Siemens takes a vertical market approach, to target four markets

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Monday, April 1, 2002

GAITHERSBURG, Md.-To better serve its customers, Siemens Building Technologies has recently taken a vertical marketing approach, identifying four different target markets in the security arena.

The approach is a new concept for the systems integration company. Even though it provided security services in the four markets it identified - communications, transportation, the public sector and chemical and utilities - Siemens had not made a concerted effort to leverage experience in some of those markets.

"Before security was being handled as a complementary product for the building automation people and life safety people," said Jim Hunter, director of business development for Siemens Building Technologies. "Siemens made a determination it would become more of a player in the security marketplace and instead of it being a complementary product, they wanted to make it a core competency by segmenting the security piece."

The benefit, said John Szczygiel, vice president of sales and marketing for Siemens, is that Siemens is able to become more of an expert in a particular field. The systems integrator will be able to understand a customer's unique security needs, concerns and how they do business.

"It's valuable to do business with somebody who understands your business," said Szczygiel. "And, we can tailor our solutions to fit those market segments better."

Each identified vertical market is headed by a separate national sales manager, with each reporting to Hunter.

Hunter was a former employee of Mosler where the vertical market concept was applied. He said it proved a successful program at Mosler and it is expected to be the same for Siemens.

"We intend to increase our market share within each of those segments and become a recognized leader in each of the market segments, which will equate to increased revenue," said Hunter.

Part of this new focus includes Siemens becoming listed on the General Services Administration Schedule, which denotes preferred vendors and service providers for government agencies. That process is expected to be completed within the next few months.

"What we found really helps our customers is when we have people who know almost as much about their business as they do and can place security solutions for this business," said Szczygiel.