Tuesday, January 20, 2009

Business Architecture - Siemens Vs Philips

If Philips was not Dutch but founded in Germany would it than have been called Siemens?

Philips has changed radically over the last decades. From a dedicated supplier of consumer electronics, the company is now focused on healthcare. Although not only on healthcare, consumer electronic still is a prominent division. But this division is cyclical and therefore problematic. By selling its television-branch in the US it searches for a more profound change. Lightning is another division that is traditionally uniquely Philips.

Siemens has never had its own lightning division but acquired one, by the time a growing competitor of Philips: Osram.

The three musketeers of Philips (healthcare, lightning and consumer products or positioned as: "lifestyle") resemble slightly that of Siemens:

  • Healthcare, Energy and Industry.

But a more closer look will show the real differences.

Philips' main profile (2007 annual report):
- 128,000 employees
- 27 billion euros sales revenue
- presence in 60 countries
- net income: around 4 billion euros (357 million euros Q3 2008).

Siemens' main Profile (2007 annual report):
- 400,000 employees
- 72 billion euros sales revenue
- presence in 190 countries
- net income: around 4 billion euros.

This is obviously not enough to financially value both companies, but only to give an impression.

For the architectural characteristics there is much more information needed and available. But for a first acquaintance the type of markets is important.

Philips is much more focused on retail and consumer markets, where Siemens has a much more industrial and wholesale or infrastructural focus. Both offer healthcare solutions, but siemens' clients are the hospitals, Philips is focused on getting hospital solutions to the patients home.

Than the history of either company; who was the founder.
Siemens founder was Werner von Siemens who (co) founded a telegraph company 161 years ago in 1847. Werners' personal characteristics are still mentioned in the annual reports as an example: innovation, international focus and a keen sense of responsibility.

The Philips founder, was Anthony Philips who co-founded the Philips Electronics company in 1891 with the light-bulb as the first product.

H.J.B.

© 2008 Hans Bool


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