how to manage operations post merger and industry 4.0
TRANSCRIPT
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How to Manage Operations Post Merger and
German Industry 4.0
4.0 for
Global M&A Summit
January, 15th 2016
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Future production with Industry 4.0
Industry 4.0/IoT&S strategy is based on 4 pillars:
Architecture. for flexible, self-learning systems and processes consisting of mechatronic, electronic and SW products for collaborative network-capable solutions
General business models. for new working environments, a culture of greater flexibility and openness, new economic principles and corporate management techniques
Innovations. in products, components 4i products: intuitive, intelligent, integrative, internet-
capable
LEarning, knowledge, training (Enable-ING factors)
AGILE 4.0
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4.0
4.0/
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. 4i
4.0
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Industry 4.0 vision 4.0 Industry 4.0 focus: intelligent production methods
and processes
4.0
Cyber-physical systems as enabler for intelligent manufacturing
Intelligent work pieces and production modules are supporting flexible processes
Standardized interfaces as part of the digital infrastructure
Designing a flexible and human centric production
The I 4.0 Initiative in Germany 4.0:
(ERP)
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Im moving to Station 2.
Im ready.
We can improve this process!
Need materials
AGILE 4.0 4.0
Networked production architecture of the future
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Modular Plug & Produce concept
Intelligent Work Piece controls production flow
Reconfiguration while operating mode
Communication Interface for Condition Monitoring
Adaptable Safety concept
8200 : http://www.smartfactory.de/ : https://www.youtube.com/watch?v=X7ZDeVsBDbY
4.0
Factory of the future will be a modular, multi vendor Industry 4.0 ecosystem 4.0
The Smart Factory
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q From labor intensive to talent rich -
q From Made in China to Created in China -
q From attract capital to attract talents -
q From hardware to software -
q From Investment driven to talent driven -
q From using domestic talents to international talents
China Outbound M&A Strategy
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Connecting the dots Industry 4.0 and China Outbound M&A Strategy 4.0
Integrate Industry 4.0 into your corporate and M&A strategy - 4.0
Prepare yourself for disruptive innovations -
Think global not local
Think in networked technology platforms and eco-systems
Permit co-petition and teamwork with other likeminded companies -
Be open for foreign cultures, learn about their motivations and common grounds
Source: Parmenides EIDOS
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Necessary Transition in Post Merger Integration
Traditional PMI Approach
Acquiring intellectual property is no longer enough
Acquiring a supplier is limiting your potential
Acquiring a controlling stake in a company is not enough
Acquiring abroad focusing only on the China opportunity
Acquiring to own/get know-how
Advanced PMI Approach
Acquiring TALENT and retaining TALENT is essential
Acquire ACCESS to platforms and ecosystems
Acquire the employees HEART & MIND by showing them a bright future
Acquire abroad and TRANSFORM into a truly global player
Acquire to ADD VALUE and develop KNOW-HOW
How to achieve it
Dialog
Contribution
Commitment
Local Integration
Clear M&A Strategy
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Negotiating with Germans
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Behavior traits Space and Time
q Privacy is key q Polite distance q Punctuality is essential
begin late is a sign of being unreliable
Communication Pattern
q Frank, open, direct, honest q Truth comes before
diplomacy q Speech style is serious,
unsmiling and frequently repetitive
Listening Habits
q Listen well, always willing to learn
q Rarely expect to be entertained in a work context
q Simple messages sound incomplete
Meetings & Negotiations
q Formal approach, well dressed, disciplined appearance q Use surnames only and pay attention to titles (Dr. / (PhD)) q Observe hierarchical seating order of speaking q Arrive well informed, present logical arguments to support
the case q Thought about counterarguments and prepared their
second line of attack q Compartmentalize their arguments, each member speaks
about their specialty q Look for common ground q Head-on collision will lead nowhere q Show good teamwork q Are not poker faced and you can detect differences in
opinion in faces and body language q Whish to avoid misunderstanding later q Be patient q We stick to what we have agreed orally q If offered a little trial business take it it will lead to more if
we are satisfied q Stick to what you promised q Be prepared to apologize if failed
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Commonalities & Differences Space and Time
q Privacy is respected when possible in China
q Punctuality is essential as Chinese hate to waste time
Communication Pattern
q Chinese are courteous and considerate but more direct than other Asian cultures
q They will often ask how you feel about certain issues to avoid contradictions and will express criticism indirectly
Listening Habits
q Chinese respond well to modest and caring speech and prefer absence of arrogance
Meetings & Negotiations
q Formal meetings, but Chinese prefer to be dressed comfortable
q Similar to Germans Chinese observe hierarchical seating and show senior executives the utmost respect
q Contrary to Germans meetings are for information gathering as decisions are made elsewhere
q The pace of negotiations is often too long for Westerners Chinese negotiate step by step in an unhurried way
q Politeness is observed at all times and confrontation and loss of face must be avoided contrary Germans are direct, truth focused even if it creates confrontation
q Chinese say rarely no they only hint at difficulties Germans are blunt and want to avoid misunderstandings later
q Chinese most often speak in we rather than I q Chinese are thrifty, cautious and patient. Germans will have
to match patience and stamina, otherwise opportunities may be lost
q Chinese combine flexibility and firmness which are negotiation traits matched by Germans
q Both are trustworthy once they have decided who, what, when and how
q Chinese know their market size and will use this in pricing strategy
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What to Avoid
Avoid when dealing with Germans
to display eccentricity
to confront them head on when you are diametrically opposed
Interrupting unfinished tasks or request many simultaneous tasks
Oversimplifying
Overdoing small talk
The hard sell
Wisecracks, gimmicks, slogans
Avoid when dealing with Chinese
showing anger or appearing upset
rushing negotiations
rejecting proposals out of hand, when negating someone's ideas you negate the person
ignoring anyone brought into your presence
showing off
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My Background
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THANK YOU VERY MUCH FOR YOUR ATTENTION !
If you have any question, please do not hesitate to contact me @
Global PMI Partners Germany Ubierstrasse 83 53173 Bonn Germany
Phone: +49 172 255 97 88 eMail: [email protected] Skype: tkessler888 http://linkd.in/ThomasHKessler http://bit.ly/XINGThomasHKessler M&A Integration Pre Deal | LinkedIn