ABB mission and vision

1. PRODUCT DEVELOPMENTAND INNOVATIONS
MOL-62276
Case Work shop-I
Presented By
Ujjwal Datta
Msc in Electrical Engineering (Smart Grid)

3. ABB is a global leader
in power and automation technologies
ABB resulted from the 1988 merger of the Swedish corporation
1. Almänna Svenska Elektriska Aktiebolaget (ASEA)
2. Swiss company Brown, Boveri & Cie (BBC).
Based in Zurich, Switzerland, the company employs about
147,700 people and operates in approximately 100 countries.

4. Key Figures

5. ABB's mission
Improve performance: Improve
operating performance, grid
reliability and productivity whilst
saving energy and lowering
environmental impact
Drive innovation: Innovation and
quality are key characteristics of
our product, systems and service
offering
Attract talent: ABB is committed to
attracting and retaining dedicated
and skilled people and offering
employees an attractive, global
work environment
Act responsibly: Sustainability,
lowering environmental impact
and business ethics are at the
core of our market offering and
our own operations

6. Strength
• A leader in power & automation in all their segments
• Broad product portfolio in utilities, industry, transport & Infrastructure
• Wide geographic base; operating in about 100 countries
• Huge installed customer base with long term contracts
• Well known for manufacturing top quality products around the globe
• Strong order book position in all the regions

7. Weakness
• The management has a history of overpaying for acquisitions and not
delivering synergies on previous deals.
• Project level services are not satisfactory in all area around the globe.
• Contingent payment obligations.

8. Opportunities & Threats
Opportunities
• Growth rates and profitability
• New markets
• Growing demand & Economy
• Venture capital
• New products and services
• Global markets
Threats
• Global economy crisis
• Increase in labor costs
• Environmental regulations
• Intense competition
• Unstable geopolitical situation
• Return of the financial crisis

9. Global and GeneralTrends
• Products and services for a better world
• Shift in the electrical value chain; Smart Grid, Micro/Nano Grid
• Energy efficiency performance in power generation
• Power for industry, transport & infrastructure
• Safe and secure operations
Customer and market trends
Global and General trends
Technology trends
Environment trendsTechnology Trend in clusters

10. Customer and Market Trends
• Power quality and Reliability.
• Sustainable Transportation system.
• Electricity from Renewable Energy Sources
• Global energy security and minimizing risks for supply
• Strong innovative software portfolio
Customer and
Market trends
Global and General trends
Technology trends
Environment trendsTechnology Trend in clusters

11. Technology Trends
• E-mobility: fast charging
• Marine automation and electrification
• New robotics applications in Oil & gas facility
• Advanced services, Engineering / consulting, remote
monitoring, analytics services.
• Grid automation, Control solutions, Software
• Continue to expand functionality (e.g., mobile interfaces,
security) in Automation system software.
Customer and market trends
Global and General trends
Technology Trends
Environment trendsTechnology Trend in clusters

12. Technology Trend in clusters
• New grid topologies- Micro- / Nano-grids, Energy storage.
• Interconnections, ultra high voltage.
• Energy Efficient Products
• Smart grids and meters
• Internet of Things
Customer and market trends
Global and General trends
Technology trends
Environment trends
Technology Trend
in clusters

13. Environmental trends
• Energy consumption was reduced per employee by 3.5 percent per year
• More than 180 energy efficiency projects were undertaken.
• Greenhouse gas emissions from Logistics and travel decreased by almost 8%
during 2013.
• The Green CREM system in 20 main sites of ABB in Germany, allowing online
analysis of energy data and ongoing implementation and tracking of
improvement measures.
• Water use in water-scarce area was reduced by 14% from 2011 to 2013.
• ABB has sent 81% of total waste for recycling in 2013 .
• 11% reduction in Volatile Organic Compounds (VOC) emissions in 2013.
Customer and market trends
Global and General trends
Technology trends
Environment TrendsTrends for change in cluster

14. TechnologyAnd Brand Image Pyramid
• Expansion locally along the whole value chain, Locally
designed, supplied, manufactured and delivered specially in
China, USA.
• Increased partnership to expand market presence and
increase customer value-BYD, Phillips, Vestas, Hitachi.
Interactingtechnologies SPEAR
HEADS
KEY TECHNOLOGIES
INTERACTING
TECHNOLOGIES

15. TechnologyAnd Brand Image Pyramid
• Turnkey solutions for traditional and renewable energy based power
generation plants, transmission grids and distribution networks.
• Discrete Automation and Motion to increase industrial productivity
and energy efficiency.
• Remote, real time monitoring for Mining.
• Remote Diagnostic Services based maintenance and expertise in
Marine services.
Key technologies SPEAR
HEADS
KEY
TECHNOLOGIES
INTERACTING
TECHNOLOGIES

16. TechnologyAnd Brand Image Pyramid
• Leader in High Voltage Power Engineering
• Technology Pioneer (FACTS, HVDC transmission)
• Pioneer and No#1 in Power & Automation control (DCS)
• No#1 in industrial motion (motors and drives)
• No#1 in fast charging Electric Vehicle (EV)
• A leading player in the infrastructure / building electrification
1) #1 in electric propulsion for ships
2) #1 in terminal automation for port
3) #1 for large industrial turbochargers
Spear heads and know how
SPEAR
HEADS
KEY TECHNOLOGIES
INTERACTING
TECHNOLOGIES

17. Vision: Next Level strategy 2015-2020
• Shaping a global leader in power & automation
• Accelerating sustainable value creation
• Pushing the boundaries of automation into next level robotics and mining
• Profitable growth – together
PROJECTS VISION
2015 2020

18. Vision: Next Level strategy2015-2020
Roadmap
Three strategic focus areas are profitable growth,
relentless execution and business-led collaboration
PROJECTS VISION
2015 2020
Profitable growth
• Continued strong investments into R&D of at least $1.5 billion annually
• Shifting the center of gravity
Strengthening competitiveness
Driving organic growth momentum
Lowering risk
• Expanding the customer value proposition into engineering/consulting,
software and value added services
• Incremental acquisitions and partnerships
• Maintain / accelerate organic growth momentum

19. Vision: Next Level strategy2015-2020
Roadmap
Relentless execution
PROJECTS VISION
2015 2020
• Leading operating model
• Driving change through 1’000 day programs
• Linked strategy, performance management and compensation
• Deliver 3-5% of COS cost reduction; expand focus on white collar
productivity

20. Vision: Next Level strategy2015-2020
Roadmap
Business-led collaboration
PROJECTS VISION
2015 2020
• Leadership development
• Lean market-oriented organization
• Roles and responsibilities clarified
• Attractive shareholder returns

21. Vision: Next Level strategy2015-2020
Roadmap
PROJECTS
Profitable growth
Relentless execution
Business-led collaboration
VISION
• Shaping a global leader in
power & automation
• Accelerating sustainable value creation
• Pushing the boundaries of automation
into next level robotics and mining
• Profitable growth – together
2015 2020

22. Thank You