Siemens: Transportation
Memorandum
To: Oliver O. Hauck, President & CEO
From: Mark Hopkins (CI Director)
Cc: Mark E. Evans (VP & CFO), Lori Hess (VP Business Development), Bruce
Petterson (VP Human Resources)
Siemens Transportation Systems, Inc.
Headquarters
7464 French Road
Sacramento, CA 95828
Phone (916) 681-3000
Fax (916) 681-3006
Priorities & Agenda
Siemens Transportation Systems (STS) has come a long ways since its founding. Its seamless
integration into the U.S. Transportation industry has made STS the U.S.’ no. 1 supplier of light
rail. The purpose of the Competitive Intelligence (CI) division will be to provide the information
necessary for STS to grow its current position while improving its competitive advantage in
information. Some of the primary objectives will be to:

Integrate resources and vision with overall company, specifically with the business
development and human resources divisions.

Improve information gathering and dissemination measures within the company to
enhance knowledge sharing.

Focus attention to important information that will allow STS to make actionable
intelligence decisions in a timely manner.

Demonstrate avenues for STS to pursue for the purposes of affecting decisions made for
the industry by extending contacts with outside groups and lawmakers.
A key way for STS to benefit from these objectives is through the integration of the CI division
and the Business Strategy division. By working together, and sharing knowledge and
resources, STS will be better informed to adapt quickly to changes in the industry as well as
adapt and consider long term goals in relation to these insights.
Competitor Analysis
The analysis of competitors is a crucial part of CI. By extending resources between
departments through improved channels of communication, competitor analysis can be
accomplished more quickly. Competitors come in many shapes and forms. Improved methods
of identification will enable STS to stave off competition early through the monitoring of industry
resources and those tangential to them Industry Links, enabling the most efficient use of
company resources. These resources will be arranged around specific categories such as:

Rss Feeds

Company & Competitor Sites

Financial & Business News
1-800-SIEMENS

Government & Regulator

Associations

Comprehensive Information Sources
Engaging in differing analysis techniques in addition to vigilant monitoring of resources is
another way to improve STS’ competitive advantage. Several techniques will be used,
including:

Porter’s Five Forces

Growth-Share Matrix

Critical Success Factors

Core Competencies

SWOT Analysis
A comprehensive understanding of the competitive landscape will provide STS with information
central to forming decisions that will affect the whole division. Some major competitors that
initial focus will fall on will be:

Bombardier

Colorado Railcar
Current Position
Evaluation of Siemens Transportation Services’ financial statement indicates the company is
strong overall 2006 Annual Report. A review of some of the artifacts and underlying
assumptions of Siemens indicates that internal CI could benefit the company by elucidating
these areas and providing the means by which to address and monitor them Siemens Review.
Current strategy is heavily reliant on these assumptions. Implementing measures to accurately
reflect the up-to-date position of the company will enhance its ability to adapt. Thorough
analysis of competition and industry, including itself, will allow Siemens to understand these
assumptions, ultimately providing the insight needed to develop a strong and adaptable strategy
for both the long and short-term.
Future Position
Integration of resources and improved communication channels will allow Siemens
Transportation Systems to make decisions on the best information available. Revaluating its
current situation through internal CI, in addition to improved competitor analysis tactics, will
facilitate the actionable intelligence Siemens needs to continue its leadership position in the
future.