Driving a robust growth agenda in an aligned way is a high priority in today’s volatile and uncertain economic environment. We have therefore developed a growth formula called PIE, which stands for:
- Penetration: Selling more of our existing offering to accessible customers
- Innovation: Creating new offerings and value propositions
- Expansion: Moving into new segments where we are not yet present or that do not yet exist
In the future, all of ABB’s existing and new growth efforts will be driven in line with this formula.
ABB has many strengths, thus a key focus is to build on these for further profitable market penetration. This requires even stronger relationships with customers and the continuous adaptation of our offering to local requirements. In recent months we have analyzed our position in every market and created “penetration heat maps” from which we have defined actions to improve market penetration and accelerate growth.
Technology is one of ABB’s key differentiators, therefore our future depends on having groundbreaking solutions that open up new opportunities for our company. The recent development of the high voltage DC breaker is a good example of an ABB innovation that has created a new growth opportunity. Beyond product innovations, we will also look into innovation of services and processes that create incremental value for customers.
The third part of our growth formula is the expansion of our business into new segments. We will continue to make acquisitions in areas where there are white spots to be filled and where there is value to be realized, but we will increase the focus on growing organically into new segments. This will require the right allocation of capital and resources, and decisions will be based on the attractiveness of the opportunity and our ability to succeed in the new segments.