Siemens Business Case: Joint Venture
Siemens is a global corporation who specializes in electronics and electronic engineering throughout the energy, healthcare, and infrastructure and city sector industries (Zhao, 2004). This corporation focuses on energy efficiency and healthcare innovation. They invest over $6 billion a year for research and development (Siemens, 2014). Because of the large amount of money spent on research and development Siemens has a technology-driven innovation strategy. With years of experience with technology innovation Siemens must continually evaluate the market to know what projects need to be researched and funded. This can be done with a business case model. In the case of Siemens their concentration is on both healthcare and energy markets, for the purpose of this paper, the healthcare marketplace will be the concentration of this business model.
Siemens Overview and Business Case
A business case model is used to understand the potential for new products and services for an organization (Colorado State University-Global Campus, 2014). For Siemens, they need to ensure that the products they are developing will have value to the consumer. If there is no value to the consumer they will continue to use the same equipment, or find other value-oriented options.
Siemens has a large research and development department to help ensure new technologies are continually being assessed and incorporated into new and existing products. Their business case needs to ensure four questions are answered, what are the needs of the market, what is the consumer’s need, what is driving that need, and finally is the problem difficult enough to deserve searching for the solution that a consumer will pay for (Colorado State University-Global Campus, 2014)? Since Siemens focuses on two industries, this business model will focus on the needs of the healthcare sector.
The healthcare sectors needs are going to be different for the many different regions around the globe. This is due to the different composition of consumers within particular regions. There is, however, one thing that is needed globally, increases in technology that helps to reduce errors and costs. This can be done with new laboratory machine technology, imaging technology, or an increase in automation. There are many projects and technologies that are being developed by independent companies that Siemens can benefit from. It is a matter of finding the right technology that can be used with the current and future Siemens products.
Access to healthcare can be difficult for those with low incomes, rural areas, and those in already poor health. Siemens can make a commitment to increase access to care by increasing medical equipment in hospitals and creating mobile clinics. Siemens can become a partner with hospital systems such as Centura Health, as they are committed to serving their communities at all stages in life (Centura Health, 2014)....