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Page 1 SUMMER TRAINING REPORT ON “Comparative Analysis of Customer Preferences towards Imaging & Diagnostic Equipments” ---- A Study on Delhi Region At SIEMENS HEALTHCARE LTD, NEW DELHI Project Guide: Submitted By: Mr. Aseem Julka 27-MBA-10 (Sales Manager) BATCH: (2010-2012) Submitted in the partial fulfilment of requirement for the award of Degree of Master of Business Administration from THE BUSINESS SCHOOL

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Summer Internship Report at Siemens Healthcare Ltd.For more info mail me at [email protected]

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Page 1: SIEMENS HEALTHCARE LTD

Page 1

SUMMER TRAINING REPORT

ON

“Comparative Analysis of Customer Preferences towards Imaging &

Diagnostic Equipments”

---- A Study on Delhi Region

At

SIEMENS HEALTHCARE LTD, NEW DELHI

Project Guide: Submitted By:

Mr. Aseem Julka 27-MBA-10

(Sales Manager) BATCH: (2010-2012)

Submitted in the partial fulfilment of requirement for the award of

Degree of Master of Business Administration from

THE BUSINESS SCHOOL

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DECLARATION

I, RAGHAV GANDOTRA student of THE BUSINESS SCHOOL, UNIVERSITY OF

JAMMU pursuing M.B.A course hereby declare that the project work entitled

“A Comparative Analysis of Customer Preferences for Imaging & Diagnostic

Equipments” is an original work carried out by me, availing the guidance of

my project guide. This report bears no resemblance with any other report

submitted to University of Jammu or any other University for the award of

any degree.

Place: Jammu

Date: 10-08-2011 RAGHAV GANDOTRA

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ACKNOWLEDGEMENT

“No task is a single person’s Endeavour. Various factors, situations and

people integrate to provide the background for the accomplishment of the

task. Behind this work lie the kind help, assistance and valuable advice of

many people to whom we will remain indebted.”

I extend a whole hearted thanks to my mentors Mr. Aseem Julka (Sales

Manager) & Mr. Rishabh Aggarwal (Sales Manager) for their valuable

contribution in a substantial way during all the stages of the preparation of

this report. Their guidance at every stage of the project enabled me to

successfully complete this project, which otherwise would not have been

possible without her constant encouragement and motivation.

My special thanks to Siemens Ltd. (Healthcare Division), which accepted me

in spite of my inexperience in the field, and gave me the opportunity to work

and learn with them. Words seem to be inadequate to express my sincere

thanks to Mr. Girish Sadana (Senior Manager-Sales) and Mr. Amit Varshney

(Regional Marketing Manager), who, in spite of their busy schedules, gave

me their valuable guidance, constructive criticism, untiring efforts and

immense encouragement during the entire course of study due to which my

efforts have been rewarded.

I would also like to extend my gratitude to all the employees of Siemens

Healthcare Ltd, for providing me vital information regarding the project. I

thanks for their coordination and cooperation.

RAGHAV GANDOTRA

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CONTENTS

o Certificate

o Declaration

o Acknowledgement

Chapter 1 : Company Profile

Siemens Ltd - At a Glance

Siemens Worldwide

Siemens in India

Siemens Healthcare in India

Chapter 2 : Products & Services Portfolio

Imaging & Diagnostic Products Portfolio

Siemens Environmental Portfolio

From Recycling to Refurbishing

Chapter 3 : Competitor’s Overview

GE Healthcare

Philips Healthcare

Chapter 4 : Research Methodology

Data analysis of consumer preference & interpretation

Chapter 5 : Findings & Conclusion

List of potential buyers

Limitations and Scope for Future Study

o Bibliography

o Annextures

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SIEMENS LTD. – AT A GLANCE

Siemens was founded in Berlin by Werner von Siemens in 1847. As an extraordinary

inventor, engineer and entrepreneur, Werner von Siemens made the world's first

pointer telegraph and electric dynamo, inventions that helped put the spin in the

industrial revolution. He was the man behind one of the most fascinating success

stories of all time - by turning a humble little workshop into one of the world's largest

enterprises. As Werner had envisioned, the company he started grew from strength

to strength in every field of electrical engineering. From constructing the world's first

electric railway to laying the first telegraph line linking Britain and India, Siemens was

responsible for building much of the modern world's infrastructure.

Siemens is today a technology giant in more than 190 countries, employing some

440,000 people worldwide. Siemen‟s work in the fields of energy, industry,

communications, information, transportation, healthcare, components and lighting

has become essential parts of everyday life. Founded more than 150 years ago, the

company is active in the areas of Information and Communications, Automation and

Control, Power, Transportation, Medical, and Lighting.

a) Vision Statement

To remain market leader and technology pace setter in the engineering and

electronics industry by utilizing the high-tech engineering expertise of the Siemens

group worldwide to maintain our strong and prominent local presence.

b) Mission Statement

To realize our vision by-

Providing quality to our customer at competitive prices, to their complete

satisfaction.

Generating earning sufficient to ensure a secure future for the company and

to protect and increase our shareholders investments.

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To enhance creativity and job satisfaction of our employees by providing

opportunities for personal development, limited only by their own ability and

drive.

To contribute to the national economy, whilst realizing a strong sense of

responsibility to society and the environment.

To enhance the investment of our customer through Human Excellence, our

Technology, our Processes, our High Standards of Quality and Financial

strength.

c) Siemens Business Philosophy

“To set the benchmark by being the „Best in Class‟ in their fields and

to create value for their customers, wealth for their shareholders, and a future for

their employees while giving back graciously to society, a piece of their success.”

d) Principles of Siemens

Customers

People

Innovation

Responsibility

Value

We strengthen our CUSTOMERS - to keep them competitive

Our success depends on the success of our customers. We provide our customers

with our comprehensive experience and solutions so they can achieve their

objectives fast and effectively.

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We empower our PEOPLE - to achieve world-class performance

Our employees are the key to our success. We work together as a global network of

knowledge and learning. Our corporate culture is defined by diversity, by open

dialogue and mutual respect, and by clear goals and decisive leadership.

We push INNOVATION - to shape the future

Innovation is our lifeblood, around the globe and around the clock. We turn our

people's imagination and best practices into successful technologies and products.

Creativity and experience keep us at the cutting edge.

We embrace corporate RESPONSIBILITY - to advance society

Our ideas, technologies and activities help create a better world. We are committed

to universal values, good corporate citizenship and a healthy environment. Integrity

guides our conduct toward our employees, business partners and shareholders.

We enhance company VALUE - to open up new opportunities

We generate profitable growth to ensure sustainable success. We leverage our

balanced business portfolio, our business excellence and synergies across all

segments and regions. This makes us a premium investment for our shareholders.

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SIEMENS WORLDWIDE

Initially there were three units in different areas of operation: SRW-Siemens

Reiniger werke (Medical Engineering), SSW-Siemens Schukert Werke (energy)

and SH_Siemens Halske (Communication). They finally merged into Siemens AG

(Aktiengesellschaft) in the 1970„s.

To continue with its pioneering research and to stay ahead in the field of electrical

and electronic technology, Siemens put strong emphasis on research and

development with over 4500 employees engaged in this key activity of approximately

8% of the turnover. On an average Siemens spends DM 35 million a day on R&D

and has its R&D centers in Europe and USA apart from Germany.

Worldwide sectors and divisions of Siemens

Siemens is categorized in 3 main divisions namely:

1. Industry

2. Energy

3. Healthcare

e) Industry Sector – Overview

The industry sector is one of the world‟s leading suppliers of manufacturing,

transportation, building and lighting systems. By continuously optimizing productivity,

efficiency and flexibility, the division is increasing the economic and environmental

competitiveness of its customers in the industry and infrastructure segments. Some

major contributions include customized motors, industrial water treatment and

VELARO high speed trains.

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( in million Euros ) Q2 2011 Q2 2010

Revenue 7,812 9%

New orders 8,371 22%

Profit 824 45%

Profit margin 10.50% Trgt: 10-15%

% YoY SEQ Growth

(Performance in 2nd Quarter)

22%

34%

24%

20%

REVENUE BY REGION ( FY 2010 )

ASIA , AUSTRALIA

EUROPE,AFRICA,CISMIDDLE EAST(EXCLUDINGGERMANY)

AMERICAS

GERMANY

Key figures of the year 2010 (in million of Euro)

Total revenue- 34,869

New orders- 34,908

Profit -3,478

Employees- 204,000

The Industry sector of Siemens is further divided in to various sub-sectors or

divisions such as:

Drive technologies

Industry automation

Building technologies

Mobility

Industry solutions

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Industry Sector- Drive Technology Division

Division profile

Productivity, energy efficiency and reliability are the key requirements of the

Division‟s customers. And as the world‟s no. 1 supplier of products, end to end

systems, applications and services for complete power trains and for all the industry

segments, Drive Technologies has the solutions they need.

In million of euros Q2 2011 Q2 2010

New orders 2,262 25%

Revenue 1,978 22%

Profit 259 47%

(Performance in 2nd Quarter)

Industry Sector – Industry Automation Division

Division profile

Fast, flexible, efficient: industry automation offers its customers a unique

combination of automation technologies and industrial software spanning entire

value chain- from product design to service. The portfolio enables industry

customers to slash time-to- market by up to 50 percent.

( in million of Euros) Q2 2011 Q2 2010

New orders 1,862 23%

Revenue 1,746 23%

Profit 306 60%

(Performance in 2nd Quarter)

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Industry sector – Mobility Division

Division profile

By networking transportation systems more effectively, the Division‟s integrated

solutions for intermodal transport, traffic management, postal automation and airport

logistics are making the movement of people and goods more efficient and eco-

friendly.

In million of euros Q2 2011 Q2 2010

New orders 1,448 27%

Revenue 1,978 -4%

Profit 64 n/a

(Performance in 2nd Quarter)

Industry sector – Industry Solution Division

Division profile

Industry solutions is a leading providers of solutions and services for industrial plants

and infrastructure systems, helping customers increase their competitiveness across

entire lifecycle and offering attractive solutions in the areas of energy efficiency,

pollution control and water management.

New orders/ innovation in Q2

The Division received another order to equip an AIDA cruise ship with diesel- electric

propulsion systems and power generation and distribution systems. The order, with a

value in the lower double- digit million euro range, also includes automation

equipment for controlling and monitoring all on-board systems.

In million of euros Q2 2011 Q2 2010

New orders 1,572 10%

Revenue 1,978 -4%

Profit 64 n/a

(Performance in 2nd Quarter)

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f) Energy Sector - Overview

The energy sector is one of the world‟s leading suppliers in the field of energy

technology. The sector enables customers to generate, transmit and distribute power

at the highest levels of efficiency. It helps them also to produce, convert and

transport the primary fuels oil and gas. It includes the set up of industrial gas

turbines, wind turbines and HVDC transmission.

( in million of Euros) Q2 2011 Q2 2010

New orders 6,707 8%

Revenue 9,205 51%

Profit 2,421 198%

Profit margin 36.10% Trgt: 10-15%

(Performance in 2nd Quarter)

15%

51%

26%

8%

REVENUE BY REGION ( FY 2010)

ASIA , AUSTRALIA

EURORE,CIS, AFRICA,MIDDLE EAST(EXCLUDINGGERMANY )

AMERICA

Key figures of the year 2010 (in million of Euros)

Total revenue -25520

New orders- 30122

Profit -3562

Employees- 88000

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The Energy sector of Siemens is further divided in to various sub-sectors or

divisions such as:

Fossil power generation

Renewable energy

Oil and gas

Energy services

Power transmission

Power distribution

Energy Sector – Fossil Power Generation Division

Division profile

The division generates more electricity from less fuel with innovative technologies.

Fossil power generation boosts the efficiency of coal and gas – based electricity

production and provides technologies for low-carbon fossil power generation.

New orders /Innovation in 2nd Quarter of 2011

Siemens has received an order from Saudi Arabia for the supply of components for a

combined cycle power plant with an associated desalination facility. The order is

worth more than USD 1 billion , making it one of the largest posted by Siemens

Energy in the Middle East. Commercial operation of the facility is scheduled to begin

in early 2014.

In million of euros Q2 2011 Q2 2010

New orders 3,206 42%

Revenue 2,538 4%

Profit 2,049 >200%

(Performance in 2nd Quarter)

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Energy Sector – Renewable Energy Division

Division profile

In the dynamic renewable market, the renewable energy division is steadily

expanding its position – with innovative wind turbines that rank among the most

reliable in the world , with large – scale photovoltaic projects and with leading- edge

technologies for solar- thermal power plants.

New orders /Innovation in 2nd Quarter of 2011

The division secured another order for an offshore wind power plant in Germany.

The company will supply up to 89 wind turbines for the Borkum Riffgrund 1 project in

the Northsea off the Germany coast. With a total capacity of 320 megawatt, the wind

power will supply approximately 330,000 German households with clean electricity.

in million of Euros Q2 201 Q2 2010

New orders 1,967 >200%

Revenue 931 8%

Profit 48 -53%

(Performance in 2nd Quarter)

Energy Sector –Oil and Gas Division

Division profile

The division offers customers in the oil and gas, process and energy supply

industries a wide portfolio of products and solutions for the eco-friendly and

resource- saving utilization of energy in areas such as the production and processing

of oil and gas and the energy – efficient generation of electricity.

In million euros Q2 2011 Q2 2010

New orders 1,390 18%

Revenue 1,123 15%

Profit 125 5%

(Performance in 2nd Quarter)

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Energy Sector – Power Transmission Division

Division profile

Low –loss power transmission, reliable switchgear and transformers , and advanced

power transmission systems. The division leverages its innovative strength to enable

customers to transmit power- for example, green electricity from renewable energy

from renewable energy sources like off shore like off-shore wind farms- safely and

efficiently.

In million euros Q2 2011 Q2 2010

New orders 2,040 43%

Revenue 1,557 14%

Profit 142 -5%

(Performance in 2nd Quarter)

Energy sector – Power Distribution Division

Division profile

The Division meets the prerequisites for sustainable energy management by

providing smart grid technologies that increases the efficiency of energy systems. It

offers customers innovative medium-voltage components and systems, solutions for

electrical systems and networks.

In million euros Q2 2011 Q2 2010

New orders 785 1%

Revenue 711 7%

Profit 54 -42%

(Performance in 2nd Quarter)

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g) Health Sector – Overview

The healthcare sector is one of the world‟s largest providers to the healthcare

industry. Its core competencies are on the hand, diagnostic systems and therapeutic

technologies, and on the other, knowledge processing – including information

technology and systems integration. Siemens healthcare is the first integrated

healthcare company that combines imaging systems, laboratory diagnostics,

treatment solutions and healthcare IT- rounded off by consulting and services.

In million euros Q2 2011 Q2 2010

Revenue 3,117 5%

New orders 3,119 6%

Profit 450 -4%

(Performance in 2nd Quarter)

20 %

29 % 42 %

9 %

EXTERNAL REVENUE LOCATION OF CUSTOMER

ASIA , AUSTRALIA

EUROPE, AFRICA ,MIDDLEEAST(EXCL. GERMANY)

AMERICAS

GERMANY

Key figures of the year 2010 (in million of Euros)

Total revenue -12364

New orders- 12872

Profit -748

Employees- 48500

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The healthcare sector of Siemens is further divided in to various sub-sectors or

divisions such as:

Imaging and therapy

Clinical products

Diagnostics

Health Care Sector – Imaging and Therapy Systems Division

Division profile

Today, innovative imaging systems like computer tomographs (CT scanners) and

magnetic resonance scanner ( MRI scanners) are routinely used in hospitals and

doctors‟ offices. They enable early disease detection, reliable diagnosis and effective

treatment. Innovative imaging systems allows forms of therapies which are more

gentle on patients and also open up treatment options for diseases up to now difficult

to treat. The division is also working on better interlacing imaging and therapy. The

Division‟s advanced IT solutions help make healthcare more patient oriented , open

and transparent. Workflow can be designed more efficiently, cutting cost in the

process.

New orders /Innovation in 2nd Quarter of 2011

The university of Maastricht has contracted with Siemens Healthcare to deliver and

install three powerful, high- field magnetic resonance tomographs ( MRT). This order

is one of the largest to date in the history of Siemens Healthcare in the Netherlands.

The imaging devices will be used by the Brains Unlimited research project of the

University of Maastricht. The objective of the project is to further investigate how the

human brain functions.

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Healthcare Sector – Clinical Products Division

Division profile

The products of the Clinical Products Division address the largest imaging markets –

ultrasound and x-ray. In the emerging markets such as India, Brazil, and China, the

demand for the healthcare services increases continuously. Especially in countries

as large as China, healthcare requirements differ tremendously. While healthcare

delivery in megacities meets Western standards, the population in rural areas suffers

from merely rudimentary services. Having suitable ultrasound and x-ray products for

all these different needs is the task of Clinical Products. Additionally, the Division

provides essential components for imaging devices suited to the needs of the

respective customer.

New orders /Innovation in 2nd Quarter of 2011

Siemens introduced Mobilett Mira. Its first mobile digital x-ray system with a wireless

detector. The detector sends image data via W-LAN to an integrated imaging unit

and particularly facilitates examinations of the patients that are critically ill and have

only limited mobility. Also, a new, rotating swivel arm makes operating the unit easier

for clinical staff.

HealthCare Sector- Diagnostics Division

Division profile

Committed to advancing patient care, the division supports clinicians in diagnosing

diseases, managing patient‟s conditions, and monitoring medical therapies.

Diagnostic helps improve healthcare quality and reduce treatment costs through

early detection.

New orders /Innovation in 2nd Quarter of 2011

Siemens Healthcare achieved CE mark registration approval to sell a fully-

automated Mycophenolic Acid Test (MPAT) for use on the Dimension integrated

chemistry systems. The test monitors the level of the immunosuppressant drug used

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by physicians to prevent organ transplant rejection.

In million of euros Q2 2011 Q2 2010

New orders 918 6%

Revenue 924 5%

Profit 86 -21%

(Performance in 2nd Quarter)

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SIEMENS IN INDIA

Siemens ltd is a leading electrical and electronics engineering company in India.

Established in 1922, it was incorporated as a company in 1957 and in 1962 was

converted into a public limited company with 51 % of its equity held by Siemens AG

and the remaining 49 % held by Indian shareholders. It operates in the energy,

industry, healthcare, transportation, information, communications and components

business segments. It also operates joint ventures in the fields of communication and

information technology.

In addition Siemens group in India has presence in the field of power design,

renovation and modernization of existing power plant, lighting, and household goods.

The Siemens group in India has a widespread marketing and distribution network in

addition to multiple manufacturing processes in India. It also has a well-organized

up-market value addition in engineering, software, system integration, erection,

commissioning and customer services.

Siemens long association with India begins in the year 1867 when Werner Von

Siemens personally supervised the laying of the first transcontinental telegraphic line

between Calcutta and London. Siemens has played an active role in the

technological progress experienced in the last three decades. In the 60„s the nations

expanding investments in power generation called for a range of high quality

electrical and auxiliary equipments. Siemens grew out of response to this need.

First in a small way assembling switchboards at workshop in Bombay and Calcutta.

With products as varied as Switchgears, Motors, Drives and Automation, Power

systems automation, Railway signaling systems, Medical engineering and

telecommunication equipments.

The Siemens Group in India has emerged as a leading inventor, innovator and

implementer of leading-edge technology enabled solutions operating in the core

business segments of Industry, Energy and Healthcare. The Group‟s business is

represented by various companies that span across these various segments.

Siemens brings to India state-of-the-art technology that adds value to customers

through a combination of multiple high-end technologies for complete solutions. The

Group has the competence and capability to integrate all products, systems and

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services. It caters to Industry needs across market segments by undertaking

complete projects such as Hospitals, Airports and Industrial units. In all areas of their

operation they provide their complete range of offerings. In the energy sector, their

expertise ranges from power plants to meters and in the Industry sector; they build

airports, as well as produce contractors. In transportation, they deliver complete high

speed train where as in lightning, they illuminate large stadium and also manufacture

small light bulbs. In Healthcare, they execute complete solution for hospitals, as also

provide “in the canal” hearings aids. In Communication segment they offer a

complete spectrum of products from large public networks to mobiles phones.

The Siemens Group in India comprises of 22 companies, providing direct

employment to over 17,000 persons. Currently, the group has 18 manufacturing

plants, a wide network up of Sales and Service offices across the country as well as

over 500 channel partners.

Today, Siemens, with its world-class solutions plays a key role in India‟s quest for

developing modern infrastructure.

Siemens offer a stable performance in a challenging year-

It has started 60 new SMART projects to target a market worth over €7 billion.

Siemens manufactured India‟s first single –phase 500MVA HVDC

transformer, first company to manufacture 145Kv insulated switchgear.

Siemens received first turnkey metro rail contract for signaling, electrification,

rolling stock and system integration for the new 6.1 Km metro line connecting

Gurgaon‟s Cyber City to Line 2 of the Delhi metro.

Major Segments of Siemens in India are:

o POWER GENERATION:

Towns world over are not known for their buildings and houses but because of their

infrastructure, and power is backbone for any nation„s development. Siemens have

been supplying the technological know-how, equipments and expertise to the power

industry, both public and private sectors, since 1954. it plays an important role in

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generating over 30,000 MW of power close to half of the total installed capacity in

the country today. Siemens is associated with major power projects in the country-

500MW turbojets and 200 MW Combined Cycles Power Plant. For Tata Electric

Company at Trombay, the gas based Combined Cycle Power Plant for Maharashtra

State Electricity Board (MSEB) at Uran and 655 MW Combined Cycle Power Plant

for Gujarat Torrent Energy Co-operation in Gujarat and 3 X 500MW Jayamkondam

Lignite Power corporation in Tamil Nadu.

o SWITCHGEARS:

The increased operating requirement demanded by today„s industries has led to a

considerable change in the technology for modern distribution and control gear. For

example, they must be: able to communicate with electronic systems and meet

stringent regulations for personal safety, in addition to coping with increased

switching duties and inrush currents. The Siemens range of distribution and control

equipment has not only been continually upgraded and recognized fulfill these

requirements of the 21st century but it is manufactured and tested to such high

standards that it requires very little maintenance, thus providing a long and reliable

operation.

o MOTORS DRIVES AND UPS SYSTEMS:

MOTORS: Siemens motors are high quality machines, which are designed to

combine to very vital requirements of modern industry-optimum efficiency and high

reliability. They have economical energy consumption and are resilient enough to

withstand wide voltage and energy fluctuations. The user friendly ranges of motors

are available in several ratings of horsepower and speed and in different

constructions that enable the right power to be selected, both technically and

economically. Customs built equipments have always been a tradition with Siemens.

Sugar centrifuge motors for the cane crushing process, motors for AC variable speed

drives for the machine industry, material handling, steel and mining industry are

some of the special purpose motors.

DRIVES: Variable speed drives are well established in all the sectors of the industry.

Siemens offers the complete range of AC/DC drives for a variety of industrial

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applications. Siemens drives guarantee stable operation in the manufacturing

process, holding the process parameters within extremely tight limits. They ensure

optimum product quality and maximum production. These drives are energy

conserving, adaptable to all voltage levels used worldwide, and can be simply

integrated into automation environment via the communication bus systems.

UPS: to supply critical loads with power that is available even during shutdowns,

Siemens had introduced microprocessor based transistorized UPS (uninterrupted

power supply) systems that are highly reliable and service friendly. The range

extends from 0.5 KVA to 500 KVA.

o TRANSPORTATION SYSTEMS:

Efficient transportation is an essential part of supportive infrastructure. Siemens

continues to maintain their leading position in the safety systems for the railways.

Siemens has provided electric railway signaling equipment that has increased speed

and safety of travel. In the Centralized Route Relay Interlocking System, the operator

sets a safe train route, visually indicated on a control panel, which eliminates all

conflicting moves. This has resulted in increased utilization of existing networks

whether these systems have been introduced. Siemens Automatic Warning Systems

(AWS) already in operation on the central end western railways ensures safety

through immediate halting of the train that crosses a red signal. In keeping with the

modernization program of the Indian railways, Siemens has already diversified their

activities.

o INFORMATION AND COMMUNICATION:

Telecommunication has become intimately inter-women into modern society and

with the increasing number of Internet telephone service providers and rapid rise of

call centers all the more importance is attached to it.

Siemens is a global and leading provider of information and communication solutions

for the Enterprise and Carrier markets. This includes a complete of convergent

solutions combining voice, data, video and mobility. With the liberalization of policies

by the government, the telecommunication scenario has undergone a sea of change

the areas that were inaccessible became accessible and Siemens is now

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acknowledged key player in Indian Telecom Infrastructure development. It has also

set up subsidiary/associate companies, namely:

Siemens Public Communication Networks Limited (SPCNL).

Information and Communication Mobile Devices (ICM MP).

Siemens Business Communication Systems Limited (SBCSL).

(Offices of Siemens in India)

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(Siemens India Ltd. Organization Hierarchy)

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SIEMENS HEALTHCARE IN INDIA

Siemens Healthcare (formerly Siemens Medical Solutions, internally within Siemens

known as "Med") is a supplier to the healthcare industry, and is headquartered in

Erlangen, Germany. The name Siemens Medical Solutions was adopted in 2001.

Medical engineering is constantly enhancing the effectiveness of the diagnostic and

therapeutic modalities now available to the medical profession. The rapid advances

in electronics have resulted in phenomenal benefits accruing to modern medicine.

Non-invasive, imaging, faster and accurate diagnosis and paper free documentation

of patient data are just a few of the benefits. Siemens has supplied, installed and

continues to maintain wide range of diagnostic equipment in the most of the leading

hospitals and medical centers in India. Other installations in the intensive care units

(ICU„s) include patient monitoring systems, Servo-ventilator and Defibrillators.

Products – mix width of healthcare sector of Siemens India is very vast. It is divided

in to different categories:

Diagnostic imaging and therapy

Laboratory diagnostic

Hearing instruments

Infrastructure solutions

IT solutions and services

Diagnostic imaging and therapy

It provides the entire spectrum of imaging systems for diagnosis and therapy, from

the electro-medical arena and audiology to IT solutions that optimize workflows in

hospital and private, resulting in higher levels of efficiency.

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Products, Solution and Services of Diagnostic Imaging and Therapy are-

Laboratory diagnostics-

In in- vitro diagnostics, Siemens offer a broad portfolio of performance – driven

solutions that provide more effective ways to assist in the diagnosis, monitoring and

management of disease. Their products and services offer the right balance of

science, technology and practically across the healthcare continuum to provide the

information to deliver better, more personalized healthcare to patients.

Products, Solutions and Services of Laboratory Diagnostic are

Core laboratory – Automation

Siemens healthcare diagnostics open systems features automation solutions and

preanalytical components that have the flexibility to adapt to virtually any laboratory

condition, including size, shape and available space.

Core laboratory- Hematology:

Siemens hematology systems provide more accurate. First- pass results for

laboratory hematology testing.

Core laboratory -Hemostasis

Siemens powers up your lab with a comprehensive portfolio of hemostasis products.

The wide range of analyzers and assays is perfectly aligned to improve operational

efficiency in the laboratory.

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Molecular diagnostics:

Siemens molecular testing systems enable early detection of major infectious

efficacy, and selection of targeted, individualized options.

Hearing aids –

Hearing instruments- Siemens provide a wide range of discreet , attractive and

powerful hearing systems that are tailored to the needs of modern , active lifestyles

and open up an entirely new world of hearing.

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IMAGING & DIAGNOSTIC PRODUCTS PORTFOLIO

Siemens Ltd. manufactures a variety of products and also provides services to their

clients/customers in healthcare. There are basically two vertical of products.

Primary care

Secondary care

Following are the products that come under Primary care product:

X-Rays

Magnetic Resonance Imaging

Computed Tomography

Following are the products that come under Secondary care product:

Cath Labs

Patient Monitors

Ultrasound

Primary care products (Under this division the cost of products are above Rs 2Cr.)

Secondary care products (Under this division the cost of products are below Rs 2Cr.)

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Ultrasound Machine: Ultrasound basically refers to the procedure that uses high

frequency sound waves to view internal organs and produce images of the human

body. The human ear cannot hear the sound waves used in an ultrasound. Although

this limit varies from person to person, it is approximately 20 hertz to 20 kilohertz in a

healthy human body. These are as follows:

Acuson 300 Acuson Antares

Acuson 300 Premium Edition Acuson S 2000

Acuson X- 150

Acuson X300 Premium Edition Acuson Antares

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Acuson 300 Acuson X-150

Acuson S2000

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X-Ray machines: They are a form of electromagnetic radiation, just like visible light.

In a healthcare, a machine sends individual x-ray particles, called photons. These

particles pass through the body. A computer or special film is used to record the

images that are created. X-ray machines consist of two parts : X-ray machine and

high frequency generator.

X-ray machines are categorized on the basis of their mobility as :

Mobile x-ray machines: are the one which are easily movable from one place

to another. Mobile X-rays manufactured by Siemens are of 2 types. They are

namely Multimobil 2.5 and Multimobil 10. The term 2.5 and 10 signifies the

out power of the machine which is 2.5kw and 10kw respectively.

Static x-ray machines: are the one which cannot move from one place to

another. They are conventional x-rays.

The factory in Goa is one of the largest manufacturing bases for X-ray products.

Within a short period of time, the factory was awarded the prestigious seal of quality

ISO 9001- 1994 certification, by the underwriter Laboratories ( UL) USA.

Siemens offer 2 types of mobile x-rays:

Multimobil-2.5 Multimobil-10

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Conventional x ray machines offered by Siemens are of 2 types:

Pleophos D – 600 mA Heliophos D – 300 mA

High frequency generators offered by Siemens are of 2 types:

Multiphos 15 Multiphos 450

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MRI (Magnetic Resonance Imaging): MRI is a procedure used to scan patients and

determine the severity of certain injuries. An MRI machine uses a magnetic field and

radio waves to create detailed images of the body.

There are various varieties of MRI equipments manufactured by Siemens. Some of

them are MAGNETOM Concerto, MAGNETOM Avanto etc. Siemens provides

technologically advanced MRI equipments.

Magnetom Concerto

Magnetom Avanto 1.5T

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CT (Computed Tomography): Computed Tomography is based on the x-ray

principal: as x-rays pass through the body they are absorbed or attenuated

(weakened) at differing levels creating a matrix or profile of x-ray beams of different

strength. This x-ray profile is registered on film, thus creating an image. In the case

of CT, the film is replaced by a banana shaped detector which measures the x-ray

profile. Siemens provides technologically advanced CT equipments.

Various kinds of computed tomography manufactured by Siemens are:

SOMATOM Spirit

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SOMATOM Emotion

SOMATOM Sensation

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SIEMENS ENVIRONMENTAL PORTFOLIO

Success stories at Siemens Healthcare:

Worldwide, Siemens Healthcare employees support the Sector in acting in an

environmentally friendly and sustainable manner.

Some examples of their efforts are :

Green+ Hospitals:

The Siemens program Green+ Hospitals supports decision makers in healthcare in

achieving both their economic and ecological goals – with a broad portfolio of

products, solutions, and services for more sustainability in healthcare. Green+

Hospitals is not only about environmental protection, reduction of emissions and

energy savings: The plus stands for two further factors of success: efficiency and

quality. For example, due to the implementation of new compensation systems,

hospitals are managing the challenge to operate in a cost-efficient manner and to

offer highest quality in medical care with the best possible comfort for the patients

.Within a Green+ Hospitals project, at first ,the individual room for improvement of

the hospitals regarding environment, efficiency, and quality is being defined. Then,

the right solutions for the customers are chosen from the broad portfolio of Siemens.

Amongst others, this comprises solutions for building infrastructure and energy,

information and communication technology, medical technology and workflow as well

as services.

Involved employees: “GREEN Teams”

Siemens GREEN is short for “Grass Roots Eco-friendly Employee Network”. Several

environmentally conscious teams at Healthcare in the USA are participating in this

initiative. Their goal is to increase environmentally friendly activities at their places of

work. One of these “Green Teams“ is the environmental team of Siemens Hearing

Instruments (SHI) in Piscataway, New Jersey. The team is involved in retaining

natural resources, in not creating waste, and in reducing environmental hazards.

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Health Care Products in Siemens Environmental Portfolio:

1. MAGNETOM ESSENZA

Environmental benefits:

Reduction of energy consumption up to 50 percent

Reduction of installation requirements up to 25 percent

Reduction of product mass up to 20 percent

Zero Helium Boil-Off Technology: No helium consumption during normal

usage

Customer benefits

The most affordable2, all-new 1.5T MRI

Saves siting, electricity and construction costs

Low installation costs

Low connection values for energy and cooling.

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2. MAGNETOM AVANTO

Environmental benefits:

Zero Helium Boil-Off Technology: No helium consumption during normal

usage

Audio Comfort: Noise development reduced by up to 30 decibel

Material is up to 93 percent recyclable

All constituent materials are documented for high-quality use.

Customer benefits

Improved image quality and diagnosis

Substantially lower operating costs

Patient comfort increased considerably through reduction of noise

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3. SOMATOM Definition

Environmental benefits

Uses up to 30 percent less energy thanthe previous model

Reduced lead content by more than 80 percent from the previous model (from

110 kg to 19 kg)

97 percent recyclable

Customer benefits

Sharp and detailed images

Can distinguish between different tissue types in a single scan

Lower radiation doses

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FROM RECYCLING TO REFURBISHING

If a customer do not need a system anymore, it contains valuable components and

materials, that help to preserve natural resources. In order to return as much as

possible old products to economic cycle, Siemens have developed a four-stage

product take-back concept.

The Refurbished System constitutes only one part of the entire product take-back

process at Siemens Healthcare Sector. Because this consist of four sub-processes

(Refurbished Systems, Component Reuse, Extraction of spare parts as well as

Further Use/Recycling).

Siemens takes care of the disposal of your old medical devices

If desired it contains also disassembly at the site and complete evacuation. At the

same time it can be assured that old devices will be used and recycled in an

environmentally-friendly manner. Siemens Healthcare Sector has established a

network of de-manufacturing and recycling facilities in the countries where they

operate. Following nature's principle of recycling, Siemens takes back used medical

devices and refurbishes them with the same quality standards as expected in new

equipment using state-of-the-art technologies. The maintenance process of

Refurbished Systems enables the reuse of average 90 % of materials in refurbished

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devices. Bearing the "Proven Excellence" quality seal, these systems ensure the

customers comparable quality like a new system at up to 30 % lower costs of

purchase. The business unit contributes sustainable to environmental protection by

two decisive advantages. On the one hand the process extends life-cycle of the

systems and enables a longer use, on the other hand it contributes efficiently to

preserve valuable resources.

Environmental Protection, Occupational Health and Safety (EHS)

Demographic changes and concomitant rising cost pressures in the healthcare

industry require extensive diversified solutions that increase the quality of care and

simultaneously reduce costs. Siemens accepts this challenge as one of the industry

leaders of innovation and one of the largest manufacturers of healthcare equipment.

The company‟s extensive portfolio covers all areas of healthcare: from imaging

systems for diagnosis and therapy, lab diagnostics and audiology, to modern

information technology, as well as service, maintenance and last but not least

consultation in the areas of process optimization or hospital planning. And Siemens

Healthcare is continuously developing further: Through acquisitions, the company‟s

leading position in clinical information technology, especially in the field of hospital

information systems,was improved even further. For the first time, an integrated

diagnostic provider came to the fore in the healthcare industry that combines

imaging diagnostics, lab diagnostics, information technology as well as consultation

and service under one roof.Currently, close to 48,000 employees of Siemens

Healthcare worldwide work in more than 130 countries. In fiscal year 2009, the

company reached sales of 11.9 billion euros as well as an incoming order volume of

11.9 billion euros. The group result amounted to 1.4 billion euros.

The Environmental Protection, Occupational Health and Safety (EHS) department

within Siemens has been in existence since 1995. The main tasks of the department

tare to advice and support to worldwide compliance with regulations, to reduce

negative EHS aspects – these include, for example, the handling of hazardous

materials –and provide a healthy and safe workplace. In addition, EHS is responsible

for establishing improvement processes – for example, environmentally friendly

methods for production or production design. At each site, the person responsible for

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EHS takes care that EHS topics are implemented. The large number of diploma

thesis or dissertations written within EHS reflects the importance of the subject

matter. The Healthcare Sector welcomes new ideas and supports scientific research

in the field of EHS.

At Siemens Healthcare, more than 100 employees worldwide work for EHS. They all

contribute that EHS policy is applied.

EHS-Policy

Commitments:

• Continual improvement of our EHS performance to protect the environment and

provide a safe working environment

• Control and reduction of EHS hazards and business risks

• Create products and solutions to improve EHS aspects

• Conserve natural resources and prevent pollution

• Compliance to applicable EHS regulations to maintain market access

Environmental protection

Environmental protection includes such topics as emission control (emission of

material and noise pollution), soil and water conservation (e.g. when handling water-

polluting substances), and waste disposal (disposal of production waste and old

products). Increasingly, the emphasis of environmental protection has moved from

manufacturing to the overall view of the environmental effects of a product across all

phases of its product life. The environmental effects of medical products are

especially relevant during their usage. The use phase constitutes up to 75 percent of

the energy expenditure of a medical product (e.g., computed tomography). With its

integrated product policy, Siemens Healthcare aims to noticeably reduce

environmental aspects. In addition, the sector participates in the energy efficiency

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program which checks the energy consumption at worldwide factory sites and

reduces it whenever feasible.

Occupational health and safety

Classic occupational health and safety addresses primarily the prevention of

accidents and the protection of employees from work-related disease. Modern

occupational health and safety goes beyond these efforts and requires additional

preventive and integral solutions in the sense of an all en-compassing operational

health protection. For this reason, the Healthcare Sector developed a structure that

allows for timely detection of hazards and the reduction of work-related risks. Within

the Healthcare Sector, important tasks of occupational health and safety are the

creation and implementation of a worldwide occupational health and safety

organization within the framework of the EHS management system. The resulting

organizational measures for the protection of employees, such as qualification,

training in occupational medical and safety-related care, are also of significant

importance. In addition, workplaces worldwide (including auxiliary tools and

operating materials) are tested for their hazards and risks, actions are implemented

to reduce these elements, and their implementation and observance are monitored.

This allows for the early detection and minimization of possible work-related risks.

Because healthy and productive employees are the capital of a company, Siemens

Healthcare values health protection: Occupational preventive services and

emergency care for the employees are coordinated within the framework of health

management. Medical employees work closely with executives and experts for

occupational safety in evaluating hazards.

Radiation protection

Protecting employees from radiation plays an important role at Siemens. Radiation

protection applies, on the one hand, to ionizing radiation caused by X-ray tube

assemblies or radioactive substances or, at the other hand, to non-ionizing radiation

as it is present, e.g., when operating magnetic resonance imaging systems, lasers or

UV radiators.

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Past performances of Siemens healthcare:

The healthcare sector introduced several first-of-its kind products in the country. It

launched SOMATOM Definition Flash CT scanner, which is the fastest CT scanner

in the world with a low radiation dose. The world‟s first molecular CT scanner called

Biograph mCT was installed for the first time in India. The sector also introduced

country‟s first robotic cathlab, Artis zeego.

One of the most outstanding technologies introduced by Siemens was Liver

Elastography using ACUSON S2000 ultrasound system. With this ultrasound

system, for the first time in India it is now possible to non-invasively diagnose liver

disorders. Another ultrasound system launched was ACUSON SC2000 which

provides exclusive cardiac and vascular diagnosis. With this ultrasound system,

Siemens also introduced a technology called ECHO in a heartbeat that allows

volume scanning of a heart in one second.

The sector received the single largest bulk order from one of the government

entities. A significant export order was won from China for 20 units of multimobil 5C

C- arm systems and 40 units of multimobil 2.5 X-rays. The healthcare market in 2010

registered an overall growth of more than 10% over the year 2009.

Siemens Healthcare leveraged these growth opportunities and became the market

leader in India. The Sector maintained its leadership position in the business

segments of CT scanners, MRI, PET/CT scanners, Cath Labs and X-rays. With a

healthy Order intake and improved profitability, the overall performance of the sector

was excellent. For FY 2009-10, the Order Value increased by 28% to Rs 7.8 billion,

Sales jumped by 39% to Rs 7.5 billion, while Profits from Operations rose by 26% to

Rs 519 million.

The healthcare sector launched 2 MRI scanners called MAGNETOM Skyra 3 Tesla

system and MAGNETOM Aera 1.5 Tesla system , which provide a combination of

high –end technologies like Total Imaging Matrix( Tim ), 4G and Day Optimization

Technology ( dot) for the first time in Asia. The ultimate benefit of these technologies

is optimum patient comfort and excellent image quality, thus providing accurate

diagnosis. Exports from Goa continued to grow, where orders worth Rs400 million

were exported to 16 countries worldwide.

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COMPETITOR’S OVERVIEW

GE Healthcare

GE Healthcare is a division of GE Technology Infrastructure, which is itself a division

of General Electric (GE).[1] It employs more than 46,000 people worldwide and is

headquartered in Little Chalfont, Buckinghamshire, United Kingdom. GE Healthcare

is the first GE business segment to be headquartered outside the United States. In

2004 the formerly named GE Medical Systems was renamed GE Healthcare.

Type Subsidiary

Industry Medical

Founded 2004

Headquarter Little Chalfont, United Kingdom

Area served Worldwide

Key people John Dineen (CEO)

Products Medical equipment

Parent General Electric

GE HEALTH CARE

GE Healthcare has a range of products and services that include medical imaging

and information technologies, medical diagnostics, patient monitoring systems, drug

discovery, and biopharmaceutical manufacturing technologies.

GE Healthcare currently has 7 primary business units:

1. GE Healthcare Global Diagnostic Imaging, headquartered in Waukesha

(near Milwaukee), Wisconsin, USA. The Diagnostic Imaging business

includes X-ray, digital mammography, computed tomography (CT), magnetic

resonance (MR) and molecular imaging technologies.

2. GE Healthcare Clinical Systems, headquartered in Wauwatosa (suburb of

Milwaukee), Wisconsin, USA. This business provides a range of healthcare

technologies and services for clinicians and healthcare administrators. It

includes ultrasound, ECG, bone densitometry, patient monitoring, incubators

and infant warmers, respiratory care and anesthesia management.

3. GE Healthcare IT, headquartered in Barrington, Illinois, USA healthcare IT

provides clinical & financial information technology solutions such as

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departmental IT products, RIS/PACS (Radiology Information Systems/Picture

Archiving and Communication Systems) and CVIS (Cardiovascular

Information Systems).

4. GE Healthcare Medical Diagnostics, headquartered in Little Chalfont,

Buckinghamshire, UK. Medical Diagnostics researches, manufactures and

markets imaging agents used during medical scanning procedures to highlight

organs, tissue and functions inside the human body.

5. GE Healthcare Life Sciences, headquartered in Uppsala, Sweden. This

division produces technology for drug discovery, biopharmaceutical

manufacturing and cellular technologies. It also makes systems and

equipment for the purification of biopharmaceuticals.

6. GE Healthcare Surgery, headquartered in Salt Lake City, Utah, USA. This

provides tools and technologies for cardiac, surgical and interventional care,

from cardiac catheterization labs, diagnostic monitoring systems, 3D

visualization instrumentation.

7. GE Healthcare GoldSeal, headquartered in Wisconsin, USA. They are

providers of second-hand refurbished GE X-ray systems.

While it has offices around the globe, GE Healthcare has major regional operations

in Buc (suburb of Paris), France; Helsinki, Finland; Budaors (suburb of Budapest),

Hungary; Yizhuang (suburb of Beijing), China; Hino & Tokyo, Japan and Bangalore,

India. The product line offer by GE is also as vast as that of Siemens. It includes

various divisions like:

Diagnostic imaging- this include computed tomography , magnetic resonance

imaging, mammography, ultrasound.

Interventional & surgery- this include interventional X-ray, surgery mobile C- arms.

Healthcare IT-this include Healthcare IT, Ultrasound IT, Advantage Workstation.

Clinical systems- this include Anesthesia delivery, Diagnostic ECG, Maternal infant

care.

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Philips Healthcare

Philips is a multinational Dutch electronics company with its headquarters in

Amsterdam, Netherlands. It was founded in 1891 in Eindhoven (Netherland). It is

basically an electronic industry. Products offer by Philips are distributed in various

segments like- Philips consumer electronics, Philips domestic appliances, Philips

lighting, Philips healthcare, medical technology .It is employing 119,000 people in

more than 60 countries. Philips is one of the largest electronics company in the

world.

Product line offered by Philips is as vast as GE and SIEMENS. It is as follows:

Interventional X-ray

Philips cardiovascular X-ray systems deliver the flexibility and the workflow control.

Designed for interventional cardiac, vascular and neuro procedures, angiography

systems assist in providing excellent clinical care – with high image clarity and low

X-ray dose. These x-ray equipments can be used during various types of surgeries

like Interventional Vascular and Cardiac Surgeries, Electrophysiology, Interventional

Cardiology and Radiology.

Ultrasound

The new iU22 xMATRIX and iE33 xMATRIX ultrasound systems by Philips

healthcare promises to deliver outstanding image quality, and a single transducer

solution with 2D and 3D. The x-MATRIX imaging systems promises to change the

way one view ultrasound as a clinical tool. The ultrasound equipments offered by the

Philips healthcare can be used in cardiology, general imaging, regional anesthesia,

etc.

Operation Theater Lights

The Phililux range of Operation Theatre Lights use halogen lamps with proper filters

to give "cold" bluish white light, almost similar to natural light which is ideal for

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surgeries of all types. The Lights incorporate international safety standards like IEC

60601-2-41, S Mark. ISO 9000 quality standards are followed for design /

manufacturing / marketing.

The various kinds of lights offered by Philips are examination light, mobile lights,

ceiling lights single dome and ceiling lights dual dome.

Besides, these Philips healthcare also offers MRI equipments namely Achieva 3.0

TX , Ingenia 3.0T, Achieva 3.0T X-series and CT scanners as Brilliance iCT and iCT-

SP, MX 4000 Dual, MX 6000 Dual.

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RESEARCH METHODOLOGY

The research process methodology consists of six steps and these steps are as

follows:

1. Problem definition.

2. Development of an approach to the problem.

3. Research design formulation.

4. Field work or data collection.

5. Data preparation and analysis.

6. Report preparation and presentation.

Problem Definition

The first step in any marketing research is to define the problem. In defining the

problem, the researcher should take into account the purpose of study, the relevant

background information and the information needed.

Research Objectives

To assess the market coverage of Siemens & its competitors in Delhi‟s

Imaging & Diagnostic industry.

To analyse customer preference towards using of X-ray, CT-scan, Ultrasound

& MRI Scan equipments.

To find the potential customers for upgradation of equipments and the new

purchases.

Research Design

A research design is a framework for conducting the marketing research project. It

details the procedure necessary for obtaining the required information, and its

purpose is to design a study that will test the hypothesis of interest, determine

possible answers to research questions and provide the information needed for

decision making. Formulating the research design involves the following steps:-

(a.) Type of Research Design :- Empirical Research /Quantitative Research

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Quantitative Research: It is based on the measurement of quantity or amount. It is

applicable to phenomena that can be expressed in terms of quantity.

Empirical Research: It is data based research coming with conclusions, which are

capable of being verified by the observation and experiment.

(b.) Method of Collecting Quantitative Data :-

The research instrument which I am using in my research paper is a questionnaire. It

consists of 7 close ended questions. This questionnaire translates the information

needed into a set of specific questions that the respondents have to answer.

(c.) Scaling Technique :-

The scaling method which had been used in the questionnaire is

o Rank Order Scale

o Ordinal Scale

(d.) Sampling Technique :-

o Target Population : Hospitals & Diagnostic Centres

o Sampling Frame : Delhi region

o Sampling Size : 50

Method of data collection

o Primary data :-

These data were collected by personal interview with the existing customers.

o Secondary data :-

These data were collected from Siemens Annual Report 2009-2010, Internet & Siemens

Intranet, various magazines and journals.

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Data Analysis

What type of centre do you work at?

Analysis and interpretation:

Major players in the market in Delhi are private hospitals (42%) and diagnostic

centres (28%). A small portion is covered by government hospitals (8%) and nursing

homes (16%). There are very few charitable hospitals in Delhi as compare to the

private hospitals and diagnostic centres.

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Does your hospital have a formal policy or procedure for equipment

procurement?

Analysis and interpretation:

56% of the hospitals and other centres have formal policy for the procurement of the

equipments and of them mostly are private hospitals and government hospitals.

Small nursing homes and diagnostic centres which cover around 40% of the centres

don‟t have any formal policy for the equipment procurement.

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What type of medical imaging equipments do you have in your hospital/

diagnostic centre ?

CT [ ] MRI [ ] Ultrasound [ ] X-Ray [ ] All [ ]

Analysis and interpretation:

Of the total data collected, there were 23 CT scanners, 11 MRI machines, 46

Ultrasound equipments and 44 X-ray machines. Thus total machines covered are

124. Since MRI and CT scanner are very expensive, therefore it is difficult to find

these machines in every hospital. MRI and CT scanners were not found in small

nursing homes, charitable hospitals and small diagnostic centres. The highest

number of machines covered in ultrasound segment (46) and X-ray segment (44) as

these machines are not as expensive as MRI and CT and moreover many local &

other players (like Listem, Allenger, Aloka, Medison) have also entered the market in

ultrasound and X-ray segment.

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Which brand of imaging equipments are you using?

MRI Ultrasound CT X-Ray

Siemens 6 7 14 17

GE 4 22 6 11

Philips 1 7 3 7

Other(Please Specify)_________ 10 9

Analysis and interpretation:

The market span of the imaging equipments in Delhi region of different companies is

analysed. Siemens has captured 55% and 61% of the market in MRI and CT

SCANNER, respectively. Philips has captured around 9% of the market in MRI

division which is very low as compare to GE and Siemens. Siemens covers 39% of

the share in the X-RAY division in the market. Also, Siemens has around 15% of the

market in the ULTRASOUND segment which is very less as compared to the share

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of GE which captures around 48% and other local competitors like Aloka, Mindray,

and Medison (22%). Thus GE is giving very tough competition to Siemens in

ultrasound segment. GE maintains its leadership largely due to its broad product

pricing range. Its sales efforts are equally focused on both its high end systems and

also the low end ones. The company keeps gaining market share in terms of units

due to its large customer base that buys low-end systems. Philips, Siemens rely on

brand loyalty and extended service contracts for their customers. Other aggressive

companies include Mindray, Aloka, Esaote, L&T, Sonosite, Blue Star, Medison,

Sonoscape, and Shimadzu.

Q7. Since how long are you using the current imaging equipment‟s?

<1 Years 1-3 Years 3-5 Years 5-7 Years >7 Years

MRI 2 2 1 1 5

CT 3 5 2 3 10

Ultrasound 5 8 11 4 18

X-ray 3 4 9 5 23

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Analysis and interpretation

Nearly 46% of the MRI machines installed in Delhi area are in used for more than 7

years. Some of the hospitals and diagnostic centres are even using the MRI

equipments for more than 20 years. As these machines have high durability and

expensive and it is difficult for the small diagnostic centres, private hospitals and

nursing homes to replace the machines after a short period of time. This analysis

also helps us to find out some potential customers who wanted to purchase new MRI

machines for their centres.

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Analysis and interpretation

45% of the CT SCANNER installed in Delhi area are in used for more than 7 years

and only 13 % of the machines are recently installed (within a year). 22% machines

are just 2-3 years old. Some centres are even using the CT SCANNERS for the last

15- 20 years. This shows the ruggedness of the machines as once installed, can be

used for many years. Like magnetic resonance imaging, these machines are also

very expensive and it‟s a difficult task for small hospitals (private, charitable, nursing

homes) and diagnostic centres to replace it after a short period of time. The CT

SCANNERS of Siemens are highly durable and they are also very expensive. This

analysis also helps us to find out some potential customers who wanted to purchase

new CT SCANNERS for their centres.

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Analysis and interpretation:

38% of the ultrasound machines are in functioning for more than 7 years and after

that 24% of the machines are in being used for 3-5 years. As major proportion of the

machines is older, thus it gives an area to find new potential customers. Majorly the

market is covered by GE ultrasound and other small brands like Aloka, Mindray and

Medison, and due to these small brands the market span of the Siemens in

ultrasounds is less as the machines offered by these small brands are not as

expensive as that Siemens. Thus to find new customers in this segment is a tough

task for Siemens.

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Analysis and interpretation:

52% the centres are using the X-ray machines for more than 7 years. We have even

collected the data from a diagnostic centres named as X-RAY DIAGNOSTIC

CENTER, 1 DLF CENTER GK-II which are using the X- ray machines since 1982

and that machine was of Siemens. This depicts the durability of the X-ray machines

manufactured by Siemens. By doing this survey we found some potential customers

who want to purchase new X-ray machines for their centres.

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What are your preferences or priorities when buying medical imaging

equipment (X-Ray, ultrasound, MRI, CT)?

1 2 3 4 5

Image Quality

Brand name

Price

Ease of operation

After sale services

Durability

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Analysis and interpretation:

When customer eyes these parameters before buying the equipment although,

every parameter is equally and duly important. However in order to ease the

analysis the parameters are ranked according to their responses recorded.

32% of the respondents say that image quality is the most vital factor that they

look for before purchasing any imaging equipment.

Since the cost of equipments is very high, it is seen that the respondents are very

concerned with the after sales service offered by the company. It has been the

second best priority for the respondents (24%).

Pricing strategies adopted by all brands are quite different from each other and

the prices of equipments are quite high, therefore respondents ranked the pricing

as the third best factor.

Imaging giants like Siemens, GE, and Philips have made their existence marked

by their holistic approach towards healthcare market. This makes brand name the

fourth choice for respondents (12%).

It has been seen that the private sector customers are not very much concerned

about the pricing, but this factor is given a due importance by diagnostic centers

and nursing homes.

Durability has been rated as the fifth and only 9% respondents believe that they

are concerned with the expected life cycle of the equipment.

Now-a- days, companies like Siemens provide an on-site demo of equipments to

the potential buyers, so as to make them familiar with how to use the machine.

About 3% of respondents ranked ease of operations as the 6th factor in their

priority list.

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Are you planning to buy any new imaging equipment or looking for any kind of

upgradability?

Yes [ ] No [ ]

If yes, then please specify: MRI [ ] Ultrasound [ ] CT [ ] X-Ray [ ] All [ ]

Analysis and interpretation:

From the survey conducted I come to know that there are 8 potential customers out

of which some are looking for procurement of new imaging equipments and some

are looking upgradability in existing one.

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Kindly Rate the health care equipment manufactured by different brands on

different parameters by considering the following criteria

[1]- LOW [2]- AVERAGE [3]- HIGH

Company

Parameter

Brand

Name

Image

Quality

Pricing

Durability

After

sales

Sales

Promotion

Siemens

Philips

GE

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Analysis and interpretation:

Brand name- it is a name, term, sign, symbol, or design or a combination of them,

intended to identify the goods or services of one seller or group of seller and to

differentiate them from those of competitors.

Brand image- it is the perception and belief held by consumers as reflected in the

associations held in consumer memory.

Brand knowledge- this is all the thoughts, feelings, images, experiences, beliefs that

become associated with the brand.

55% of the respondents rated that brand name of Siemens is higher than that of

Philips and GE. Only 18% of the respondents rated that brand name of Philips is

higher and 27% rated that brand name of GE is higher than any other brand. Thus,

Siemens‟ brand name is higher than any other brand.

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Analysis and interpretation:

Image quality is a characteristic of an image that measures the perceived image

degradation (typically, compared to an ideal or perfect image).

47% doctors and technicians think that image quality of the imaging equipments like

CT SCANNER, MRI, ULTRASOUND and X-RAY is far better than the imaging

equipments manufactured by Philips and GE. Siemens diagnostic equipments are

giving a very tough competition to different companies on the basis of image quality

of their equipments.

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0%

10%

20%

30%

40%

50%

60%

Siemens Philips GE

54%

25% 21%

PRICING

PRICING

Analysis and interpretation:

Price is the one element of the marketing mix that produces revenue; the other

elements produce costs. Prices are perhaps the easiest element of the marketing

program to adjust, products features, channels and even communication takes more

time. A well designed and marketed product can command price premium and reap

big profits. Price of the equipments manufactured by Siemens is higher than that of

the imaging equipments manufactured by GE and Philips and this can be seen from

the above mentioned graph which shows that about 54% of respondents rated that

price of the imaging and diagnostic equipments manufactured by Siemens higher

than the price offered by GE and Philips. The higher prices of the Siemens‟ imaging

equipments can be linked to the quality of the products which they are

manufacturing, and thus company is charging higher price than any other brand.

This thing in marketing terms refers to as Price-Quality Inferences, where price is an

indicator of quality.

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Analysis and interpretation:

Durability refers to the quality of equipment, or goods of continuing to be useful after

an extended period of time and usage. We can also say that it is the assurance or

probability that an equipment, machine or material will have a relatively long

continuous useful life without requiring an inordinate degree of maintenance.

From the graph, the equipments manufactured by Siemens are highly durable,

means they are long-lasting. 57% of the respondents rated that Siemens‟

equipments are long lasting and can be used for an extended period of time. 28% of

the people rated that GE‟s equipments are highly durable and 15% rated that Philips

equipments are highly durable. But still they are far behind the durability offered by

the Siemens‟ equipments.

0%

10%

20%

30%

40%

50%

60%

Siemens Philips GE

57%

15%

28%

DURABILITY

DURABILITY

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0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Siemens Philips GE

46%

15%

39%

AFTER SALES SUPPORT

AFTER SALES SUPPORT

Analysis and interpretation:

Periodic or as- required maintenance or repair of equipment by its manufacturer or

supplier, during and after a warranty period is very important. Siemens provides a

well defined AMC(Annual Maintainance Contract) policies that enables it to serve its

customers in a better way. Zrom the data collected from various centres, 46% of the

people are well satisfied by the after sales service provided by Siemens, 36% of the

people are satisfied by the after sales support of the GE and only 15% are satisfied

by the services provided by Philips. Thus, Siemens is leading in the after sale

service offer to their customers than any other brand.

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Analysis and interpretation:

Sales promotion is any initiative undertaken by an organization to promote an

increase in sales, usage or trial of a product or service (i.e. initiatives that are not

covered by the other elements of the marketing communications or promotions mix).

Sales promotions are varied. Sales promotion is one of the characteristics of the

marketing communication mix. Sales promotion tools offer three distinctive benefits:

Communication- they gain attention and may lead the consumer to the

product.

Incentives- they incorporate some concession, inducement, or contribution

that gives value to the consumer.

Invitation- they include a distinct invitation to engage in the transaction

now.

52% of respondents rated that sales promotion activities done by the GE is higher

than any other brand. Here only 18% of respondents rated that sales promotion of

Siemens is higher, which is quiet low as compare to Philips and GE. Therefore this is

the only area where Siemens needs to improve as this can help Siemens to increase

its market share for various products.

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FINDINGS & CONCLUSION

The various findings have been quite illustrated in the graphs drawn. All these

findings have opened a very interesting scenario. There were some interesting

findings.

Siemens has a big market coverage in MRI and CT SCANNER capturing

55% and 61% of the market respectively. While the market coverage in X-

Ray division is 39% that of the ULTRASOUND segment is about 15%.

Siemens holds 35% market coverage in comparison to its competitors

when all the equipments are taken together.

On a whole, around 45% of the imaging equipments are in use from the

past 7 or more years.

The Respondents eye SIEMENS as a leader when it comes to Brand

Name, Image Quality, Customer Satisfaction Services and Durability of the

Imaging and Diagnostic equipments. However, the respondents feel that

SIEMENS lag Sales Promotions in comparison with its chief competitor

GE.

Respondents rate SIEMENS as the most valued brand in the Healthcare

Sector.

List of Potential Buyers :

List of hospitals New- Buying Upgradabiity

DCA- Shanti Mukund,Vikas marg X-ray and Ultrasound Machine

City Hospital, Pusa Road CT scanner

Sanjida Hospital,Bahadur Garh Road Ultrasound and Cardiac Monitor

Guru Tegh Bahadur Hospital MRI

Orbit-Imaging, Pusa Road Ultrasound and CT scanner MRI

Mool Chand, Lajpat Nagar-III CT scanner

Fortis hospital, Okhla X-ray Machine

Max Health Care, Saket Cathlab and MRI 3T

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Conclusion:

We can conclude that the strategies adopted by Siemens in the past to satisfy

customer requirements are warmly acknowledged by the end-users. The Siemens

stands firm in the competition with its rivals. With its vast product line, Siemens has

been successful in countering the moves played by its competitors. Siemens must

intensify the Sales Promotion activities in view of providing the boost to the sales

activities and to defend what it has earned since its intervention in the healthcare

sector. With its Customer oriented holistic approach, it‟s truly been where it should

be seen by its customers – A LEADER.

Limitations and Scope for Future Study :

No study is free from the limitations, so does mine. There are many limitations that

were encountered during the course of study and research process.

The limitation of the study is that only respondents and customers from Delhi city of

Delhi NCR have been taken into account. The data provided by the respondents

could be inaccurate because of the level of knowledge exhibited by them. Majority of

the respondants are the people who are the end-users of the equipments and their

responses may differ from that of the hospital administration or diagnostic centre

owners.

However the study has provided encouraging results and there is scope for deriving

more information if a more rigorous study is conducted with an increased sample

size to cover the entire region.

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BIBLIOGRAPHY

List of Websites:-

www.siemens.com/entry/in/en

www.medical.siemens.com

www.gehealthcare.com

www.healthcare.philips.com/in_en

www.pwc.com/healthcare

www.google.com

www.wikipedia.com

www.intranet.siemens.com

www.gken.org/Docs/India_healthcare_19feb.pdf

www.salisonline.org/market-research/global-medical-image-processing-

market-2010-2014

www.expresshealthcare.in/201011/market07.shtml

www.medicexchange.com/Ultrasound/report-on-india-ultrasound-systems-

market.html

Books & Reports :-

Zikmund, William G., Exploring Marketing Research; Thomson

Kothari, C.R 2004, Research Methodology : Methods & Research; New Age

Publications

Siemens Ltd. Annual Report 2010

EHS Report 2010

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ANNEXTURE

QUESTIONNAIRE

Name of the hospital/

centre

Address

Name

Designation

E-mail

Telephone

Mobile

Q1. What type of centre do you work at? Check all that apply :

Government hospital

Private hospital

Diagnostic centre

Nursing home

Charitable hospital

Any other (please

specify)

Q2. Does your hospital have a formal policy or procedure for equipment

procurement?

Yes [ ] No [ ] Don‟t know [ ]

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Q3. Who helps decide which equipment the hospital procures? Who most often

leads the team that decides? Check all that apply :

Hospital administrator [ ]

Doctor /other equipment user [ ]

Medical equipment maintenance department manager. [ ]

Any other (please specify) [ ]

Q4. From where do you get your spare parts? Check all that apply.

Scavenge from obsolete equipment [ ]

Order from manufacture or vendor [ ]

Make from locally available supplies [ ]

Others (please specify)

Q5. What type of medical imaging equipments do you have in your hospital/centre?

CT [ ] MRI [ ] Ultrasound [ ] X-Ray [ ] All [ ]

Q6. Which brand of imaging equipments are you using?

MRI Ultrasound CT X-Ray

Siemens

GE

Philips

Other

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Q7. Since how long are you using the current imaging equipment(s)?

<1 Years 1-3 Years 3-5 Years 5-7 Years >7 Years

MRI

CT

Ultrasound

X-ray

Q8. What are your preferences or priorities when buying medical imaging

equipment? (Kindly rate from 1-5 points with 1 being the least priority and 5 being

the highest priority)

1 2 3 4 5

Image Quality

Brand name

Price

Ease of operation

After sale services

Durability

Q9 Are you planning to buy any new imaging equipment or looking for any kind of

upgradability?

Yes [ ] No [ ]

If yes, then please specify: MRI [ ] Ultrasound [ ] CT [ ] X-Ray[ ] All [ ]

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Q.10. In how much time are you planning to buy the new imaging equipment?

<1 month [ ] 1-3 months [ ] 3-6 months [ ] within an year [ ]

Q11. Kindly Rate the health care equipment manufactured by different brands on

different parameters by considering the following criteria :

[1]- LOW [2] – AVERAGE [3] – HIGH

Company

Parameter

Brand

Name

Image

Quality

Pricing

Durability

After

sales

Sales

Promotion

Siemens

Philips

GE

Signature: ______________________