Siemens bets ERP/PLM integration will continue apace

In January, Siemens AG focused its systems-integrator resources by rolling five operating units into its new Siemens IT Solutions and Services (SIS) division. The largest unit thus affected was Siemens Business Services group—one of the world's largest SAP integrators. The move puts deep systems and industry domain expertise in a one-stop shop aimed at global customers.

By Frank O Smith, sernior contributing editor (fosmith@thewritinggroup.com) April 1, 2008

In January, Siemens AG focused its systems-integrator resources by rolling five operating units into its new Siemens IT Solutions and Services (SIS) division. The largest unit thus affected was Siemens Business Services group—one of the world’s largest SAP integrators. The move puts deep systems and industry domain expertise in a one-stop shop aimed at global customers.

Siemens SIS will address opportunities for enhanced integration of ERP; manufacturing execution systems (MES); and product life-cycle management (PLM)—especially relevant given Siemens’ acquisition last year of PLM vendor UGS.

“That will be our leading practice,” says William McNamara, Siemens SIS VP for strategy. “With vertical integration of ERP straight down through PLM into MES on the shop floor, PLM provides a full design-to-manufacturing environment. You can execute against ‘design anywhere, manufacture anywhere, and service anywhere’.”

A new Siemens division for IT solutions and services is aimed especially at integration of ERP; manufacturing execution systems (MES); and product life-cycle management (PLM), capitalizing on Siemens’ strong industry and process expertise.

Process integration expertise is captured in LiveTools, a business process configuration solution Siemens developed for Siemens’ own global SAP implementation. LiveTools has been used for years by Siemens to facilitate ERP/MES integration. It does so by clarifying industry-specific business process flows across system boundaries, facilitating critical policy discussions that must take place among traditionally siloed departments. It also aids mapping of workflow and specific data elements between the integrated systems.

Work is in progress to add PLM-preconfigured templates to LiveTools to capitalize on Siemens’ “shop floor to boardroom” integration vision.

A large automotive supplier is using Siemens for two projects: a corporate upgrade of its SAP ERP, and design of a greenfield production facility in North America.“We’re developing new processes for a new product,” says the director of manufacturing systems. “Siemens gives us a framework for looking at infrastructure and applications.