Continuity and innovation – the right mix determines success

30 September 2006, the day of the company’s 60th anniversary, was also the last working day for Anne-Kathrin Deutrich, Spokesperson of the Executive Board of SICK AG. In conversation with SICK insight she reviews how the small Black Forest company became a global player in sensor technology.

SICK insight: What did you think of SICK when you joined it in early 1992?

Anne-Kathrin Deutrich: I came to SICK as the successor to the Commercial Manager during an exciting time. The then Managing Director and later Executive Board member, Volker Reiche, had initiated a new strategic alignment that was intended to create a company with professional internal and external structures from the family business Erwin Sick GmbH. “Improvements everywhere ” was
the aim – particularly regarding greater market share in the core sectors, access to new fields of application, greater closeness to the customer, and being more innovative than the competition.

SICK insight: What measures did SICK take at the time to re-align itself?

Anne-Kathrin Deutrich: We identified the importance of research and development as well as the creation of a market- and customer-focused corporate organisation as long-term factors for success. The budget for R&D was consequently greatly increased. This was not so straightforward during the 1993 recession – but looking back, this step provided the technological basis for SICK’s subsequent success. The PLS safety laser scanner is just one of the many examples worthy of mention. At the same time, we expressed our new type of customer focus in automation, safety, environmental and identification technology. As a result, we were better able to implement customer wishes, and could also better take into account the special aspects of the particular areas of business – with short-term component business here, and long-term project business there. Further key actions were the introduction of comprehensive process controlling, the evaluation of results, the creation of new work processes, and the qualification of our employees.

SICK insight: What significance did international business and the topic of acquisitions have for the development of the company?

Anne-Kathrin Deutrich: Without the internationalisation introduced at the time we would undoubtedly not be a global player in sensor technology now. We are in leading positions in the world markets of Europe, America, and Asia throughout all our fields of business.
Over 70% of Group sales take place abroad. This all started with the founding of the first subsidiaries – initially in Europe, then overseas. We are now represented by over 40 subsidiaries or participations in more than 40 countries. SICK then began making acquisitions in the late 90s. In addition to purchasing brands, we paid particular attention to the sensible rounding out of technologies that would advance our cause in our core areas of business. This, too, has paid dividends – consider, for example, the rotative sensors of SICK STEGMANN, the laser technology of SICK IBEO, the extractive gas analysers of Maihak or the camera expertise of SICK IVP. These successes were possible because we remained true to our long-term thinking, i.e. aiming for substantive returns on investment and not merely quick profits.

SICK insight: You mentioned technology. Technologies also depend on having the right technologists, i.e. employees. What makes SICK interesting for qualified employees?

Anne-Kathrin Deutrich: The improvement of personnel work was one of the most important tools in the re-alignment of SICK, and still is. We rely on the permanent qualification of our employees, while at the same time also require new colleagues who bring new topics and technologies to the company. It ’s easier to find such people nowadays than it was ten years ago. This is partly because of the attractive, modern workplaces that SICK offers – just look at all the new buildings that we have put up in recent years. We can be proud of our modern management culture that encourages employees while also challenging them. Then there is a new quality of life that seems to make the region around Freiburg more attractive to many applicants and their families than some urban centres of population without any real leisure value. Moreover, we undertake projects that support families in the company and in the region, e.g. the youth centre, or afternoon homework assistance for our employees’ children. Finally, SICK as an Aktiengesellschaft (a form of private limited company) has also become an open, well-known company, whose solid and innovative reputation is an important, even decisive, factor for some new employees – and for many customers too, by the way. On looking back, it is apparent that we succeeded in converting a supposed locational disadvantage into an actual locational advantage.

SICK insight: Where do SICK’s future challenges lie, and what is the recipe for success in the future?

Anne-Kathrin Deutrich: The challenges are varied and we are already facing them. Take the example of complete solutions. The trend is clearly away from component business. It will always be necessary, of ourse, but the increasingly complex demands of OEMs and end-customers require intelligent complete solutions consisting of sensors, control technology and services. Thanks to our internal structures, our technological competence, and our worldwide presence, SICK is already very well placed as, for example, the Automotive Sector Management shows. Competition – particularly internationally – will become increasingly harsh. We have observed this, but also see that we can decisively help shape competitive processes by implementing our corporate mission statement “Independence, Innovation, Leadership”. Technological change is taking place in ever-shorter cycles, which means that the importance that we attach to R&D – also in terms of the percentage of profits re-invested – will increase further, especially considering that sensor, control and service technology is becoming increasingly software-dependent. Meeting the challenges with new solutions will thus be an important part of the recipe for future success. Another aspect – of this I am quite sure – is to maintain our technological lead. It will all depend on an appropriate mix of the proven and the innovative.

SICK insight: Ms Deutrich, thank you for this conversation. We wish you all the best for the future!