By Group 4 (LM Consulting – Aldo, Fanny, Jan and Jaya)
Siemens Nixdorf Informationsysteme AG * Formed in 1990 by the merger of: Nixdorf Computer AG and Siemens Data Information Services (DIS) division * Business of SNI: Service, Solutions (SAP/R3), Product * Products from SNI: PC, Mainframes, Support services * Largest IT company in Europe once
Siemens Nixdorf Informationsysteme AG facing crisis – Losses continue * Losses ever since merger * Sales stagnant * 1994: USD 8 billion revenue with 39,000 people and USD 350 million net loss * Problems: * Slow to adapt to market realities (Sluggish customer responsiveness) * High competition (Nimble entrepreneurial rivals focused on single markets) * Rigid, bureaucratic culture (not fit enough for an IT services / solutions company)
Differences in culture identified Vital signs | Nixdorf | Siemens | Power | Empowered to affect change | Sense of resignation | Identity | Identify with the enterprise as a whole | Seek the safety of their profession, locations and teams | Conflict | Handled directly and non-interfering | Avoid conflict or flare up | Learning | More receptive to ideas | Less receptive |
Schulmeyer joins as CEO * Comes from outside (ABB USA) with academic exposure to managerial change * His responsibility is to bring profitability to SNI * His goals are make SNI customer driven, evaluate employee based upon the value created, reduce number of employees by 4300, increase global market share and improve communication
Schulmeyer sets 3 objectives * Change the behavior of managers & employees to achieve improvements in performance and results * Change work systems to achieve operational excellence * Change processes to be customer oriented and ensure better service
Andy Chew joins as change agent * Andy chew comes from solutions business, UK as GM * Problems in solutions