sSiemens IT Solutions and Services

Answers for Manufacturing

Automotive Industry

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Safeguarding the Future with ITAs a key part of the economy, the automotive industry is one of the most innovative

sectors. Increasing, global competition is challenging companies to continually reduce

their costs while, at the same time, maintaining innovation and quality leadership.

Siemens IT Solutions and Services is the professional partner to help face these

challenges thanks to its extensive industry knowledge and many years of experience

in the automotive industry.

Being future-oriented in the automotiveindustry not only requires horizontal tech-nology integration, it also requires newconcept development and optimization ofentire business processes. Ever-increasingglobalization is causing a shift away fromtraditional, classic business processes andrelationships towards distinct networks.This applies to design, manufacturing,sales and logistics networks just as it doesto the convergence of information andcommunication technology and processoptimization. The specific challenges are:

• Market and product requirements arechanging continually – process com-plexity is growing and cost pressure isrising all the time.

• Development, manufacturing and logis-tics need to be better integrated, whileproduct life cycles are shortening.

• Heterogeneous IT landscapes and highmaintenance costs for legacy systemsare causing unnecessary and increasingIT costs.

• The requirement for global networkingis growing continually because the shareof added value from the automotivemanufacturers themselves is decreasing.

• Strong and rapidly occurring salesfluctuations require increased flexibilityin production.

• The holistic planning, implementation,control and on-going improvement ofmajor manufacturing processes and re-sources require the methodical imple-mentation of a ‘digital factory’, includingIT-based tools for well-founded manage-ment decision-making.

• The ever-increasing demand for com-fort and safety in cars is resulting inmore and more electronics. It is scarcelypossible to have innovations withoutelectronics, and this also applies ofcourse to software.

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Portfolio: Customized solutions andservices for the automotive industryAgainst this backdrop, Siemens IT Solutionsand Services offers the automotive industrya custom, proven portfolio of premiumquality IT solutions and services, and hencethe optimization of relevant business pro-cesses. This applies to:• IT outsourcing• Application Management• Business Intelligence (BI)• Product Lifecycle Management (PLM)• Supply Chain Management (SCM)• Sales and after-sales• Process harmonization and

IT standardization• Software development and solutions for

car electronics and telematics

The basis for all this is the extensive exper-tise and experience of the entire Siemensgroup which is, for example, market leaderin automation technology, ManufacturingExecution Systems (MES) and PLM soft-ware within the automotive industry. AtSiemens IT Solutions and Services alone,around 40,000 employees in over 40countries belong to the global Siemensnetwork.

Industry DNA: IT expertise and auto-motive know-how from a single sourceEmbedded in a global technology groupwhich has been a trailblazer in many fieldsof technology for over 160 years, SiemensIT Solutions and Services is the only ITservice provider combining automotiveindustry know-how with proven IT exper-tise. Combined under one roof are exper-tise in industrial/administrative businessprocesses and intuitive understanding ofdiverse process environments.

Applied innovation: Measurablevalue-added for customersInnovations must prove their worth inpractical applications. They can only dothis, however, when integrated into exis-ting systems and infrastructures. In thisregard, the technical expertise of SiemensIT Solutions and Services is based upon awell-developed engineering culture. Theresults are innovative solutions which offercustomers measurable added value. All inall, Siemens is synonymous with thehighest levels of reliability and long-termcustomer confidence.

Quality and reliability: Overcomingchallenges togetherThe high, above-average number of con-tract extensions attests to the satisfactionof customers with Siemens IT Solutionsand Services. Customers value Siemens asa committed, long-term partner thatstands by its contractual obligationswithout reservation and that successfullyovercomes difficult situations togetherand in collaboration with the customer.

Financing: Preserving valuable liquiditywith a strong partnerWorking in collaboration with SiemensFinancial Services, Siemens IT Solutionsand Services makes it easier for companiesin the automotive industry to make deci-sions about IT investments. The range offinancing products available from a singlesource is customer-specific and extremelycompetitive. For the automotive industry,this means easier financial managementof complex projects.

In project financing, for example, upfrontinvestment can be reduced or completelyavoided. The pay-as-you-use approach en-sures a sensible relation between outflowof funds and immediate benefits. Indi-vidual payment plans that are flexible asregards term, frequency and varianceenable adaptation to any given budget.

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Growing Business ValueSiemens provides a broad spectrum of proven, innovative

IT solutions and services. Companies in the automotive industry

benefit from this because investments amortize within a short

space of time and can be implemented with manageable initial

outlay.

Information technology and the associatedcosts must adapt flexibly to the businessenvironment. Responsive IT with flexiblemodels for operation and support are amandatory requirement today to safeguardsustainable economical success in thelong-term.

IT outsourcing: Concentration on thecore business, cutting IT costsThe range of outsourcing offerings fromSiemens IT Solutions and Services enablescompanies to optimize their business pro-cesses and to concentrate on the develop-ment of their core business. This frees upcapacity to drive forward urgently requiredtechnological or process-specific innova-tions without a high financial burden. ITcosts can be cut by around 25% throughoutsourcing, depending on the specificcompany situation.

Application Management Services:More IT performance and efficiencyApplication Management Services (AMS)encompass sector-specific applications aswell as comprehensive SAP systems. Theprofessional implementation, operationand consolidation of applications by anexperienced IT partner, yields many bene-fits. IT costs can be reduced while busi-ness processes are optimized at the sametime. Furthermore, IT quality and reliabilityas well as the global availability of IT appli-cations increase. Application Managementis therefore the key to ever-increasing effi-ciency in the IT landscape and profitablecompany growth.

Business Intelligence: Aidingmanagement in decision-makingBusiness Intelligence (BI) is increasinglybecoming a strategic factor for success,especially in finance, controlling, person-nel, production, logistics and sales. Thegoal is real-time, reliable support for man-agement decision-making on the basis ofprofessional analysis, reporting and plan-ning systems.

For this, Siemens IT Solutions and Servicesoffers appropriate BI solutions and plat-forms from SAP and other suppliers, withoverall 200 installations worldwide to date.The result is relevant information represen-ted in a clear and concise fashion, in theform of 'Management Cockpits' for exam-ple. Management is given a flexible set oftools for reporting, consolidation, Corpora-te Performance Management and plan-ning, integrated into a company portal.

Transformational Data Center:Reducing energy consumptionThe Transformational Data Center is anexample of how Siemens IT Solutions andServices can combine ecological sustain-ability and economic success. This can beachieved with consolidation and virtuali-zation of data centers and servers com-bined with the use of the latest energy-saving approaches. In conjunction withhigher utilization, costs for the requiredhardware (including maintenance) can bereduced by more than half, and the over-all operating costs by up to 40% – depen-ding on the individual customer scenario.Reduced energy consumption plays thelargest role. Investments amortize in lessthan 2 years in most cases.

Unified Communication Services:Strengthening communication, savingcostsThe use of Unified Communication Servicessuch as LiveMeeting, presence, instantmessaging, IP telephony and video con-ferencing also allows significant cost re-duction in internal company communica-tions. With this, for example, savings ofup to 50% are possible for telephonycosts, about 30% for telephone chargesand up to 10% for travel expenses. At thesame time, communication betweenemployees (and also with partners, cus-tomers and suppliers) is accelerated.

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SieQuence® outsourcing: Holistic opti-mization of IT-based business processesThe SieQuence® approach has been de-veloped in collaboration with Fortune 500companies. The goal is to continually growadded value in four transformation stages(see figure) with a simultaneous reductionof IT costs. However, the model offersmore, and clearly differs from other out-sourcing methods in regard to scope andintegration; it is the only solution thatcombines IT infrastructure services withvertical business solutions, is extremelyscalable and contains elements extendingbeyond classic IT tasks.

With the comprehensive SieQuence ap-proach, Siemens IT Solutions and Servicesoffers a general solution for the outsourc-ing of IT services. Included here are theoperation and running of help desks, desk-tops, data centers, networks and applica-tions. In the industry-specific configurationfor the automotive industry, SieQuenceencompasses the entire service range –from the IT infrastructure to applicationmanagement right through to support forspecific business processes. A prerequisitefor success is well-founded industry know-ledge – something Siemens IT Solutionsand Services can demonstrate in full.

SieQuence – progressive transformation of the IT infrastructureThe spectrum ranges from user-oriented services (e.g. help desk) to themanagement and operation of industry-specific applications, to innovationpartnerships in the development and provision of future-oriented services.

ResponsiveServices

ProactiveEnterprise

IndustryServices

SustainableInnovation

ResponsiveServices

ProactiveEnterprise

IndustryServices

SustainableInnovation

Enhancing the servicedelivery model

for a quality drivencustomer experience

Integrating processesand technology to

enable an optimizedIT landscape

Delivering verticalapplications and solu-

tions to achieve desiredbusiness outcomes

Extending the relation-ship to identify andcreate new forms ofvalue from Siemens

Transformation

Clie

nt

Val

ue

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Overcoming Product ComplexityEfficient Product Lifecycle Management (PLM) is increasingly becoming a survival

factor for the automotive industry. The complexity of models and variants is on

the increase, especially with regard to how individual vehicles are equipped.

Development activities are being outsourced more and more. At the same time,

the innovation cycles demanded by the market are becoming ever shorter. An

integrated PLM approach creates the required transparency and productivity.

As a consequence of the mass-productionof individualized products, intense compe-tition, the networking of numerous part-ners and globally distributed developmentand production sites, conventional think-ing in the automotive industry is reachingits limits. This means that companies thatoperate in networks across system bound-aries and understand how important it isto integrate the entire cycle of develop-ment, production and distribution are se-curing competitive advantages. The impor-tance of PLM, however, extends far beyonddevelopment and production; it encom-passes the entire product life cycle and allthe related information.

A major element is the convergence of thevirtual world (product development) andthe physical world (product manufactur-ing). Significant time, quality and costbenefits can be achieved here. In addition,PLM combines development and produc-tion with service (servicing, maintenance)and functions as a catalyst for the after-sales area, growing in importance all thetime. A service provided with precise datafunctions much more efficiently. At thesame time, customer experiences can bechanneled directly into development. Thismeans that an accurately informed salesorganization can conduct business trans-actions with customers in an even moretargeted fashion.

A PLM solution spanning company bound-aries converts linear value chains intoinnovation streams and networks. Thisenables customers, manufacturers andsuppliers, including dealers and garagesas well as other partners and service pro-viders, to be linked closely with one anoth-er. Great importance is attached to thefull integration of development partnersin particular. The aim is the manufactureof improved and market-driven productswhile optimizing costs and time. Step bystep, all those involved in the value chaincontribute added value.

15 years of PLM experience and first-hand expertiseSiemens IT Solutions and Services offersPLM expertise in three ways – first-handindustry expertise and practical relevance,worldwide leadership of Siemens in PLMsoftware and the much-proven capabilityto integrate IT processes and solutionscompany-wide. For international cus-tomers in the automotive industry, SiemensIT Solutions and Services can call uponthe resources of Siemens as an industrialconcern with a strong international pres-ence worldwide and with many years ofPLM experience. The PLM portfolio essen-tially comprises three areas – Consulting,Design/Solution Development and Opera-tion/Support.

• Consulting begins with PLM strategydevelopment and identification of po-tential in the product lifecycle. Addedto this is the development, harmonizationand optimization of business processesor selected sub-processes, followed bythe definition of a business-orientedIT strategy and architecture and a road-map for further steps.

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• Design/Solution Development extendsto the development and company-wideimplementation of PLM solutions in thefields of collaborative product develop-ment, product data management, serv-ice, production and visualization thatare specifically tailored to the require-ments of the automotive industry.Wherever possible, proven standardsolutions and components are deployedbecause this saves development costs,minimizes project risks and ensuresquick rollout of the solution.

• Operation/Support means transfer ofthe ongoing operation, support andservicing of the deployed PLM solutionsby Siemens IT Solutions and Services onthe basis of standardized ITIL (IT Infra-structure Library) processes. This allowsa defined high availability at a low oper-ating cost. Furthermore, continuous im-provement and modernization of PLMsystems and processes guarantee thefuture security of investments.

Significantly sinking costs and acceler-ating market launches with PLMThe high level of integration of the PLMsolutions from Siemens allows customerbenefit to be quantified. Here are sometypical values:• Product development costs can be re-

duced by 25%–40%• Organization of technical change pro-

cesses can be improved by 10%–70%• Productivity can increase 10%–20%• The pre-production development of a

product can be reduced by 10%–50%

Summing up, Product Lifecycle Manage-ment therefore means lower developmentcosts, quicker time-to-market, more effi-cient global collaboration, improved com-pliance with laws and directives, reducedIT complexity and hence also significantlyhigher customer retention.

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Managing the Supply Chainwith PrecisionWorking together in networks is one of the greatest challenges faced by the

global automotive industry. With production-specific and logistics-specific solutions

for Supply Chain Management (SCM), Siemens IT Solutions and Services is opening

up new opportunities in the global collaboration between suppliers, partners,

third-party service providers, dealers and garages.

The focus in the automotive industry ontheir core competences, and hence the re-duction of in-house manufacturing depth,means optimal supplier management isnow a strategic task. In addition, increasingcost pressure is forcing the outsourcing ofactivities to low-wage countries. Thesetrends are extending the supply chain con-siderably as a result. This is why responsiblecontrol of one’s own supply chain includesthe active management of risks to preventpotential company financial losses.

The core objective of SCM is availabilityof the right material in the right quantityat the right time at the right place – inthe required quality and in the right order.At the same time, SCM is also about theelimination of potential disruptive factors.This requires a high degree of transparencyin the individual value chain stages andin the entire order processing phase so asto be able to have alternative solutions athand, or to be able to respond as quicklyas possible when normal processes areaffected by problems. Furthermore, tech-nological innovations such as those of-fered by the Internet and the location-related benefits of global sourcing mustbe leveraged profitably for one’s ownbusiness environment.

Siemens IT Solutions and Services offersvarious modular service packages formodern, future-proof and scalable SupplyChain Management.

Optimization of production workflowsand supply chain processesThe first step is to provide a consultingservice for innovative production andsupply chain processes. A comparison ofa company’s logistics and productionstrategies with its business strategy allowsstrategic initiatives and improvement po-tential to be identified and defined. Thecorresponding processes can be optimizedin the next step.

The benefits of optimized production andsupply chain processes include shorterresponse times in the event of problemsor changes in demand. The overall effi-ciency of the value chain can be improvedand defined performance indicators allowthe production and logistics process to bemonitored. Not least, it increases thetransparency of how IT is actually contri-buting to business value. In addition, themethodical alignment of applications toprocess requirements contributes toachieving the goals of reduced complexityand lower costs.

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Enterprise Resource Planning (ERP)for production and logisticsConsulting as well as design and imple-mentation of industry-specific ERP solu-tions begins with a requirements analysisbased on the customer's business processes.

The benefits of industry-specific ERP sys-tem enhancements for production andlogistics result from a high degree ofstandardization with predefined processand application models into which thevarious solutions and also non-ERP sys-tems are integrated. This improves trans-parency and increases the speed of res-ponse so as to, for example, exploit new,attractive business opportunities morequickly or to optimize existing businesscycles. Additional issues include the auto-mated integration of third-parties (such aspart suppliers, development and logisticspartners) in the value chain, shorter cycletimes and optimized planning, schedulingand monitoring of production and logisticsresources.

Improved planning and monitoringwith supply chain automationThe first step is to define planning andsupply strategies and processes for inter-company networks, such as the collabora-tion with suppliers or partner companies.This is then followed by the design andimplementation of IT systems with whichsupply chain planning processes areimplemented and automated.

The quality and flexibility of planning in-creases in an automated supply chain.Planning costs fall while the company-wide flow of information (from productionup to strategic management) is improvedwith integrated solutions. As a result ofimproved information, more and morecomplex planning levers are available, suchas for production and logistics-specific fore-casting, capacity management and mate-rial planning.

One practical implementation of this is theintroduction of lean production approaches.The cost reduction levers here includeKanban and ‘just in sequence’.

Integration of the supply chain on theproduction and machine levelThe integration of ERP systems and pro-duction solutions on a factory level withManufacturing Execution Systems (MES)is critical to the long-term success of sup-ply chain management solutions. SiemensIT Solutions and Services is the only ITsupplier in the world that can provide thecombination of IT and industry-specificprocess expertise required for this from asingle source.

Among the benefits are reduced logisticscosts for material stocks, storage space,cycle times and processing costs plus sig-nificantly improved supply capabilities. Inaddition, quicker and more reliable deliv-ery commitments enhance customer satis-faction and retention. Quality control canalso be integrated. Issues such as trace-ability with MES can be implementedmore quickly.

With its SIMATIC IT solution, Siemens ismarket leader in the MES sector. This iscombined with Siemens consulting expert-ise for Original Equipment Manufacturers(OEMs) and suppliers.

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Manufacturing Intelligence (MI) tomonitor the supply chainThe methods and tools of MI reveal theactual performance of complex productionand logistics systems. The benefits areimproved monitoring and control alongthe entire value chain by means of trans-parent performance parameters. As a re-sult, the costs for provision of the requiredinformation are reduced and data qualityincreased as all operating levels are inte-grated into a single Business Intelligencesystem. This transparency contributes tothe identification of further optimizationpotential in the individual value chainstages.

Increasing production availabilityHigh cost pressure and capital-intensivemachines are forcing companies to tapthe full potential of production capacitiesand to organize maintenance and otherinternal service processes more efficiently.With an integrated approach, machinedowntimes can be reduced or preventedand system productivity increased in thelong-term.

Siemens IT Solutions and Services hasdevised a tried-and-tested, proven best-in-class approach for this. It includes:• Service process management• Monitoring of production resources• Maintenance management• Business process monitoring

Procurement Management: Transparency– from pre-production to spare partsThe steadily advancing globalization ofmarkets necessitates worldwide procure-ment of required production material andthe manufacturing of goods in large vol-umes. This affects issues such as:• Parts tracking (starting with preproduc-

tion, including deadline monitoring andsampling process)

• Parts procurement, capacity manage-ment, parts naming and buyer assign-ment

• Global and forward sourcing, sourcingstrategy

• Supplier selection and monitoring

The entire parts life cycle needs to bemonitored and optimized. To do this,buyers must be able to respond quickly tochanges in the market. Another challengeis the ever-increasing cost pressure. Thesepressures necessitate a high degree offlexibility in procurement, as is the case inproduction. Furthermore, supplier man-agement from pre-production to post-pro-duction is indispensable in gaining atransparent picture of the capabilities ofsuppliers.

Supplier Management: Effectiveselection and monitoring of partnersA growing number of companies in theautomotive industry are focusing on theircore competencies and so reducing theextent of in-house value creation. Sup-pliers are being commissioned to developand manufacture complete modules andsystem units. This is leading to an increasein purchasing volumes and making effi-cient supplier management an even morecrucial strategic success factor.

The integrated approach to supplier man-agement therefore extends from supplierregistration/evaluation through risk-orien-ted and demand-based supplier selection/assessment to the demand-based devel-opment and optimization of supplier co-operation. The management of strategicpartners plays a special role here.

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Greater success through purchasingcontrollingA key aspect in successful volume purchas-ing and replacement part procurement ispurchasing controlling:

Strategic purchasing controlling is prima-rily about target setting, monitoring/con-trol and variance analysis. In addition, fac-tors such as purchasing performance persupplier and buyer (down to part level),and price changes on part and modellevel should be determined automatically.Other issues are turnover distribution byregion and currency, periodical resulttracking and comparison of current, planand budget figures. Also included in thestrategic tasks are recording of start-upcosts, comparison of material pricing onvehicle and model level and any potentialvariations.

In the operational purchasing control,the focus lies on the monitoring of pur-chasing performance, the earliest possibledetection of changes (such as creditwor-thiness risks), target agreements with sup-pliers and the determination of supplierdeficits. This presupposes reliable infor-mation on these important issues:• Material-price comparison per model

and vehicle• Deviations from estimated prices from

pre-production or forward sourcing• Actual and planned purchasing perform-

ance• Price changes of raw materials

Supply Chain Management requiresan experienced IT partnerThe complexity of the many differentfacets of success-oriented, future-proofSupply Chain Management requires adap-tive, innovative information technology.For this, Siemens IT Solutions and Servicesoffers an extensive service and solutionportfolio tailored precisely to the require-ments of the automotive industry and itsbusiness partners.

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Managing Sales and After-SalesGiven the ever-increasing variety of models, variants and equipment, customers,

potential customers, dealers and garages require continuously up-to-date information

on products, pricing, servicing and repair. Integrated portal applications allow

standardized sales and after-sales processes that also take into consideration

national and regional characteristics.

Service, repair, accessories: Raising thequality of customer careFrom the viewpoint of the garage or dealer,the key issue is the combination of serviceson the one hand an parts/accessories onthe other. As a result, sales become easierwhile the quality of customer care is en-hanced.

The background to this is, not least, thefrequently-changing parts configurationswith limited time frames in which to pro-duce and sell. Thanks to the IT-basedbundling of services and part/accessoryconfigurations, customers are given trans-parent and verifiable pricing and deliverycommitments. Service and cost alterna-tives can also be determined this way.

After-sales portal: Simple integrationinto existing ERP landscapesThe issue of after-sales, especially thepayment processes for services and infor-mation, is continuing to gain in impor-tance. After-sales portals are the idealsolution here. Among the benefits ofportal-based after-sales solutions are thefollowing:• Automated accounts receivable man-

agement including reminder mecha-nisms

• The replacement of paper-based invoic-ing

• The generation of cancellations andcredits

• Electronic payment transactions withmultiple payment methods and types

• Standard reports and interfaces forin-house financial accounting

In addition, electronic availability of serv-ices and information does away with theneed for the time-consuming storage ofdocuments and their dispatch by post.

Appropriate solutions from Siemens ITSolutions and Services can be integratedquickly and easily into existing IT land-scapes. The solution is rapidly availableand initial investment is modest due tothe fact that payment can be made onthe basis of a pay-per-use model.

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Spare part management: Increasingavailability while cutting costsThe increasing variety in models, variantsand equipment in automotive productionis also increasing the complexity of re-placement part management. Here, amodern scheduling system can play a keyrole in supporting the processes involvedin ensuring a high level of parts availabilitywhile keeping storage and transportationcosts low. The approaches taken by SiemensIT Solutions and Services are, on the onehand, the re-engineering of system land-scapes with heterogeneous architecturesand unnecessary interfaces and, on theother, the standardization of processes inreplacement part management.

After-sales marketing: Integratingcross-function processesThe satisfaction and loyalty of end cus-tomers depend to a large degree on at-tractive offers (at prices in line with themarket), high-quality and timely servicesand transparent communication. In after-sales marketing, Siemens IT Solutions andServices supports the relevant processesfor publication, calculation and sales ofnew products and service offerings. Here,marketing activities are integrated withthe processes in the garage/service, Cus-tomer Relationship Management, productmanagement and materials managementto build a holistic solution.

Warranty: Avoiding unnecessary costs,increasing profitThe warranty makes up a significant partof the overall costs in service. This is whyreduction of these costs, without impact-ing service quality or customer satisfac-tion, is of particular importance. Withappropriate IT solutions, warranty claimscan be substantiated more thoroughly,warranty work can be managed moretightly and the unnecessary exchange ofparts can be prevented. At the same time,relevant operational figures can be bettermonitored and all relevant costs can beincluded more exactly in the case of sup-plier regress.

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IT standardization and process harmoniza-tion require a systematic, carefully plannedapproach. Using the methodology and toolsfrom Siemens IT Solutions and Services, anumber of typical problems can be solved:

• Heterogeneous process and IT land-scapes evolved over time can no longersatisfy the increased requirements forproductivity in the long-term.

• Identical processes often exist in parallelin several applications, or are inade-quately defined.

• Without a complete process understan-ding, standardized parameter definitionand consistent master data structures,reporting gives only a limited picture.

• Suppliers, dealers, garages and otherbusiness partners are not, or not fully,integrated into the overall system ofprocesses.

• The acquisition or sale of companies orparts of companies entails a considerableexpenditure for integration/carve-out.

• Time limits for servicing IT applicationguarantees specified by suppliers (suchas up to 2012 for SAP R/3) increase thepressure to act.

Solutions for process harmonizationand IT standardizationThe extensive portfolio ranges from con-sulting to design and implementation ofthe solution to ongoing operation.

• Consulting begins with the creation ofthe necessary conditions – preparationof the customer-side organization regar-ding planned harmonization activities,readiness check, implementation ofgovernance, risk and compliance struc-tures, development of an IT strategy androadmap. This is followed in the subse-quent value engineering by the analysisof the existing IT landscape, derivationof harmonization potential and the de-velopment of economically viable im-plementation scenarios including cost-benefit considerations.

• Design/solution development extendsto the consolidation of the ERP land-scape within the company, the harmo-nization of company processes and thestandardization of IT in individual spe-cialist divisions. Included here are theharmonization of core processes andcollaboration scenarios, standardizedintegration of business partners and theharmonization of planning processes,business performance and master datamanagement.

• Operation/support deals with thebuild-up of global application manage-ment structures for ERP solutions; theefficient operation, support and main-tenance of applications, and a highlevel of value-added through continualimprovement and innovation.

Harmonizing Processes,Standardizing ITThe standardization of IT landscapes and the harmonization of business processes

make a key contribution to company success. Integrated packaged solutions that

allow for differentiated core processes increase data quality, lower complexity and

reduce costs while increasing productivity – a decisive factor for success for the

automotive industry with its highly competitive markets.

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Identical alignment of IT worldwide,taking local factors into considerationSiemens IT Solutions and Services is fol-lowing a tried-and-tested approach forglobally standardized IT landscapes andprocesses which, at the same time, takesinto consideration specific regional/localrequirements and embeds them into theoverall solution. The list of tools used forthis includes Chestra, the project manage-ment framework from Siemens IT Solutionsand Services, tools in the Siemens SAPframework and the Siemens ABAP analysistool.

Solid experience from numeroussuccessful projects across the globeAs part of the Siemens group, Siemens ITSolutions and Services combines requiredindustry competence with sound IT expert-ise. Evidence of this are the over 3,200successful SAP implementations in some90 countries and best-practice experiencefrom one of the world’s largest ERP con-solidation projects – at Siemens itself.

Process harmonization offers the greatest savings potential: For company-wide business processes basedon SAP, a template approach captures cost reduction potential of 30%–50%. For the harmonization of function-specific processes and the consolidation of SAP solutions, savings in the region of 20%–40% are also possible.

Savings potential in % of all SAP costs (approximation)

Standardization of processes and applications

Harmonize enterprise business processesbased on a template approach

Incre

asing co

mplexity

30% – 50%

20% – 40%

< 5%

< 10%

< 5%

Harmonize processes in distinct functional areasand consolidate SAP clients

Run SAP as separate clients on one system

Consolidate SAP systems into one data center

Harmonize releases of SAP systems

Technical consolidation

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By the mid-90s, electronic assemblies werealready accounting for 15% of manufac-turing costs, but that share has now in-creased to 25%–30% (depending on vehi-cle category). And the trend is set to con-tinue. In the foreseeable future, the vol-umes of data captured and processed invehicles will be measured not just in hun-dreds of megabytes, as they are now, butin gigabytes.

The focus of car electronics is the drivetrain with engine management, transmis-sion control and the car body electronics.There is also considerable innovation inthe fields of driver assistance/navigationsystems, infotainment/communication sys-tems and Internet-enabled in-car systems.

Innovations despite high time and costpressureInnovations are key differentiating featuresin the marketplace. A non-exhaustive listof what this means for the automotiveindustry:

• The rapidly evolving field of entertain-ment electronics is having a significantimpact on innovation cycles in automo-tive electronics. At the same time, con-ventional IT and embedded technologyare converging and are making increaseddemands on developer skills.

• Research and serial development are in-creasingly running in parallel. Here, pro-jects must be started at short notice,appropriate employees found and pro-jects then ended or deferred. This canonly succeed with excellent projectmanagement and flexible resources.

• For many companies, it is simply toocostly to keep human resources avail-able for times of peak demand and havein-house experts in every field. The de-ployment of developers at cost-effectivesites and cost-conscious solution designare decisive factors.

Electronics and software: embeddedsystems, system integration, solutionsAgainst this backdrop, Siemens IT Solutionsand Services offers the automotive indus-try products, services and solutions in anumber of different areas:

• Dedicated embedded systems forengine management, transmission con-trol, navigation, infotainment and com-munication systems, body electronics,chassis and vehicle/passenger safety.Siemens IT Solutions and Services hasover ten years’ software developmentexperience in these fields.

• System integration involves the pro-duct-independent integration of com-plex systems and components from dif-ferent manufacturers. The range of serv-ices we offer – either in their entiretyfrom a single source or individuallybased on the customer’s requirements– extends from consulting to design,simulation, prototyping, implementa-tion and integration. We also carry outtesting and validation against the speci-fications, as well as system mainte-nance.

• Independent solution modulesreveal the particular strength of SiemensIT Solutions and Services when it comesto the convergence of automotive elec-tronics and IT services.

– In-car Internet services: Secure, reli-able communication links to car audiohead units and provision of servicesfrom the Internet on a uniform plat-form, including operator services.

– Eco telematics: Real-time provision ofnavigation data and information onthe car-external environment such asgradients, curves and road type for theuse of vehicle control functions (foradjustments to the engine manage-ment system, adaptive headlights ordriver assistance system, for example).

Deploying Innovative ElectronicsIn recent decades, automotive engineering has been transformed by electronics.

Software and electronics now account for 70% to 90% of all automotive innovations.

Siemens IT Solutions and Services offers OEMs and suppliers in this industry

many years of experience in embedded software development as well as its

own solution modules.

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– Telematics: Development and opera-tion of special telematic devices andapplications including call-center serv-ices for customer support. Applicationareas include fleet management, re-mote diagnostics and emegency/breakdown services.

– Car2X communication: Informationinterchange between vehicles on themove or with traffic signs or displays,for example, for providing warningsabout traffic jams or obstacles oroffering added-value services. Siemensis a member of the European Car2Carconsortium for this particular field.

Many years of project managementexperience and proactive acceptanceof responsibilityWith many years of wide-ranging experi-ence both within the Siemens group andworking in external customer projects,Siemens IT Solutions and Services is ableto make progress quickly in new embeddedsoftware projects and to take on projectsalready at the critical stage – and to makea lasting success of them. Siemens ITSolutions and Services is used to takingon the overall management of customers’projects and integrating the customer’sown resources.

Global teams of product and vendor-independent Siemens developersSiemens IT Solutions and Services hasover 6,000 software developers aroundthe world, including 800 specialists forembedded systems. The personnel andtechnical resources can be deployed tai-lored to the specific requirements andprojects within the automotive industry –from single developers to 100-strongteams. Siemens IT Solutions and Servicesis product- and vendor-independent andis therefore perfectly positioned to pro-duce technical concepts that meet func-tional requirements to optimum effect.

By using professional services from near-shore and offshore locations in EasternEurope, India and China, for example, thecosts of software development can be re-duced by up to 35%, while maintenancecosts can be reduced by over 40%.

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Company structures change continually inthe future-oriented automotive industry,or are even created completely anew. Thisis why the integration of value networks,the convergence of information and com-munication systems and the optimizationof business processes are so important. Asnew company structures develop, servicepartners must go along with these changesin a spirit of partnership.

Partnership: Worldwide network,worldwide service provisionSiemens IT Solutions and Services is theideal partner for the changes facing theautomotive industry. A high degree offlexibility with a balanced mix of onshore,nearshore and offshore production centersis an absolute prerequisite. Siemens ITSolutions and Services has its own branchoffices in more than 40 countries world-wide and, as part of the Siemens globaltechnology and knowledge network, isexcellently equipped to successfully man-age international projects across differentlocations and countries in close coopera-tion with its customers. In addition,Siemens IT Solutions and Services benefitsfrom the global presence of Siemens inover 190 countries.

This is why Siemens IT Solutions andServices, as a long-standing and closepartner of the automotive industry, is rep-resented in all focus regions by experi-enced experts, who are not only specialistsin their fields, but also intuitively under-stand the sector dynamics. With this com-bination of market, industry and IT exper-tise, automotive production on the inter-national stage can be optimally organizedand profitable at the same time.

Actively Shaping ChangeAt Siemens IT Solutions and Services, the long-term, holistic optimization of customer

processes is paramount – from product development through to production and after-

sales. The goals are successful IT projects that have a positive effect on the bottom line

of the business as quickly as possible, quite apart from the purely technical aspects.

Research and Development

Suppliers

Solutions for Product LifecycleManagement (PLM)• Consulting• Design/solution development• Implementation• Operation/support

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Dealer

Logistics

Service andMaintenance

Solutions for serviceand maintenance• Increase of production

availability• CRM• Remote service• Mobile field service• Spare part logistics

Solutions for Supply ChainManagement (SCM)• ERP solutions• Supply chain planning and execution• RFID and supply chain

Solutions for manufacturing and assembly• ERP solutions• RFID in production• ERP-MES integration• Production information systems

Harmonization/standardizationof processes and IT• Process harmonization in development,

production, sales and service• Harmonization for SAP systems and

non SAP systems• Harmonization for infrastructure and

architecture• Solutions for collaboration and busi-

ness management

Application Management (AM)Support and hosting of SAP applicationsand non SAP applications• Enterprise Resource Planning (ERP)• Product Lifecycle Management (PLM)• Others (e.g. CRM, SCM, SRM)

IT outsourcingOperating, monitoring, support andmaintenance of IT systems• Service Desk• Desktop Services• Network Services• Data Center Services• Application Operations

Partners

Garages

Car manufacturers

Manufacturing

All hardware and softwarenames used are brand namesand/or trademarks of theirrespective holders.

© 2009 Siemens AG, MunichRight of modificationsreserved.Order No.U29035-J-Z401-3-760007/09 | Printed in Germany

Siemens AGSiemens IT Solutions and Services

Otto-Hahn-Ring 681739 Munich, GermanyGlobal Info DeskTel.: +49-1805-444713it-solutions@siemens.com

www.siemens.com/it-solutions