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GLOBAL
networking is not an overnight success. It is a complex
business set off by convention opposite novelty—reached
through constant improvement while holding on to a created
system or structure—thereby earning the faith and
confidence of the market.
And for an
electrical engineering, electronics and infrastructure
giant Siemens AG, it boils down to three major points to
become one of the most trusted technology brands the world
over.
“One is
the traditional importance Siemens places on quality and
innovation. Second, the emphasis the Siemens company
places on the right technical solution for the customer.
And the third is really the name, Siemens—it’s a company
you can trust,” Siemens Philippines Inc. president and
chief executive officer Adrian Wood told BusinessMirror in
an interview.
The
Munich-headquartered Siemens AG is proud of its
century-and-a-half-old technological experience to back up
its worldwide presence that spans more than 450,000 people
in 190 countries—thanks largely to its innovative prowess,
a clear portfolio policy, long-range financial planning,
an international setup and strong employee orientation.
While it
is an international powerhouse with vast offerings of
products, systems and solutions that are catered to
various sectors, still the majority of today’s market
could relate more to its mobile-phone business, which,
unfortunately, was sold to Taiwan-headquartered company
BenQ two years ago.
“Siemens
is not just a company selling mobile phones,” the Siemens
Philippines top executive stressed.
“If you
look at the business figures a couple of years ago, 95
percent of our business was outside mobile phones.
“We are
very strong in many other areas, such as power generation
and transmission, medical, automation and call centres, as
well as infrastructure.”
The other
factor driving success of Siemens, that Wood would like to
emphasize, “is that Siemens is an R&D [research and
development] and a technical innovative company. It
invests a lot in these areas and it’s fast moving.”
FROM a
number of business divisions it has lorded over globally,
Siemens AG, through its Philippine subsidiary, has been a
leading technology player in the country’s growing power,
medical and industrial sectors for over 80 years.
“Here in
the
Philippines, we
are successful in our medical, power generation and
transmission and automation businesses, which we want to
grow further,” the Siemens Philippines president and CEO
said.
With the
local subsidiary’s feat on these business areas, he said,
“The Philippines is considered both an important country
and an important company for Siemens AG worldwide.”
This has
been tested through time, especially during the 1997 Asian
financial crisis affecting many countries’ economies,
including that of the Philippines.
Due to
economic reforms of succeeding governments—the Ramos,
Estrada and Arroyo administrations—coupled by investors’
confidence, the country’s economy has slowly recovered.
Hence,
economic ratings of the Philippines such as from
Moody’s—10 years after the adversity—are now improving,
which in turn advance its investment opportunities.
Moody’s Investors Service is among the world’s most
respected and widely utilized sources for credit ratings,
research and risk analysis.
“There is
what we call a bullish feeling [about the country’s
economic recovery]. Given this optimistic feeling, the
business community is willing to invest itself and help in
the growth of the country,” observed Wood, who has
extensive experience in the commercial and industrial
markets.
He cited,
in particular, Siemens, a mammoth international firm with
a strong presence locally: “We are a local, international
company.”
“We are
very keen to support the country’s economy—if the economy
is successful, Siemens will be successful as well,” he
said.
WOOD
believes that the government of any developing economy
should support the venturing efforts of businesses and
multinationals that invest in the country.
This is,
in fact, the very rule of thumb of Siemens’ business and
all its subsidiaries abroad. In turn, they believe that
business should also do its part in propping up the
nation’s economy.
“We tend
to enter countries to operate and, eventually, support
their [economic] growth as possible,” Wood said.
In the
case of the
Philippines,
Wood believes that the government could do more to improve
the business climate.
Infrastructure-wise, for instance, the country lags its
Asean neighbors, even as there have been a number of
investments by recent administrations. The newly
designated chief of Siemens Philippines said the delay in
the development of roads, power and other utilities is
disadvantageous to the country’s competitiveness.
“Now is
the right time for the Philippines to start catching up
with its neighbors by heavily investing in infrastructure
while improving more of its transport system and power
situation,” said Wood. “It will create a better business
environment for the country, which, in turn, will spur
more investments to come in.”
In turn,
“this [will benefit] Siemens, as we have the right
products, solutions and strategies for these
infrastructure investments,” he said.
POPULATION
growth—in some countries, exponential—is one of the
challenges that the global community must face. This has
given rise to the development of megacities in the last
few years.
Urbanization—or the enormous concentration of people in
urban areas—is now being experienced in big cities like
New York,
London, Shanghai and Tokyo.
“It’s key
to note that the megatrends resulting from urbanization
are quite common in all the megacities. They each have the
same problems looking for the same target solutions,” Wood
said.
Siemens
has heavily invested in projects aimed at the issues
confronted by megacities. The focus of these projects
typically addresses three business sectors, such as energy
and the environment, automation and infrastructure, and
health care.
“In this
respect, some of the ideas or solutions we already have
for the other megacities can also apply to Metro Manila,”
stressed Wood, who still considers the country’s urban
capital—Manila—a subcity at present.
SIX months
after familiarizing himself with his new assignment—after
various postings within the Siemens group abroad—Wood
shares what’s in his mind as to the business direction the
company is going to take at the end of the fiscal year and
the rest of his seven-year tenure.
“I’m
looking to grow the local company, Siemens Inc.
[Philippines], by doubling the country’s GDP per year.
This is, in fact, in line with the targets of the main
company—Siemens AG,” Wood reiterated.
In the
second quarter this year, the Philippine economy grew by
7.5 percent, from the previous year’s 5.5 percent.
“I’m also
looking for special growth in certain areas where the
economy is very strong and global growth through our
acquisitions.”
Growing
the platforms the company has established in the
country—medical, power generation and transmission,
automation and drives—is key to escalating its business in
the Philippines, said Wood.
Leveraging
on the country’s particular strengths, Wood revealed that
the company is mulling over the improvement of its SIS
(Siemens IT Solutions and Services) division that handles
both the call center and business-process outsourcing
work. Outsourcing “is the strength of the Philippine
economy at the moment,” he noted.
He added
that the group is eyeing to expand its coverage by
establishing and building up competence in a few new
areas, including Water Technologies and Siemens Building
Technologies, in the future, assisted by global
acquisitions, which will have a definite positive impact
on the local market.
Among the
recent international acquisitions of the Siemens Group are
the companies Bayer Diagnostics, purchased for about €5.7
billion, to complement their medical business; and
USFilter, for treating waste and drinking water, to
complement its industrial services and solutions business.
A
VISIONARY who brings with him almost two decades of firm
experience in management, marketing and business
development, Wood is ably equipped to lead the Philippine
subsidiary to greater heights.
“I was
brought here to manage the local Siemens company, give it
clear direction and to grow it. That is what I’m aiming to
do,” the president and CEO of Siemens Philippines said.
“I also
want to make sure that the pillars, the foundations of
Siemens, remain strong, that we can build on these
pillars, and I want Siemens to be one of the main
companies in the
Philippines
both in name and reputation.”
Mindful of
the constant competition in the market, Wood said that
Siemens’ distinct advantage over other technology
companies is its strong research and development. In 2005
Siemens AG was the world’s third-largest applicant for
global patents. That same year, in the US, Siemens was a
leading patent holder, with 8,800 invention reports
submitted by its 47,000 scientists.
“Siemens
relies heavily on R&D to really find solutions and
technical systems to stay ahead in the competition which
has direct benefits to the customer. That’s one of the key
areas which we rely on,” said Wood.
In terms
of market share, Siemens has always been consistent in
occupying either the first or second spot. Maintaining
this position entails working very closely with customers
and clients, looking at their long-term savings and
efficiencies with positive economic recovery, and proving
that Siemens has the staying power to finish the projects,
according to Wood.
With these
in mind, he said: “I’m determined to drive this company
forward, for success for the Philippines, Siemens Inc. and
our employees. That’s my commitment.” |
