Bosch has been systematically preparing for the connected world for years
Bosch is integrating its expertise in objects and software
Products and services are now combined in a unified concept
Connectivity is giving rise to new business models
Connected industry is increasing competitiveness
Stuttgart – The internet of things (IoT) offers massive potential for connecting objects and sensors with each other in order to provide beneficial solutions for connected living. Over the past few years, the technologies necessary for this have been invented, refined, and then made much more affordable through mass production. These include inexpensive web-enabled sensors and almost ubiquitous (mobile) networks – allowing data to be transmitted by smartphones and tablets – as well as connected machines, fast computers, and IT.
Bosch and the internet of things The Bosch Group’s strategic aim is to supply innovations for connected living. For several years, the company has been systematically preparing for the connected world, for instance by expanding its in-house software expertise. Moreover, Bosch is the leading provider of MEMS (microelectromechanical systems) sensors, a crucial technology for the internet of things. As we move toward the connected world, Bosch is linking its expertise in the world of things to its expertise in the world of software. The technology and services company is working on solutions for connected mobility, connected production, connected energy systems, and connected buildings. Bosch is developing not just products but also new business models, such as connected fleet management or predictive maintenance.
Even the stove is online Bosch is already connecting cars to the internet, allowing domestic heating systems to be managed using an app, and automatically integrating its suppliers into the supply chain for manufacturing diesel injectors. The company has even connected electric stoves and other household appliances to the internet. Bosch started systematically preparing itself for the connected world early on when it set up its own in-house software and systems unit, Bosch Software Innovations. With some 550 associates, the subsidiary designs, develops, and operates innovative software and system solutions for the internet of things, including its IoT Suite. Its work focuses on mobility, energy, manufacturing industry, and buildings.
Bosch IoT Suite The Bosch IoT Suite provides the technological basis for many applications in the internet of things, supplying all functions necessary for bringing together devices, users, companies, and partners on one IoT platform. It can also analyze enormous amounts of data. As sensors and devices become increasingly connected, such as in security cameras, vehicles, and machines in factories, IoT applications are starting to produce huge data volumes. This data could be the millions of braking operations in a car or information from manufacturing facilities. Findings from analyzing this data could give rise to new services, such as for designing a more efficient approach to product maintenance. One possibility is to schedule maintenance for manufacturing facilities in advance.
Software is the decisive level The internet of things builds up a software level on top of every object, usually a product. For example, sensors collect information on the condition of object. That could be where the object is located in the room, its temperature, ambient humidity, sounds, vibrations, and much more. A tiny radio module relays that information over the internet so that software can process and analyze the data. What’s more, the software can spot patterns in the collected data, calculate the appropriate actions to take on the basis of those patterns, and carry them out automatically. All of this takes place based on rules that are set out in the software. This makes it possible to, for example, recognize machine failure before it happens or optimize energy consumption in near real time. Other applications where the interaction of things and software contains rich potential include connected industry or the smart home.
Products and services combined to form a unified concept Many of the connected solutions that already exist make it clear that the spotlight is no longer necessarily on a single product, but rather on a combination of product and service. Using web-based platforms, companies can partner with other companies to create complementary or new offerings with great advantages for the customer. Market players and sectors that have thus far not had business relationships will become connected and can cooperate in new ways. One example is electromobility, which brings together car drivers, e-mobility providers, charge spot operators, power companies, fleet operators, and vehicle manufacturers into a network.
New business models and opportunities for boosting competitiveness For many sectors and industries, increasing connectivity in all areas of life offers potential for new business models. At the same time, however, it can cause shifts and disruptions in existing competitive landscapes. For example, new providers can take over the lucrative service and maintenance business from mechanical engineering companies. In Germany, a high-wage location, connectivity offers an opportunity to maintain or even increase competitiveness. This applies especially to connected industry.
Micromechanical sensors are a key technology for the internet of things
Every second smartphone worldwide features Bosch sensors
Myriad possible applications in cars, smartphones, game consoles, and the smart home
Equipped with delicate structures much finer than a human hair, sensors detect the world around them. They transmit the information they collect over the internet in an energy-efficient way, making them a key technology for the connected world.
Stuttgart – MEMS sensors (microelectric mechanical systems) are an essential element of the connected world. Just a few millimeters in size, they contain delicate microscopic structures made of silicon. The sensors use these structures to measure acceleration, air pressure, the geomagnetic field, sound, yaw rate, temperature, humidity, and air quality. Objects without their own electronics, such as doors or windows, can be equipped with a tiny, energy-efficient radio interface and a small battery so they can register their environment and become part of the internet of things. Bosch is the world leader in MEMS sensors and has manufactured five billion of them since launching production 20 years ago.
Sensors enable smartphones to feel MEMS sensors are the eyes and ears of many mobile devices. They help smartphones or tablets to recognize their location in space, meaning how they are being held and how they should rotate the view on the display for the user. Tiny MEMS microphones record sound and speech. The sensors also find application in notebooks, smart watches, game consoles, and sports watches. Machines can be fitted with sensors as well. These register information on the machines’ operating condition and can identify changes and deviations that might indicate problems. This information can be sent anywhere in the world over the internet. Sensors, batteries, and transmitters can now be combined in single units that are so small, energy-efficient, and inexpensive that they can be put to work in their billions. At the same time, data networks are accessible from almost everywhere.
World premiere: environment sensor measures air pressure, moisture, temperature, and air quality At the CES 2015, Bosch presented the world’s first MEMS sensor that measures air pressure, moisture, ambient temperature, and air quality. All of its functions are contained in a single housing that measures just 3x3 millimeters. This opens up many new functions for mobile devices or other objects; for example, measuring the air quality in a room, or having a personalized weather station on your smartphone that automatically adjusts the heating or air conditioning at your house. For indoor navigation, such sensors can send information to the floor that the device is located on, helping users find a particular store in a shopping center more quickly. The sensors are also used in fitness trackers, a popular way to measure how many steps users take or how many stairs they climb each day.
Sensor technology for safe and secure transport Individual products aren’t the only things that can be connected via sensors and enhanced through additional services. Sensors can also help optimize business processes, such as logistics. They can determine how many spare parts are on hand and report the information over the internet to a server. This makes it possible to trigger and process resupply orders automatically. Meanwhile, acceleration sensors affixed to delicate machinery help ensure that the devices are not exposed to any vibrations during transport. In addition, if a crate fitted with such a sensor falls to the ground, the sensor can send an alert by e-mail so that the goods can be examined for possible damage.
Osgood Industries, Florida, develops, manufactures and distributes fill- and seal equipment for pre-formed containers in liquid food industry
US-based company fosters strategic growth in key market segment and enables additional regional growth in North America and other regions
Planned acquisition is latest of several targeted moves of Bosch to strengthen process and packaging technology portfolio
Farmington Hills, Michigan / Waiblingen – Bosch Packaging Technology, a leading supplier of process and packaging technology, plans to acquire Osgood Industries, Inc., based in Oldsmar, Florida. Agreements to this effect were signed on February 6, 2015. Bosch thereby intends to further strengthen its engagement in the liquid food industry in North America and additional markets. With sales of approximately 26 million USD in 2014, Osgood Industries employs about 150 associates. The transaction is pending the successful completion of all necessary antitrust approvals. The purchase price was not disclosed.
Well-known worldwide in packaging industry Osgood Industries is well-known in the packaging industry for its expertise in developing, manufacturing and servicing complete rotary and linear machinery lines. They accurately fill pre-formed containers with products which require clean or ultraclean hygienic standards. This comprises both standardized and customized applications. The types of foods typically packaged in this classification include ice cream, yogurt, dessert, salad and cheese, among others. The acquisition will involve a comprehensive service portfolio of maintenance, spare parts, customer engineering, rebuilds and retrofits of existing equipment.
Important step in PA 2020 strategy “With Osgood Industries, we are further adding to our strategic activities in the area of liquid food,” said Friedbert Klefenz, president of Bosch Packaging Technology. “This is an important step for us on our journey to fulfilling our PA 2020 strategy, so we are eager to complete this transaction. The experience of the Osgood team, their dedication to customer satisfaction and their expertise in this growing segment make this a much-valued addition to the Bosch team.”
Global sales channels help growing in liquid food market Martin J. Mueller, president of Osgood Industries: “For almost four decades Osgood Industries has taken pride in developing the highest-quality products for our customers. As a family-owned and operated business, we look forward to joining Bosch, with its worldwide sales channels and rich heritage. Bosch has demonstrated its commitment to growing in this market and we are proud to be part of that growth.”
Bosch and Osgood Industries have an already established business relationship. Osgood Industries is a North American sales agent for Bosch Packaging Technology, representing Bosch’s portfolio of thermoforming, fill- and seal-technology. The planned acquisition of Osgood Industries follows two major strategic acquisitions Bosch has recently made:
In August 2013, Bosch acquired Tecsor Machines et Systèmes S.A.S., based in Meyreuil near Marseille, which develops and sells machinery for making and filling polyethylene (PET) containers for liquid and paste-like foodstuffs.
In October 2012, Bosch acquired Ampack in Königsbrunn, Germany. Its portfolio includes filling machinery for cups and bottles. This machinery is mainly used to fill and package highly sensitive foodstuffs such as dairy products, baby food, and hospital food.
Contact person in the US: Linda Beckmeyer phone: +1 248 876-2046
Having established a regional presence in 1906 in North America, the Bosch Group employs some 25,000 associates in more than 100 locations. In 2014, Bosch generated consolidated sales of $11.3 billion in the U.S., Canada, and Mexico according to preliminary figures.
Based in Waiblingen near Stuttgart, Germany, and employing 5,600 associates (2013), the Bosch Packaging Technology division is one of the leading suppliers of process and packaging technology. At over 30 locations in more than 15 countries worldwide, a highly-qualified workforce develops and produces complete solutions for the pharmaceuticals, food, and confectionery industries. These solutions are complemented by a comprehensive after-sales service portfolio. A global service and sales network provides customers with local points of contact.
The Bosch Group is a leading global supplier of technology and services. According to preliminary figures, its roughly 290,000 associates generated sales of 48.9 billion euros in 2014. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its more than 360 subsidiaries and regional companies in some 50 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth. In 2014, Bosch applied for some 4,600 patents worldwide. The Bosch Group’s strategic goal is to deliver innovations for connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life”.
Bosch CEO Denner: “Our innovation strategy is paying off, our competitiveness and market position have improved further”
Sales up more than forecast, by 6.2 percent to 48.9 billion euros
Sales margin up by nearly one percentage point to 6.1 percent
Mobility Solutions business sector grows more than twice as fast as the automotive market
Full acquisitions of ZFLS and BSH strategically complement portfolio
Stuttgart – According to preliminary figures, the Bosch Group increased its sales by 6.2 percent in 2014, to 48.9 billion euros. After adjusting for exchange-rate effects, sales growth was 7.2 percent. Sales results were negatively impacted by exchange-rate effects to the tune of nearly 500 million euros. The supplier of technology and services also improved its earnings situation in 2014. According to preliminary figures, Bosch Group earnings before interest and taxes (EBIT) came to nearly three billion euros, with an EBIT margin of roughly 6.1 percent. This is roughly one percentage point better than the value for 2013, adjusted for one-off and extraordinary effects. “Despite difficult economic conditions, we managed to meet our business targets for 2014,” said Dr. Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. “Our innovation strategy is paying off. Our business success over the past year is proof of this. In 2014 we further improved our market position and competitiveness in many areas.” In addition, the acquisition of BSH Hausgeräte GmbH and the planned full acquisition of ZF Lenksysteme GmbH will enable Bosch to strengthen its position in the two growth areas of smart homes and automated driving.
Business development in 2014 by business sector According to preliminary figures, the Mobility Solutions – formerly Automotive Technology – business sector achieved significant sales growth in 2014. With its comprehensive portfolio of components, systems, and services, this Bosch sector was able to grow more than twice as fast as the automotive market. The major drivers of this growth were gasoline direct injection systems and high-pressure diesel injection systems, along with display instruments and infotainment systems. Energy and Building Technology sales in 2014 were roughly on a par with the previous year. Demand developed particularly well for communications systems and web-based video systems. In Consumer Goods, Bosch enjoyed a successful 2014 with power tools for professionals and measurement tools. The Industrial Technology business sector’s Drive and Control Technology division was greatly affected by weakness in the mechanical engineering sector in important regions in 2014. Despite higher demand for packaging machinery produced by the Packaging Technology division, the business sector’s overall sales were lower than in 2013. After adjusting the 2013 sales figures for consolidation effects, the latest figures are slightly higher.
Business development in 2014 by region According to preliminary figures, the Bosch Group achieved sales growth of some 17 percent in Asia Pacific. After adjusting for exchange-rate effects, growth there was roughly 20 percent. In North America, sales were some 8.6 percent higher year on year. After adjusting for exchange-rate effects, sales growth was almost in double digits. In South America, sales were down slightly year on year after adjusting for exchange-rate effects. In nominal terms, sales were more than ten percent lower than in 2013. In Europe, the sales of the supplier of technology and services grew by some two percent in spite of the economic difficulties the region is experiencing.
Recruitment in central and eastern Europe and in Asia Worldwide, the Bosch Group’s workforce totaled some 290,000 associates on December 31, 2014. That is some 9,100 more people than in the previous year. Most of this recruitment took place in central and eastern Europe and in Asia.
2015 – global economic growth expected to be low According to its latest forecasts, Bosch is expecting economic growth in 2015 to be moderate. Current forecasts project global economic growth of 2.7 percent. Despite these conditions, the Bosch Group is expecting 2015 to deliver further sales growth and further improvements in result and margin.
Seizing business opportunities and finding technological answers In the years to come, the Bosch Group is aiming to seize the business opportunities that will present themselves through developments in the areas of connectivity, automation, electrification, and energy efficiency, as well as through the increasing importance of emerging markets. “We want to play an active part in shaping the wide-reaching and profound changes to our market and technological environment, and we want to prepare for a connected world,” Denner said. This is particularly true of the Automotive Technology business sector, which Bosch renamed Mobility Solutions at the beginning of the year. Denner went on: “We see ourselves as a supplier of solutions for the mobility of the future, which will be automated, connected, and electrified. That includes components, systems, and software solutions as well as services.”
Car, train, or bicycle – in the future, it will all be simply combined “Bosch possesses extensive expertise in mobility’s key fields – automation, connectivity, and electrification. Combined with our systems integration competence, this means we are better positioned than almost any other company to develop innovative mobility solutions for our customers,” Denner said. These solutions include software-based business models and services such as fleet management. Together with partners, Bosch already has test fleets on Germany’s roads. Status updates broadcast by the vehicles are analyzed and prepared to customer specifications. This allows customers such as leasing companies or insurers to plan maintenance and repairs more efficiently and increase the availability of vehicles.
Other new business models include mobility concepts that allow users to choose the right mode of transportation for a given situation. For example, they will be able to combine car sharing with public transportation and a taxi. “In the smart cities of tomorrow, it will be possible to offer intermodal mobility concepts alongside other services,” Denner said. Bosch and its partners in the “Stuttgart Services” project are for example setting up a single system through which to access mobility applications and municipal services such as libraries.
The Asian growth region – growth with local developments In developing its innovative solutions, Bosch still places great importance on local development expertise in emerging markets. “In 2015, too, innovations will be major drivers of our sales growth. Local developments for each market are especially important,” said Denner, who is also responsible for research and advance engineering on the Bosch board of management. In 2014, Bosch opened a second research and development center for mobility solutions in Vietnam. In India, the company has opened a research and technology center. The new center’s focus is on connected technologies for the internet of things.
Single European digital market as condition for successful innovations Bosch’s CEO sees connectivity over the internet as a major driver of technological development. Denner stressed that connectivity offers numerous opportunities not only for the Bosch Group but also for Germany and for the whole of Europe. However, for connectivity to become a business success in Europe, he feels that the establishment of a single digital market is essential. “The fact that the European economic area is fragmented by various sets of rules for data and consumer protection prevents European companies from enjoying the levels of success of their competitors in the United States or in China,” Denner said. He pointed out that while the United States offers a huge single market for business ideas emerging from Silicon Valley, the way data protection is dealt with in Europe means there are still 28 separate markets instead of just one. He thus called for Europe’s General Data Protection Regulation to be finalized as quickly as possible. “Once all market participants are bound by a single, binding legal framework for data protection, companies and consumers alike will enjoy legal protection and legal certainty.” Moreover, Denner went on, there is a need to press on with systematic efforts to build extensive, powerful, and reliable broadband networks.