BBW_Global-Players_Local-Heros

Daimler / ZF / Komet / Mahr / DM / Hansgrohe / Pilz / GFT / USU / Karl Storz / Maquet / Endress + Hauser/ Lobo / Ravensburger / IBM / Mann + Hummel / MB Tech / Würth / Festo

Global Player, Local Heros

28 Business Baden-WürttemBerg

Bosch: 100 years in TurkeyIn September 2010, the Bosch Group has celebrated its centennial in Turkey as one hundred years ago the company opened its fi rst offi ce. Since Bosch opened its fi rst manufacturing site in Turkey in 1973, the company has invested 1.4 billion euros there, including one billion over the past decade alone. An additional invest-ment of almost 500 million euros is planned by the end of 2013 and will be used to expand production and development, in particular for diesel- and gasoline-injection technology. Bosch Group sales in the Turkish market amounted to over 630 million euros in 2009. In 2010, sales are ex-pected to grow by nearly 20 percent to 750 million euros. If all exports are included, the sales of the Bosch companies in Turkey will come to 1.6 billion euros in 2010, a year-on-year rise of nearly 20 percent.

www.bosch.com

Mahle Takes over Shares in BehrThe automotive suppliers Mahle and Behr have agreed that Mahle will take over shares in Behr in several stages. Prof. Dr. Heinz Junker, Chairman of the Management Board of the Mahle Group, explains: “Mahle’s participa-tion in Behr opens up signifi cant additional potential for the future of both companies.” Examples include complete exhaust gas recirculation modules and intake systems with integrated charge air coolers. In ad-dition, the subject of effi cient thermal management, including heating and cooling, is particularly signifi cant for new generations of vehicles, as fuel consumption and CO2 emissions are further reduced. This can also be seen in conjunction with the increasing sig-nifi cance of alternative drive systems, from hybrids to vehicles with purely electric or fuel cell drive

www.mahle.com

GLOBAL PLAYERS,LOCAL HEROES

neWs & dates


Growing EastUlrich Walker is Daimler‘s man in Asia. He particularly appreciates the dynamics and “power” of China, where the company is achieving record numbers

Mr. Walker, the automobile market in China is growing and growing, but Mercedes is growing faster. Is this all down to a longer E-Class?

ulrich Walker: No, it is not all due to a longer e-class, but rather the result of a number of measures. In the last three years we have massively expanded our product portfolio; we have further increased our local production of c-class and e-class models with the help of joint ventures and supported our product and market cam-paign with considerable marketing activi-ties. although we only started our local production in china in 2005 in contrast to our competitors, we have made good progress in closing the gap in the last few years. Our chinese customers can choose

from more than 50 models, which we offer in the region. This model diversity as well as our sales, marketing, and communica-tions efforts have contributed to Mercedes-Benz recording the strongest growth of all premium brands in china in the last three years with a 280 percent increase.

Who are your customers in China then?

In china our customers are almost exclu-sively a wide range of private individuals: There are urban singles who buy a Mer-cedes with their fi rst salary, young families, and successful managers and entrepreneurs who want to allow themselves an e-class, S-class or even a Maybach. Our portfolio is broad enough to make every target group an appropriate offer. In comparison with

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gloBal players, local heroes daImler In chIna

daimler‘s man in china Ulrich Walker is responsi-ble for a large area in the Eastern hemisphere of the Daimler world: China, Taiwan, Hong Kong, and Korea. Since April this year, he has also been the Chairman of the German-Chinese Chamber of Commerce in Beijing. The local companies know and appreciate him as active chairman of the Commit-tee on External Economic Relations of the IHK Re-gion Stuttgart, to which he has been contributing his experience as a passionate ‘Global Player’ since 2005.

IntervIeW: Esad Fazlic

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the past, when Mercedes-Benz was almost always associated with the S-Class, there has been a considerable change in customer experience.

What kind of sales network is required in China to facilitate this kind of growth?

There were about 25 - 30 new Mercedes dealers on average in the last few years. By the end of this year we will have more than 160 dealers in all of China. Our goal is for the dealer network to continue to grow strongly in the coming years. This massive expansion will be very important to achieve our planned sales volume in China. After all we want to sell more than 300,000 cars an-nually in China beginning in 2015.

How do you bring dealers and service in China up to the global Mercedes level?

First of all Mercedes-Benz has dealer stand-ards which are valid worldwide and there-fore also serve as the guideline for our Chinese dealers. Not least, the necessary investment will have to be made. What really sets Mercedes-Benz apart is the qualifi cation and quality orientation of our employees — our trained sales and service staff. Today we have a global training and qualification programme which literally every employee has to complete. We also have external institutes check whether the standards are complied with and are really experienced by the customer.

What does this mean in terms of human resource capacities which need to be developed?

The central sales organisation in Chi-na — without the dealer’s organisation — is around 800 people strong at Mercedes Cars. The dealers themselves employ about an-other 10,000 people. We do not qualify for the short term, but strategically for the long term. Only a strong, qualifi ed and mo-tivated dealer’s organisation will put us in a position to achieve the goals we’ve set for ourselves in the upcoming years. We also check our strategic alignment constantly by asking questions such as: how many deal-ers do we need? Where are the best loca-tions? Which new partners do we want to

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gloBal players, local heroes daimler in china

be our dealer? another significant question is: how do we maintain and increase the loyalty of our employees? already today we invest money and resources in the qualifi-cation of our employees, and of course we would like to keep hold of this investment and the know-how we develop instead of losing it. This requires not only an inten-sive education and training programme, but also attractive and competitive com-pensation.

For cooperations with Chinese manufacturers, corporate culture also plays a major role…

This is right and important. On the one hand, there is basically the encounter be-tween german and chinese cultures; on the other hand, it is also a clash between very different corporate cultures. Take BYD, for example: Since the end of May we have an agreement on a joint venture for the com-mon development of an electric car. This joint venture brings together the oldest car manufacturer in the world, the inventor of the automobile, and one of the youngest car companies in existence: an automobile firm which has become large and successful mainly through the production of batteries. Different kinds of business experience from various industries, regions, and cultures are mingling here. The same is true for our fu-ture truck joint venture with Beiqi foton.

Only a couple of weeks ago, the correspond-ing contract was signed in the presence of the german chancellor and the chi-nese Prime Minister. In all our joint ven-tures — be it the existing car joint venture BBac in Beijing or our van joint venture fJDa in fujian — two corporate, manage-ment, and country cultures are clashing. Our challenge was to develop our own spe-cific kind of cooperation for our joint ven-tures, which allows us to benefit from these different cultures, the diverse knowledge, and the various experiences to produce op-timal results. from my point of view, we have done a good job in this respect.

How does the quality awareness at Daimler fit in with the production targets in China?

Take, for example, the c-class or the new e-class, which we build here in china. These cars comply with exactly the same standards which we use in our plants in Bremen, Sindelfingen, and rastatt. We conduct audits everywhere to ensure that our uniform quality processes valid world-wide are adhered to and quality targets are achieved. These processes and audits start with the suppliers who must meet the same requirements as those in europe. further-more, colleagues from china are trained in untertürkheim, Sindelfingen, Düsseldorf, or in the van plant in Vitoria in Spain. Our

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employees there impart the Mercedes quali-ty philosophy to their chinese counterparts, who in turn pass it on to their colleagues in their respective locations.

What part does a globally oriented qualification concept play in that respect?

It is an advantage that global education and training has been of great importance at Daimler in the past decades already. The transfer of knowledge and experience has al-ways played a central role — such as for the building of automobile plants in Bremen, and later in Tuscaloosa, u.S.a., or in Juiz de fora in Brazil. how to transfer this knowl-edge to achieve Mercedes standards in chi-na as well is one of our many assets in the company and something we are all proud of. In our car joint venture BBac in Bei-jing, for example, we have initiated a dual vocational training for future employees. The whole thing is headed and organised by a qualified and determined Mercedes-Benz shop foreman who trains the junior em-ployees with all his long-standing experi-ence and enthusiasm.

And what role do the suppliers play in that respect?

Our company follows two general rules. for one: “follow the sources,” in other words, go wherever the suppliers are, with whom we already work together. for another: “Open sources.“ Within this process we look for new suppliers in china which can meet our demand for components and parts. Of course it will be quicker and easier to achieve the required quality level with the suppliers whom we already know and who took their knowledge, their experience, and their proc-esses to china. for new suppliers we have developed comprehensive qualification programmes to introduce them as quickly as possible to the quality standards of Mer-cedes-Benz. In china we have had positive experiences with both approaches. 8

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In July, Daimler and Foton Motor have signed a joint venture contract for truck production in China C Daimler AG

Ulrich Walker at the Mercedes-Benz cars pre-miere night at the eve of the Beijing Auto Show 2010 C Daimler AG

We want to sell more than 300,000 cars annually in China beginning in 2015.ulrich Walker, President Daimler Northeast Asia

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Business Baden-WürttemBerg 31

gloBal players, local heroes ZF

Back on the Road to SuccessThe automotive supplier ZF is growing again in all regions and segments

ZF expects a turnover of twelve billion euros for the full year, an increase of more than 25 percent over 2009. “We’re growing in all segments and all regions,” reported Zf ceO hans-georg härter. “kurzarbeit”, germany’s state-subsidized short-time-work programme, has now almost entirely been phased out across the group. Mean-while, the number of Zf employees world-wide rose by 2,000 by the end of august. “The rapid economic recovery and an even faster-growing demand for our products have been a pleasant surprise for us,” ex-plains härter.

Export Driven GrowthZf is achieving high sales growth in all re-gions this year in comparison with 2009. The rise in europe’s car production has been mainly driven by exports, while the commercial vehicle segment is enjoying a significant boost in orders. In russia, the joint enterprise Zf kama ltd. has recorded a strong increase in truck sales. “especially in the commercial vehicles segment, which is still on a low level, we see good world-wide prospects ahead in 2011,” predicted härter.

Market growth in china’s premium car segment has led to an increasing demand for automatic transmissions and power steering systems, yet there are also opportunities for Zf to gain new customers in other boom-ing chinese segments, such as construction machinery.

Cooperation with Fotonat the Iaa commercial Vehicles in han-nover, Zf friedrichshafen ag and Beiqi foton Motor co. ltd., headquartred in Beijing, decided to renew their agreement

The rapid economic recovery and an even faster-growing demand for our products have been a pleasant surprise for us.hans-georg härter, CEO of ZF

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Rising SalesWith its sales results rising between January and August by over 40 percent relative to the same period of the previ-ous year, Friedrichshafen based auto supplier ZF has managed to get back on track in 2010.

text: Hans Gäng

on strategic cooperation in china. for two years now, the german supplier and the leading chinese commercial vehicle manu-facturer have been cooperating closely. Zf and foton developed a transmission variant in unison which is specially adapted to the requirements and demands of the chinese market.

In India meanwhile, the production of suspension technology components with joint enterprise partner hero Motors has be-gun successfully. In Brazil, Zf is achieving high growth rates, particularly in the agri-cultural machinery and truck segments.

Gearboxes for VestasIn the united States, a new Zf axle and axle drive production plant was completed in 2009, and a major supply and license agree-ment for 8-speed automatic transmissions was signed. Zf is also growing in europe, where strong demand from the truck seg-ment is driving Zf group sales higher.

In addition to the automotive sup-plier’s increasingly international profile, härter underlined “the diversification of our core business” as a further Zf trend going forward. currently in gainesville, georgia (uSa), a plant

is being built that will produce wind power gearboxes for Vestas, the Danish-based world leader in wind turbines. Production is to begin in 2012. Zf ultimately aims to produce well over 1,000 of these large-scale gearboxes annually for the growing wind energy industry. 8

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Largest Single Investment at BoschThe new eight-inch semiconductor fab at the Bosch location in Reut-lingen has gone into operation. At a total cost of 600 million euros, the new facility, which will in future manufacture semiconductors and micromechanical components, is the largest single investment in the history of the Bosch Group. The new facility is the company’s response to the growing demand for ever more complex electronic components and systems in automobiles, buildings, and consumer goods.

www.bosch.com

Behr: Starting Production in ChinaBehr Jinan, Behr’s first fully-owned subsidiary in China, has started pro-duction. The plant is located 900 kilo-metres northwest of Shanghai. From this facility Behr supplies CNHTC, China’ successful heavy truck maker with air conditioning components and engine cooling systems. By 2011, Behr Jian plans to reach sales of over 20 million euros. Behr entered the Chinese market in 2003. Since then, the company has been continuously expanding its activities in what has since become the world’s largest car and truck market.

www.behr.de

Fresh Breeze for SchulerSchuler is establishing a new busi-ness field with its entry into the wind turbine market. Its aim is to develop and produce complete wind power plants for inland operation. Full-scale production is scheduled for 2013. Schuler will be equipping its 2.7 MW wind turbines with a direct drive system, which transmits the rotation of the rotor blades directly to the generator. As a result, there will be no gearbox — and thus significantly less need for maintenance and repair work.

www.schulergroup.com

Global Players,loCal Heroes

neWs & dates


Global awakeningThe world of automobiles is changing — and so is Daimler, the business pioneer

In order to describe the changes at Ger-many’s most valuable car brand, one doesn’t even have to start at the legendary Mercedes Museum and the very first historic begin-nings, such as is attempted by the current advertising campaign. the times when Werner Niefer, a Swabian-born institution at the top of Mercedes, guided the product policy with enormous engineering intuition and the philosophy that no competitor was allowed to even get close to the Stuttgart-built cars in many ways, are not that long ago.

this is especially true in terms of qual-ity. But the times when Mercedes was able to look down at BMW in Munich, or even further down to audi in Ingolstadt, from an elevated position and at times with a little

arrogance, too, are gone. the W-140 series S-Class model, which Niefer developed to become the super heavyweight champion of its time, stands for that era.

there are two images that contradict these memories of the early nineteen-nine-ties. there is the successful SlK model, which gave the brand a modern appearance, and there are the a-Class and the Smart which managed to tell the public that “Pre-mium” doesn’t necessarily mean cars had to be large and heavy. there is no doubt: those new models starting in the mid-nineties made the “Mercedes” brand more youthful and more “democratic”.

today the company attempts to create a link to the successes of the so-called “first product initiative”. But the times are hard-

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gloBal players, loCal heroes daimler

ShowdownWhen attempting to understand a corporate culture, will it be the key leaders — such as CEO Dr. Dieter Zetsche (right) and Dr. Manfred Bischoff, Member of the Superviso-ry Board — or the products they bring forth that give insight? Whichever aspect is the more enlightening: At “Daimler”, which has always been the common name for the manufac-turer of Mercedes cars in Stuttgart among those working there and sup-plying goods, it is very obvious that quite a few things have changed in recent years.

text: Willi Diez

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er now, because all “niches” in the auto-mobile market have already been taken. So the attention is increasingly being focused on global car markets with China, a place where growth seems to have no limits, on top. the corporation’s current Ceo di-eter Zetsche has gathered his management experience not only in europe, but also in North and South america. and in bring-ing back Wolfgang Bernhard to their ranks, they have a person who is considered the prototype of a globally oriented, cosmopoli-tan manager.

Meanwhile the “marriage made in heaven” with Chrysler ended in tears. the consideration to become a global player by making targeted acquisitions may not be such a bad idea from a strategic point of

view. But whoever chooses the wrong part-ner has to bear the consequences of such un-holy alliances.

Cost Cutting Programmesthe decision to launch a “merger of equals” came as a surprise at a time when Mercedes had become a goldmine again after having supplied successful new models to the mar-kets. In the mid-nineties Helmut Werner and Jürgen Hubbert had imposed a deter-mined streamlining and cost cutting pro-gramme on Mercedes and its suppliers. For the first time, the employment numbers at Mercedes had been cut by nearly 25,000 jobs.

a further unit cost degression would have been possible without also reaching

for world corporation honours. after all the company still manufactures almost one mil-lion cars on its own. the group could have expanded its, at the time, unchallenged leading position in the premium segment and taken advantage of the many options in terms of new products and markets.

the unhappy transatlantic combination with Chrysler also led to some changes in daimler’s corporate culture, until then characterised by a strong German-Swabian flavour. It was a new thing to call each other “du” within the board and management. Previously they had rather used the more formal “Sie” in untertürkheim, even after two or three decades of rising up through the ranks together. Now they were all very dedicated to using the new Corporate lan-

C Daimler AG


guage english with a heavy Swabian accent, even if there were only one or two manag-ers from detroit sitting in the meetings amongst a dozen guys from Stuttgart.

literally it is the little things that illus-trate the global change in the old Mercedes culture. For me one of these little things was the cup holder in the cars. at the be-ginning the people in detroit even removed it from the company cars whenever a high-level visitor from Germany had announced his arrival. a cup holder in a fine Mercedes – for some of the long-standing daimler engineers this was almost equal to commit-ting a sacrilege.

another example is one of the easy-to-explain secrets of the success of the e-Class in China: Simply make the cars determined for the asian market longer so that the target customers can comfortably stretch their legs in the back seat while their driv-er guides them through the Beijing and Shanghai traffic jams — this kind of ad-justment would formerly have taken years. today it is good practice to face the chal-lenges of the global markets. In the future Mercedes will have to make even more sys-tematic and mindful observations of what the international customer demands. there have also been changes in the relationship with suppliers — even without having to employ an irritating character such as the

legendary VW head of purchasing lopez, who had become quite infamous in Germa-ny. and the message was received by the lo-cal supply industry exactly as was intended: Mercedes, too, will watch every penny from now on; nobody is prepared to accept a pre-mium surcharge any longer.

Being almost Part of the Daimler Familyof course the new behaviours fundamen-tally impaired the historically grown self-conception among the suppliers of enjoying long-term contracts and being almost a part of the daimler family. Given the persisting cost pressures there are no signs of revival for the old sentiments. the guidelines dic-tated by daimler and other car manufactur-ers to their suppliers, which demand them to pre-finance important developments, take many medium-sized companies run by family owners and their house banks to the limits. For the banks, daimler orders have ceased to be reliable securities.

on the other hand, the historic sup-pliers are looking for new global partner-ships beyond the automotive environment in Baden-Württemberg that has been dominated by daimler. once a Ceo of an important supplier stated that the guys at toyota were at least able to tell them what they want. With Mercedes managers

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Mercedes-Benz Star Evolution: With its new brand identity Daimler finds the way back to its roots C Daimler AG

“our Expectations have been Exceeded”Daimler Presses on in China

Record Sales in ChinaA key factor for Daimler’s record-breaking sales worldwide is the rapid growth in China, where Mercedes-Benz has been the premium brand with the strongest growth.

text: Esad Fazlic

China is not only the fastest growing economy but meanwhile also the largest and fastest growing automobile market in the world — a fact that has been known for a long time in a globally active corporation such as the daimler aG. as a pioneer in car manufacturing daimler designs the future of mobility: the company favours innova-tive and green technologies as well as safe and high-quality vehicles. employing more than 256,000 people, the corporation sold

around 1.6 million vehicles worldwide in 2009 and the revenue reached 78.9 billion euros. In June 2010, 13,700 passenger cars (June 2009: 4,900) were sold in China, a sales increase of 177 percent. during the first six months of the year sales rose by 120 percent to 60,500 units (2009: 27,500).

Beside the traditional import of cars from Germany, daimler received in 2005 the authorisation to start a joint venture with Beijing automotive Industries Corp.

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gloBal players, loCal heroes daimler

About the AuthorWilli Diez, Professor at the University of Nürtingen-Geislingen in Baden-Württemberg as well as Director of the Institut für Automobilwirtschaft (IFA) is always in demand when the future of the German car industry must be analysed. Diez not only consults government agencies, but also manufacturers, suppli-ers and service providers. The IFA organises a yearly convention in Nürtingen that is much-noticed in the indus-try. The university offers a very practice-oriented study for future activities in the automobile industry. Willi Diez has spent more than 17 years at Daimler-Benz. On behalf of Business Baden-Württemberg he observed the changes in the Daimler corporate culture against the background of global challenges.

BYD and Daimler signed a joint venture contract to develop electric vehicles in China C Daimler AG

In June 2010, Mercedes-Benz’s car sales in China gained 177 percent compared to June 2009 C Daimler AG

you sometimes only know what they don’t want. the new alliances, which the corpo-ration currently seeks in the midst of global competition, also represent new challenges for the culture and self-image of daimler-Benz. the cooperation with renault/Nissan in the small premium car segment, which Ceo Zetsche has initiated with the target of improving profitability, makes sense from an economic perspective and is completely different from the marriage with Chrysler. after all, the main competitors audi and BMW have also agreed to join production networks to achieve cost degression.

the participation in the uS electric ve-hicle manufacturer tesla and working on electromobility on a larger scale should cer-tainly be seen as milestones in changing the Mercedes culture. If the fuel cell technology establishes itself, daimler will definitely

for the production of C-Class and e-Class cars for the Chinese market which is now operating. In recent years daimler was able to realize double-digit growth rates in Chi-na sales — in 2009 the growth rate exceed-ed 70 percent. “our expectations have been exceeded,” says ulrich Walker, Chairman and Ceo of daimler Northeast asia ltd.. according to Walker part of the success is due to the commitment of the joint venture partner: “Solutions will only be found if both JV partners are willing to search for compromise together. therefore it was our top priority to identify synergies with our Chinese Partner already during the found-ing stage. as you can tell by looking at the

revenue figures we have done an excellent job so far.” Both daimler and Beijing au-tomotive Industries Corp. have a 50 percent participation in the joint venture. With this constellation as a back-up daimler’s sales will continue to increase in the Mid-dle Kingdom. especially in times of crisis China has proved to be the sheet anchor for the German export trade — a factor which could be helpful for other German compa-nies as well.

of course Walker knows all the prob-lems German companies have to get to grips with in foreign countries: “the require-ments in China are multi-faceted. It starts with cultural differences which are reflected

on a private level as well as on a corporate level. also the complex authorisation proc-ess for the foundation of a company in China presents some particular obstacles.” Walker says that success in foreign business will only come about if the project has a long-term orientation: “German and Chinese business partners need to develop a common understanding on such situations. In the end it just means to get detailed information, to listen properly and to little-by-little develop a trusting relationship to the partner, a vir-tue that can’t be overestimated particularly in joint ventures.” and it is all possible as can be seen by the success of many medium-sized German companies. 8

occupy one of the top spots in the world of new drive types.

It is not just a coincidence: right at the moment the company starts to get ready for the future, it puts a stronger emphasis on traditional values at the same time. the Best or Nothing — after all this new slo-gan comes from founding father Gottlieb daimler himself. an internal orientation for employees, which has been considered an urgent requirement and has been accept-ed reasonably well, takes the campaign into the market. the brand values “quality” and “perfection” have been identified to provide cultural support to the rapidly changing corporate and product world of Mercedes-Benz. the shiny chrome trademark is back in the commercials: a fixed star in a daim-ler world that has become more complex and more global. 8


gloBal players, loCal heroes komet

Fresh Ideas, New MarketsKomet Group overcomes the crisis with new service concepts and a stronger commitment to Asia

precision tools for Future GrowthThe medium-sized tool manufacturer Komet turns the wine-growing town of Besigheim, located on the Neckar river, into one of these typical Baden-Württem-berg industry locations. Quite severely impacted by the global economic crisis in 2008 and 2009, the company with its lead-ing range of precision tools is determined to continue its international expansion. With a production plant in India already up and running and an extended engage-ment in China, the Komet Group has taken precautions to ensure future growth and retain their employees in the parent plant at the Neckar.

text: Hans Gäng

Obliged to meet the highest expectations by legendary engineer, inventor and founder robert Breuning since the twenties of last century, the foundation-owned enterprise exhibited steady growth in the last decades. there is hardly a car manufacturer or ma-chine builder in Germany, and for that mat-ter in europe and all over the world as well, that decides to ignore the solutions thought up in Besigheim: Komet Group is interna-tionally recognised for highly precise solid and fine drilling solutions and for reboring as well as for reaming and thread cutting. the group maintains 15 subsidiaries, 40 sales and service centres and 10 manufac-turing locations worldwide. Komet em-ploys 1,500 people altogether.

“The Global Economic Crisis Hit us Quite Hard”“the global economic crisis hit us quite hard,” confesses Commercial director Mat-

Matthias Heinz, Commercial Director of

Komet Group states: “the crisis is over”

C Komet Group


gloBal players, loCal heroes komet

thias Heinz. In 2009 revenue decreased from 178 million euros to 105 million eu-ros. “as a foundation-owned company we really had no choice but to act quickly. We were not able to survive without short-time work and unfortunately even had to reduce our staff.” 18 percent of jobs were cut and 135 employees transferred to a job creation and qualification company founded espe-cially for this purpose. Meanwhile many of those have found new jobs and some have even been brought back to the permanent staff.

luckily, demise is a very distant sce-nario for the Komet Group. Quite boldly, in March 2010 Heinz internally spread the motto: “the crisis is over.” Since april 2010 short-time work is history. the company management forecasts a revenue growth of more than 20 percent for 2010.

Signals of Innovationduring the worst of the crisis, the market also needed to receive not only signs of sur-vival but signals that proved the company was maintaining its innovation power. Now the Komet Group offers an extended range of services to their customers who have been affected just as hard by the crisis: car manu-facturers, suppliers and machine builders. tools Plus Ideas is the brand name for the added value Komet plans to provide, con-sisting of complex production solutions and consulting. Says Heinz: “We help our customers to increase efficiency by analys-ing their production processes using our know-how.”

In addition the product portfolio of di-hart, the Komet brand for reaming tools, was updated and its communication com-pletely rejuvenated. “In combination with lower prices, which are a result of lower production costs, the updated communica-tion has met with great resonance in the in-dustry,” reports Commercial director Mat-thias Heinz.

Asia will Need TimeKomet’s crisis strategy is primarily based on developing international business. With an export quote of 45 percent already Kom-

et has also positioned itself on the asian growth markets. So far China and India con-tribute only a moderate share to the group’s total revenue. But this share is to grow and grow quickly. Within the next 5 years the revenue share generated in asia is planned to increase to 35 percent. “of course asia will need time,” says Matthias Heinz. “In the uSa we have been present for 28 years and generate 30 million euro. In India we have started our own production after being there only two years.”

In China Komet has established itself in taicang, a favourite location of Baden-Württemberg-based high-tech champions. Heinz: “With the help of our own produc-tion, which is able to participate in the

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High precision machining: thread milling into hardened steels C Komet Group

In Besigheim, Komet has created a modern, multi-level factory environment C Komet Group

Komet is specialised on extremely demanding drilling situations C Komet Group

country’s dynamic industrial growth, we want to double our revenue after only three years.”

Heinz is adamant in stating that Kom-et’s asian activities simply follow the man-ufacturing activities of its customers — in-stead of transferring growth to another country. this global production network of the Komet customers provides new chal-lenges for the sales and service departments as well. Heinz says that the decision to pro-duce in asia have in many cases been made and put into practice by their customers’ headquarters. Heinz: “the next phase of internationalisation will be more complex. Customer orientation is going to require even more flexibility from all of us.” 8


gloBal players, loCal heroes mahr

“Curious Minds”Ulrich Kaspar, Head of Mahr, about the company’s first steps in China and the importance of local partners

We actually started as early as 1995 by purchasing individual components for our products which were manufactured in Ger-many and the Czech republic. We had it organised through Chinese export firms, be-cause at the time we didn’t know any manu-facturers ourselves. Within a very short time it was clear to us that the Chinese market was an extremely cheap purchasing market, although the quality of the products as well as their accuracy was not quite up to our standards. We also learned that the Chinese have very curious minds and actively and continuously strive for improvement. With the help of the people that we had met up to then we founded our first manufactur-ing company in 1998 in the city of Suzhou. this is a 1.5 hour drive from Shanghai. Back then it was still a typical Chinese city with many small shops, no high-rise build-ings and no modern factories.

Mahr moved into an existing building and rented 500 m² of space on the third

floor. We were lucky to employ a very com-mitted Chinese colleague, who built the first assembly line for vernier callipers in collaboration with the production planners and developers from esslingen. little by little we found access to different produc-ers in China and expanded the purchase of components, which we then refined in our production and assembled them to have finished products. Important parts, such as the electronic units, came from Germany. one of the essential tasks was to improve the quality of the individual components at the manufacturers; so we introduced qual-ity control in a step-by-step process which met our standards.

Increasing Qualitythe significantly lower production costs in our Chinese plant helped us to estab-lish sales prices with which we were able to reclaim competitiveness in the rest of the world. We managed to consistently sell large and growing numbers via renowned trading houses and today our products are to be found in tool dealers’ catalogues on a regular basis. Product range and produc-tion quantities increased annually and we were forced in 2002 to move into a new and larger building that we own. the in-creasing quality and reliability of our plant caused us to manufacture ever more com-plex machines in China. Some high-preci-sion components, though, are not available on the Chinese market and we still import essential components from Germany. With a shop space of 4,500 m², cost-efficient and committed employees in China and

an excellent product design (Made in Ger-many) we have managed to catch up with the best and largest worldwide competitors in dimensional metrology devices and are number 2 in the market today with a rising market share. We have at no time regretted having made this step and thus put Mahr in Germany in the position to continue this business and, at the end of the day, be finan-cially successful with it.

I would like to emphasize particularly that this project helps to secure our jobs in Germany. Without this competitive pro-duction we would not be able to sell some of our products. our plant in Suzhou with 170 employees is a fixed element of the Mahr Group’s production network and ab-solutely irreplaceable. 8

Ulrich Kaspar, Managing Director of Mahr,

reflects the company’s engagement in China

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ten years of China ExperienceThe globally operating Mahr Group is the world’s third largest manufacturer in the area of production measurement technology and also started its own production plant in China ten years ago.

text: Ulrich Kaspar, Managing Director of Mahr

International trade congress, international trade exhibition, Internatio-nal Consultancy Days from the German Foreign Chambers of Commerce (AHKS), b2fair Cooperation Exchange, GlobalConnect Award, country presentations, forums, workshops, trade association conferences, etc.

GlobalConnect: Meeting point for the export industryGlobalConnect is an event where export-orientated companies can share their expertise and obtain fi rst-class information for the global future. During the international trade congress, the specialist trade fair and the numerous workshops, country presentations and forums.

MEET THE GLOBAL FUTURE!

FORUM FOR INTERNATIONAL CONTACTS AND INVESTMENTS

ICS International Congress Center Stuttgart 26 – 27 October 2010

www.global-connect.de

00_GC_Anz_LG_210x280_e.indd 1 09.07.10 13:43


gloBal players, loCal heroes dm-drogerie markt

investment in EmployeesThe Karlsruhe-based dm-drogerie markt GmbH is a company whose suc-cess is based on holistic corporate thinking and on a commitment to the good of the individual and society. Respect for a human being’s individual-ity as well as for regional market environments have been the foundations of the company’s growth.

text: Daniela Sandmann

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Mr. Harsch, how does the corporate culture of dm differ from that of other companies?

What distinguishes dm is that our leader-ship is not hierarchical. For 37 years now and unlike other companies, dm has not been rigorously organized and led by a cen-tral management. We have gone through a development which, in the early 90s, ended with the conclusion that one should not focus on the boss but on the customer. Proc-ess thinking instead of structural thinking. accordingly, this places the human being at the centre of our endeavours and actions and shapes our company. that is precisely what sets us apart, the fact that we give leeway to autonomous action and new ideas; this autonomy is desirable and requested by us. this is a considerable difference compared to other corporate cultures of the branch-based trade which is characterized by the employees following instructions. We hard-ly give any instructions. our organisation is based on the fact that autonomous thinking and action are possible and that they should take place.

How does the motto “Leading people to taking on responsibility” reflect in your trainee programme?

the more we have developed a culture of our own, the more difficult it gets, of course, to integrate people with different work experience. It has been much more helpful for us to be able to do justice to our strong growth through people who we have trained ourselves. at dm staff are encour-aged to take on responsibility right from the start. For example, there is our “learn-ing-while-working” concept which is based on the notion that we don’t just show our apprentices how to do things and he or she is then going to repeat this without asking further questions. at dm you are allowed to

make mistakes and learn from them. this continues throughout the apprenticeship; towards the end, groups of eight to ten trainees in their third year are fully respon-sible for the running of a branch which they manage autonomously for one month. also, our project “adventure Culture” is a stand-ard integral part of traineeship. this is the largest amateur theatre project in Germany. We employ theatre educationalists who run theatre workshops with our trainees; in the course of their training all our apprentices participate in two eight-day workshops.

Not every company can afford offering theatre workshops to its trainees.

of course, particularly in Germany, not only are margins very low in the food sector but also the return on sales, which means that one has to work even harder to make a com-pany grow. a company only grows through people. this is why investing in people, which means investing in the future, is a very commendable thing. Besides, this does not only apply to trainees but to all employees. at this point we are growing with 100 new branches opening every year in Germany.

Where does this growth lead to? How can you project expansion of a company in the food market where competition is extremely fierce?

on the German market there are clearly many regions which we have not yet or not sufficiently covered. If we manage to set up everywhere as many branches as in our base region of Karlsruhe where we started out, then there is still scope for twice as many shops. that is why we are not wor-ried at all about running out of potential for growth. of course, here in Germany there is crowding-out because competition is very fierce. the products we sell are brand prod-ucts which can be purchased anywhere, our

“We Hardly Give any Instructions”Erich Harsch, CEO of dm about the relation of process thinking, theatre workshops and global growth

We have gone through a development which, in the early 90s, ended with the conclusion that one should not focus on the boss but on the customer.Erich Harsch, CEO of dm-drogerie markt GmbH

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In Germany they say: a good price is not everything, but nothing can be done without a good price.Erich Harsch, CEO of dm-drogerie markt GmbH

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› own quality brands taken aside, of course. We try to be among those who are success-ful. In this attempt, we are, however, not acting aggressively against others, but we always focus on the question “how can and how should we serve our customers?” and we are not doing this by throwing bait to customers, by manipulation or seduction but by trying to give our best.

Where do you see potential for internationalisation and what sort of strategy are you pursuing?

We are now present in eleven european countries. We started out in Germany in 1973, austria followed as the second coun-try in 1976. By now the focus of our op-erations is in South-east europe where we have also done some pioneering work for the market economy. unlike in Western europe, chances to establish oneself in the countries of the former eastern bloc are big-ger since there are no traditional trodden paths leading to other forms of business. We don’t have any 10-year-strategies ready at hand and there is no well thought-out plan for internationalisation. the point is knowing how to take small steps, this is an art, being aware of the present without al-lowing one’s gaze to wander too far off into some distant utopia.

What is your stance in the price war in the German retail trade?

In Germany they say “a good price is not everything, but nothing can be done with-out a good price”. In our sector it is impor-tant to remain competitive. In Germany price levels also play an important role for consumers. this means that dm also has to constantly work on keeping prices attrac-tive. In 1994 we introduced permanent pricing and said good-bye to bait-and-se-duction campaigns.

Today there is hardly any product which is not presented from the viewpoint of sustainability. What is the sustainability concept of dm?

Sustainability has various sides to it. often only the ecological side is being looked at. However, sustainability also extends to the economic and social areas, areas which we prioritize. Now I am again coming to speak of the individual, the human being who we focus on. We have numerous initiatives which are very important to us and which have nothing whatsoever to do with public-ity campaigns. 8

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Goethe, Roll-on Deodorants and Sustainability dm, a success story made in Baden-Württemberg

republic, Slovenia, Croatia, Serbia, Bosnia and Herzegovina, romania and Bulgaria we sold 1.46 billion euros worth of goods, i.e. 11.7 percent more than in the previous year,” he adds.

Top of the Market the successful expansion of dm-drogerie markt can be attributed to its constantly rising number of shops as well as to consid-erable growth on existing space. In the sec-tor, dm is ahead of rossmann and Müller; the company also beats discounters and food shops. In times of economic instability, the number of cost-conscious dm customers is growing. “our customers make a conscious choice in favour of dm: they value our di-verse range of products while benefiting from the low prices we offer; our products cost up to 15 percent less than those of our competitors,” explains Gerlinde Sulzmaier, Head of Marketing/Purchasing. the assort-ment includes some 12,500 articles cover-ing beauty, health, items for babies, photo, household, pet and health foods. With the alnatura brand around 1,000 organic food items take into account the rising demand for healthy food. there is also an emphasis

Keep on growing: last year dm has increased its total turnover by 11.6 percent to 5.2 billion euros

All Around EuropeThe dm-drogerie markt chemist’s chain has some 2,250 shops in Europe. And it looks like the business empire, founded by Prof. Götz W. Werner, is set to maintain its position as the Central and Eastern European market and price leader in its sector.

text: Daniela Sandmann

dm offers its products in more than 2,000 branches in Central and Eastern EuropeC dm

What started out as a humble chemist’s shop in Karlsruhe in 1973 has turned into a chain growing at a rate of three new branch-es every week, hence three times faster than its competitors. In the last business year dm sold goods worth 5.21 billion euros in 2,221 markets spread over eleven european countries. “In Germany our turnover in-creased by 11.5 percent to 3.75 billion eu-ros. this means that since 1995 our 1,105 German shops have made a double-digit profit for the twelfth time; each branch con-tributed an average turnover of 3.39 million euros,” states erich Harsch, chairman of the dm board. “In austria, Hungary, the Czech

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on the use of recycled material etc. etc. the company is taking its commitment to sus-tainability seriously.

Here is where I feel alive and here is where I shopSatisfying people’s needs without depriv-ing future generations of their chances for a good life — this was Götz Werner’s vision when he founded the company, and it still is his guiding principle. Corporate social responsibility, coined in 1973. dm, suit-ably, chose to modify Goethe’s verse “Here is where I feel like a human being, here is where I feel alive.

the well-adapted dm slogan “Here is where I feel alive, and here is where I shop” has preserved the mood. It seems to strike a note among customers and has come to be associated with dm just like roll-on deo-dorants are characteristic for drug stores. and employees are being taken seriously, too. the remarkable leeway given to staff includes decisions on opening hours, prices and the stores’ product range. “Company revenue is not the aim, it is the result of people working together,” says Ceo erich Harsch. Sounds good. anyway, judging by the figures, it seems that people at dm have worked together very well. Goethe would, I am sure, have been pleased. 8

“people’s frozen, rigid thinking has started to dissolve”dm founder, Götz W. Werner, about unconditional basic salaries

Mr. Werner, you have been calling for an unconditional basic salary for everybody in Germany. What has been the response to your stance?

By now almost all parties have panels who are seriously looking into the subject. there have also been articles of renowned authors in the reputable press who have been toil-ing over the topic — with more or less expertise. at the events which I organize I have noticed that people’s frozen, rigid thinking has started to dissolve, in various corners and at the same time. I have said

that first one has to be able to think an idea, to actually admit a thought; this will allow dynamics to unfold by themselves in the consciousness of society.

that is precisely what has now occurred: the idea does not just exist in the minds of small circles of hopeless idealists or radical nutcases, quite to the contrary, it is actually being discussed and developed everywhere. and this, by now, even much more objec-tively and using more imagination than a few years ago when it was often all too quickly accused of being fantasy. 8

InITIATIVES DM-DRoGERiE

In the 2008/2009 fiscal year dm invested more than three million euros in numerous social and public projects.

› “Singing Kindergartens” Project: Based on the “Musicians-of-Tomorrow” Initiative which was brought under way by dm in 2006, the chain has been supporting kindergartens in Stuttgart since 2009 by pro-

viding further education for educators. Music educators have visited kindergartens regularly and given advice. There are now some 250 “Singing Kindergartens”. The Initiative supports a total of around 25,000 children.

› “Be a Futurist”: Together with the German UNESCO Commission, dm-drogerie

markt called upon young people to send in their ideas for projects promot-ing sustainability. 1,082 winning projects received 1,000 euros each.

› There is also a variety of campaigns which aim at saving energy and reducing waste.

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Take advantage of education’s growth potential at LEARNTEC 2011!

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The LEARNTEC convention is the only one in Germany that offers a look at the future of the e-learning and edu-cation industries, presents successful education projects from the world of business and links these to the pro-ducts and services offered by exhibitors at the trade fair.

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GLOBAL PLAYERS, LOCAL HEROES

HANSGROHE

BUSINESS BADEN-WÜRTTEMBERG 25

Showers are made in the Black Forest, where nature is the model

Designing Water The company

Hansgrohe has become a world leader for showers, faucets and bathroom design. In the headquarters in the small town of Schiltach, designers only need a window to get inspired.

TEXT Hans Seidenstücker

26 BUSINESS BADEN-WÜRTTEMBERG

Introduced in 2003, Raindance became the most successful product in the com-pany’s history. Today it accounts for a no-table percentage of Hansgrohe’s turnover. As a result, Hansgrohe has experienced a compound annual growth rate of 14.6 percent during the past four years. But it took a lot of tinkering and design work till the first Raindance could be sold. In the company’s laboratory engineers worked for months till they were finally satisified with the water jet.

Hansgrohe is proud of its special breed of engineers. With 106 years of tradition in Schiltach, know-how has been handed down from generation to generation. This tradition is one of the foundations of the company’s success. “Here in Baden-Würt-temberg we have highly-educated and highly-motivated employees, thus ensur-ing a consistent, high quality product,” emphasises Klaus Grohe.

Little Distance, Big DifferenceWhile the company remains true to its roots, further expansion in Schiltach is al-most impossible. Commercial real estate is a scarce commodity in this narrow valley surrounded by the mountains of the Black Forest. Core functions such as research and development, marketing and management will remain in Schiltach, but parts of the production and logistics are increasingly being moved to Offenburg, 50 kilometres up the road. Even this little distance makes a big difference. “The people who work for us in Offenburg are a completely different breed. There, we lack tradition and do not find the kind of engineers who tinker end-lessly until a product has finally been per-fected”, explains Klaus Grohe.

While Hansgrohe stays committed to Baden-Württemberg, its export share has increased to an impressive 76 percent. In addition to its five German factories, Hans-grohe manufactures in France, the Neth-erlands, the United States and China and has distribution companies in 25 countries. Hansgrohe-USA is the world’s largest sup-plier of showerheads. Still, Germany re-mains the most important manufacturing location accounting for 82 percent of total production.

Hansgrohe entered China in 1999 to meet the demand of a growing domestic market. But Klaus Grohe remains adament that he will not outsource production to


HANSGROHE

01

Klaus Grohe, CEO of Hansgrohe, arrives dressed in jeans and a checkered shirt. The 70-year old remains an avid mountain biker, even though a limp remains from a mountain biking accident six years ago. The mishap resulted in a shattered hip and an eight week hospital stay. It was not enough to stop a restless manager. His hos-pital room was soon transformed into an office where managers, designers and en-gineers reported to the CEO and discussed his newest ideas. Klaus Grohe finally had the time to think thoroughly about some new, innovative products. One of the prod-ucts conceived in the hospital was Rain-dance — a new showerhead that blends air with water, resulting in soft, voluminous drops pattering down on the skin.

Hansgrohe’s bestseller — the Raindance shower whose development began in a hospital roomC Hansgrohe

Picture below: Washbasin mixer Axor Starck X. It took one year research to let wa-ter flow like a wellspringC Hansgrohe

Previous page: Triberg WaterfallsC Jason Weaver

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In the early 1970s the German bathroom was moss green, most shower and bathroom installations looked like machine parts and rough edges caused injuries.Klaus Grohe, CEO, Hansgrohe AG

China or any other low-cost country: “La-bour costs account for seven to ten percent of our total costs, so the savings resulting from reduced labour costs are negligible. At the same time, outsourcing often entails supply-chain problems eating up any cost savings one may have. And our highly-skilled workers are one of our most impor-tant assets.”

Talking DesignHansgrohe’s success is not only based on sophisticated engineering but also on cut-ting-edge design. In 1974, Hansgrohe teamed up with Esslinger Design and un-veiled the Tribel — the first handshower with a rotational head and three spray set-tings — and the first Hansgrohe product to win design awards. Since then the company has scooped more than 230 design awards.

With new technology, new designs were possible while the designers’ demands also forced Hansgrohe to innovate. Klaus Grohe remembers the prototype of the first faucet designed by Philippe Starck: “It looked horrible. The cartridge around which it had to be built had a diameter of 32 milli-metres, yet Philippe is an exponent of min-imalistic design. But one cannot do mini-malistic design with such a large cartridge, so we developed a smaller cartridge.” The company has always had a close relation-

REVIEW DESIGN MILESTONES

Year 1974 1981 1993 1995

Product Tribel, Hand Shower

Allegroh, Faucet

Joco, Hand Shower

Axor Starck, Single Lever Faucet

Designer Esslinger Design Esslinger Design Phoenix Design Philippe Starck

Note The first Hansgrohe product to receive design awards.

First Hansgrohe faucet to receive design awards.

The first Hansgrohe product designed by Philippe Starck to receive design awards.

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ship with its designers. Klaus Grohe de-veloped new designs with Andreas Haug from Phoenix Design while cross-coun-try skiing and discussed innovations with Philippe Starck on the patio of his Spanish vacation home. While in the early days it was hard to fathom any self-respecting de-signer sinking so low as to design faucets, showers or bathrooms, well-known design-ers today are constantly knocking on the company’s doors. Klaus Grohe: “Having

CEO Klaus Grohe in his younger days testing one of his productsC Hansgrohe

All smiles: Star designer Philippe Starck C Hansgrohe


HANSGROHE


A dream of a bathroom, — designed by Jean-Marie Massaud C Hansgrohe

Axor plant in Schiltach squeezed into a narrow Black Forest valleyC Hansgrohe

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› had Philippe Starck, Jean-Marie Massaud and Antonio Citterio work for us has really been a door-opener. Not only are other de-signers approaching us wanting to design a new product, but customers also view us with different eyes. For instance, Citterio is very well-known in Asia and we received many orders after having collaborated with him.”

Star PowerBy working with famous designers, Hans-grohe has moved beyond designing faucets and showerheads and today offers exclusive bathroom design collections under the Axor brand. Axor was established 13 years ago to target the up-scale market — with success.

In June, Hansgrohe opened its new “Aquademy” — a training academy, muse-um and exhibition space in a single build-ing. On its 4,500 square metres, visitors see how bathroom design has changed during the past century and the company’s newest products are showcased both to specialist retailers and end-users. “The Aquademy has become a key marketing instrument for us. We can present our newest products and have the customer to ourselves. We can survey opinions on products currently be-ing developed, customers can test showers in our Shower World. In our training cen-tre we train plumbers in the installation of our products”, explains Klaus Grohe.

The Importance of Being GreenHansgrohe’s latest venture is water recy-cling technology sold under the Pontos brand. The idea is to reycle water used by showers, bathtubs and handwash basins,

treat it and use it for toilet flushing, wash-ing machines, irrigation or cleaning. While sales have not met expectations, Klaus Gro-he is convinced that this water recycling technology is important for the company’s image: “My son Philippe, head of the Axor division, reports that he receives a warm welcome when he presents both the Axor and Pontos brochure. The importance of environmentally-friendly technology con-tinues to increase and we therefore should

Consolidated Net Sales (in mio. euros) Number of Employees

National International Total National International Total

2002 99 261 360 1,688 822 2,510

2003 102 267 369 1,702 803 2,505

2004 110 318 428 1,744 928 2,672

2005 115 361 476 1,805 994 2,799

2006 134 435 569 1,952 1142 3,094

CASHFLOW DESIGN IS SUCCESSFUL

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not judge Pontos solely on the basis of the division’s profitability.”

Thanks to the success of Raindance, its design achievements and the increased de-mands for faucets, Hansgrohe expects to continue its double-digit growth in 2007. Despite the increased competition from low-cost countries, Hansgrohe is confident that with the know-how accumulated dur-ing its 106 year existence, the company will continue to achieve its goals. 8


HANSGROHE


Pioneering Work Pays OffDemand for biogas engines continues to soar

The biogas sector is booming. Hans-Jür-gen Schnell, founder and CEO of the Zünd-strahlmotoren AG & Co. KG in Amtzell near Ravensburg, was one of its pioneers. The basis for his company, he recounts, was laid at his parents’ dairy farm. The trained mechanic was studying industrial engineering with an emphasis in electri-cal engineering when the electricity costs in the agricultural sector were set to rise significantly. “This would have been a real cost factor — especially in times of high demand such as hay drying. My brother and I pondered on what could be done”, re-members Schnell.

The Schnell brothers assembled their first plant in 1992 and immediately fed the generated electricity into the grid. “Back then, biogas was not an issue. Suppliers did not exist. We manufactured all components ourselves or collected them from the junk yard”, explains Schnell. The next plant was constructed soon thereafter. “In 1995, we were already six people. The workshop at the parental farm was quickly relocated to the industrial zone and by the year 2000 we had already manufactured 80 biogas plants”, explains the son of a farmer.

Today, Schnell is market leader in produc-ing dual fuel combined heat and power plants (CHPs) for biogas, dump and sewage gas. The clever, down-to-earth entrepre-neur no longer assembles complete biogas plants. Instead Schnell aggregates hum in many of Germany’s 3,000 biogas plants. Schnell has reason to celebrate: “Last year we registered a growth rate of 145 percent and have increased our market share from 17 to 25 percent”. Every week, 20 aggre-gates are manufactured in the new 6,000 square metre large production halls.

Exact AdjustmentsThe core component of the aggregates, which cost 45,000 to 150,000 euros each, are diesel engines built by Scania or Sisu. “The cylinder heads are modified, an elec-tronic injection system is installed. We carry out 30 modifactions, transforming the Scania diesel engine into a Schnell bio-gas dual fuel engine”, explains the head of marketing Christian Wollin. This increases efficiency so that more electricity can be generated than with conventional gasoline engines. For its newest 265-kW-aggregate Schnell guarantees 44 percent efficiency.

Power from the farmSchnell Zündstrahlmotoren is specialised on the pro-duction of highly efficient dual fuel engines. It has become market leader in producing dual fuel combined heat and power plants for biogas, dump and sewage gas.

ContactSchnell Zündstrahlmotoren AG & Co. KGSchattbucher Straße 1188279 Amtzell/GermanyPhone +49 7520 9661-0Fax +49 7520 [email protected]

The electronic ignition system functions as follows: In contrast to natural gas, biogas burns only very slowly, but has a high an-tiknock rate. Therefore, a high compression ratio of the gas-air-mixture is possible.

The higher the compression ratio, the higher the efficiency. But a high com-pression ratio also increases the danger of “knocking”. And if the compression ratio exceeds 13:1, spark plugs cannot be used, because it is physically impossible to gen-erate an ignition spark. Instead, diesel fuels (fuel oil) or biogenous fuels are injected in order to ignite the gas-air-mixture.

Moving Beyond BiogasThe exact determination and regulation of the injection timing is technically chal-lenging, but indispensable, particularly because the fuel quality may fluctuate within minutes. Schnell solved this prob-lem through an electronic ignition system. One of its main adjustment parameters is the individual cylinders’ temperature. The cylinders are continuously monitored and provides an indication of the quality of the cylinders’ combustion.

Schnell’s newest development is an ag-gregate which uses vegetable oil. Its pump-injector-technology enables the use of dif-ferent vegetable oils, thus eliminating the dependency on biogas. But Hans-Jürgen-Schnell remains optimistic about biogas’ future: In 2020, 9,000 MW of electricity will be generated using biogas, meeting 18 to 20 percent of Germany’s electricity demand. 8

Ratings Support Sound Decisions The future of our customers in focus

GLOBAL PLAYER, LOCAL HEROES

BIOGAS SCHNELL

Hans-Jürgen Schnell, founder and CEO of Schnell Zündstrahlmotoren, remains down-to-earthC Schnell AG

Many farmers operate biogas plants to keep electricity costs in check C Jim Albright

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Staying putFor three years, Udo Nitsche has acted against the trend with a cool entrepreneurial overall view. New jobs for the wage intensive leather covering of handbrake levers delivered to Audi, Porsche and Volkswagen were not displaced to the Upper Tatra or to the shores of the Baltic Sea, but to the Swabian Mountains. Hitherto they have made positive experi-ences. Here, everyone knows everything, except Swa-bian. Spectacular? The local mayor still does not know the company

TEXT Hans Seidenstücker


OFFSHORING TO THE SWABIAN MOUNTAINS

C U. Beutenmüller


covered year after year, it became obvious about three years ago, that a critical vol-ume limit for a dedicated leather covering facility had been reached. In evaluating the make-or-buy options and whether produc-tion should be located in a low-cost-coun-try or in Germany, the Dietz-Group tried to consider all relevant cost-elements and cost-drivers. Besides the well-documented differences in wage levels, these included allowances for the risks of transportation, expenditure for packing, disposal and re-cycling, expenditure for scheduling, stock management and carryout of orders, com-munication delays and communication costs, insurance on penalty risk for the deliverer, contingencies for possible bot-tlenecks, safety in communication e.g. in case of engineering changes, response time in case of engineering changes, expenses for the qualification of the supplier, expenses for incoming inspection, asset allocation to stocks, risk of reworking, asset allocation to investments, long-term trends of factor-costs, innovative competence of the sup-plier and, last but not least, the strategic targets of management.

No Real Advantage for Outsourcing Owing to the properties of the given prod-uct and due to the typical patterns of logis-tics in the automotive industry, it became clear that establishing this particular proc-ess of leather covering in a low-cost-country would not be as advantageous as previously thought. On the contrary: The meticulous and un-emotional analysis showed that an investment on the Swabian Mountains would pay off after the first year of opera-tion, and that the positive effects of this decision would continue to grow over time. But of prime importance were the low wage costs on the Swabian Mountains. 8

Offshoring to the Swabian Mountains A company acts against the trend — and wins.

Heroldstatt, located between Reutlingen and Ulm on the Swabian Mountains, was part of a prosperous textile and leather in-dustry. Today, names like Kolb & Schüle, Ambrosius Heim or Faber and Becker have been forgotten, and most jobs went to Southern Europe and Asia. A few logistic centres and “factory”-outlets are the only reminders of a once proud manufacturing tradition.

Swabian Secondary Virtue However, manufacturing expertise and pleasure in handling leather material still exist together with a highly attractive Swabian secondary virtue. “Which factory manager does not dream of a sick-leave be-low 2.5 percent, low absenteeism, an un-excelled working spirit and excellent team-work”, raves Walter Schmid, the Managing Director of Dietz-technoplast GmbH & Co. KG. He established the new jobs for leather-covering of handbrake levers and other interieur trim within a few months. Especially the introduction of the necessary personnel worked without problems.

Handbrake Levers for German OEMs Handbrake levers, whose main components are pressure die cast magnesium or injection moulded plastic components, assembled and, if required, provided with decorative surfaces like paint, wood, leather or carbon fibre, are a speciality of the Dietz Group. Important customers are Audi, Porsche and Volkswagen. “With our own leather-cover-ing, we increased our share in the produc-tion value chain by an important segment and avoided the otherwise necessary tour-ism of parts”, explains Udo Nitsche. He is the managing director of Dietz-automotive GmbH & Co. KG. Dietz-automotive has the product competence including assem-

bly, design and programme management. Until establishing its own competences, a German sub-contractor covered the hand-brake levers with leather. Further alterna-tives to the Swabian Mountains would have been to find a sub-contractor in a low-cost country or to establish a production line there.

Expansion of the Product Pipeline The value-added chain starts at Dietzmet-all GmbH & Co. KG, one of the most ex-perienced magnesium casting companies in Germany. Its managing director Wolf-gang Kaltenmaier enjoys the expansion of the product pipeline controlled by Dietz. Material stock is no longer tied-up in tran-sit to the leather covering companies. “The ship is thus able to sail hard on the wind”, he says, “and we are able to avoid or at least better compensate variations in demand within the logistics section, for which we are responsible.” Plastic and leather-covered components are delivered by Dietz-technoplast GmbH & Co. KG. Dietz- automotive GmbH & Co. KG undertakes the assembly and organises the overall lo-gistics. The physical distances between the three companies are rather short, and in order to shorten the organisational dis-tances a weekly jour-fixe between the three managing directors as well as an integrated ERP-Software have been arranged. Thanks to a common head of quality management, the three companies have the same under-standing of dependability of processes and of delivery quality.

Its Own Leather Covering FacilityBefore the company decided to establish its own leather covering facility, leather cover-ing had been outsourced to sub-contractors. With more hand brake levers being leather-


OFFSHORING TO THE SWABIAN MOUNTAINS


Ambassadors for Safety Complete one-stop solutions for safe automation

Right from the start, innovation was the key to success. Since 1948, this highly tra-ditional family business has continued to set new standards: in 1968 with the fi rst two-hand control relay and in 1987 with the fi rst emergency stop relay PNOZ (Pilz E-STOP Positive-guided) — an unusual name for an unusual product. The PNOZ quickly became the most widely used safe-ty relay in the world. This was followed in 1997 by the safe, open bus system Safety-BUS p, for decentralised networking of plant and machinery. The multifunctional safety system PNOZmulti came along in 2002; for the fi rst time, users were able to confi gure the safety functions they required on the PC, rather than implement them through the wiring as before.

Founded by Hermann Pilz in Esslingen, Pilz GmbH and Co. KG has continued to develop. Son Peter changed the business model in the 60s: The former glass blow-ers became suppliers of electronic control and monitoring devices as well as program-mable logic control systems. Following the death of Peter Pilz in 1975, Renate Pilz

took over the management of the com-pany. “I wanted to continue my husband’s vision to create an international company, beholden to its staff and its customers, and one day to pass this on to our children as our joint life’s work,” says Renate Pilz. Now, with daughter Susanne Kunschert, son Thomas Pilz and Hans-Axel Gielow, together they form the management board of the international technology leader.

Comprehensive ServicesThe realtime Ethernet SafetyNET p and SafetyEYE, the fi rst safe camera system for three-dimensional zone monitoring, are among the latest innovations. As part of the Hannover Fair, SafetyEYE was nominated for the Hermes Award, the richest interna-tional business and technology prize. These positive developments, together with a turnover of 134.27 million euros in 2006, are refl ected in the planned investments. This year they include an expansion of the company’s headquarters. “As a medium-sized, independent family business we manufacture at our German site despite, or

01

Avoiding risksFaster, more fl exible, safer — with this objec-tive in mind, the level of automation on plant and machinery continues to advance in every industry. This places new demands on production systems. Worldwide the name Pilz is synonymous with the safety of man, machine and the environment; as a complete supplier for control and safety technol-ogy, Pilz offers one-stop automation solutions for every industry.

ContactPilz GmbH & Co. KGFelix-Wankel-Straße 273760 Ostfi ldernTelefon: +49 711 3409-0 Telefax: +49 711 3409-133E-Mail: [email protected]: www.pilz.de


SECURITY AMBASSADOR PILZ


takes the experience and knowledge it has gained from safety technology and transfers it to the general control requirements of plant and machinery. The benefi ts for the customer: Tailored, one-stop automation solutions. The range of products includes electrical monitoring relays, systems for control technology, sensor technology and automation solutions with motion control. The range also includes a mushroom-type pushbutton, which can be used to stop ma-chinery in a fl ash and, in German, reminds you of the company name by its shape (Pilz = mushroom). Visualisation and diagnos-tic systems complete the range of business activities.

Greater Effi ciencyNot only do Pilz system solutions ensure greater safety for man and machine, they also provide greater economy because pro-duction cycles can be designed more effi -ciently and downtimes can be avoided.

Safety for man, machine and the envi-ronment — not only does the company wish to contribute through its products and solutions, it also wishes to act accord-ingly. The issue of environmental protec-tion is anchored in the corporate objectives: from the development of energy-saving products to the ecological design of build-ings through to environmentally-aware work practices. There are many examples: the switch from lead-based to lead-free sol-

der, the installation of a photovoltaic plant or the reduction of lamps used in manufac-turing — all these measures help to lighten the load on the environment.

“As ambassadors for safety our aim is to improve the safety of man and machine throughout the world” says Renate Pilz, summarising her company’s mission. “And that includes the environment in which we live and work.”

In addition to the company headquar-ters in Ostfi ldern, Pilz supports users with subsidiaries and branches in 24 countries, offering local sales and engineering serv-ices directly. Worldwide there are 1,200 employees sharing their knowledge in the service of safe automation, so that it can also become established in new markets. 8

04

even because of, our worldwide activities. Our products are of very high quality, so it is important to have production and de-velopment in one place” says Thomas Pilz, explaining the reasons behind the planned expansions in Ostfi ldern.

The company makes its many years of expertise available to its customers through a comprehensive range of services. “Safety is more than just a product” says Susanne Kunschert. “With safety consultancy and engineering we offer a comprehensive, com-petent service — from plant assessment to risk assessment, through to the safety de-sign and safety sign-off at the customer’s premises.” On request, at the early stages of planning a plant, Pilz can not only pro-vide advice on products but can also give detailed advice on safety matters, provid-ing support to customers as they confi gure, select and use their systems. This includes product training in the expanded, rede-signed training area in Ostfildern. Here users can refresh their knowledge of safe automation, based on the motto: “Practical knowledge for practical situations”.

Full of IdeasAt Pilz, products are developed jointly with customers or on behalf of custom-ers. “The most important task of our re-search and development department is to develop products that meet customer and market requirements. Customer proxim-ity and innovation belong together and are mutually dependent. That’s why we work closely with our customers, universi-ties and approvals bodies. So we are always able to bring innovations to the market and set new standards”, explains Hans-Axel Gielow. As a result of these innovations the company was selected in 2006 as one of the sites in the “Land of Ideas”, an initiative of the German government and the German Industry Association (BDI).

The company has followed a clear strat-egy to develop into a complete supplier with solutions for both safety and standard control technology. Pilz system solutions are used in all areas of mechanical engi-neering, as well as the automotive, food and woodworking industry. Products from the technology leader also guarantee that baggage handling systems run safely at air-ports, theatre scenery moves smoothly and funiculars or roller coasters travel safely.

The company’s product range dovetails control and safety technology to form intel-ligent, complete solutions. So the company

One example of the use of safe control technology. The Safari Express in Kitzbühel

All the strands come together at the head offi ce in Ostfi ldern

Management board from left to right: Hans-Axel Gielow, Susanne Kunschert, Renate Pilz and Thomas Pilz

The PNOZmulti from Pilz — The fi rst multifunctional safety system on which the functions are no longer implemented through the wiring but are simply confi gured on the PCC all Pilz GmbH

02 03


SECURITY AMBASSADOR PILZ

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GFT

Roots in the Black ForestGFT is an innovation driver in software and outsourcing

The cuckoo hears the global callIn 2007 GFT Technologies AG celebrated the 20 year anniversary of its estab-lishment. From a small software company with headquarters in St. Geor-gen in the Black Forest, it has developed into an internationally active group of companies with more than 1,200 staff in 20 loca-tions in nine countries.


C GFT

Numerous gifts turned up for the anni-versary and have piled up on Ulrich Dietz’s desk. Among them is one that possibly best symbolises the development of GFT: a digital cuckoo clock. Its roots lie in the Black Forest; the values which apply there are also still integrated into the company — diligence, reliability and down-to-earth-ness. Within 20 years it has developed into an international company, whose model for success has been its ongoing innovation in the IT sector.

In 1987 the trained mechanical engineer Ulrich Dietz, along with a partner, estab-lished GFT in St. Georgen. It was the era when the PC was not yet on desks as a mat-ter of course and the Internet as we know it today had only just been devised. Inno-vative software with easy-to-use graphic operator interfaces was the express goal of the emerging company. With the first GFT product, GRIT, which came onto the market in 1990, it was possible to develop these sorts of interfaces easily and without complications.

Involvement in the IT revolutionThe first major order came in 1993. GFT developed a production, planning and con-trol system for Deutsche Bundespost that was to be implemented in more than 60 letter sorting centres. Today, GFT operates internationally as an IT service provider at home and abroad, and has more than 1,200 staff in its group of companies. Operating internationally, yet with the advantages of being a medium-sized business, GFT can provide customer service. For 2007 chair-man Ulrich Dietz predicted a turnover in excess of 230 million Euros — the result of an ongoing and well thought through business strategy.

Today, IT solutions from GFT are used in more than 30 countries. The company has expanded directly into new markets: helping customers there and ensuring loca-tion advantages. Customers today benefit from the combination of an international production model, attractive prices, devel-opment locations and maximum customer service. Depending on your performance requirements you can be looked after on-site, nearshore or offshore.

The success of the company rests on three business portfolios; as a strategic IT partner GFT develops and carries out in-novative and individual solutions for inter-national customers in the services sector.

The main focus is on companies from the financial sector, as well as the post and lo-gistics sectors. GFT is familiar with these business processes and is able to implement its IT expertise so that it fits perfectly and is future-oriented.

Resource ManagementThe acute lack of specialist staff is provid-ing the top-selling business sector at GFT with dynamic growth. In the resourcing sector, IT specialists are placed in all types of companies. This ranges from individual experts, through to the take-over of com-plete IT supply chain management. GFT’s subsidiary company, emagine, is responsi-ble for the latter and is the German mar-ket leader in the third-party management sector. GFT has a new product in its soft-ware sector for the ever increasing flood of e-mails in companies. This does not just reduce amounts of data, it also relieves the burden on IT departments. In addition, le-gal guidelines are easier to comply with.

What makes GFT unique is the com-bination of these three ranges of services, since the company covers all the important stages of the supply chain in the IT service provider sector. In doing so, business mod-el, IT infrastructure and IT-based processes are continually matched to the conditions of global networking, international com-petition and the requirements of multina-tional customers.

IT Partner in Outsourcing ProcessesIn addition, there is also the future devel-opment of outsourcing projects. In contrast to common until this point, today cost is no longer the sole criterion for deciding to outsource business processes. Rather, companies often have completely differ-ent requirements and expectations. Some require services and software as fast as pos-sible, others want it to be as cost-efficient as possible. Both have particularly complex performance requirements and these have to be solved. It is not rare for such require-ments to change during the course of the project. ›

ContactGFT Technologies AGFilderhauptstraße 142 70599 StuttgartPhone: +49 711 [email protected]

local global GmbH��

Know-how for your international business ��

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BW_buecher _ magazine_69x280mm.indd 1 20.12.2007 11:26:59


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GFT

In response GFT has developed the Global Delivery Model. Depending on customer requirements the company assembles a suitable team of international staff. IT proc-esses critical for the business are targeted and relocated to different countries, so as to be independent of unstable political or economic determining factors in individual regions. As an outsourcing partner GFT ensures that the customer always receives the exact service that they require.

Sharing KnowledgeAs if that weren’t enough, every opportu-nity is used to obtain new impetus and be one step ahead of the competition by way of innovative IT solutions, by cooperating with universities for example. Just recent-ly employees in Stuttgart moved into the new Corporate Centre in Plieningen. In the prestigious building, knowledge and expe-rience are to be shared with international students from a management university. Intensive exchange between universities and companies is the basis for innovative potential in the transfer of technology. 8

At present a global “war for talents” exists. How can small and medium-sized enter-prises compete?

Qualified staff will always be in demand, but in future, things will get even worse. Large companies rely on future-oriented strategies and interesting project offers to be attractive for the job market. Small and medium-sized enterprises have to act in the same manner. Moreover, it is important to retain the best employees. In this case, small and medium-sized enterprises have the advantage of being flexible and able to care for the individual needs of its employ-ees in creating further incentives in addi-tion to the monetary remuneration. But we even profit from the lack of skilled employ-ees in our business segment “Resourcing”. We place workers in companies which re-quire IT experts. We have access to a large international pool of skilled employees. Of course, this enables us to compensate short-ages in our own projects.

Friends and family versus international capital market: How do you handle these two different worlds?

Both fields complement each other very well. As a company managed by the owner we emphasise sustainability and are in-terested in the long-term development of GFT. In contrast, being listed on the stock exchange forces us to fulfil the legal obli-gations of the capital market at the same time. As a consequence, the quarterly duty to report leads to transparent structures and more discipline. The board of management and analysts demand us to permanently review our strategy and to adjust it to the business environment.

What are the expectations towards a small and medium-sized partner?

It is important to offer our customers the demanded services wherever they do busi-ness — worldwide. Our customers can count on us as solid and experienced part-ner who offers individual solutions and per-fect services. GFT recently found itself in 57th place among the 100 best IT service companies in the financial sector. Moreo-ver, we were the sole German company in this international ranking.

Being superior to others. How does it work?

We continuously proved innovation over the years. It is one of our important tasks to maintain and to assist innovation in our company. It is necessary to strike a new path, to surprise and to inspire our custom-ers — no matter who the competitors are and where they come from.

So you are not really afraid of global com-petitors like India?

We will always have to face the challenge of global competition. GFT successfully concentrated on the financial services sec-tor and thus differs from international competitors. Our deep know-how in the banking and insurance sector enables us to expand our businesses to the interest-ing Indian market, for example. We offer international services and so we will surely profit from the present situation in India. The industry and the number of banks in India is steadily rising and thus resulting in a higher demand for our products and services. Many Indian companies concen-trate more on the world market than the domestic market because of higher interna-tional profit margins.

Is CeBIT a helpful platform to strengthen GFT´s international competitiveness?

2008 will see the CeBit in a new outfit. It is of great importance to Germany to or-ganise the world’s largest IT trade fair in the IT sector. Important decision makers in the IT sector gather here and will give valuable impulses for the location in the years to come. 8

Worldwide Serving the customer wherever he may be

Talking to the founderUlrich Dietz, founder and CEO of GFT Technologies, on the current challenges medium-sized IT compa-nies face.

INTERVIEW: Hans Gäng

C GFT

›


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USU

Knowledge BusinessUSU ensures transparent IT costs and optimised business processesUSU AG assists customers in the trans-parent management of their IT costs and in rendering company knowledge productive. The company offers strategies, products and services in the areas of Business Service Management and Business Solutions.

Business Service Management USU offers IT management since 1988. With Valuemation, the fourth product generation is now available. Central soft-ware components for IT asset management, IT finance management and service/change management ensure that companies always have an accurate overview of the economic use of their IT technology and can improve them constantly. The holistic approach also comprises the best practices tested in many projects, which orient themselves to the ITIL guidelines for qualified cost-efficient IT services.

As per a current study of the US American market research firm ECP, USU is one of the leading manufacturers worldwide in the CMDB / CMS area. The so-called Con-figuration Management Database (CMDB) is considered to be the central component for efficient IT Management. ECP ana-lysts evaluated the software manufacturers in respect to their array of products, their strategy and the functionality. “USU offers a mature, competitive IT asset- and serv-ice-management toolset for medium-size and large customers”, was the result of the research study.

Business SolutionsIn this segment, USU offers a wide range of so-called knowledge business solutions. As a solution provider, the Swabian company has for many years been putting together IT expertise and specialist competence to create complete customised solutions for companies operating in financial services, in the industrial sector and in public serv-ices. It offers solutions for the optimisa-tion of business processes, i.e. in the areas of product development or market intel-ligence. Furthermore, the focus has been placed on e-business solutions, for example for portals in the intranet or extranet or

Beyond pure technology In line with its central concept “Knowledge in-spired business” globally-active USU AG develops and markets solutions. These link knowledge and processes in companies, thus contributing to a sustained increase of value added. Customers of USU Software are leading companies like Allianz, AOK, Deutsche Post, Deutsche Telekom, Festo, Fraport, MAN, MTU, Poste Italiane, PWC, Stadt Stutt-gart, Swiss Re and Trumpf.

solutions for field staff. For the refinement of these core processes, USU provides the USU KnowledgeCenter. The product suite offers three standard solutions for a wide variety of challenges in information man-agement, from enterprise search, to docu-ment and knowledge management. USU KnowledgeMiner is a patented innovative system for a demand-oriented provision of information. The technology guarantees the context-related rapid access to heterogene-ous pieces of information. USU Knowl-edgeGuide is a browser-based application and displays dialogs in the form of dynamic decision trees. It supports in finding the fastest path to quality-assured answers or solutions. USU, the only provider of this technology, employs self-learning algo-rithms. USU KnowledgeBase is a docu-ment management system for the workflow controlled and quality-assured creation and maintenance of documents.

In this area longstanding customer re-lationships speak for themselves, e.g. with Bundeswehr, IBM, Infineon, OSRAM, Schenker, Alpine, BARMER, BASF, Bayer, Dresdner Bank, Festo, Novartis, RWE, Ro-che Diagnostics, Robert Bosch, Schering, voestalpine, Volkswagen et al. utilise knowl-edge management technologies by USU. 8

With the Valuemation product line, we bundle

all business, strategic and technical knowledge

about IT.”

“

ContactUSU AGSpitalhof, 71696 MöglingenPhone: +49 7141 4867 0www.usu.dePartner: Marc Kothé, [email protected]: Claudia Steinwand, [email protected] Relations: Falk Sorge, [email protected]

Bernhard Oberschmidt CEO, Spokesman for the Management

Board of USU Software AG and USU AG


How do you manage the new and further product development? How do you ensure the continuous high quality of your serv-ices?

Since its foundation more than 60 years ago our company has cooperated closely with leading physicians, university hospitals and research institutions. Due to these close relationships with the medical users, we receive many ideas which we can then de-velop further. It is our task to understand medical needs and to follow market trends in order to implement medical engineering solutions with our experts. By accompany-ing the entire product development proc-ess — from the initial idea to the finished product — Karl Storz is able to ensure quality along the entire value-added chain from development over manufacturing to sales and marketing. Karl Storz is an internationally successful company. How have you built up and organ-ised your global business?

Today, Karl Storz is a globally active fam-ily-owned company. In addition to our headquarters in Tuttlingen we have es-tablished seven international production facilities. It is important to note, that our global expansion was never driven by low cost arguments. Instead it was solely based

Understanding Medical Needs Sybill Storz explains success

Key to successKarl Storz has become one of the leading manufactur-ers of endoscopic instru-ments and devices. In 1996, Dr. h.c. mult. Sybill Storz took over the management of Karl Storz. She talks about the keys to success and the role of family-owned companies in a globalising world.

INTERVIEW Hans Gäng

on the fact that specialised know-how was available in a region — e.g. camera manu-facturing in the United States. Every location has its own core compe-tence. For this reason, our international locations also ensure the continued exist-ence of our headquarters in Germany. Due to international division of labour, we are able to offer a comprehensive and complete range of products for more than 14 fields in human medicine. Our 28 sales companies abroad, which today are located on all five continents, help us provide comprehensive advice and optimum service close to our customers.

Counterfeit products have become a serious problem for globally active companies. How do you deal with this new reality of globalisation?

As a leading company, we are unfortunate-ly affected by product piracy. Usually those counterfeits come from Asia, but our sector

also suffers from German counterfeiters. In future we will continue to take legal action against this anticompetitive behaviour. Counterfeit products do not only inflict economic losses, but also potentially en-danger the jobs of our employees.

How has Karl Storz diversified?

Our major business area is human medi-cine. In addition, we also serve the mar-kets for veterinary medicine and technical endoscopy (Industrial Group) with our endoscopic products. Those two small sup-plementary business units round off our range of products. Hence, we support in-house knowledge transfer between those three business units. The products and so-lutions are the same in all fields, but they are used for different applications — e.g. for minimal invasive removal of the human gall bladder, surgical procedures for the race horses or indeed technical inspections of aircraft engines. It is our strength to cus-tomise these endoscopic products.

How would you describe the outlook for human resources development in your company?

Lack of skilled employees is certainly an important issue also affecting our sector. In addition, the qualification of entrants and trainees is a relevant aspect. Our company wants to be an attractive partner to acquire employees, who want to be successful, too.

How do you see the future of family-owned companies in a globalised world?

Strong leadership by the owner family combined with a smart, intelligent task sharing and delegation is the basis for suc-cess. Unlike many companies listed on the stock exchange, family-owned companies are not dependent on the rapid develop-ment of the international capital markets. That is the reason why family-owned com-panies are able to plan in the long term and implement their business strategies in a sustainable manner. Our legal status as-sures long-term success because of the con-tinuous high quality of our services. 8

Due to the decades of specialisation of the Tuttlingen region on medical devices, we find many skilled workers such as surgical instrument makers.Dr. h.c. mult. Sybill Storz

“”

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KARL STORZ


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KARL STORZ

Established by Dr. med. h. c. Karl Storz in 1945, the Karl Storz company — manufac-turer of endoscopes and endoscopic instru-ments and units — celebrated its 60th an-niversary in 2005. During these more than 60 years of resounding market presence, the company has evolved into a manufac-turer known and appreciated worldwide for its quality and product innovations. From its headquarters in Tuttlingen (Germany), Karl Storz has developed from a two-man business into a globally operating company. Today it employs 3,800 people worldwide, with 1,800 people alone working at the company‘s headquarters and production facility in Tuttlingen. Seven other produc-tion sites (in Europe and the USA) and 28 sales and marketing subsidiaries are located worldwide.

Looking back at the early stages of the company, Dr. Karl Storz already showed — ahead of his times — the entrepreneur-

Pioneering SpiritKarl Storz: A leader in the world of endoscopy

Revolutionising diagnosticsModern endoscopy has revolutionised medical diagnostics and surgical techniques. The name Karl Storz has been closely linked with these developments.

ial instinct to set the correct future direc-tion of the company. The early and promis-ing focus on endoscopy by Karl Storz began at a time when endoscopy was still at a very early stage of development. As early as 1953, Dr. med. h. c. Karl Storz designed and built his first endoscope, at that time still with the conventional optical system,

and thus marked the beginning of endos-copy in his small business. What began in the fifties and sixties as new techniques for improving illumination and documenta-tion as well as creating previously unseen image quality, was pursued consistently in the 21st century.

Latest InnovationsCurrent product innovations include, for instance, the first fully digital camera plat-form Image1™ (2002), the Tricam® 3D imaging system (2003), bipolar resectos-copes for gynecology and urology (2004) and the transurethral operation simulator (2004).

Another key area of current develop-ment work is the complete OR solution

WIDE RANGE KARL STORZ PROVIDES SOLUTIONS IN THE FOLLOWING MEDICAL DISCIPLINES

The Karl Storz business strategy is based on long-term and sustainable planning and the maintenance of consistent high quality. To ensure optimal use of resources in the Karl Storz group, research is conducted at each production site. This enables the company to continu-ously provide physicians with product solutions in the following medical disciplines:

› Neuro-Endoscopy› Oral and Maxillofacial Surgery

› Ear, Nose and Throat› Plastic Surgery› Anesthesia and Emergency Medicine

› Cardiovascular Surgery› Thoracic Surgery› Gastroenterology› Laparoscopy› Gynecology› Urology› Proctology

› Arthroscopy and Sports Medicine

› Spine Surgery› Pediatrics› Telepresence› OR1™ — The integrated OR

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KARL STORZ

OR1™, a unique concept for the integra-tion of various techniques in the operating room. At the heart of the OR1™ concept is the direct central control of all surgical and peripheral devices via touch screen or speech control from within the sterile area. In this way, operating procedures are ac-celerated both before, during and after the intervention, and the risk of incorrect op-eration is reduced. An integrated digital recording system makes it easier to archive image, video and audio data from impor-tant operative procedures and results, both for patient documentation and scientific evaluations.

In 2007 Karl Storz is proud of present-ing over 30 innovations in various fields of endoscopy. Especially the company will benefit from the upcoming trade fairs, e.g. Arab Health 2008, to showcase these highlights to health professionals from all over the world. Such exhibitions are also an ideal opportunity to exchange views with medical experts in order to gain first-hand knowledge of customer needs and demands in the medical field. Already in advance Karl Storz has provided an unique insight into particularly interesting product high-lights. It is remarkable how Karl Storz continues to offer innovative products for various disciplines, never losing sight of the principle of modular systems.

New Simulation System for Ear SurgeryIn the Ear, Nose & Throat field, Karl Storz sets new standards with the latest simula-tion system for ear surgery. Developed in cooperation with the University of Leipzig and Innovationszentrum für Compute-rassistierte Chirurgie (ICCAS), this new simulation system represents an important component in the modern training of phy-sicians. The temporal bone model, made of mineral compounds, is connected to simulation software via an interface. This enables the exact evaluation of, for exam-ple, the duration of the (simulated) inter-vention as well as the amount and type of injured structures.

New Vision in MedicineThe most recent invention is the Image1™ HD (High Definition) camera platform (2006). HD technology, known from the consumer product sector, also promises to be a qualitative breakthrough in endo-

scopic video documentation. It was for this reason that Karl Storz developed a new video platform which allows the optimum use of HD technology: the new HD plat-form Image1™ hub. This offers the user ultimate image quality for the ultra-precise rendition even of the finest tissue and vas-cular structures with the highest physical image resolution specified for HD of 1920 x 1080 pixels, equal to five times the im-age information available from today’s PAL standard.

Restrictions LiftedUp to now the surgeon was forced to choose the telescope best suited for a spe-cific intervention, i.e. directions of angle 0°, 30° and 45°. However, the surgeon was then restricted to this particular angle of view or had to change telescopes dur-ing an operation to obtain another angle of view. Karl Storz now offers the solution: Endocameleon — the first and only laparo-scope worldwide with a variable direction of view. The new Endocameleon combines the customary and proven user comfort of the conventional 0° Hopkins® rod lens telescope with the features and benefits of a laparoscope with a variable direction of view. This new, innovative laparoscope enables the user to adjust the direction of view between 0° and 120° quickly and eas-

ily according to individual requirements. This dispenses with the need to exchange telescopes during a surgical intervention and provides the surgeon with an optimal visualisation of the operative field. The new Endocameleon also provides ideal visualisa-tion of regions previously inaccessible to conventional laparoscopes.

Continuing SuccessThe above mentioned product highlights clearly show that Karl Storz rises to the challenge of keeping up with current medi-cal developments.

The continuity of the family company underscores this innovative force: After the death of Dr. med. h. c. Karl Storz in 1996 Sybill Storz took over the management as chief executive of the Karl Storz group. Since then Dr. h. c. mult. Sybill Storz proceeds the leadership in research and development and continues a successfully marketing strategy throughout the world. Since 1996 over 100 new patents could be registered and global turnover increased approximately by 15-20 percent each year. The management of the family-owned company has set the course for the future. Dr. Sybill Storz’s son, Karl-Christian Storz, already bears the responsibility for various divisions since 1996 and is member of the board since 2005. 8

With OR1™ operating pro-cedures are accelerated and the risk of incorrect opera-tion is reducedC KARL STORZ

From its headquarters in Tuttlingen, Karl Storz has developed into a globally operating companyC KARL STORZ

Endocameleon — the first and only laparoscope worldwide with a variable direction of viewC KARL STORZ

02 03


Technical Help for Physical HealthMaquet creates innovative medical technology for clinical assistance and advanced physical health

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MAQUET

MAQUET, based in Rastatt, Germany, is a global market leader in Medical Systems focused on the Operating Room (OR) and Intensive Care Unit (ICU). MAQUET fo-cuses on clinical care providers and the im-pact of technology on the patient. Owned by the publicly-listed Swedish group of companies Getinge AB (10,100 employ-ees, 1,735 million euros turnover in 2006), MAQUET continues to distance itself from its competition with R&D that produces world-beating products in all three of its Business Divisions.

Foundation in the 19th CenturyMAQUET is possibly the oldest manufac-turer of healthcare equipment in Europe, having been founded in 1838 by Johann Friedrich Fischer in Heidelberg, Germany. The company first began to manufacture patient chairs and other healthcare equip-ment. In 1876 the company was taken over by Curt Maquet and, shortly afterwards, moved to its present site in Rastatt, Ger-many. After more than 100 years of con-sistent growth, the company was acquired by Getinge of Sweden in 2000 and, at the same time, founded its new Business Area of Medical Systems. The MAQUET brand forms the umbrella for a wide range of products designed for use in hospital workstations, emergency rooms, operat-ing theatres and intensive care units. The company currently operates in more than 30 countries, with facilities and sales offices supported by a further 200 distributors and partner companies throughout the world. Its manufacturing centres of excellence are located in Germany, France, Sweden, Tur-key and China.

MAQUET continues to lead the competi-tion by investing in research and develop-ment to provide long-lasting value and to define the best medical technology avail-able on the market. Today MAQUET em-ploys 3,000 people worldwide and posted a turnover of about 608.35 million euros in 2006. The company operates three sepa-rate Business Divisions: MAQUET Criti-cal Care, MAQUET Cardiopulmonary and MAQUET Surgical Workplaces.

MAQUET Critical CareIn medical ventilation systems, MAQUET is the clear market leader and, since its introduction of the world’s first SERVO ventilator in 1971, has become the world’s number one surgical ventilation brand. More than 100,000 critical care ventila-tion systems have been shipped since the business was started. Today, the MAQUET SERVO-i ventilation platform globally holds the top position and was originally the very first ventilator in the market de-signed to grow with the clinician’s con-stantly changing needs.

This unique design philosophy has enabled MAQUET to secure lasting val-ue from its considerable investments in SERVO ventilation systems development programmes such as NAVA (Neurally Ad-justed Ventilatory Assist). NAVA is a new approach to mechanical ventilation which allows the patient to control the ventila-tor with his/her respiratory center. NAVA represents a paradigm shift in the area of ventilation therapy.

The typical intensive care unit (ICU) needs to be prepared for any combination of patient and clinical care situations. The

ContactMAQUET GmbH & Co. KGKehler Straße 31,76437 Rastatt/GermanyPhone: +49 7222 932-0Fax: +49 7222 [email protected]

High technology for upgraded healthcareMAQUET manufactures medical technology for hospital workstations or emergency rooms such as products in ventilation therapy. The company´s aim is to facilitate the work of surgeons with modern equipment enabling the best medical attendance for patients.

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CLUSTERS & MORE

MAQUET

latest SERVO-i platform from MAQUET meets the demands of neonatal, paediat-rics, adults and all other patient categories. The equipment supports both invasive and non-invasive ventilation and combines the highest level of clinical performance with outstanding mobility and cost-efficiency.

Above all MAQUET FLOW-i, the new anaesthesia system which is under develop-ment, was recently presented to the public. MAQUET FLOW-i is a modular ergo-nomic system that combines advanced ICU ventilator performance with state-of-the-art anesthesia delivery.

MAQUET Cardiopulmonary MAQUET Cardiopulmonary produces heart-lung machines, oxygenators and con-sumables, as well as developing innovations for intra- and post-operative treatment in cardiac surgery. GETINGE, the parent company of MAQUET, has just signed a definitive agreement to acquire the Cardiac Surgery and Vascular Surgery divisions of the Boston Scientific Corporation in USA. With this acquisition, Getinge will estab-lish a basis for building a global market-leading business in the area of cardiac and vascular surgery in the coming years. The acquisition is conditional upon the approv-al of the competition authorities in USA, Germany and Poland.

MAQUET Surgical Workplaces MAQUET Surgical Workplaces concen-trates on the design of operating theatres with workflow-optimised infrastructures. It provides a wide range of procedure-ori-ented products to enhance workflows, in-cluding operating tables, operating lights, ceiling service units and video communica-tion systems.

Improving functionality and workflow efficiency is a prerequisite for the devel-opment of any MAQUET product. Prac-tice-oriented, forward looking products are the hallmark of efficient design, and MAQUET’s latest OR table system MAG-NUS offers an example that surpasses tradi-tional limitations in design and operation. Because of its perfect height adjustment,

the MAGNUS operating table surface helps surgeons to work in a relaxed posi-tion, whether they are standing or sitting. Sections that can be adjusted at extreme angles, especially for tipping and tilting, can be summed up in one sentence: “Grav-ity becomes the surgeon’s third hand”.

Ceiling service units are yet another area where MAQUET’s core-competences have made it a market leader. Nowadays operat-ing rooms must manage an ever-increasing number of items of equipment in an ever-decreasing amount of floor space.

Video imaging has become an indispen-sable tool in the operating theatre today, and MAQUET’s telemedicine system of suspended conduits enables safe insertion of cabling to convey any type of digital or analogue signal. In this way, the surgi-cal team can instantly access required in-formation for such items as patient data, scanner, IRM and radiology or video im-ages. The expectations for telemedicine are great. MAQUET has developed the

first video communications system specifi-cally designed for medical use. It transmits both images and sound live from the op-erating room to the PC. And it does so in top-flight digital audio and video quality. It can broadcast through the in-house IT network or to any location on the planet via internet.

Over a period of many years the com-pany’s commitment to technical innova-tion and clinical performance has enjoyed it a good reputation for setting ‘The Gold Standard’ in terms of quality and techno-logical progress.

Creating “The Gold Standard”The objective of being among the world’s leading providers of advanced technology means that MAQUET is committed to de-livering reliable, innovative, high-quality products and services. Constant investment in R&D for best patient care and treatment in the acute healthcare market is the de-clared goal of MAQUET. 8

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MAQUET’s education programmes for cliniciansC MAQUET

MAQUET is a subsidiary of the Swedish group GETINGE ABC MAQUET

Since its foundation in 1836, MAQUET has stood for technological progressC MAQUET


GLOBAL PLAYERS & LOCAL HEROES

ENDRESS+HAUSER

Unfolding CreativityKlaus Endress, CEO of Endress+Hauser, about the global innovation competition

With 182 patents applied for in 2007, Endress+Hauser celebrated a historical record in its company history. How do you support inventors in their capacity to be innovative?

Innovation has always been of prime im-portance for Endress+Hauser. At some point a legal dispute about patent rights in the USA made it clear to us that it is not enough to introduce innovations on the market but that we also need to protect our intellectual property. This is why, in 2000, we formed a division for the protection of our rights, Endress+Hauser PatServe, and we also started our Patent Rights Incen-tive Program. It encourages all employees — not just those working in Development — to report their inventions. Since then the figure for patents we applied for in one year has tripled. We organize every year an Innovators’ Meeting when over 200 inven-tors come together to exchange ideas and to celebrate. The event also provides the framework for the Patent Rights Incentive Awards that we confer for the patents that were economically most significant in the previous year. Yet it no doubt takes much more to maintain and reinforce innovative strength. Above all it takes a corporate cli-mate in which creativity can to unfold Our development staff enjoy much freedom and our open corporate culture certainly creates an environment that is conducive to invent-ing.

How do you protect your patents against misuse?

We cannot prevent plagiarism but we have the possibility to prosecute product piracy with all the legal means that are available. And we do take legal steps, in China, in Germany and in the USA. Over 3,900 alive patents and patent applications are the basis for it. Our team of thirteen patent attorneys and engineers at Endress+Hauser PatServe do valuable work in this respect.

What sort of competencies do your developers and sales engineers need?

Of course they need to possess a solid edu-cation and training, relevant basic abili-

Serving first

before earning

Endress+Hauser is as a leading supplier of industri-al measurement and auto-mation equipment, provid-ing services and solutions for industrial processes the world over. The company offers comprehensive process solutions for flow, level, pressure, liquid analyses, temperature, data acquisition and digital communications across a wide range of industries, optimizing processes in regards to economic efficiency, safety and envi-ronmental protection.

TEXT: Stefan Brunner

One important principle at Endress+Hauser is leadership

by setting good examplesC Endress+Hauser



ENDRESS+HAUSER

ties and skills. Yet the so-called soft skills are also becoming increasingly important — soft factors like team spirit, the ability to work in a team and the ability to communi-cate well. Look, nowadays almost all devel-opments occur as team work. And our sales engineers do have to have the ability to lis-ten. Only by listening are they in a position to find the best solution for a task, working together with the customer. And this is of-ten how new developments are set in mo-tion. Only when we achieve the right com-bination of soft and hard skills do we reach our top goal, that is to sustainably generate outstanding value for our customers.

One of Endress+Hauser’s guiding principles is ‘Serving First Before Earning’. How do you maintain these values and norms in an increasingly global organisation?

The credo of Endress+Hauser was written down quite some time ago, ten principles that guide us in our day-to-day work. The unspoken rules in our company, that is the values and principles that make up our company culture have by now also been for-mulated in ‘Spirit of Endress+Hauser’.

Yet, in order to be able to take our corpo-rate culture out into world we need to live it, day by day, and this ‘on the top’ as much as ‘at the bottom’. One important principle at Endress+Hauser is leadership by setting good examples. By selecting executive staff very carefully we try to implant our values in our organisation that is constantly devel-oping and growing. Our internal trainings for junior managers include modules on corporate culture and values. When we set up new assembly plants in Asia for exam-ple, employees get some training here with us in Europe. During the training they are not only taught about production processes and methods but we also pass on a lot about our culture, our principles and values. As the CEO of our Group I regularly write to all employees, and our new, group-wide in-house magazine helps us stabilize our cor-porate culture.

The lack of [qualified] labour, too low a figure of university graduates and the lack of

engineers are the biggest risk for economic development. Does your experience confirm this theory?

The growing lack of qualified labour, engi-neers and computer specialists is indeed a problem. At Endress+Hauser it often takes a long time until we can fill a vacancies. Looking towards China and India and at the number of engineers that universities are training over there, it becomes obvious that we just cannot afford any kind of even mild form of technophobia. We can partly satisfy demand through immigrants. But we have got to be careful not to lose the ba-sis for the prosperity we are living in — and this is formed by talented, well trained and commited human labour. Only then will we able to continue to further increase innova-tive strength and productivity, and only then will Europe survive as a location on the international marketplace. I am taking things one step further. We will also have to keep a highly qualified production here — because without production develop-ment will in the long run dry up. In order to reverse the trend it is important to make technology and technical jobs attractive for young people. We are, therefore, involved in projects in regional schools. As a group of companies we participate in the ‘Science

Production at the Maulburg (Germany) plantC Endress+Hauser

Endress+Hauser employs 3,600 people in the Franco-German-Swiss regionC Endress+Hauser

Assembly of flowmeters in Suzhou, ChinaC Endress+Hauser

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Looking towards China and India and at the number of engineers that universities are training over there, it becomes obvious that we just cannot afford any kind of even mild form of technophobia.”

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Days’ in Europapark Rust, the leisure and theme park near Freiburg. And we sup-port projects like ‘Sachen machen’, ‘Doing Things’, an initiative of the Verband Deut-scher Ingenieure (VDI), the Association of German Engineers, that targets university students.

In the Basel region Endress+Hauser em-ploys more than 4,000 people. The good economic situation in the border region makes it more and more difficult to find qualified employees. What paths do you follow when it comes to recruitment?

We are in a relatively good position. As an employer, Endress+Hauser enjoys an excel-lent reputation in our industry as well as in the region. Last year we created in the Ger-

man-French-Swiss border region over 300 new jobs. Our commitment has many dif-ferent facets, including professional train-ing as well as involvement at university level. A unique example is our course of studies with integrated professional train-ing: young people serve an apprenticeship while, sometimes at the same time, study-ing at a university of applied sciences. Al-most all our Production Centres cooperate closely with universities of applied sciences and universities. Paid internships and the possibility to write their theses in our com-pany is an early attraction for students and graduates. These are opportunities we like to make use of and we intend to expand them. Even if no employment results, peo-ple have good memories of Endress+Hauser,

Manufacturing of flowmeters in Reinach, SwitzerlandC Endress+Hauser

German, French and Swiss apprentices have the opportunity to do some of their training abroadC Endress+Hauser

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Germany and Switzerland have always had strong economic ties. Of course, there are times when things don’t run quite so smoothly.”

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they remember us the company where they first earned money. There are other new paths we walk on to recruit employees. Re-cently our heads of HR were present with a special offer of their own at the Hannover Messe VDI stand. Not long ago, we also at-tracted a great deal of attention with radio spots. We received a large number of unso-licited applications as a consequence, and in come cases employment contracts resulted. At any rate, the campaign substantially contributed to making Endress+Hauser a better-known company.

As a company that literally crosses borders, how do you evaluate the current economic relations between Germany and Switzerland?

On the whole relations are surely good. Germany and Switzerland have always had strong economic ties. Bilateral agreements with the EU have no doubt strengthened this connection. Of course, there are times when things don’t run quite so smoothly. Initially, intensified personal controls at the borders very much obstructed traffic. Our employees, we as a company but also many others were affected by it. The dis-pute about flights into Zurich Airport is doing damage to both sides. It is, therefore, in the interest of the Germans as well as of the Swiss to find solutions that are sensible and fair as well as realistic. 8


ENDRESS+HAUSER

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This land is our brand.

At a time when the global competition is getting harder and the

world is getting smaller, we in Baden-Württemberg are also thinking

about how we are viewed from outside and how we would like to be

seen by others. What could we do in order to become even better

known and more popular? What should we call ourselves: the land of

the car? We did invent the car. The top media location? With over 5,000

multimedia and software companies we are leading in Europe. The

country of the future? 22 % of our commercial activities are in the high

tech sectors. Or the land of youth? Every ifth resident of Baden-

Württemberg is under 20. And that is far from being the end of the list

of advantages of our state. Because in an economic sense, just about eve-

rything works. Therefore it is better that we do not highlight our special

strengths, but rather call ourselves simply: the land where business ideas

become reality. With this we also mean your ideas. Welcome to our land.

www.bw-invest.de, tel. +49 (0) 711-22 78 70

www.baden-wuerttemberg.de, tel. +49 (0) 711-12 30


LOBO ELECTRONIC

Light for PharaosLothar Bopp, CEO of Lobo electronic in Aalen, explains how his small firm has achieved an export quota of 80 per cent

Multimedia experiences

Lobo combines innovative technical solutions and out-standing creative services to world-class multimedia experiences. Today Lobo is the only full-range manu-facturer in the laser show industry realizing installa-tions and events in about 50 countries. Independent market analysts call Lobo the technological leader within its sector. With just about 30 employees the company realizes a turno-ver of eight million euros. 80 percent stem from busi-ness abroad.

Cross your heart: Did you even expect in your wildest dreams 25 years ago that your company Lobo would once become the market leader in the laser and multi-media sector?

No, certainly not. If you are starting from scratch the way I did, you have many other things on your mind. Still, I always had clear goals and ideas. I always wanted to offer Lobo customers the best quality on the market. Lobo has been following that path without compromise to this day, and it worked out for us.

Do you have a secret recipe for your success?

I’ve seen many companies fail in this mar-ket, even though they came up quickly rid-ing the first wave of success, but then either overextended themselves or disregarded their own principles. Lobo’s success is the result of many small steps taken with un-failing consistency. They led to healthy and stable growth. Of course, the personal com-mitment and expertise of our employees are a big part of our success. And we can’t forget our many clients who have been our loyal business partners, sometimes for dec-ades. Last, but not least, we needed a little bit of luck and the good instinct to offer the right products at the right time.

Without a doubt you have made many experiences. Were there moments in your career that were particularly impressive?

Lobo had the good fortune to be able to realize many exciting and very demand-

ing projects in different countries. Every project has its own charm and specific chal-lenges. Of course, it is an adrenaline rush to know that the opening ceremony of the Asian Games in Doha last December was watched live by 3.4 billion people who saw the result of our own work. Product pres-entations, such as the presentation of the GL class during Dieter Zetsche’s first pub-lic appearances as chief executive officer of DaimlerChrysler and Mercedes-Benz, are also very demanding and therefore rather interesting. But there is one thing that I remember as particularly touching. On the occasion of the 40th anniversary of the Ger-man Democratic Republic, we installed a big laser system at the ‘Palast der Repub-lik’ that was intended for a classical concert in honour of Mikhail Gorbatchev. Many demonstrators outside chanted ‘We are the people!’. After the show, Gorbatchev said the famous words ‘Life punishes those who lag behind.’ It is a unique experience to be so close to history in the making.

In your opinion, how has the market changed over the past 25 years?

In the beginning, we just had to be present with a convincing offer in order to be suc-cessful, but today’s market is much more complex. The laser as a medium isn’t as much of a novelty as it was when we started our business activities. You have to keep reinventing yourself and the medium it-self, seek new technological approaches and new aesthetic means of expression that will provide a real value to the client. The



LOBO ELECTRONIC

unchecked infringement craze — particu-larly in Asia — is another major challenge. Hardly a week goes by without some previ-ously unknown company using big parts of our Internet presence, demo videos or even our name for their own purposes. Unfor-tunately, we also have to deal with failed attempts to copy our technology and with bootleg copies of our shows distributed on the Internet.

Compared to the competition, Lobo is operating in the high-end price segment. Did you ever consider building up a low-cost line?

The flood of cheap products from Asia, es-pecially from China, is the latest proof that our chosen strategy of striving for the best is the right way to go. Of course it isn’t al-ways the cheapest option, but in the end it is the best value for money. Still, transpar-ent pricing is very important to us. If you compare our offers with established prod-ucts and services for the event industry, for example, you will be pleasantly surprised by our open and fair policy. But certainly there are always a few potential custom-ers who think that 3,000 euros will buy a ‘bombastic laser show’. But if you just con-sider a workman’s average hourly wages, then add transport, equipment depreciation and insurance, you will soon understand what you can really expect on that kind of budget. Not to mention the fact that you need to include an extra thousand for the safety check of the lasers by a state-certified inspector. 8

Multimedia orchestra: Mercedes GL-Presentation, DetroitC LOBO Laser- und

Multimediasysteme, Aalen

The new GL Class was presented with a 72 Watts Lobo laser systemC LOBO Laser- und


Video projections, dancers, pyro effects and the SUV itselfC LOBO Laser- und


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gloBal players, loCal heroes ravensBurger ag

Age-groups: From 1 to 99The logo of the company — a blue triangle — is famous among young-sters and adults in many countries on all continents. With a consolidated turnover of 286.3 million euros, Ravensburger AG is the German market leader for puzzles, crafts, and books for children as well as young people. Around 900 of the 1,490 employees work at the headquar-ters in Ravensburg. This year, the family-owned company celebrates its 125th anniversary. Reason enough to talk with its CEO Karsten Schmidt about the status quo of the company, the value of being rooted in Upper Swabia, and the future of Ravensburger in a more and more elec-tronic world.

intervieW: Andreas Breyer Playing the Way to Success“The alignment to future challenges follows the course of stability”

Mr. Schmidt, Ravensburger was founded 125 years ago in the city that gave the company its name. Since then, there were periods of success as well as stormy sea. Where does the company stand today?

ravensburger is in good condition: We had a steady growth in turnover over the last five years, and this with a reasonable profit. our equity ratio is above 50 percent again, and we don’t have outstanding debts. therefore, the total revenue as well as the financial side is more than satisfactory, and sustainable.

125 years in the business: Is there something like a formula for success?

to be honest: answering this question is not quite easy. We have to look at several factors here. What clearly helped us is the fact that we are a medium sized company that is still family-owned. that brings long-term orientation, countability and a good portion of idealism. this is being re-flected in the company principles, which are characterized by the owner family and have been guidelines as well as firm support and

orientation for the employees for many dec-ades now. For example, these company prin-ciples state that, besides economic interests, ravensburger also follows ideational goals. another aspect is our location. I believe that the spirit of upper Swabia, the spirit of the location of our headquarters here in the city of ravensburg, is being reflected in our brand and our products.

Then what is it, what makes this spirit? Is it the inventive capability? Or the reliability here in the region?

It is the reliability, yes, but also the elabo-rateness, the discipline, and not to forget the educativeness. our products not only intend to entertain, they also want to im-part a meaning: the sense of family, solidar-ity across generations, self-development — all this arises from this very region. I truly believe that, with the company situated in Berlin or Munich, we would have another spirit not only in the company itself, but also in its products and in the people who make them.

With a huge selection of puzzles, craft kits and excit-ing games for the whole family to play, Ravensburger has something for everyone!C Ravensburger AG

gloBal players, loCal heroes ravensBurger ag

the third aspect is the power of our brand — ravensburger — and the ability of our employees to invent new products that meet our positions, but also to produce these products. With around 85 percent in-house production this is also an important factor, as well as the ability to market and distribute the products. these are our key success factors.

Are there still chances of growth and development for Ravensburger in the future? If yes, do you see them rather in Germany or abroad?

yes, there are chances, and we are able to capitalize them. that can be seen in the de-velopment of our turnover. But it becomes more difficult since we operate in saturated or even slightly regressive markets, due to the demographic development particularly in Western Europe. Still, our focus remains in Europe: We are a medium-sized company and therefore we neither have the financial nor the management resources to embrace the whole world.

Where does this lead for Ravensburger? together with our employees, we achieved a sustainable stability over the last five years. In the coming five years, the major task will be to adjust our company to the future. herby, I separate two different fields: the first one are the traditional, haptic prod-ucts that can be touched. a major part of our products consists of paper and card-board which are effectively the carriers that transport our ideas and concepts. here, we have to open up a bit more to electronics, because electronics does not only happen in the digital world, but more and more also in traditional products. We have already made several strategic partnerships and re-spond actively to the new requirements in the market. Furthermore, we have estab-lished a process of innovation management, which will make us more independent from ideas that are presented to us by random and which will enable us to develop more ideas inhouse. Besides this haptic world, there is the digital world. Currently, we are choosing a consulting company which

will, along with our management, evaluate the possibilities if and how we can capital-ize our content and our brand in the digital world. this is not easy, since there are still only a few profitable business models. the major models are currently — besides trad-ing and auction platforms — models where downloads are offered or where communi-ties are built up with the purpose to sell the access to the community later. Both seems to be difficult, due to the very short life cy-cles. What’s ‘in’ today, can be out of date by tomorrow. 8

With the company situated in Berlin or Munich, we would have another spirit in the company, in its products and in the people who make them.Karsten Schmidt, CEO, Ravensburger AG

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East Wuerttemberg Competence Region –Surface Technology

The numerous research and transfer institutes, educational and training centres, associations and companies located in East Wuerttemberg, some of which operate and are known at international level, make it an important competence region in the field of surface technology.

The constant expansion of this technology cluster allows the region of East Wuerttemberg to offer investors an exceptional environment with compelling location advantages.

Find out more atwww.ostwuerttemberg.dewww.ostwuerttemberg.de/oberflaechentechnik

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Economic Development Agency for the Region of East Wuerttemberg

Universitätspark 173525 Schwäbisch Gmünd, GermanyTelephone +49 (0)7171 [email protected]

open labs

Education for Global BusinessWhere education meets business: The international conference EduBiz to be held at the foreign trade fair GlobalConnect will discuss how in-ternationally acting firms can “boost corporate brain.” The conference will bring together experts from the education policy, training and service providers as well as enterprises.

Edubiz at Global ConnectMesse Stuttgart27 November 2010www.global-connect.dewww.edubiz.eu

global Players,loCal Heroes

neWs & dates

Modernization of SoftwareAt the new trade fair IT & Business (6 - 8 October 2009, Stuttgart) the IT service provider accellere will present its latest, patent filed proc-esses. Dr. Andreas Kotulla, CEO and author of the book “Of Tigers and India”, will discuss collaboration with the Indian software industry and present his innovative ideas on ‘trouble shooting’ and restructuring of software.

IT & BusinessMesse Stuttgart, room C 4.1.27 October 2009 10.00 a.m. – 11.30 a.m.

BIOTECHNICA 2009 Europe’s leading gathering for the biotech industry, will be held from 6 - 8 October 2009 in Hanover, Germany. Baden-Württemberg will be present with a large joint booth and an event forum. C Messe Hannover

BIOTECHNICAHanover 6 – 8 October 2009www.biotechnica.de


Baden-Württemberg is a pillar for the global architecture of IBM research and development: Böblingen — a location works on the future of IT


gloBal players, loCal heroes think tank iBm

R&d for IBMIBM Deutschland Research & Development GmbH with headquarters in Böblingen is one of IBM’s most important centres for research and development worldwide. In Böblingen and Mainz some 2,200 computer specialists, electrical engineers and physicians co-operate on over 40 projects with over 60 IBM centres for research and development worldwide.

text: Hans Gäng

Woods, south of Stuttgart. Wide green expanses inviting one to go for long walks. People of almost all age brackets in casual office dress are grabbing some air. Bunches of people are discussing in the sunshine be-fore they return to the functional building at the end of their lunch break. the Böblin-gen lab’s orientation becomes obvious as soon as one enters the building. It is out-lined in the entrance hall which greets the visitor with a classical hall of fame, a long row of patents developed in Böblingen and filed for IBm worldwide.

“Böblingen has always spearheaded the progress of IBm,” reports Erich Baier who has been at the helm of the centre since 2008. In 1953 IBm invested in its presence in an incredibly dynamic emerging market: post-war germany. Hardware was mainly the business which turned Big Blue into the sector’s principal player. Engineering from germany had its part in this, too.

Baden-Württemberg is a pillar for the global architecture of IBM research and development: Böblingen — a location works on the future of IT

Baier joined the company in 1978 as a de-veloper. During the 16 years that followed the Swabian saw a great deal of the big, wide world of IBm. It is for a reason that he is much in demand when it comes to giving his testimonial on the future of It in germany. “We truly do not need to hide behind tech locations such as Silicon valley. Perhaps we germans feel that we are not ca-pable of excellence, or maybe we are selling ourselves short.” In Böblingen the company shows that it has confidence in its german location. Baier confirms: “We have highly qualified and trained staff here, people who think in an interdisciplinary manner within a global network and who are incredibly productive. On top of that we have a first-class network in which universities and in-dustry co-operate.”

this helps Baier to navigate in the worldwide sea of IBm locations, to suc-cessfully compete and share tasks, steering

towards projects that have a future. He ex-plains, “you know, at IBm we don’t inherit rights or job assignments. Quality, experi-ence, new ideas, reliability — as well as the ability to collaborate within the global IBm network — these are the assets in Böblin-gen.”

The Keyword is “Future”During our discussion Baier and his patient press officer kiess are tossing around top-ics which are currently in the front line of product development in Böblingen. they include WebSphere, lotus, Information management und tivoli, the so-called middleware that assists companies in ex-changing data and It infrastructures and in optimizing computer centres. With virtu-alisation and automation technologies, the Böblingen team already has an eye on the next generation of data processing center. Dynamic Infrastructure. ›



Cloud Computing is another magic word likely to secure Böblingen’s role and fu-ture: it allows companies and consumers to access the nets and extract just the in-formation they require, without having to look into the hardware or the underlying technology. SOa, Service Oriented archi-tecture, helps to use software components flexibly, and it reduces costs, too. Web por-tal technologies, Web 2.0 technologies, mashups — new media contents taken from existing contents — all these aids accelerate the exchange of user knowledge in compa-nies. Böblingen also develops solutions for customers on the basis of radio Frequency Identification technology (rFID).

Hardware: Still an Issuereal time integration of data flow inside companies is another area Böblingen spe-cializes in. “Here we have quite a big ad-vantage,” says Baier. “From a global view-point Böblingen is located right next to Walldorf.” IBm closely co-operates with SaP, the global market leader for business software. IBm platforms for servers, storage and data platforms as well as IBm middle-ware are being adapted to SaP products. IBm wants to offer its business customers a seamless It service, with a spectrum rang-ing from main frame computers to “eve-ryday” SaP business programmes. main frame technology, the knowledge that once turned IBm into the Big Blue and which

also made the Böblingen location big in the 60s and 70s, has a future in Böblingen, too. the german developers are one of the teams leading globally the way in the devel-opment of main frame computers. Experts in Böblingen develop, among other things, the system design for the IBm System z mainframes. they are based on the S/390, the titans of the It world. “to date this is still the most reliable and safe architecture for mainframe computers.” It keeps being in demand — for business critical transac-tions of data, virtualisation technologies and to administer companies’ mainframes.

Hardware, too, is still understood in Böblingen. microprocessors are being de-signed according to customers’ individual requirements in an aSIC (application Specific Integrated Circuit) Design Cen-tre. Collaboration with Sony and toshiba extends on Cell/B.E — a processor for the Sony Playstation3. the processor has been optimized for highly complex graphics as well as for computation-intensive scientific applications. the fastest supercomputer worldwide, in los alamos, has in it a cell clone from Böblingen, a fact which fills Baier with great pride.

thanks to the close co-operation with European universities, the Böblingen team has been able to come up with a number of innovations over the past few years. One example is a novel supercomputer on cell basis, designed for research in quantum

physics, the team is currently working on it together with german and Italian uni-versities as well with research centres. Open Source is at home in Böblingen. Erich Baier recalls the beginnings of the open software development concept when the idea was paramount to a revolution in IBm think-ing. today that resistance has transmuted into market leadership, which in itself has changed the course IBm has taken.

Exchange with the Communityas one of IBm’s six linux integration centres worldwide it offers technical support for cus-tomers and business partners. With a team of over eighty experts Böblingen has the global responsibility for the free operating system linux Systems management on all IBm platforms. Böblingen is quite open in this respect — for an exchange with the open source community. the work that has been done on linux ker-nel, the core of the operating system, is avail-able free of charge. the IBm team are at the leading edge with their contributions to open source projects, standardisation and in technical committees.

So direct communication and collabora-tion is gaining increasingly in importance. Over are the days when at IBm products were first developed to be then presented to the customer. today communication is de-cisive for development. and in Böblingen this means being in touch with a global cli-entele. the technical Competence Centre Europe (tmCC) links customers, sales and development teams.

lab Services have developed into a new sector: consultations and installation of trendsetting software technology — before this is available on the market. Companies willing to be pioneers benefit from inno-vations made in Böblingen at a very early stage. Speed counts and pays off — for both sides. For IBm this kind of co-operation is also a cornerstone for making our planet smarter. Collaboration is needed to face global challenges and to accelerate research and development. this is the reason why Böblingen does not only look but really is a campus where the future is learned. 8

Hall of Fame: Contributions of Böblingen for IBM’s worldwide patentsC IBM

Böblingen Lab: A green campus for 2.000 developersC IBM

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think tank Baden-WürttembergMartin Jetter, 49, is General Manager of IBM Germany with its 21,000 employees. IBM is currently moving its headquarters in Baden-Württemberg — from Stuttgart-Vaihingen to Ehningen.

intervieW: Hans Gäng

Mr Jetter, the crisis is in full swing, yet the IBM Deutschland still delivered record figures for 2008. What is the secret of your success? Is the success story going to continue?the economic situation is tense, worldwide. Nontheless, our results for 2008 did show that we are very well-positioned, even in difficult times. I would not want to speak of a “secret” for success though. IBm respond-ed to the challenges of a globalized world at an early stage. value creation, cooperation as well as innovation, on a global scale, are the decisive criteria. In addition, we have consistently shifted the emphasis of our business towards software and services, giv-ing up areas that were less profitable. the first quarter results are telling us to main-tain this course. We, therefore, continue to be optimistic for the whole year. For many of your industrial clients the current situation is about securing their future. What is the approach of IBM Germany for 2009, how do you tailor IBM solutions to your customers’ requirements?

“We Need Fresh Ideas”Martin Jetter, head of IBM Deutschland, demands investment in brains, not in bricks

IBm is the largest provider of informa-tion technology worldwide. We are able to give competent advice, provide hard and software solutions, we work as a network of partners and offer finance, too. We can, therefore, offer fast and flexible support for our customers with their current require-ments, whatever sector they are in. Part of this is the integration of innovative tech-nologies and services in existing infrastruc-tures as well as tailor-made solutions which allow a fast return on investment and, con-sequently, a competitive advantage.

Germany’s companies are innovative and competitive, but can they, despite the crisis, defy new competitors from India and China?

In germany we have to concentrate on our strengths. and these are mainly our intel-lectual strengths. “made in germany” will be more and more replaced by “Created in germany”. as far as price is concerned, we will surely not be able to compete with countries like China and India. However, germany has an enormous wealth of first-class know-how and, hence, much innova-tive potential, for example in the software business. and we have to make use of this intellectual capital if we want to continue to secure competitive advantages in germany.

Which trends of the flat world will do you think survive the crisis? Collaboration, linking dispersed global resources — what opportunities do these represent for companies?

globalisation is most unlikely to stop or even reverse the crisis. the world continues to grow together and this changes the way

we are working. We need to act even faster and the way we work has to be even more intelligent, these are going to be the basic requirements for doing successful busi-ness in the future. Innovations such serv-ice-oriented architecture and Web 2.0 are bringing business and It together and are blurring distinctions between companies, business partners and customers. accord-ingly, companies who are flexible will make use of opportunities to wrest market shares from their competitors bit by bit.

How did your Smarter Planet Campaign originate and what is it about?

Smarter Planet vision is, for example, about the infrastructures of our cities, about the supply of energy and the health care system. Inefficiency and lack of transparency in the ›

Made in Germany’ will be more and more replaced by ‘Created in Germany.’C IBM

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Paving a growth path: An alley for “Big Blue” in Ehningen’s greenC Ehningen

Ready to move: New Ehningen headquarters waiting for IBMC IBM

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systems can have serious consequences, the crisis of the global financial markets has shown this. the processes that are driving development today have to become smarter and more efficient, e.g. we need traffic guid-ance systems that help avoid the daily chaos in our city centres. We need a health system in which doctors, health insurance compa-nies and hospitals are linked up as part of a network instead of them acting all on their own. this is the only way the economy will be able to overcome the doldrums while, at the same time, working in an ecologically sound, sustainable manner. Here technol-ogy will play a decisive role, and IBm is going to make its contribution to realize a smarter planet.

You have called for more ideas in the economic policy: invest in brains, not in bricks. What does this mean, politically and for Germany?

I have already mentioned just now the mark of quality “Created in germany”. If we want to keep supplying what it takes to be an innovation leader, we need highly quali-fied staff with fresh ideas and new ways of thinking. Here in germany we have an immense intellectual capital. Still, many knowledge intensive sectors are going to experience a shortage of well-qualified staff. I would, therefore, want to see the german government focussing the means they are making available, through their economic

stimulus plans, on promising technologies as well as on improving offers in the educa-tion sector. this will enable us as a location to remain competitive on the global mar-kets in the long term.

IBM Germany sets the rhythm when it comes to securing knowledge intensive jobs. What part do research and development in Germany and the Böblingen lab play for IBM as a global player?

Jobs that require highly trained staff are the future of a location such as germany, no matter whether they are the in biotech, pharmaceutical or in the It and communi-

cations sectors. Our german research and development centre is a good example. It is one of the largest think tanks of its kind worldwide with 2,000 high tech jobs in Baden-Württemberg and another 200 workplaces at other german locations. On top of that our experts are responsible for several thousand jobs in the U.S., India and in other countries. all in all there are over 70 hard and software projects that are all firmly rooted in the IBm strategy. this sort of global responsibility and cooperation is a key to growth and prosperity in germany.

In autumn, IBM is going to move to new headquarters in Ehningen. Can one see this as a sign of your long-term commitment to the location Baden-Württemberg?

the move to our new headquarters is indeed under way and is scheduled to be completed in autumn. as you can imagine, such a move is a big effort from a logistics point of view. It is not something you would do just like that every few years. Baden-Württemberg is one of germany’s centres of technology. there are qualified people who have had excellent training, and there is a first-class network of links between universities and representatives of the economy. We are very much looking forward to many successful years in the new Ehningen head offices. 8

Technology will play a decisive role, and IBM is going

to make its contribution to realize a smarter planet.

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Pfullingen

Eningen u. A.

WannweilTübingen

B27

A81

A8

A8

MUNICH

Walddorfhäslach

Pliezhausen

RiederichGrafenberg

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Hülben

Römerstein

MünsingenEngstingen

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Bodelshausen

DußlingenStarzach

Haigerloch

Balingen

Schömberg Hausen a. T.Albstadt

ZURICH

Hechingen

Reutlingen administrative district

Zollernalb administrative district

Ammerbuch

Metzingen

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A81

ICE

ICE

STUTTGART

B27

Geislingen

Rottenburg

B27

B463

B463

Kusterdingen

B28

B28

FLUGHAFEN STUTTGART

MESSE STUTTGART

What’s the future worth if you don’t invest in it?

You can learn all about this and much more about the innovative region here: www.neckaralb.de, www.tourismus-schwaebische-alb.de and www.kinderbetreuung-neckaralb.de.

Neckar-Alb – an intelligent place to live and work.

Neckar-Alb is a region where visions turn into success, for this business location has so much future without the typical problems of major conurbations. Apart from that, the administrative districts of Tübingen, Reutlingen and Zollernalb are also so easily accessible. The A8 and A81 and well-constructed dual carriageways get you to us in a straight line. The Stuttgart international airport is as much on our doorstep as is the “Key to markets” – the new “Messe Stuttgart” trade fair centre. And that is to say nothing of our higher education and research facilities of international reputation and standing, favourably priced building land, a highly qualifi ed workforce and our unashamedly high quality of life.

AZ_Verortung_210x280_engl.indd 1 04.09.2009 15:44:06 Uhr

30 Busin ess Baden-W ürt t emBer g

New Markets Filtration specialists Mann+Hummel are developing membrane filters for water treatment at their Ludwigsburg headquarters. As part of its growth and diversifica-tion strategy, the Group is extending its business activities and setting up a second development team in Singapore.

Daimler and Bosch Join ForcesDaimler AG and Robert Bosch GmbH plan to expand their long-standing partnership and cooperate in the development and production of elec-tric motors for all-electric vehicles in Europe. The companies have signed a letter of intent and begun negotia-tions to establish a 50:50 joint venture that should be concluded in the first half of 2011.Both companies aim to accelerate development advances in electric motors as well as to make accord-ant synergies accessible. Joint production should start in 2012. It is envisioned that the electric motors developed will be used in Mercedes-Benz and smart electric vehicles from 2012. Subsequent sales to other au-tomakers are to be handled by Bosch. The joint activites will be located in the greater Stuttgart area and in Hildesheim.

www.bosch.com, www.daimler.com

First Female LeaderIBM has appointed Martina Koederitz as CEO of its German subsidiary IBM Deutschland GmbH effective from 4 May 2011. Koederitz, 47, was re-sponsible for the business with small and medium-sized enterprises (SMEs) and with partners of IBM Deutschland and is now chief of the sales depart-ment of the company. Koederitz will replace current CEO Martin Jetter who will become the new strategy chief at IBM headquarters in the US state of New York. Jetter, 51, will also join the supervisory board of IBM Deutschland.

www.ibm.com/de/de/

Glob al Play er s,loCal H er oesn eW s & dat es


Clear WaterDiversification of an automotive supplier

At its Ludwigsburg headquarters, filtra-tion specialists Mann+hummel develop membrane filter elements for the effec-tive and cost-effective treatment of water. Membranes represent the heart of water treatment systems. Membrane technology uses a mechanical separation procedure to carry out filtering, consumes less energy than traditional thermal systems, gives a better filter performance and takes up less space. hollow plastic fibres made by Mann+hummel remove more than 99.999 percent of bacteria thanks to highly devel-oped membrane technology, and deliver a consistent water quality. Membranes de-veloped in the future will provide effective resistance against germs and viruses.

Further Applicationsthe Water division is headquartered in Sin-gapore. It is here that the Group is setting up a second research laboratory, enabling their membrane experts to support pro-duction and sales on-site. this will include further development of current ultrafiltra-tion membranes for decentralised sewage treatment plants, development of nanofil-tration membranes and the corresponding modules, for example for drinking water applications, and further development of current systems into highly modular units to which — similar to a modular assembly system — pre- and post-treatment units for example for the chlorination of water can be connected easily for longer preservation.

One task for both development divi-sions — advanced development in ludwigs-

burg and application development in Sin-gapore — will be to open up further fields of application for membrane technology for Mann+hummel. the teams will look into automotive and non-automotive applica-tions and benefit from the plastics-process-ing know-how built up over the decades.

Mann+hummel entered the water fil-tration market in 2009 and took over of Singapore membrane specialists ultra-Flo Pte. ltd. in 2010. As a result, the company expanded its technology base and product portfolio and used reference products to pave the way towards accelerated market penetration. “the expansion of interlinked development capacity in Singapore/lud-wigsburg is another important step for our growth and diversification strategy,” says Manfred Wolf, President and General Man-ager Automotive + Industrial Business. “We want to further growth at all levels within the group and realize a disproportionate ex-pansion of the non-automotive sector. the filtration market has a worldwide volume of around 40 billion euros, of which auto-motive and automotive-related applications account for only approximately 23 percent. Machine and power plant construction ac-count for around nine percent. Water treat-ment amounts to almost a quarter of the total volume, with this showing a strong upward trend. We want to make the most of this potential and explore new fields of application as well.” the percentage of sales for the non-automotive business is expected to grow more than the equivalent figure for the automotive business, which is currently

C IBM

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C Mann+Hummel

ABOUT MANN+HuMMEL

The Mann+Hummel Group is a development partner and original equipment supplier to the international automotive and mechani-cal engineering industries. Employing 11,800 people at 41 locations world-wide, the company achieved turnover of 1.67 billion Euros in 2009. The Group’s

product portfolio includes air filter systems, intake manifold systems, liquid filter systems, cabin filters and cylinder head covers made of plastic with many integrated functions for the automotive industry, as well as filter elements for vehicle servicing and repair. For general engineering,

process engineering and industrial manufacturing sectors the company’s prod-uct range includes industrial filters, a series of products to reduce carbon emission levels in diesel engines, membrane filters for water filtration and water systems.



at around 90 percent. “In the medium term, the automotive series production, the auto-motive aftermarket and the non-automotive sectors are each set to account for a third of our turnover.”

“Increasing industrialisation and a growing population in Asia are leading to a constant increase in water consumption and water pollution,” says ulrich Winter, Man-aging Director of Mann+hummel Singa-pore. “One of the many advantages with our systems is their very straightforward opera-tion. Well-trained specialist personnel are few and far between in many parts of Asia, but these are also unnecessary for operation of our systems. After Southeast Asia, we are targeting the NAFtA region and Europe as markets for our water filtration systems. More stringent legal requirements, a gen-eral shortage of water and even the need to increase product quality, in industries such as pharmaceuticals, medicine or electronics, all lead to an enormous demand for reliable and cost-efficient water treatment.”

Examples of customer groups pur-chasing Mann+hummel water filtration systems include local authorities, the oil and gas industry, electric power plants, the food industry, the construction indus-try, the mining industry and many more besides. Mann+hummel also supplies products suitable for use in disaster zones. Mann+hummel Singapore donated these water treatment systems. 8

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Did you imagine back in 2009 that Mann+Hummel would emerge so quickly from the crisis? How resilient do you believe current market trends are, what objectives do Mann+Hummel have for 2011?

the rapid economic upturn surprised eve-rybody. Who would have thought that the automotive sector would make the transi-tion from short-time working to full em-ployment and then straightway to overtime working so seamlessly? In 2010 we gener-ated record sales of more than 2 billion Eu-ros. In 2011 we are continuing where we left off, even though the trend will not be quite as dynamic as last year. We want to grow further. Our objective is to double our 2009 sales figure to around 3.4 billion Eu-ros by 2018.

What role does Asia play in the group’s progress? Will China and India continue to drive Mann+Hummel’s growth in the future?

More than a third of the world’s population live in China and India — we regard Asia as a key growth market! Indeed both in the vehicle business and in non-automotive

Rapid upturn Manfred Wolf on Mann+Hummel’s world wide ambitions

filtration segments. Of course we want to grow in all markets and business segments, and disproportionately more so in Asia. Our intention is that Asia accounts for some 25 percent of sales; that figure is currently be-low 20 percent. the prerequisites and op-portunities already exist. vehicle frequency in Asia is to some extent below ten cars per 1000 inhabitants. In Western industrialised countries frequency is 400 to 600 vehicles, depending on which markets you look at. In China and India in particular the gov-ernments are supporting economic growth by investing billions of dollars in major infrastructure projects. these countries are building roads, airports, ports and much more. therefore the market potential for our filtration solutions is correspondingly high. We have located one of our portfolio’s relatively new business units, water filtra-tion, in Asia, in Singapore. And for good reason. the growing world population combined with increasing industrialisation means that water treatment and water re-cycling are now key issues. We are observ-ing both these megatrends in Asia. Other

An eye on new applications for the industry C Mann+Hummel

Mann+Hummel filtering laboratories in Ludwigsburg C Mann+Hummel

The long lines of the walter filtering elements C Mann+Hummel

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One third of sales from the vehicle manufacturers, one third in the vehicle spare parts market and one third outside the automotive industry.Manfred Wolf, CEO Mann+Hummel

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For further informationwww.mann-hummel.com/water

growth markets include Eastern Europe, NAFtA and Brazil.

What role does local content play in Mann+Hummel’s global operations — and what status do your facilities in Baden- Württemberg have within your global manufacturing network?

Our customers operate worldwide and expect the same from their partners. Mann+hummel first ventured abroad at the end of the 1950s, and to this day we have always maintained a presence in the same markets as our customers. this customer focus has proved to be a major advantage. We have the internal corporate infrastruc-ture and above all qualified human re-sources to enable us to execute international customer projects at an international level. there are very few filtration specialists that have this capability. It is a major benefit to our customers that we are able to perform localisation work directly on site and manu-facture locally. And one more key factor must be taken into account. If you consider our high-volume air filters or our air in-take systems — it soon becomes clear that it makes little business sense to transport these products over long distances for any length of time. Decentralised manufactur-ing is a must, given our size and portfolio. Our head office in ludwigsburg functions as the primary factory for certain defined products, processes and procedures.

How do Mann+Hummel recruit and retain the specialists and executives required in those growth markets, where sustained rates of growth have intensified the “battle to attract talented people”?

We establish contact with potential em-ployees at a whole range of different levels and invest resources to try to get children and teenagers — and especially girls — in-terested in technology. For example we col-laborate with schools on a number of teach-ing and mentoring projects, for instance the virtual enterprise, New Dimension Mann+hummel Gmbh, staffed by pupils at ludwigsburg’s Erich Bracher School. We are involved with the “Jugendbegleiter”, a

project that is also supported by the Fed-eral State of Baden-Württemberg. We provide apprenticeships for students at the Baden-Württemberg Cooperative State university and collaborate with other uni-versities, either in the form of lectures or student projects, such as Formula Student. One example at an international level is our collaboration with tongji university in Shanghai. Exciting challenges ranging from engine sound design via building prototypes and addressing issues of ther-modynamics through to the fields of bion-ics and biomaterials, internationality and a group-wide management development programme are standard features that our employees take for granted. Yet we offer them so much more — we really encourage our people to work abroad and this provides us with a major benefit. We give qualified employees responsibility and the scope to be creative and of course expect them to meet our standards. We are large enough to enable our employees to pursue careers at home and abroad. And we are small enough to enable employees to make the content of their specific jobs exceptionally diverse, be proactive and apply their own ideas, there-by enhancing their career experience.

How much importance do you attach to diversification into new segments, such as environmental engineering and water technology? What proportion of group sales and profits do you wish to achieve in non-automotive segments in the medium term?

We currently generate 85 to 90 percent of sales in the automotive sector. the global filtration market is worth around 40 billion Euros per annum. the automotive sector accounts for around a quarter of this figure. Water filtration/treatment accounts for al-most a further 25 percent. Other filtration markets also include the packaging, elec-tronics, pharmaceutical and food industries. We investigate which segments are worth-while entering. Our objective is to grow in all the segments we operate in. We are aiming for disproportionately high growth in non-automotive segments. the intention by 2018 is to generate around one third of

sales from the vehicle manufacturers, one third in the vehicle spare parts market and one third outside the automotive industry, for example in water treatment and other industrial applications.

What synergies with conventional industrial business do you hope to achieve in this segment?

We are au fait with doing business with in-dustrial customers, whose requirements are quite different to those of automotive cus-tomers. they have other customization re-quirements, different batch sizes and there-fore different production requirements, and we, as suppliers, require completely differ-ent sales structures and logistics systems to cater for such customers. Mann+hummel are very much aware of this and have the facilities in place. We have been a success-ful market player for 70 years. Other tech-nical advantages that we have include our specialist filter know-how and our synthetic materials handling skills. We have been processing high-tech plastics for more than 20 years, and water filtration membranes are also made of high-tech plastics. 8

C Mann+Hummel


gloBal play er, loCal H er oes

mBt eCH

global Expertise in Automotive SolutionsMBtech’s engineers always think outside the box: the company has achieved a leading position in the worldwide automotive market

Beyond the daimler groupKnowledge pays off. The global and technological transformations in the automobile industry de-mand know-how and new solutions. MBtech provides both on a worldwide-basis. Successfully and for numerous customers beyond the Daimler Group. The Presidents, Werner Kropsbauer and Hartmut Tresp, in an interview about the perspectives for automotive expertise.

The center of the MBtech Group Gmbh & Co. KGaA is located in and around Sin-delfingen, there are another ten branches throughout Germany. Despite the local association, the MBtech Group regards itself as a global player. the company has achieved a leading position as a successful engineering and consulting service provider in the worldwide automotive market. In the year 2010 the MBtech Group employed approximately 2,600 people worldwide at locations in Europe, North America and Asia and generated a turnover of 300 mil-lion euros — a growth of 25 percent in comparison to the previous year. MBtech’s

MBtech belongs to the Daimler Group. Who are the external customers for whom MBtech, as a group subsidiary, provide know how?

We support our customers, namely compa-nies from the international automotive in-dustry, with the unique combination of de-velopment and consulting know-how — in the product development process and also throughout the entire product life cycle.

Our customers are first and foremost automotive OEMs in Germany and Europe and also in the uSA and Asia. Some of our customers are cooperation partners with Daimler and other OEMs.

Which active role does MBtech play in electromobility and new drive systems? Do you — as with almost the entire vehicle industry — have to reposition yourself?

We repositioned ourselves three years ago. Since then we have successfully established and constantly continued to develop our competencies in the field of e-mobility in all of our segments. We have more than 650 employees working in the electrical and electronics fields and more than 100 employees active in e-mobility. As such we provide our customers with highly suc-cessful support when implementing the broadest range of alternative drive systems projects.

the increasing amount of electron-ics and the increasing electrification of the powertrain are also presenting OEMs with new challenges with regard to the EMC validation. Our third EMC testing center, the new EMC hall in Mönsheim — one of the most advanced testing facilities in the

“New challenges” MBtech Provides Support For E-Mobility

engineers always think outside the box: the development and consulting services are closely interlinked along the entire automo-tive value chain.

the MBtech brand combines all of its products and services into four segments: MBtech vehicle engineering, MBtech pow-ertrain solutions, MBtech electronics solu-tions and MBtech consulting. regardless of whether components, systems or mod-ules, whether new development or produc-tion planning, vehicle integration, design or testing: MBtech supports automobile manufacturers and suppliers beginning with the detailed specification onward to

Presidents MBtech Group: Hartmut Tresp and Werner KropsbauerC MBtech


gloBal play er, loCal H er oes

mBt eCH

world — enables us to fulfill all of the re-quirements for testing the electromagnetic compatibility of current and future vehicle generations.

As a global player you are active on the world markets. Where do you see focal areas for growth?

We see ourselves as a top service provider for the international automotive industry. Our consistent customer orientation has enabled us to earn a leading position in the market, which we now aim to expand.For MBtech dynamic and customer-orient-ed growth and worldwide expansion are important. As such, we aim to continue ad-

vancing into related fields outside the auto-motive industry. At the same time, MBtech is also advancing innovations along the path toward emission-free mobility.

the classic BrIC states, Brazil, russia, India and China are also a powerful force of growth in the automotive branch and are thus extremely important for us.

What role do the locations in Baden-Württemberg play in all of this?

the core of our know-how is located in the competence center in Baden-Württemberg. In many of our international projects we draw on the expertise of our local core team. this means that the project work is per-formed in an international cooperation with the teams on-site with the customer.

How does MBtech safeguard the minds and the talents that are needed for future growth both nationally and worldwide?

After an intensive familiarization phase our employees can rapidly take on responsibil-ity — in projects, in direct contact with

our customers. MBtech offers its employees worldwide exciting and diverse tasks and projects on the cutting edge of technology. Intensive and interdisciplinary project work wordwide provides our employees with good chances of internal advancement, e.g. as a project manager.In addition, we also offer continuous addi-tional training — for both the professional and also for personal development. Naturally, the classic automotive know-how locations in Stuttgart, Mannheim and ulm are also relevant with regard to the highly trained specialists.

the development, calculation and testing onward to series maturity. MBtech com-bines these engineering competencies with tailored consulting services. the goal is to enable customers to rapidly and efficiently realize innovations — so that they can keep up with the international competition and the sustainable mobility.

Identiface and REPORTER Premiere in Geneva: At the Auto Salon, the MBtech Group presented the “Identi-face” — a new display which provides the first interactive and customizable options for passenger vehicle front design. the ob-ject of the application: the Identiface on the visionary rinspeed BamBoo electric vehicle study remains easily visible during the day thanks to state-of-the-art lCD lED technology while its ability to display per-sonal messages from virtual networks such as twitter or Facebook on the vehicle is

another highlight. MBtech’s designers and engineers used the MBtech rEPOrtEr’s Identity light as an inspiration. MBtech presented the innovative vehicle concept study at last year’s IAA Commercial vehi-

cles with great success. the rEPOrtEr makes MBtech’s combined full-vehicle competence transparent by means of the in-novative design, the mobile solar top on the pick-up see-through model. 8

“Identiface” — a new front design display which pro-vides customizable options C MBtech

MBtech’s innovative vehicle concept study MBtech REPORTER C MBtech

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We are a top service provider for the international automotive industry.Hartmut Tresp, President MBtech Group

We have more than 650 employees working in the electrical and electronics fields and more than 100 employees active in e-mobility. Werner Kropsbauer, President MBtech Group

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“A Vibrant Curiosity”Succeeding through own initiative

Globalisation 2.0The specialist company for assembly materials Adolf Würth GmbH & Co. KG has pioneered internationalisa-tion. As early as the 1960s the Künzelsau firm started founding subsidiaries abroad. This pioneering attitude has, however, not affected the company’s ties to the region and its people. “We do owe very much to the region and it is a matter of course for us tocombine our visions with concrete actions and to take on social responsibil-ity”, says Bettina Würth, chairwoman of the Würth-Group’s advisory council.

INTERVIEW Stefan Brunner

In our times globalisation, global networks and increasing competitve pressures predominate. How do you manage to remain competitive in Künzelsau?

The Würth-Group does not perceive glo-balisation as a danger but as an important opportunity. Very early, in the 1960s — people did not talk about globalisation then — we started founding subsidiaries abroad. Today we do business on all con-tinents. To always be one step ahead of our competitors is one of our ongoing aims. Frequently it is the countries themselves which signal us ideas that lead to the foun-dation of subsidiaries, and when it comes to developing these subsidiaries, our local managers work independently and act on their own initiative. We think that this pronounced decentralisation is a basis of our success. Only in this way can we re-main flexible, adapt to the markets and to customers’ requirements as best as we can, and this is how we manage to stay competi-tive. This decentralisation also enables us

to take into account different cultures and mentalities. Top quality, fast service and a sense of commitment are inextricable parts of our standard — no matter in what coun-try.

“Continuous innovation” is part of your company’s philosophy. How do you promote creativity on a day-to-day basis in your company?

As far as our product range goes, Würth uses a number of elements in parallel to promote innovative management — our product advisory council and the customer advisory council are just two of them. We have a range of over 100,000 products and every year 8,000 new products are added to our product line. A great number of products gets modified, improved and relaunched, slow-moving lines are aban-doned. All our products are subject to stringent quality control — this is what the strength of our brand rests on. We con-stantly keep an eye on customers’ needs, and our attentiveness ideally enables us to offer a solution before a problem on the customer’s side even arises. To this end, it is vital for us to be totally alert and open to our customers’ suggestions. Our success is obvious: about 40 percent of the Würth-

Group’s turnover is achieved with products less than five years old. At the end of the day, though, our innovative strength does not only rely on management decisions, we also benefit from the imagination and crea-tivity of our over 60,000 employees. This is why we keep motivating our employees through our philosophy which emphasises openness and a sense of “a vibrant curios-ity” — the motto we have been following in 2006 and 2007. We want people to act on their own initiative.

Is the Heilbronn-Franconia region an innovative home?

Heilbronn-Franconia is characterised by pronounced economic activity. On the whole, what used to be Baden-Württem-berg’s poorhouse has turned into one of the most attractive industrial locations in Southern Germany. And, at present, future trends seem to continue to be positive. In addition the attitude in the region is very down-to-earth. From my point of view this has been an absolutely decisive factor for the success of the Würth-Group, our corporate culture is characterised by this down-to-earth way of being.

How do you feel tied to the region?

We owe very much indeed to this region and we do consider it as a matter of course to combine our visions with concrete ac-tions. In this sense we as human beings and as a company take on social responsibility. This has resulted in the Würth-Group’s commitment on behalf of the arts, culture, education, social work and sports. 8

Every year 8,000 new products are added to our product line.

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CLUSTERS & MORE

WÜRTH — A VIBRANT CURIOSITY

C Würth

Clu st er s & I n I t I at I v esn eW s & dat es

Silently from 0 to 100 in 3 secondsIn its role as technical partner to the French company Formulec, DEKRA, the technical experts’ organisation, has unveiled a revolutionary racing car. The “EF01”, developed by For-mulec in collaboration with other well-known partners, is currently the world’s fastest, 100 percent electrically powered Formula racing car. This superfast car can accelerate from 0 to 100 in just three seconds. DEKRA’s technical experts are adding their experience, which they have acquired since 2010 as part of their partnership with Formula Student Electric (FSE), the elec-tric offshoot of Formula Student Germany, to the new racing series. This commitment and the partner-ship with Formulec are a portion of DEKRA’s e-mobility-related activities.

Blechexpo with Hybrid Technology06.-09.06.2011, Landesmesse Stuttgart

The 10th BLECHexpo and the 3rdSCHWEISStec have a leadingposition in Europe. It holds secondplace in the world rankings of tradefairs for sheet metal processing.position in Europe. The fields of “hybrid technology” has been newly added to the nomenclature for BLECHexpo 2011, becausematerial combinations are gainingmore and more significance in theproduction process. The additionof these topic makes good sense,because the process sequence ideais doubtless an important successfactor for BLECHexpo, on which its entire concept is based, and which is also embodied in the concurrently promoted SCHWEISStec trade fair. In actual practice, the sheet metal process-ing and joining/bonding sequences merge smoothly into one another anyway, and thus the entire manu-facturing sequence for modules and parts made of sheet metal and profiles is clearly demonstratedto interested parties at the event.

www.blechexpo-messe.de


the new War for talents Baden-Württemberg is competing to attract qualified human resources

Do you sense that the “war for talent” is intensifying, in Germany at any rate?

We are noticing that the “war for talent” is hotting up, particularly as far as specialists and engineers are concerned. We are still able to fill all our vacancies; however the process of recruiting people from the above-mentioned groups is taking more time. In this respect we are also very much aware of how important Festo’s brand positioning in the jobs market is.

Employer Branding Due to an increasingly competitive land-scape and demographic shifts, recruit-ing and retaining skilled workforce has become quite a challenge for numerous companies. An initiative of the Federal State communicates that the south-west of Germany is the ideal place to launch a career with great prospects.

Our objective is to get our talented people to recognize added benefit for themselves. Alfred goll, Festo AG C Festo AG

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“Talent Management is Key”Interview with Alfred Goll

Everybody is happy when businesses of all sizes are able to grow. But that is not the case. hr executives at Baden-Würt-temberg’s companies have to confront new challenges. If companies grow rapidly fol-lowing a crisis, they require the necessary human resources. right now as well as in a few years’ time. the “War to Attract tal-ented Professionals” is hotting up around


Clust er s & in it iat ives

employ er Br an din g

How is Festo addressing the challenge of demographic change?

We have addressed the issue of demograph-ic change for some considerable time now and an award from the Federal Minister for Economics in 2007 enabled us to demon-strate that we are taking broad-based action to proactively tackle this problem. We view the main challenge in the so-called MINt professions (Mathematics /It/Natural Sci-ences/technology). We have a range of actionable measures in place to meet this challenge, such as a corporate hr strategy, head-hunting and graduate recruitment plus advanced training and qualification programmes. We also attach great impor-tance to people managing their health and achieving a satisfactory work-life balance.

In Germany you are regarded as one of the most popular employers. How do you communicate this feedback to foreign applicants?

At this juncture I should like to partially contradict you. We are not only one of the most popular employers in Germany but

also in Europe. We participate in a range of different popularity surveys and proactively communicate this in the jobs market using a range of different advertising methods. Given the current situation I should like to quote you two examples. In the Nether-lands we are rated as one of the most popu-lar employers by “Great Place to Work” and in Bulgaria we have been rated as a “Pre-ferred Employer” since the start of this year. Furthermore we action a range of activities in other countries, e.g. head-hunting at tar-geted universities in Germany and abroad, where we specifically contact students. Giv-en this global challenge, Festo is attaching increasing importance to positioning itself internationally as an “Employer of Choice”.

What is Festo doing not only to recruit but also to retain and develop talented human resources?

talent management is a key element of our international hr strategy and our hr management work will focus on this issue during the next few years as well. We iden-tify the talent pool that we have around the

world by applying an internationally struc-tured hr process and combine this with ac-tion to foster this talent. Our objective is to get our talented people to recognize added benefit for themselves and to identify their opportunities within the company.

Does Festo have a corporate culture that can be communicated and put into practise across national and cultural borders?

As a family business Festo has a distinc-tive corporate culture, where long-term thinking and innovation — but also the awareness that it is our employees that en-able us to differentiate ourselves from our competitors — all play a particular role. We regularly conduct global employee surveys and then take action not only to commu-nicate our culture but also to enhance it on a continuous basis. Indeed we regard this as a distinguishing feature that sets Festo apart from other companies and also makes it such a successful business. 8

For further informationwww.festo.com

the world. this is what companies every-where are saying. Evens champions, such as SAP and Festo, both of which are amongst Germany’s top employers, are finding that recruitment is not getting any easier. two years ago in this publication, Profes-sor Werner Faix from Steinbeis university challenged SMEs in particular to invest in training and retaining specialist and ex-ecutive human resources, despite the crisis. he now feels vindicated. “Companies that want to grow in emerging markets as well require the appropriate resources right now, both here and in these target markets.”

Boosting Vocational Training A tangible demographic trend now needs to be factored in too. All forecasts state that there could soon be a serious shortage of en-gineers and technicians — in particular in the SME sector, which does not really want to compete with the big industrial groups when it comes to paying salaries and wages. So action needs to be taken. And that is ex-actly the reason why the Federal State has

committed to a qualified human resources initiative, which has four objectives: › Boosting vocational basic and

advanced training› Increasing participation in the labour

force by older people, women and people of an immigrant background

› Increasing the number of graduates in the MEnt professions (Mathematics, Engineering, Natural Sciences, technology)

› Facilitating immigration by highly qualified professionals

bw-i, Baden-Württemberg’s successful business location marketing agency has been commissioned by the Ministry of Eco-nomic Affairs to take a proactive approach and provide momentum in both the local and supra-regional labour markets. her-bert Bossinger, a member of bw-i’s Board of Management, describes how the initia-tive intends to fulfil its objective of assist-ing SMEs with recruitment. “We intend implementing a whole range of measures to enable Baden-Württemberg to remain

Germany’s most attractive employment location for specialist and executive human resources.” thus for example joint recruit-ment events are planned in cooperation with Baden-Württemberg’s regional economic development organisations. An online jobs market has been co-inaugurated — Bw-jobs.de is designed to enable the approximately 15,000 vacancies in the MENt professions to be filled more quickly.

New Media for New Target Groupsbw-i also promotes Baden-Württemberg by targeting young professionals and ex-ecutives at national trade shows and events at universities throughout Germany. the careers portal XING is also used to flag professional opportunities in the South-West. And the Ministry of Economics is also breaking new ground in addressing immigrants. Features on turkish tv are specifically aimed at parents, to get them to encourage their children to obtain school-leaving qualifications and take up appren-ticeships. 8

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