Case study abb mission and vision

PRODUCT DEVELOPMENT AND INNOVATIONSMOL-62276

Case Work shop-I

Presented ByUjjwal DattaMsc in Electrical Engineering (Smart Grid)

ABB is a global leader in power and automation technologies

ABB resulted from the 1988 merger of the Swedish corporation1. Almänna Svenska Elektriska Aktiebolaget (ASEA)2. Swiss company Brown, Boveri & Cie (BBC).

Based in Zurich, Switzerland, the company employs about 147,700 people and operates in approximately 100 countries.

Key Figures

ABB's mission

Improve performance: Improve operating performance, grid reliability and productivity whilst saving energy and lowering environmental impact

Drive innovation: Innovation and quality are key characteristics of our product, systems and service offering

Attract talent: ABB is committed to attracting and retaining dedicated and skilled people and offering employees an attractive, global work environment

Act responsibly: Sustainability, lowering environmental impact and business ethics are at the core of our market offering and our own operations

Strength

• A leader in power & automation in all their segments

• Broad product portfolio in utilities, industry, transport & Infrastructure

• Wide geographic base; operating in about 100 countries

• Huge installed customer base with long term contracts

• Well known for manufacturing top quality products around the globe

• Strong order book position in all the regions

Weakness

• The management has a history of overpaying for acquisitions and not

delivering synergies on previous deals.

• Project level services are not satisfactory in all area around the globe.

• Contingent payment obligations.

Opportunities & Threats

Opportunities

• Growth rates and profitability• New markets• Growing demand & Economy• Venture capital• New products and services• Global markets

Threats

• Global economy crisis • Increase in labor costs• Environmental regulations• Intense competition• Unstable geopolitical situation• Return of the financial crisis

Global and General Trends

• Products and services for a better world• Shift in the electrical value chain; Smart Grid, Micro/Nano Grid• Energy efficiency performance in power generation• Power for industry, transport & infrastructure• Safe and secure operations

Customer and market trends

Global and General trends

Technology trends

Environment trendsTechnology Trend in clusters

Customer and Market Trends

• Power quality and Reliability.• Sustainable Transportation system.• Electricity from Renewable Energy Sources • Global energy security and minimizing risks for supply• Strong innovative software portfolio

Customer and Market trends


Technology trends


Technology Trends

• E-mobility: fast charging• Marine automation and electrification• New robotics applications in Oil & gas facility• Advanced services, Engineering / consulting, remote

monitoring, analytics services.• Grid automation, Control solutions, Software• Continue to expand functionality (e.g., mobile interfaces,

security) in Automation system software.



Technology Trends


Technology Trend in clusters

• New grid topologies- Micro- / Nano-grids, Energy storage.• Interconnections, ultra high voltage.• Energy Efficient Products• Smart grids and meters• Internet of Things



Technology trends

Environment trendsTechnology Trend

in clusters

Environmental trends

• Energy consumption was reduced per employee by 3.5 percent per year• More than 180 energy efficiency projects were undertaken.• Greenhouse gas emissions from Logistics and travel decreased by almost 8%

during 2013.• The Green CREM system in 20 main sites of ABB in Germany, allowing online

analysis of energy data and ongoing implementation and tracking of improvement measures.

• Water use in water-scarce area was reduced by 14% from 2011 to 2013.• ABB has sent 81% of total waste for recycling in 2013 .• 11% reduction in Volatile Organic Compounds (VOC) emissions in 2013.



Technology trends

Environment TrendsTrends for change in cluster

Technology And Brand Image Pyramid

• Expansion locally along the whole value chain, Locally designed, supplied, manufactured and delivered specially in China, USA.

• Increased partnership to expand market presence and increase customer value-BYD, Phillips, Vestas, Hitachi.

Interacting technologies SPEAR HEADS

KEY TECHNOLOGIES

INTERACTING TECHNOLOGIES


• Turnkey solutions for traditional and renewable energy based power generation plants, transmission grids and distribution networks.

• Discrete Automation and Motion to increase industrial productivity and energy efficiency.

• Remote, real time monitoring for Mining.• Remote Diagnostic Services based maintenance and expertise in

Marine services.

Key technologies SPEAR HEADS

KEY TECHNOLOGIES



• Leader in High Voltage Power Engineering • Technology Pioneer (FACTS, HVDC transmission)• Pioneer and No#1 in Power & Automation control (DCS)• No#1 in industrial motion (motors and drives)• No#1 in fast charging Electric Vehicle (EV)• A leading player in the infrastructure / building electrification

1) #1 in electric propulsion for ships2) #1 in terminal automation for port3) #1 for large industrial turbochargers

Spear heads and know how SPEAR HEADS

KEY TECHNOLOGIES


Vision: Next Level strategy 2015-2020

• Shaping a global leader in power & automation • Accelerating sustainable value creation• Pushing the boundaries of automation into next level robotics and mining• Profitable growth – together

PROJECTSVISION

2015 2020

Vision: Next Level strategy 2015-2020Roadmap

Three strategic focus areas are profitable growth, relentless execution and business-led collaboration

PROJECTSVISION

2015 2020

Profitable growth• Continued strong investments into R&D of at least $1.5 billion annually• Shifting the center of gravity

Strengthening competitivenessDriving organic growth momentumLowering risk

• Expanding the customer value proposition into engineering/consulting, software and value added services

• Incremental acquisitions and partnerships• Maintain / accelerate organic growth momentum


Relentless execution

PROJECTSVISION

2015 2020

• Leading operating model• Driving change through 1’000 day programs• Linked strategy, performance management and compensation• Deliver 3-5% of COS cost reduction; expand focus on white collar

productivity


Business-led collaboration

PROJECTSVISION

2015 2020

• Leadership development• Lean market-oriented organization• Roles and responsibilities clarified• Attractive shareholder returns


PROJECTS

Profitable growthRelentless execution

Business-led collaboration

VISION

• Shaping a global leader in power & automation • Accelerating sustainable value creation• Pushing the boundaries of automation into next level robotics and mining• Profitable growth – together

2015 2020

Thank You