Siemens Information Systems : Restructuring Rescue

Siemens business strategy received a complete revamp after the company
bundled its IT solutions and services business, resulting in SISLs businesses
getting closely aligned with its parent group, Siemens IT Services and Solutions
(SIS). Over the last six months, SISLs order inflow increased by about 14%
while its sales revenues dropped by 3% due to changes in the business model.
Profit was also impacted.

The domestic market was the biggest growth area, where technology adoption
remained steady with an estimated growth of 43%. SISL continued to work in niche
areas and focus on specific verticals such as government, PSUs, telecom, media,
healthcare and manufacturing, with healthcare making up over 50% of revenues.
SISLs export business including the business with other Siemens companies
constituted about 74%. During the six month period, SISL won significant orders
from Sakaal (Neo TV), Hyderabad International Airport, John Deeres Agriculture
Division and many others. In a major accomplishment, for the first time in
India, SISL introduced the latest technology of 2D barcodes at HIAL that
provides airlines a faster, easier and more secure passenger handling process.
SISL also successfully commissioned projects for Bangalore International
Airport, Godrej-Hersheys, Oxford University Press and Samsung. It continued to
be the largest training partner for SAP. It also successfully performed the beta
test of SpeedTrial (clinical trial management and electronic data management
solution) at Manipal Acunova.