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Emerson shapes the company's future by strengthening industrial software capabilities

 Last Update: 2021-06-09
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[ Star Enterprise of Chemical Machinery and Equipment Network ] In recent years, Emerson has rapidly expanded its industrial software capabilities through a series of acquisition strategies, diversified its business, and provided users with a wider range of services.

Chemical machinery and equipment network star enterprise chemical machinery and equipment

Let us use this high-level interview to understand how Emerson has strengthened its industrial software capabilities to provide users with better services.

Focus on industrial software

Emerson (NYSE: EMR) was founded in 1890.
With its manufacturing technology and engineering strength, it has built a brand image of industrial automation for many years, which is still the core of its annual revenue of $16.
8 billion.
However, its ambitions for the development of diversified businesses and software businesses outside the oil and gas industry have enabled Emerson to quietly realize its transformation.

Although Emerson's hardware equipment is well-known in the field of industrial automation, software has also become an important part of the company's control system business in recent years, which is one of Emerson's automation solutions business.
So does the software product portfolio continue to grow in the company's other business areas?

"The answer is yes.
" Lal Karsanbhai, executive president of Emerson Automation Solutions' global business, replied: "The annual revenue of independent software launched by Emerson has exceeded US$500 million in fiscal year 2020.
"

This is an eye-opening number.
Five months after the start of the new fiscal year, this number has more than doubled through another major acquisition.

　　Emerson is a multinational industrial group with a diversified product portfolio.
However, software, especially independent software products, is becoming the core of the company’s software business, and it has already developed some very good and large-scale software businesses, and has gained popularity among industrial users.
Word of mouth.

　　Strategic shift

　　In fiscal year 2019, Emerson's entire software business drove nearly $2.
4 billion in revenue, accounting for approximately 13% of its total revenue.

　　But how can these numbers be broken down to show that Emerson has quietly transformed into an industrial software power cadre?

　　Emerson gave this answer.
For decades, Emerson has been providing factory equipment and process control systems for manufacturing companies.
With the advancement of technology, Emerson's equipment and systems began to integrate software components.
Karsanbhai said: "Over time, our equipment will become more and more intelligent.
"

　　Emerson's embedded software products-such as DeltaV and Ovation automation and control systems-have sales of approximately $1.
3 billion.
The fastest-growing business is standalone software-products that are developed in-house and sold separately, rather than being embedded in equipment and systems for supply.
The sales of independent software increased to 1.
1 billion U.
S.
dollars last year, mainly from strategic mergers and acquisitions and internally developed software technologies that help customers obtain and analyze data to improve operations.

　　Since 2016, Emerson has made a series of acquisitions in the field of data management, enhancing its capabilities in the fields of factory analysis, simulation software, cloud technology, and data collection.

　　Nyquist, President of Emerson Systems and Software Business, said: "In the past six years, acquisitions have accelerated the pace of the software strategy to achieve growth.
From operating a business to an investment model, we have adopted a more strategic and enterprising approach.
Build our software portfolio.
"

　　Through the acquisition of the software company Open Systems International, which is a supplier of power grid automation software for utility companies, Emerson now has about 1,000 software developers, Nyquist said, this number is more than twice the number five years ago.
These employees play a vital role in Emerson's development of its own software products, such as personnel positioning technology, which allows the factory to know the location of the workers in the factory, thereby ensuring the safety of personnel and assets.

　　Emerson's software development is at what Emerson calls an "inflection point" in the industry.
Customers are applying more digital technologies to their operations and seeking new technologies to achieve growth.

　　In 2019, Emerson established a new "Digital Transformation" business unit, aimed at meeting customers' needs for digital transformation and assisting manufacturing companies in the development and implementation of digital technologies and procedures.
"It is software that ultimately improves productivity and safety," Karsanbahi said.

　　The road to digital transformation in the future

　　Regarding the issue of future development, Emerson stated that it will continue to increase its investment in software.
This important strategy is not only affected by customer needs, but also Emerson's need to achieve long-term self-development.

　　Karsanbhai said: "We are deeply involved in the oil and gas industry, but as a manager of the company, my idea is to integrate digital business into different markets.
Software is an important part of our future.
The digital evolution we see today is not Not a home run, but a bunch of shorts, singles and doubles.
This form determines the way customers invest in the journey of digital transformation.
A software order can provide customers with an opportunity to get started in digital transformation and also provide customers with It’s an opportunity to get a quick return on investment.
"

　　Original title: Emerson quietly transforms-by strengthening industrial software capabilities, shaping the company's future

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