Tag Archives: Ulrich Spiesshofer

ABB twins digital solutions with Dassault Systèmes’ 3DEXPERIENCE platform

ABB and Dassault Systèmes have announced a global partnership to offer customers in digital industries a “unique software solutions portfolio ranging from product life cycle management to asset health solutions”, the two companies said.

ABB and Dassault will, they say, provide customers an end-to-end offering of advanced open digital solutions, enhancing competitiveness of industrial companies, while increasing flexibility, speed and productivity of their products’ lifecycles, manufacturing and operations.

The partnership will combine ABB Ability™ digital solutions and Dassault Systèmes’ 3DEXPERIENCE platform, and build on both companies’ strong installed base, deep domain expertise and global customer access, they said. ABB has already adopted the 3DEXPERIENCE platform to model and simulate its solutions before delivering them to its customers.

“With this partnership, ABB will develop and provide customers with advanced digital twins, enabling customers to run ABB’s solutions and their operations with improved overall efficiency, flexibility and sustainability,” ABB said.

The companies will, in a staged approach, focus on factory automation and robotics, process industry automation, as well as electrification solutions for smart buildings, with the first joint solutions showcased at the upcoming industrial Hannover Messe trade fair, in Germany, on April 1-5.

ABB CEO, Ulrich Spiesshofer, said: “This game-changing partnership will serve our customers to lead in innovation and growth, fundamentally transforming their entire value chain to tap the vast opportunities of industrial digitalisation. Together, we are offering an open, end-to-end digital portfolio – from digital twin to asset health – that gives our customers a competitive edge, building on our combined offering, domain expertise and global reach.

“ABB is adding Dassault Systèmes to its strong partner network for industrial digitalisation, including Microsoft, HPE and IBM. We look very much forward to working with the entire global Dassault Systèmes team to drive innovation and customer value.”

Bernard Charlès, Vice Chairman and CEO, Dassault Systèmes, said: “The industry of the 21st century is no longer determined simply by the ability to manufacture goods. Today’s leaders will be determined by superior mastery of technical know-how. This is the new competitive differentiator and it’s happening now due to a convergence of digital technologies that are transforming every aspect of industrial business.

“In this industry renaissance, a platform approach enables the real and virtual worlds to inform and reinforce one another. Our partnership with ABB will draw from decades of combined expertise to help customers make the most of this powerful and dynamic trend.”

ABB’s digital solution offering within the industry is tied to its ABB Ability platform, launched in 2017, which offers more than 210 digital solutions to plan, build and operate industrial operations with higher productivity and safety at lower costs.

Dassault Systèmes, meanwhile, works with companies of all sizes in 11 industries to help them meet new challenges. “The 3DEXPERIENCE platform integrates all the technologies and capabilities that leverage knowledge and know-how into one cohesive digital innovation environment that delivers digital continuity from concept to manufacturing to ownership and back,” the two companies said. Industrial companies can integrate the platform’s 3D applications to create a digital twin that captures insights and expertise from across their entire ecosystem, to measure, assess and predict the performance of an industrial asset and help optimise its operation in an intelligent way, they added.

The ABB – Dassault Systèmes partnership will initially focus on factory automation and robotics, smart building and process industries.

On the latter, the two companies said: “Competitive pressure in process industries, such as mining, requires companies to continuously look for new ways to increase safety, productivity and energy efficiency of sites, while reducing costs and risk of daily operations. A digital model of the underground environment, in connection with mine planning and control systems, would allow to optimise energy consumption and mine automation, as well as enable mine operators to monitor and optimise production in real-time, while running virtual simulations of future scenarios.”

ABB reaffirms four pillar strategy following Power Grids sale to Hitachi

Hitachi has agreed to acquire 80.1% of ABB’s Power Grids division in a deal that come with an enterprise value (EV) of $11 billion.

ABB says this divestment is an expansion of its existing partnership with Hitachi that dates back to 2014. The EV is equivalent to an EV/operating profit EBITA multiple of 11.2 x 1, ABB said.

ABB said: “Since 2014, Power Grids has been significantly improved under the ownership of ABB. The latest results (Q3, 2018) are at the target margin corridor, having more than doubled margins, with positive third party base order development recorded for the last six consecutive quarters.”

The Power Grids division serves utility, industry, transportation and infrastructure customers and is focused on addressing key areas such as the integration of renewable energies, growing network complexity, grid automation, and micro-grids.

ABB continued: “In the fast-changing world of energy infrastructure, with a shifting customer landscape and the need for financing and increased government influence, ABB believes Hitachi is the best owner for Power Grids.

“As a stable and long-term committed owner, with whom ABB has developed a strong business partnership since 2014, Hitachi will further strengthen the business, providing it with access to new and growing markets as well as financing. Hitachi will accelerate Power Grids to the next stage of its development, building on the solid foundation achieved under ABB’s previous ownership.”

As part of the deal, ABB will initially retain a 19.9% equity stake in the joint venture, but the transaction agreement includes a pre-defined option for ABB to exit the retained 19.9% share, exercisable three years after closing, at fair market value with floor price at 90% of agreed EV.

The joint venture will be headquartered in Switzerland, with Hitachi retaining the management team to ensure business continuity.

ABB says this deal is all part of its efforts to simplify its business model and structure. Effective April 1, 2019, ABB will discontinue its “legacy matrix structure”, allowing its four leading businesses to serve customers even better, it said.

These businesses are the Electrification, Industrial Automation, Robotics & Discrete Automation and Motion.

“Each business will be either the global #1 or #2 player in attractive markets with strong secular drivers. ABB’s established domain know-how, world-class engineering and technology expertise, will position the four businesses well to deliver innovative products and solutions for enhanced customer value,” the company said.

“Based on ABB’s common digital platform ABB Ability™, the businesses will provide tailored digital solutions, driving enhanced customer value. Building on emerging technologies including artificial intelligence and its strong software offering, ABB Ability will meet the increasing demand from ABB’s customers for digital solutions in the rapidly changing industrial world.”

ABB CEO, Ulrich Spiesshofer, said: “Our four newly shaped businesses, each a global leader, will be well aligned to the way our customers operate and focus stronger on emerging technologies such as artificial intelligence. The continued simplification of our business model and structure will be a catalyst for growth and efficiency in our businesses. Our businesses will be further supported through the transfer of experienced resources from today’s country organisations.”

The Electrification business, which presently has an addressable market of $160 billion, will have strong exposure to rapidly growing customer segments including renewables, e-mobility, data centres and smart buildings, ABB said. It will be led by Tarak Mehta, currently President of the Electrification Product division.

The Industrial Automation business will include ABB’s industry-specific integrated automation, electrification and digital solutions, control technologies, software and advanced services, as well as measurement and analytics, marine, and turbo-charging offerings. The addressable market of $90 billion is expected to grow on average by 3-4%/y over the long-term. The business will be led by Peter Terwiesch, currently President of the Industrial Automation division.

The Robotics and Discrete Automation segment has digital solutions and services that provide customers with enhanced safety, efficiency, up-time and speed, and cater to the growing customer demand for flexible and integrated manufacturing solutions, ABB says. It will be led by Sami Atiya, currently President of the Robotics and Motion division.

The Motion business, meanwhile, will provide customers with a range of innovative electrical motors, generators, drives, and service, as well as integrated digital powertrain solutions. It will be the number one player in the sector and be led by Morten Wierod, currently Managing Director Business Unit Drives.

ABB intends to host a strategy update alongside its December quarter results, expected on February 28.