Case | HBS Case Collection | October 2001 (Revised March 2002)

Siemens AG: Global Development Strategy (A)

by Stefan H. Thomke and Ashok Nimgade

Abstract

Describes how Siemens, the German electrical engineering giant, has developed and manages global R&D in its large Information and Communications Networks (ICN) division. In 1994, Siemens opened its Bangalore (India) center, which has now grown into one of its largest regional development centers outside Germany. With Bangalore asking for increased resource independence and managerial autonomy, senior management has to decide how the activities in India fit into its global development strategy. This tension is played out in a large software project led by Bangalore developers in which an increase in project autonomy also results in serious technical problems for Siemens in the quality-driven telecommunications equipment industry.

Keywords: Global Strategy; Research and Development; Cross-Cultural and Cross-Border Issues; Product Development; Telecommunications Industry; Germany; Bangalore;

Citation:

Thomke, Stefan H., and Ashok Nimgade. "Siemens AG: Global Development Strategy (A)." Harvard Business School Case 602-061, October 2001. (Revised March 2002.)