The industrial automation market is always stormy and sunny. Ups and downs have long been a surprise. The news of ABB's purchase of GE's industrial systems last year shocked the industry. Six months later, the news still touched people's hearts, because the merger is nearing completion.
Information review
On September 25, 2017, ABB announced the purchase of General Electric (GE)'s industrial systems business for US$2.6 billion
At the same time as part of the acquisition agreement, ABB will establish a long-term strategic supply partnership with GE, and this merger will be completed around mid-2018.
When the GE industrial system officially became a member of the ABB family, what impact did it have on internal staff? What changes will happen to the entire electrical industry? Everyone is looking forward to it.
Bole Xiangma, Zhulian United
Get things done in the sky and work for people.
The first reason that can lead to this century's big hand is very classic. Does anyone love talent?
GE’s most important secret weapon, or truly superior product, has always been its employees.
As we all know, GE's talent management is excellent. Crowton, its internal training base for talents, is also called Harvard in the business world.
In 2003, GE Claudenville China Leadership Development Center was established in Shanghai. It trained more than 8,000 GE employees annually and received more than 2,000 government, state-owned enterprises and strategic partners. It has brought a lot of professionalism, professional ethics and leadership from here. Excellent quality talents.
Thanks to this, GE Industrial Systems has a complete and large-scale talent team.
Professionalism, efficiency, and service quality are the most common evaluations of GE's employees in China.
Customer only, success or failure
Tony Li is a product product application engineer and has spent more than ten years focusing on research in the distribution industry.
For example, in the recent China Railway project, the temporary change of Ethiopian customers caused the project to stagnate. In order to solve the problem as soon as possible, he flew to the site 11 hours in the first time. He stayed at the site with the workers and stayed on the site every day to find out where the problems were. Several sets of countermeasures for different situations have finally solved customer problems. The urgency of the customer's urgency, think of what customers think, learn to empathy and use professional knowledge to win the trust of customers.
Tony said that this is the most common scene in our daily work.
Unknown, show good results
Zhu Gong is a technical engineer in the disk factory team. His work is ordinary and complicated: According to the technical and business requirements of different industries, it must be guided in a targeted manner; in the face of different rectification requirements put forward by different disk factories, it must be ensured that GE's technical and quality specifications; he often travels for months in a row to support disc factories across the country.
Zhu Gong said that I am an ordinary engineer who works seriously in ordinary days.
It is such an ordinary he, through the overall control of the project and the pursuit of details, continuously conquered a large project such as China Mobile Group, won the praise of customers.
Seek lean, fight speed
Fan Gong is an old employee of the product operation position. For ten years, he led the team to implement hundreds of domestic and foreign projects.
In order to provide overseas customers with a large number of customized solutions, they often work late at night to ensure timely communication with the United States and Latin American teams.
On the delivery cycle to customers, the company accelerated business growth and improved project profitability by shortening technical clarification time and improving delivery cycle.
Like Tony, Zhugong, and Fangong, employees praised by customers are not uncommon inside GE.
In the early morning, he kissed his sleeping cheek on his wife and wife, and turned to follow Qinghui to get out of the house. At noon, he rushed to the computer or sip a lunch on the road to charge the afternoon's tasks. After a day's work was over, he found out that the moon had long been out of the company. Hang up high, push the door open, and fall asleep in warm light.
These are ordinary everyday routines, but perhaps all the way down, but Ganzhiruyu.
Creating value for customers, creating value for the company, but also creating value for their own lives, this is not the value of talent?
Strong integration, new attack
What will change after they have joined each other from the camp to the sideline?
We might as well look at ABB and GE separately.
It allows ABB to quickly make acquisition decisions despite competition, depending on the four “excellences†of GE's industrial systems business.
The first is the market and the channel
GE Industrial Systems is part of the power generation group of one of GE's six major groups and faces the Chinese market. GE's power generation group is committed to localization from R&D, procurement, manufacturing to the full value chain of services.
Qinhuangdao Service Center, a joint venture between GE and Harbin Electric and South Steam Turbine, GE's largest boiler manufacturing plant - Wuguo, GE Beizhong Heavy Industry Plant ... through continuous strengthening of localization strategy, GE obtained in thermal power plants, metallurgy and other industries The higher market share, through cooperation, helps ABB further consolidate its leading position in these markets.
At present, GE Industrial Systems has developed nearly 200 dealer partners and nearly 50 disk factory partners in China. These channel resources will inevitably give ABB a positive role in promoting China's market coverage and continued business growth.
Second, technology and products
Thanks to GE's leading technology and a full range of ATS automatic transfer switches, ABB is expected to form a two-phase confrontation with Schneider Electric in the data center, telecommunications, rail transit and medical industries.
GE's UPS uninterruptible power supply holds a considerable amount in the domestic market. Through cooperation, ABB is expected to further broaden its market application in a digital strategy that continues to heat up;
One of GE's key products, Gerapid DC circuit breakers, can help ABB from the DC to AC side with its higher market coverage and provide users with more complete power distribution solutions.
Joint cooperation, ultimately, integration of supply chain resources
As a world-class industrial giant, ABB and GE have global service outlets and a powerful supply chain platform. After the two parties cooperate, they will have tremendous synergies in the entire supply chain such as R&D, technology, procurement, production, and logistics.
The most direct impact is the advantage of purchasing scale. After the resources are integrated, the raw material costs of the two parties will be significantly reduced. In other words, buying a big brand will not require eating soil.
In addition, the 6 Sigma quality management, lean manufacturing, and process optimization and management that GE excels at will also inject new vitality into the integrated supply chain.
For future development, digital solution cooperation is essential
Riding on the wave of digitalization, ABB has launched ABBAbility, a digital platform integrating interconnect, sensing and intelligent analysis and storage. GE focused on the construction of industrial Internet platforms and applied them in the aviation, medical, and new energy fields.
Both sides have great differences from the nature of the platform and the vertical industry, and they can form complementary and overall digital solutions.
Similarly, on the stage of ABB, GE Industrial Systems will successfully unlock four "new moves".
First, the GE industrial system was transferred from the original GE "non-mainstream" business to ABB's core business. It will continue to invest in technology research and development, product upgrades and financial support, and will be more competitive in products and solutions. .
Secondly, by joining ABB, GE Industrial Systems will acquire more resources and opportunities to lay out and invest in mid-to-long-term business development and achieve a balance between short-term performance and medium and long-term goals.
Third, after the integration, GE Industrial Systems will provide customers with better services. With ABB's localized resources, products and technology capabilities, GE Industrial Systems can further improve its products, programs and services.
Fourth, channel partners of GE Industrial Systems will gain more new business development opportunities. With the help of ABB's platform resources and highly competitive products and technologies, it can deepen its competitive position in its existing market segments; it can also gain the opportunity to expand into new areas and expand its service scope.
Collaboration and win-win, leading the trend
From the analysis, we can see that the cooperation between ABB and GE industrial systems will surely bring top-tier service experience to its customers, and it will also lead a new cooperation model.
Under the background of the digital age, industry manufacturers have laid out a new digital ecology based on the industrial cloud platform, introduced partners into the value chain, and realized the optimization of services and the maximization of benefits through the integration of resources and structures.
It can be foreseen that such cooperation models as ABB and GE industrial systems will be more and more 1+1>2. In the future, each platform will also break the boundaries to achieve interoperability, interconnection, mutual integration, facing customers, end users and Consumers form a new pan-industrial ecosystem.
The hands of GE and ABB are just the beginning.
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