Siemens Case Study
1.) What are the key elements of Siemens' key account management program?
In 2010, Siemens further developed a strong systematic approach based on the best experiences from the previous programs and developed a general Key Account Management framework, that each sector adapted to its markets and its needs.
Siemens’ corporate key account management program had a top-down structure. The Sales Board (made of four sector CEOs) decides which vertical markets the firm should focus on, how to adapt the KAM program to the specific market needs and appoints and oversees the Market Development Boards. The MDB meets regularly to discuss where to grow in their market, establish new accounts, and set the strategy of …show more content…
The key account management program provided three levels of accounts:
- Regional o The regional account managers (RAM) dealt with national accounts. o They have a deep knowledge of the customer, the country and Siemens’ portfolio, but they might not know how to do a global framework agreement. o These managers reported into the local country organizations where the customer had most of its business.
- Global o The global account managers (GAM) were specialized on a specific product portfolio and not on a customer or geography. o They have a very focused view regarding the portfolio but talk different languages, and know different cultures o They reported to their respective business unit’s CEO
- Corporate o The corporate account managers (CAMs) covered the entire spectrum of Siemens’ portfolio across the different sectors, business units, and geographies. o They get the full picture and are trained on multiple cultures, languages, the full portfolio and on how to drive global teams. o The CAMs were placed where the headquarters of the customer …show more content…
o The CAM sometimes also actively suggested leads to the customer. o A few CAMs also regularly organized strategy meetings at senior levels between Siemens’ and the customers’ R&D departments to develop new leads. Some also managed to start up partnerships with the customer. o The role of the CAM was not only to identify the leads, but also to help the business units identify the right contact inside the customer’s organization on all levels.
- Opportunity Management o The CAMs have to identify what Siemens can provide to their customers.. Sometimes it was the CAM who advised the business units on how to shape the deal. o Part of the CAM’s role was to coordinate across the different business units and set up the project’s organization.
- Bid Preparation o The CAM has an advisory role and will coordinate activities between and the customer. They can also be asked to follow negotiations in complex projects.
- Contract Negotiation o The CAMs participates in the meetings. They can also explain to commercial people the importance of the customer and why they have to take over additional