Managing Automation - October 2008 - (Page 27)

changes then propagate through the rules of the design, geometry, and editing tools. In May, Siemens rolled out versions of its Solid Edge CAD software and its NX 6 digital product development software, each with synchronous technology capabilities. Synchronous technology might play a role in the digital factory solution, but Project Archimedes, which Huber has said “was crucial to connect the UGS business with [Siemens’] core business, and a key to the success going forward,” is centered on Teamcenter PLM, which will act as the collaborative backbone. That, Huber says, is why Siemens acquired UGS. “Why did we buy and not just team up? Because it is very important to the core automation business,” Huber says. “We saw that if we bought UGS, we would have a major component in Teamcenter. It provides the ability to connect product design with machines using the same software.” For Huber and Tony Affuso, the former president and CEO of UGS, who now is chairman and CEO of Siemens PLM Software, the synergies between Siemens and UGS make perfect sense. But, then, they’ve been discussing this idea since May 2006, when they first met to talk about a strategic relationship. Siemens had already been using software from Tecnomatix, a company UGS acquired in 2005, which includes a lot of factory simulation technology to connect product engineering with process layout and design, process simulation and validation, and a manufacturing execution system (MES). So, a foundation was already in place. “As strange bedfellows [as Siemens and UGS] may have seemed, there really was a lot of history working around common goals and a common vision of integrating the virtual world with the physical world,” says Bill Carrelli, vice president of strategic marketing for Siemens PLM Software. Nevertheless, the acquisition announcement came as a big surprise to most employees, end users, and even analysts. And the Siemens board knew it had to educate everyone on the synergies and vision in order to avoid backlash in the form of employee attrition. More important, Siemens officials knew they couldn’t treat this acquisition in the same cookie-cutter way that they had treated earlier acquisitions. UGS had a very different business dynamic, and Siemens had to be careful to welcome the team in a spirit of cooperation, not dominance, officials say. Suddenly, the acquisition became a serious business endeavor. Karsten Newbury, vice president of inte- gration at Siemens, was pulled in to help manage the post-merger process. A 12-year Siemens veteran, Newbury was running the U.S. process automation busiWHAT PROJECT ARCHIMEDES ness at the time of the UGS purENCOMPASSES chase, but had also been at the Siemens’ Unified Product and Production Lifecycle Initiative, code-named Project Archimedes, is a joint center of some of Siemens’ effort among Siemens PLM Software, Siemens smaller software acquisitions. Automation Systems, and Siemens Motion Control For example, in Februar y Systems. The areas of focus include: 2000, Siemens’ Energy & Automation group acquired Moore Adaptive Manufacturing: Intelligent production Products in a $170 million cash components for the integration of process and deal geared toward strengthenautomation design with Teamcenter. ing Siemens’ presence in the Virtual Commissioning: The validation engine North American process confor process, automation, and MES. trol market for the oil and gas, Harmonized Lifecycles: Integrating the PLM pharmaceutical, and pulp and backbone with production (bidirectional MES and paper segments. A year later, in controller integration). Januar y 2001, Siemens Automation & Drives acquired the Hi-Fidelity Machining: Tighter links between Orsi Group, an MES provider CAM and physical controllers. based in Genoa, Italy. Mechatronics: The most advanced mechanical and Newbur y helped facilitate electronic systems engineering and management. both the Moore and Orsi acquiSource: Siemens sitions, understanding that Siemens wanted to be a stronger software company. Yet, he admits he didn’t see the UGS deal coming. “It was a big surprise for all of us,” Newbury recalls. “Nobody expected this type of acquisition,” referring to both the size of the deal and the type of products under the UGS umbrella. inside look GAME-CHANGING EVENT Yet, at the same time, Newbury realized the significance of the moment, he says. “The prospect of changing the industry was an opportunity that was compelling to me. It’s not very often that you can play a part in changing the industry and the rules of the game.” Newbury called upon Siemens Management Consulting, an internal group that helped develop a post-merger integration guide that looks at various areas of integration, including marketing, sales, R&D, human resources, IT, and finance. While the core integration team comprised about 20 individuals, at one point, due to the size of the endeavor, there were roughly 150 team members working on the UGS integration project, he says. In order to bridge what some considered a gap between hardware and software cultures, each of these areas of integration was co-led by a person from Siemens and an individual from UGS, as well as a Siemens Management consultant. Weekly calls were set up to handle any conflicts, with Newbury acting as the liaison to management when needed. Tony Affuso, chairman and CEO of Siemens PLM Software 27 October 2008

Table of Contents Feed for the Digital Edition of Managing Automation - October 2008

Managing Automation - October 2008 Contents Take 1 Systems Integration Market Braces for a Wave of Consolidation Kinaxis Launches Program to Lure i2 Customers Patent May Give Mobility a Needed Shot in the Arm New Group Aims at More Efficient Smart Devices Solar, Life Sciences Will Be the Next Frontier For Robots Notes Cover Story:�2009 Companies to Watch Special Report:�Siemens plus UGS: Is the Merger Working? Transformation:�Driving Energy Efficiency Integration: How Clean is Your Data Industries:�Fed Raises Red Flag on Chemicals Product Scan Advertiser Index Next

Managing Automation - October 2008

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