Siemens 2011 Annual Report Download - page 34

One Siemens
20 Siemens – A pioneer of our time 50 Get closer to our customers 46 Focus on innovation-driven growth markets
21 Vision
22 Strategy
22 One Siemens
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Strategy
To be the pioneer of our time – that’s the vision that
motivates us in everything we do. And our strategy
shows us how to make it a reality. We’re aiming to cap-
ture and maintain leading market and technology po-
sitions in all our businesses in order to achieve sus-
tainable profitable growth and, thus, continually
increase our company value. We intend to reap par-
ticular benefit from the megatrends demographic
change, urbanization, climate change and globali-
zation. Our strategy is reflected in our three strategic
directions:
> Focus on innovation-driven growth markets,
> Get closer to our customers and
> Use the power of Siemens.
We’re also enlarging our Environmental Portfolio and
increasing the revenue it generates while continu-
ously expanding our service business and further
strengthening our position in the booming markets of
the emerging countries. Our declared aim here is to
unleash our full potential as an integrated technology
company. Within our One Siemens framework, we’ve
broken our strategic directions down into nine con-
crete focus areas that will shape our activities in the
years to come.
Detailed information on the nine One Siemens focus
areas is provided on pages 46 - 61.
One Siemens
Siemens occupies outstanding positions in many mar-
kets. Our actions are driven by market dynamics and
therefore also by the requirements of our customers.
We want to continually outperform our competitors
and, as market leader, set the standards for operating
and financial performance in our industries.
The key to our sustainable development and capital-
efficient growth is One Siemens. Launched in fiscal
2010, this target system defines metrics for revenue
growth, capital efficiency, profitability and the opti-
mization of our capital structure. Taken together,
these indicators comprise a balanced system that pro-
vides the basis for generating a sustainable increase
in our value.
To achieve this aim, we’ve set a number of concrete
goals. First, we want revenue growth at all our busi-
nesses to outpace that of our competitors. Second, we
want our growth to be capital-efficient. That’s why
we’ve defined an ambitious target corridor for return
on capital employed. At the Sector level, we want to
continuously achieve top margins compared to our
competitors across industry cycles. And third, we’ve
set a target for our capital structure that will enable us
to achieve sustainable, strongly based profitability.
More information on the progress we’ve made toward
reaching these goals is available in the combined
management’s discussion and analysis on pages
56 - 60 of Part II of this Annual Report.