Best Practices on how to achieve Sustainable Gr owt h with a Family Owned Process Automation Company
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1 Products Solutions Services Best Practices on how to achieve Sustainable Gr owt h with a Family Owned Process Automation Company Canadian-German Success Story July 23th to 25th Slide 1
2 AGENDA Endress+Hauser world wide Overview Strategic approach for countries without an own sales organization Endress+Hauser Canada Overview Key success factors in Canada Best practice take a ways and recommendations for newcomers Questions Slide 2
3 The Endress family and the company In 1953 the company was founded by Georg H. Endress and Ludwig Hauser Owned solely by the Endress family since 1975 Goals of the family Endress+Hauser is aligned to long-term and sustained development Endress+Hauser takes its responsibility towards customers, employees, the environment and community seriously Endress+Hauser will remain an independent, family-owned company The family charter defines the interaction between the family and the company Slide 3
4 Global Facts and Figures International family-owned company and one of the leading suppliers of measuring instruments and automation solutions for the industrial process engineering industry. Consulting and service for our customers world wide CEO: Klaus Endress Financial highlights 2012 (+11,0% to 2011) Net sales 1700,0 Mio. Euro Equity ratio 73,1 % Investments 127,0 Mio. Euro 2013: planned 160,0 Mio. Euro Workforce Slide 4
5 Mission of E+H Instruments International AG E+H I.I. Endress+Hauser Instruments International AG is the Endress+Hauser operative unit in charge for business development in countries without an own sales organization, with representatives or with new Endress+Hauser Sales Centers. Endress+Hauser Instruments International AG develop markets, prepare the foundation of Sales Centers, support and enable them until they are sufficiently developed. Slide 5
6 Business development in emerging markets The mission of Endress+Hauser I.I. is to develop the business and sales organization in a country towards local management and local competences through certain development phases Coaching of local organization increases Pioneer phase The Representative phase The Sales Center phase: from foundation to developed mature SC Slide 6
7 The phases of business development Pioneer phase The sales and market development in a country which is to be developed starts without a local partner, the activity is managed from E+H I.I. AG out of Reinach or out of a Regional Support Centre. In parallel a local partner is to be found, and trained towards a local competency and representation The Representative phase During this phase the local sales partner is to be developed to a competent representation with a strong commitment to Endress+Hauser. M ore and more sales and service activities are taken over from the representative E+H I.I. also supports the representative in structuring its organization and processes in order to penetrate the market. The Sales Center phase After foundation and establishment of a new E+H Sales Center E+H I.I. supports the further business and organization development of the entity. It normally takes a few years until the new E+H Sales Center is sufficiently developed in order to purchase directly from our Product Centers Slide 7
8 E+H I.I. core competencies in a nutshell Intercultural Know-How Effective Cooperation with Representatives Preparation for foundation of new Sales Centers Business and Organization Development Process Implementation Handling of International Direct Business Expertise in Logistics processes throughout the world Center of Competence for Industry Solutions Slide 8
9 Endress+Hauser in Canada Slide 9
10 Endress+Hauser Canada Ltd Endress+Hauser Canada Ltd. begins operations in Burlington, Ontario Up until 1990, Endress+Hauser products were sent to market through a distribution network Slide 11
11 Endress+Hauser Canada Ltd Endress+Hauser Canada Ltd. opens their first branch office in St. Laurent, Quebec Endress+Hauser Canada Ltd. is operating business functions in both official Canadian languages - this is still the site of E+H Canada s Montreal office Slide 12
12 Endress+Hauser Canada Ltd Endress+Hauser Canada Ltd. introduces their DemoBus A bus fully equipped with field instrumentation devices and technologies The DemoBus travels from Newfoundland to British Columbia and everywhere in between to educate end users and trade show visitors Slide 13
13 Endress+Hauser Canada Ltd Endress+Hauser Canada Ltd. moves west and opens the Edmonton, Alberta location - their first branch office in Alberta. Slide 14
14 Endress+Hauser Canada Ltd Endress+Hauser Canada Ltd. celebrates their 10 th anniversary in Canada From a small office in Burlington, Ontario, Endress+Hauser Canada Ltd. grows into a viable national business, and now operates in Alberta, Ontario and Quebec Slide 15
15 Endress+Hauser Canada Ltd Endress+Hauser Canada Ltd. relocates their Edmonton, Alberta office to accommodate the continued growth in W estern Canada This is the present location of the Edmonton office Slide 16
16 Endress+Hauser Canada Ltd Committed to continued growth and presence in Alberta, Endress+Hauser Canada Ltd establishes their first Calgary office Alberta becomes the first province with two offices Slide 17
17 Endress+Hauser Canada Ltd In 2008, Endress+Hauser Canada Ltd. makes a sizeable donation to the British Columbia Institute of Technology ( BCIT) This donation includes a lab for all future students to use as a learning tool for their careers Slide 18
18 Endress+Hauser Canada Ltd M arking the 20 th anniversary in 2010, Endress+Hauser Canada Ltd. continues the controlled growth W e now operate in three provinces, with four offices In 2008, the projects department was created, and brought Endress+Hauser Canada Ltd. solutions to the forefront of growth. In 2010 that growth was gaining international attention Slide 19
19 Canadian Headquarters Burlington, Ontario today Welcome to the Endress+Hauser Canada Ltd. family Slide 20
20 Customer Training Center Slide 21
21 M ilestones in E+H CAN history beside the offices opening 100th employee st million dollar order Created projects group st plant commissioned ( full scope - managed commissioning team) Donated measurement lab to SAIT (Southern Alberta Institute of Technology) Million CAN $ as Endress+Hauser Process Lab Slide 22
22 Key success factors of Endress+Hauser Canada Going with a direct sales force in major markets - being close the customer through local offices Development of the service organization Quality products, people & service Raised market awareness with Demo bus tour Manufacturing in North America Slide 23
23 Best practices and recommendations for newcomers Implementation of local management Ability to support what you sell Understand the local approvals e.g. CSA. CRN etc. Develop products that have the necessary local approvals Understand and be sensitive to the regional differences - industry's, politics, culture, language Understand local market requirements - e.g. -40 C ambient temperature requirement Slide 24
24 Products Solutions Services Thank you very much for your attention Your Questions Please? Slide 25
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