Effective communication strategies are serving not only as advantageous tools but as essential drivers of growth, bolstering customer relations and ensuring a competitive edge in the global marketplace.
Siemens is one of the oldest and largest worldwide electrical engineering and electronics companies. Furthermore, it was founded in 1847 (177 years ago!). Additionally, Siemens is focused on six key areas: Information and Communications, Automation and Control, Power, Transportation, Medical and Lighting, and Business Services. The power of innovation, strong customer focus, global presence, and financial solidity have been among the company´s traditional strengths since the beginning.
One Siemens
In 2001 US-trained CEO Klaus Kleinfeld started a new campaign called One Siemens. It was a program designed to make the company successful. In 2004, to increase the effectiveness and efficiency of a business, Siemens set up several company programs and initiatives. Within those, Siemens Management System (SMS) initiative incorporated One Siemens, focusing on customers, innovations, and global competitiveness. Essentially, One Siemens is a company-wide strategy focusing on market penetration and driving growth improvement. This is achieved by doing comprehensive expertise to create customized solutions for selected industries.
But how did Siemens USA understand the challenge, and how did they manage to improve communication effectiveness and efficiency?
Founded in 2001- Siemens One provides customers with one interface to multiple Siemens operating companies, facilitating an efficient and cost-effective way of dealing with Siemens. Moreover, Siemens One aims to stimulate incremental sales by developing and selling integrated solutions under the Siemens brand to current and potential customers, and by leveraging the customer base.
Communication Strategy
Siemens set up the process of effective and efficient communication in three phases:
- Siemens created a message hierarchy to ensure a consistent communication in a 4-level framework. First, corporate statements describing the vision, mission, business drivers, and positioning. Secondly, communicating value proposition to the customers. Third, communicating Siemens One sales stories to the customer. Lastly, internal and external Siemens One messaging.
- The company developed the Siemens USA value proposition. This concept helped increase benefit orientation and consistency of communication and sales activities.
- Moreover, it developed internal and external messaging and sales stores, to communicate consistently with all stakeholders. The company structured the messaging in ideas, characteristics, functionality, benefits, and proof points.
Purpose and Challenges
The example of Siemens One in the USA perfectly demonstrates the successful implementation of the One Siemens concept in the long term.
Two learning blocks were derived. First, the clear and strong process management is needed; secondly, the content of the global value proposition must emphasize the benefits of intergroup business:
1. The process: Developing a strategy should start with aligning communication, sales, and marketing departments with the target groups of customers and the regional and market-specific requirements.
2. The content: The value proposition for Siemens USA aims to reflect the benefits of cross-business leverage. A perfect example of cross-business communication is Scott & White Healthcare System. It illustrates Siemens ´ability to combine systems and solutions from Medical, Communications, Building Technologies, Automation & Control, and Power/Transportation into one innovative, customized package.
Outcomes
After few years, using Interbrand brand equity analysis, Siemens concluded that it had increased to more than 600 index points. However, its competitors- GE and Cisco stayed in the same place and have not developed. Siemens saw a chance, and by focusing on its core competencies and customer equity, was able to increase its brand equity and catch up with GE´s performance in the industry.
Source: Kotler, P., & Pfoertsch, W. (2006). B2B Brand Management. Springer Berlin Heidelberg.