Visionary companies will try to meet that demand either by revamping their divisions or by partnering with companies that boast of "city infrastructure" capabilities. Frost & Sullivan's recent research shows that Siemens is one company that is setting a precedent to win the urban race for city opportunities.
The company has adopted a simple yet effective strategy. Already an integrated technology company with business areas (known as Sectors) in industry, energy and healthcare, Siemens AG has unveiled a strategic move to create a fourth Sector called Infrastructure and Cities (IC) to exploit the future city infrastructure spending and compete with its rivals that sell city infrastructure solutions in the urban sector.
"Siemens has cleverly combined its existing capabilities and competencies" explained Frost & Sullivan Program Manager, Visionary Innovation Research Group, Archana Amarnath. "This strategy has now opened doors to a €2 trillion market of annual global city infrastructure spending – out of which Siemens has an addressable market of €300 billion per year."
The "Infrastructure & Cities" sector provides innovative and customized city concepts for mayors and urban planners spanning right from integrated mobility solutions and city research to consultative selling cooperation with cities."With its new IC division, Siemens offers one of the most competent and comprehensive portfolios for urban infrastructure solutions," noted Ms. Amarnath. "By bundling its competencies related to city business and creating a targeted approach, the company now has a distinct competitive advantage over its rivals in the urban space. It has leveraged on a combination of its success factors – a global network of city account managers, the ability to replicate successful city solutions and the capability of delivering both unbundled and packaged city solutions by integrating one or all of the competencies of its different business areas." The newly installed City Account Manager (CiAM) program forges relationships with mayors and urban planners and offers customized solutions depending on the need and requirement of each city. Additionally, City Centers of Competence focuses on improving urban planning competencies for technologies, different ways of bundling technical know-how and partnering with institutions such as NGOs, think tanks and universities.