IGTA Journal - Summer 2020

How went the past quarter ? I had already said several times, that the third quarter of our business year because of the full effect of the pandemic will be a big challenge for us, as also for most of the other market participants. It is, though, in no case a free fall. We are seeing in the short-cyclical businesses a percentage minus in the business volume of 10 to 20 % What is the medium term perspective ? We shall certainly not in the year 2021 come back in all businesses and geographies to the level of 2019. On the other hand, and in the times of paradigm changes, we must utilise for us the situation. The best chance to find out, whether one really has a competitive advantage, is when the customer can only distribute a smaller budget. Then the customer will come to those, who can help him most. This can be a painful moment. There is this danger. But we have in the industrial business in the cyclical recovery after the Lehman-bancruptcy won market shares. I expect from our proven top team, that this will be achievable again this time. Does Siemens Group have to cut back capacities at some locations ? It would not be with integrity to say, that one can always master everything without pain. The important question is though: How strongly will costs be lowered ? Because one cannot predict the development, one has to quasi remain in braking standby, and therefore one will meet the optimum only in the most rare cases; this one anyhow knows only afterwards. This letting go from the theoretical optimum is difficult for the perfectionists. This is like at the formula 1 race: The drivers are used, to take the braking point to the maximum, then rain is coming, and already all of them are sitting in the Green. This we also have already gone through, and we try to learn from this. How ? There are three control levers: You need the best motor - this we construct! You need the best driver. This one we have! And then you also need an experienced team in the box lane, which gives timely advice, in which curve there will eventually be more water than in another one. The combination of the three success factors makes the success. I am convinced: This we shall achieve. But one does not know, where the water will be. Is one therefore braking more everywhere? It will be like with the Corona strategy of politics. One will have to let blame oneself afterwards, because the optimum was not attained. On the other hand is true: When one is landing in the Green, how can one be so naïve, to drive full speed into this curve ? Therefore IGTA eJournal | Summer 2020 | 25