Siemens has largely completed its 'Vision 2020' strategy program initiated in 2014 - more successfully and faster than planned, according to Joe Kaeser, CEO: "We have worked hard over the past four years. Almost all businesses are now significantly more profitable and our Digital Factory is the market leader in industrial digitalization."

Despite this, the Group structure is now to be further streamlined and simplified. The core of the further developed corporate strategy 'Vision 2020+' is to give the individual businesses significantly more entrepreneurial freedom under the Siemens brand and thus sharpen the focus on the respective markets. There are also plans to strengthen the growth portfolio by investing in new growth areas such as IoT services, decentralized energy management and infrastructural electromobility. The concentrated expansion of industrial digitalization should also contribute to this. Overall, the annual growth rate of sales and the profit margin of the Industrial Business are thus expected to increase by two percentage points each in the medium term.

Siemens CEO Joe Kaeser gives the following reasons for the renewed Group restructuring: "The speed and power of global changes are increasing and we have a duty to anticipate them. It would be irresponsible for us to rest on our laurels now. Moreover, it is not the largest companies that will survive, but the most adaptable."

The reorganization of the Group is accompanied not least by new responsibilities within the Siemens Managing Board.

The new structure in detail

Specifically, as part of the Group restructuring, the organizational level of the previous divisions will be eliminated, the country organizations will be restructured for even greater customer focus and the Group headquarters will be streamlined. Below the Group level, there will be three Operating Companies and three Strategic Companies in future. Kaeser comments: "The times in which we were able to manage project business, product, software and service companies with their different requirements centrally and efficiently are over.

The new structure will come into effect in the new financial year on October 1, 2018. It will be implemented gradually and should be completed by March 31, 2019. The Building Technologies (BT), Energy Management (EM), Power and Gas (PG), large parts of Process Industries & Drives (PD) and Digital Factory (DF) divisions will be merged into the three new operating companies. The company's business units will also be reorganized with a new focus and assigned to the three operating companies.

The 'Operating Companies' of Siemens

Gas and Power (GP)

Headquarters: Houston / USA

CEO: Lisa Davis

COO: Tim Holt

CFO: Michael Becker

With around 71,000 employees worldwide, the company generates sales of around EUR 21 billion and a profit margin of around 9% (2017 financial year).

Smart Infrastructure (SI)

Headquarters: Zug / Switzerland

CEO: Cedrik Neike

COO: Matthias Rebellius

CFO: Axel Meier

With around 71,000 employees worldwide, the company generates sales of around EUR 14 billion and a profit margin of around 11% (2017 financial year).

Digital Industries (DI)

Headquarters: Nuremberg / Germany

CEO: Klaus Helmrich

COO: Jan Mrosik

CFO: Maria Ferraro

With around 78,000 employees worldwide, the company generates sales of around EUR 14 billion and a profit margin of around 16% (2017 financial year).

The 'Strategic Companies' of Siemens

The Strategic Companies include the fully consolidated majority shareholdings Siemens Healthineers, Siemens Gamesa Renewable Energy and, until the planned completion of the merger with Alstom, Siemens' mobility division.

The former Financial Services Division will be managed in the 'Service Companies' segment together with 'Global Business Services' and 'Real Estate Services'. The optimization of the service portfolio should lead to a significant increase in efficiency.

In addition to Group Research, the 'Corporate Development' division also centrally manages small and medium-sized enterprises (SMEs). The SMEs are, on the one hand, the investments previously held in CMPA and, on the other, operating businesses. The operating businesses mainly originate from the former Process Industries & Drives (PD) division. However, 'Siemens Postal Parcel & Airport Logistics', which was previously included in CMPA, and the subsea business of the EM Division are now also included in SME. Approximately 21,000 employees currently generate sales of around five billion euros in SMEs. Jochen Eickholt will take over the management of SMEs.

In focus: expansion of the digitalization business

With the acquisition of Mendix and its entry into the 'IoT Integration Services' business area, Siemens aims to systematically expand its position in industrial digitalization. Mendix is one of the leading companies in the field of low-code programming platforms. Among other things, apps can be programmed and implemented up to ten times faster with the help of Mendix technology. According to Siemens, this enables Mindsphere customers to develop their own apps significantly faster and more cost-effectively.

With the newly created IoT Integration Services business unit, Siemens also plans to offer consulting, design, prototyping and implementation services based on technologies such as artificial intelligence and cyber security. The global market for IoT integration services is expected to grow by 10 to 15% by 2025. Siemens plans to hire around 10,000 employees in this business by 2025.