Building the Digital Manufacturing Enterprise of the Future at Siemens

Case Solution

Willy Shih
Harvard Business School ()

This case describes the motivation and development of Siemens’ corporate vision for digital manufacturing, which became the basis for the implementation of Industry 4.0. While the efforts of Anton Huber, head of the Digital Factory Division, began with a purely defensive measure to protect its core business with programmable controllers from the migration of values ​​to software from hardware, the scope was radically expanded when the company took over the UGS control. . finished. He was then able to formulate a complete roadmap from computer-aided product development and construction through simulation and design of automation systems to the factory floor. The first implementation at the Amberg electronics factory was often referred to as an Industry 4.0 prototype. The central issue of the case is the importance of vertical integration to realize the vision in the face of pressures on open standards that will expose much of the system to competitive and price pressures. How does Siemens generate adequate profitability?

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