increased from €1.2 billion to €8.9 billion.

In the early 2000-ies the company continued with its policy of globalization. She managed to expand by a contract for the purchase of Vodafone of Mannesmann AG. The deal itself is usually called a hostile takeover, and several other companies managed to tear off a piece of the Mannesmann. Siemens managed to get the production of automotive components, pumps, cranes, logistics and other. Part of the assets of Siemens was not needed, but because they successfully managed to resell.

Siemens also took advantage of the opportunity to purchase the mobile division of Robert Bosch. The latter left the market, and therefore the transaction was great from all sides. Siemens also tried to get rid of unnecessary assets. In the beginning 2000-x years it was ranked as the direction in nuclear energy, the new owner of which has become Framatome ANP.

In exchange, Siemens received 35% of the shares. All these changes are lost on the background of two successive scandals. The first began in 2002, when the Financial Times and several other sources reported that components supplied by the company to Iraq of equipment for crushing stones in the kidney can be used in developing nuclear weapons. Given the dissatisfaction with the United States and Europe the regime of Hussein, this information caused a public outcry.

Siemens denied the possibility of such unconventional use of their equipment. Wine companies have been refuted by the Americans themselves did not find in Iraq nuclear weapons. Following the scandal has had far greater consequences. In 2004, Italian prosecutors accused of bribery by Siemens.

According to police, the company allowed the staff to give a bribe in the amount of €6 million the management Enelpower, owned by Italys Enel. This was done in order to get the contract for gas turbines. In the end, Siemens was banned from the cooperation with Italian state companies for one year and a fine of €38 million. Accused managers in 2007 received fines and suspended sentences in Germany.

This scandal has not ended, and continued to zoom in. In 2005, the post of General Director of the company left Pier, took over as Chairman. The new CEO became Klaus Kleinfeld. Before the appointment he was head of consulting, Siemens management Consulting Group.

In addition, he became known as a man who knows how to restore the profitability of the units of the company and a good crisis Manager. As head of Siemens in 2005, he almost immediately sold the loss-making mobile division of BenQ. The amount of the transaction was $350 million, despite the fact that this direction has caused the company damages of €500 million. In General, Kleinfeld, despite the fact that he was a good head of the company soon left the post.

He was just unlucky to be at the head of Siemens in the company corruption scandal. In 2006, the headquarters of the company conducted a search including checking the office of Kleinfeld. No compromising material on the head of the company has not been found, but in 2007 he said he would leave Siemens after the end of the contract 1 October 2007. The official version says that the withdrawal was not associated with scandals, but this does not prevent many sources need to be considered.

At that time the top managers of Siemens were leaving their posts and on their own, and the arrests. So, it was detained chief financial officer and head of telecommunication Department. In addition, in 2006 the company admitted bribery in the amount of €420 million. In 2007, an internal investigation revealed that the company has carried out suspicious transactions amounting to approximately €1.6 billion.

All ended up with fines totaling €1.6 billion. Siemens has also filed a lawsuit against 11 top managers, among them was listed Pier and Kleinfeld. At the head of the company Kleinfeld was replaced by Peter löscher. In his hands was a huge concern, suffering because of the scandals and bureaucracy.

As he told the löscher at the first meeting of the governing Council, it appeared that the decisions had to be taken have already been taken, and the audience should simply adopt. Loescher asked each Board member to talk about how things are going. The answer was standard — you need to request the latest reports. Peter Löscher.

Löscher had to deal with all this structure. One of his first decisions was to reduce the Council based on the rule of “one head — one business”. So the Council were only eight people. He then began the assessment of the companys employees. To do this, Lesher hired the Agency Egor Zender.

Not wishing to be tested Loescher offered the opportunity to resign. He was able to pick up quality professionals for the posts of heads of departments, managed by the end of 2007 to create their own team. Not all of them getting the promotion, part of the former leaders who have proven their professionalism and efficiency saved posts. The next activity was the work with subsidiaries of which löscher was one of the key success factors.

The aim was the fight against bureaucracy and restore order. Daughter Siemens at the time was strange structures. At first glance it might seem that they have or are given too much freedom or the things left to chance. For example, the mobile unit was sold in 2005 and this market Siemens officially left. Some subsidiaries of their own reasons did not do so and continued to work.

So, Siemens had a huge number of various local businesses, unrelated to the main activity of the company. Had to eliminate such problems and to assign to each Department head responsible for the worldwide. Approach Loescher in this direction clearly show the following changes. At the time of his coming to Siemens, he worked in 190 countries and had about 70 clusters.

Löscher thought it was too much and he began reducing first to 20 and later to 14. To control established a special steering group. This was done for greater flexibility of the group. Another important activity of the company was to increase customer centricity.

This factor in Siemens neglected, but löscher thought it important. Thats why he started to provide graphical summaries based on the schedules of the Directors-General of departments and members of the governing Board. On the chart they were entered with names and stats according to Loescher, went bad. He was in the lead, because spending in this direction about half a day. Top managers have demonstrated in the most part the average result.

The first method was tested in 2008. The next three years the statistics have changed for the better, and eventually some leaders began to outpace Loescher. The others with him caught up. This success was not without caustic comments about how löscher can trust subordinate.

Speaking about the reforms Loescher, it is worth mentioning equal opportunities policy. At the time of his coming in the management Board of the company does not have any woman. This approach Loescher did not satisfy him and he corrected the situation. So, the Council were two women who were raised through their skills and success.

However, all these changes despite their importance and obviousness, did not bring Siemens a welcome stability and growth. In 2009, the demand in key markets began to decline, and Loescher, according to General opinion, he misjudged the needs of the market. In addition, due to delays in the implementation of projects, the company increased spending.

The deterioration of financial performance in the period of 2010-ies led to the fact that löscher is a plan to increase sales introduced a plan aimed at saving €6 billion. In August 2013, löscher as CEO was replaced by Joe KAESER. The reason for the dismissal of löscher referred to the unsatisfactory financial performance. In five years, the stock price also fell by 11%. Löscher himself admitted his guilt in that untimely responded to the economic crisis.

Joe KAESER. Joe KAESER before he became CEO, was appointed chief financial officer of Siemens. Beginning work on a post of the General Director for KAESER didnt look too optimistic. Instead of relaxing the implementation of the plan of reorganization and development of the group, he had to proceed immediately to action.

The fact is that in 2014, it became known that one of the main competitors Siemens and General Electric are going to buy the energy business of the French Alstom. The KAESER did not want to, but because he had to immediately intervene in the battle and try to get direction. GE offered €12.4 billion. Siemens started with €11 billion and directions for the production of trains.

However, the offer to taste Alstom does not seem to have had. Then Siemens decided to work together with Mitsubishi. Together, they have offered €9 billion. Both giant pursued its interests.

Siemens was going to get for €4 billion direction, which produces gas turbines, and Mitsubishi was counting on the purchase of 40% of the unit, which produces steam and nuclear turbines, as well as 20% of the electric grid. Siemens wanted to offer Alstom to merge divisions in the field of railway business. But the victory in this battle GE. In the same year the company acquired a business in the field of gas turbines and compressors from Rolls-Royce for £ 785 million.

The next step was to acquire Dresser-Rand for $7.6 billion. The latter is engaged in the manufacture of turbines and compressors for the oil and gas industry. Officially, the deal was closed in 2015. Despite the fact that the struggle for Alstom attracted public attention, was of special interest and catechumens KAESER, the companys development strategy until 2020.

One of the key activities of the new Chapter was the fight with bureaucracy. Her tried to fight the forerunners of KAESER, but the results were questionable. Now it became known that the head of the company is going to reduce the number of divisions from 16 to 9. In addition, he decided to remove the division into sectors. The remaining nine units will focus on two areas — digital equipment for industry and power engineering.

The company will focus on growth in the areas of automation, electrification and digital technologies. It is for this purpose was bought by the mentioned above company. Structural reform immediately led to a reduction of almost 12 thousand jobs. However, KAESER, trying to stop the panic and speculation noted that he hopes most of the employees do not dismiss, and to transfer to other positions.

To make Siemens more shapely company focused on profitable routes, KAESER decided to get rid of non-core assets. For example, the division producing equipment for metallurgy, were selected in a joint venture with Mitsubishi Heavy Industries. In addition, there was considered to be a waiver of nesoi other companies because they do not coincide with the policy of the company.

Division devoted to medical developments will get more freedom and become virtually independent. Including the possible was its transformation into a separate company and listing on the stock exchange. The criticism and the operations of the company. To Siemens KAESER surprisingly often faced with poor implementation of projects.

This negatively affects not only the financial situation but also on the reputation. This is why KAESER had to devote time to this aspect. To talk about the success of the strategy of KAESER too early. Judging by the results of the 2015-2016 fiscal year ended in November, things are going well and this period is even called one of the best in the history of the company. Including the 5% increase in turnover which amounted to €79.6 billion.

Profit appears to be lower than in 2015 — €5.6 billion versus €7.4 billion, but only if you dont consider that a year ago, €3 billion of this figure was the sale of some assets. Leading the company, KAESER argued that Siemens is not in crisis, but may work better. However, it has undertaken restructuring is comparable with the crisis measures. While Siemens all goes well, and therefore faith in the KAESER as a person a beginner in a new era of technology giant, is growing.

What will happen next, time will tell, but in any case, Siemens will remain in the history of business among the greatest concerns.

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