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Siemens Development Strategy

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Siemens AG: Global Development Strategy
• What were the major causes of the problems with the NetManager project? (I’m not looking for a list of points made in the case; I’m looking for you to step back to a higher level and analyze why these problems occurred.)

The problems experienced by the NetManager project appear to be symptoms of integration vs. responsiveness issue within Siemens AG. As a transnational company, Siemens faces strong pressure to globally integrate its operations, and be responsive to the needs of their offices and customer’s needs. The main problem with NetManager was that it had mushroomed in size and strategic importance. This was the result of keeping up with the rapidly changing technological demands, and NetManager becoming a highly visible product for Siemens’ largest customers.

Analyzing the various problems, we see that despite the competence of the Bangalore RDC, there is a serious number of integration problems between Munich headquarters and Bangalore. First, there was a gap in product knowledge and competence, which resulted in unrealistic expectations such as project deadlines. Indians held proficiency in desktop and personal computing programming languages, while the Germans held extensive product knowledge concerning their EWSD technology and its functions. As the project grew in size and scope, it required interdependence amongst EWSD systems, knowledge held by German management and not sufficiently provided to Bangalore. Then, problems resulted concerning reliability and quality assurance. As the case outlines, these were due to erroneous assumptions on the part of Indian developers such as underestimated system usage. However, let us look at those factors which would have mitigated these issues. First, the Bangalore office did have a testbed with which it could run assurance tests. However, the testbed sent to…...

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