Model Analysis and Trend Research on Strategy and Development for Siemens in Digital Transformation

Society is experiencing the wave of the fourth industrial revolution. According to Fama-French five factor model, the market is more suitable for small, aggressively risk appetites and poorly profitable companies in the software industry, reflecting the potential of digital development. This research shed light on the strategies of digital transformation and the industry layout of Siemens. For internal strategies, Siemens builds smart factories and disposing of some traditional operations improved the profit margin significantly. As for the external layout, acquiring lots of superior software such as MES and PLM, and completing the framework of the industrial internet industry chain constructed an exhaustive standard for other companies in the manufacturing. The outlook for Siemens is focusing on the development of digitalization. According to the trend of technology, Siemens should enter the preparation for Industry 5.0. Improving profitability, resilience, and sustainability will be the targets in the future. This research evaluates the performance of Siemens in the Industry 4.0 revolution, which provides an example to adapt digital transformation for other companies to learn and illustrates the benefits of Industry 4.0 as well. Especially for many developing countries like China, there are many manufactories facing transformation, Siemens’ digitalization is helpful for reference.